from Ben Bradley, California Builders Alliance
Federal Update:
Canada Tariffs put pressure on Concrete, Cement Prices - Another tariff announcement from Washington may force general contractors to revise their contract terms. President Donald Trump announced plans to impose a 50% tariff on many Canadian imports beginning Aug. 19. The proposed duties will apply to all covered goods, regardless of whether they originate under the U.S.-Mexico-Canada agreement, according to a July 20 fact sheet from the White House.
The United States declined to renew the United States-Mexico-Canada Agreement (USMCA) - Despite this announcement, the agreement remains fully in force, potentially through 2036, unless a party formally withdraws on six months' notice. Companies should expect near-term continuity, but USMCA will now be subject to annual reviews unless and until the parties agree to extend it
ABC’s Construction Backlog Indicator Slips; Contractors Remain Confident in June - Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator fell to 8.8 months in June, according to an ABC member survey conducted June 22 to July 8. The reading is down 0.3 months from May but up 0.1 months from June 2025.
Iran war energy shock hits the U.S. economy as gas and diesel prices climb - The U.S. economy is more vulnerable than ever to the problems in energy markets caused by the Iran war. The economy has been remarkably resilient, but the buffers that protected Americans from earlier price spikes are wearing thin.
Federal Bill Watch:
- The IIJA’s surface transportation authorizations expire at the end of FY2026. Without a new multi-year bill or a short-term extension, formula funding for highways, bridges, transit, and related programs faces significant uncertainty.
- H.R. 8870 – BUILD America 250 Act
- House Transportation & Infrastructure Committee advanced this bipartisan five-year reauthorization package (~$580 billion for FY2027–2031).
- Emphasizes formula funding and long-term certainty.
- Does not include the large advance appropriations that were a hallmark of the IIJA.
- Status: Committee-approved; floor consideration expected, but timing remains fluid. Senate has not yet released its companion text.
California Update:
Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels - With office values remaining at a historical low, developers see opportunity in conversions previously considered too risky. As such, the financial challenges typical of office-to-multifamily conversions are more approachable.
BLM approves Cadiz water Pipeline - The Bureau of Land Management on Friday, July 10, approved a right-of-way allowing Cadiz Inc. to carry water out of a desert aquifer and into communities across Southern California and possibly Arizona.
Governor Newsom delivers over $100 Million in funding for Housing for Veterans - California is expanding permanent supportive housing through Prop 1-funded Homekey+ investments, helping veterans and Californians who are experiencing or at risk of homelessness access stable housing and behavioral health services.
Governor Newsom signs historic housing affordability reforms - As part of the 2026-27 budget — with ZERO deficit this year and next — Governor Newsom today signed Assembly Bill 179, housing budget trailer bill, modernizing California’s affordable housing finance system to help expand homeownership, reduce costs, support more affordable housing, and strengthen the impact of state housing investments.
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Ben Bradley, Director of Operations
Sacramento Regional Builders Exchange
Mobile: 916.289.1892 | Office: 916.465-8300