Capitol Update 09.19.2025

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from Mark Smith, Advocate, California Builders Alliance

US construction outlook is getting harder to predict

The US construction market faces significant uncertainty due to President Donald Trump's unpredictable policies, including fluctuating tariffs and aggressive immigration enforcement. "No one is sure where we're going," says Richard Steer, chair of Gleeds. "Trump has changed the concept of the tariffs back and forth two or three times since April." The Associated General Contractors of America reports extreme increases in steel and aluminum prices, with tariffs on steel, aluminum and copper reaching 50%. "There is a limit to how many price increases the market can absorb before owners put projects on hold," says AGC CEO Jeffrey Shoaf.

Full Story: Global Construction Review (UK)

 

Contractors see Fed rate cut as step toward recovery

Contractors are cautiously optimistic about the Federal Reserve's recent 25-basis-point interest rate cut, viewing it as a potential catalyst for the construction market. Scott Lyons of DPR Construction and Granger Hassmann of Adolfson & Peterson note that while the cut may help projects on the financial edge, significant market recovery will require a series of cuts. Robert Brown of GCM Contracting Solutions adds that projects with ready capital and advanced planning are likeliest to benefit immediately.

Full Story: Construction Dive

 

Wis. senator pushes for FHWA enforcement of Buy America

Sen. Tammy Baldwin, D-Wis., is pressing Transportation Secretary Sean Duffy to enforce Federal Highway Administration's Buy America rule ending the decades-old manufactured-products waiver, with US final assembly required in 2025 and higher domestic content in 2026. Contractors warn the change will raise costs and slow projects amid supply gaps, aligning with FHWA's estimate of up to $8.5 billion in added costs over 10 years.

Full Story: The Daily Reporter (Milwaukee)

 

‘There is a limit’: Rising materials costs test construction’s breaking point 

Prices for steel, aluminum and other key inputs “rose at an especially rapid pace,” said ABC chief economist.

Dems push back on proposed CR

A continuing resolution proposed by House Republicans would fund agencies through Nov. 21 and include infrastructure “anomalies” like extending the National Flood Insurance Program and the Defense Production Act, speeding FEMA disaster fund drawdowns and continuing federal wildland firefighting authorities and pay. However, it wouldn't add new disaster supplemental and would omit the Interior Department's requested NEPA wildfire-mitigation expansion. With Democrats opposing the measure and the Senate’s Energy-Water bill stalled, certainty for water, energy and disaster-response programs hangs on a last-minute deal, with an Oct. 1 shutdown threatening disruptions.

Full Story: E&E News

 

Trump shifts stance on Korean workers after ICE raid

President Donald Trump has expressed support for foreign companies and their employees after an ICE raid in Georgia resulted in the detention of 317 South Korean workers at a Hyundai Motor and LG Energy Solution electric vehicle battery plant. Trump has praised the expertise of foreign workers in a post on social media, contrasting with his earlier comments on illegal entry. The workers have reportedly had appropriate visas for their work but were released without charges after the raid. "I don't want to frighten off or disincentivize investment into America by outside countries or companies. We welcome them, we welcome their employees, and we are willing to proudly say we will learn from them, and do even better than them at their own 'game,' sometime into the not too distant future!" Trump says.

Full Story: Global Construction Review (UK)

 

Backlog slips as small construction firms lose ground  

Labor issues and material costs cut into project pipelines for contractors with under $30 million in revenue.

Report: Infrastructure investment to reach $106T by 2040

Global infrastructure investment is projected to reach $106 trillion by 2040, driven by population growth, data centers, artificial intelligence, electrification and urbanization, according to a McKinsey report. The report highlights the convergence of traditional and emerging infrastructure types, noting that significant capital will be needed to meet the needs of a rising population.

Full Story: Engineering News-Record (tiered subscription model)

 

FCC to vote on streamlining infrastructure permitting

The FCC will consider proposals to ease permitting for wireless and wireline infrastructure at its September meeting as part of the Build America Agenda. One proposal seeks input on state and local regulations that delay wireless network deployment, while the other focuses on accelerating wireline infrastructure by addressing barriers related to public rights-of-way.

Full Story: Inside Towers

 

Senate confirms new heads at FHWA, NHTSA, PHMSA

The Senate has confirmed three new administrators for key transportation agencies. Sean McMaster will lead the Federal Highway Administration, focusing on infrastructure revitalization; Jonathan Morrison will head the National Highway Traffic Safety Administration, aiming to enhance road safety; and Paul Roberti will manage the Pipeline and Hazardous Materials Safety Administration, ensuring the safe transport of hazardous materials.

Full Story: Traffic Technology International (UK)

 

US industrial firms urged to accelerate reshoring, AI

US industrial and energy companies face a pivotal moment akin to an industrial revolution, but many are not moving fast enough, according to a PwC survey of more than 500 C-suite executives. Key areas of focus include supply chain resilience, modular production and energy independence, and executives see reshoring as crucial, with nine out of 10 saying companies relying on distant suppliers will be "extinct by 2035."

Full Story: Engineering News-Record (tiered subscription model)

 

Construction industry puts money where the mind is

Major construction firms are stepping up their investments to address mental health and suicide prevention. Turner Construction has pledged $5 million over five years through its foundation, launching new mental health benefits and training for employees. Bechtel has committed $7 million in partnership with the American Foundation for Suicide Prevention, establishing the Hard Hat Courage coalition to provide resources and training industry-wide. APi Group has launched the Care Factor Fund with over $1 million in support for employees facing mental health or substance abuse challenges, including significant personal donations from leadership.

Full Story: Engineering News-Record (tiered subscription model)

 

Suicide prevention campaign has far-reaching impact

Hard Hat Courage--launched by the American Foundation for Suicide Prevention with a $7 million kickstart from Bechtel--has reached 188,000 construction workers since May 2025, including 165,000 during Construction Suicide Prevention Week. An industry CEO advisory council featuring Clark, DPR, Kiewit, Skanska and Turner is helping scale stand-downs, trainings and construction-specific resources across more than 1,200 jobsites.

Full Story: Construction Dive

 

As mental health crisis grows, encourage workers to ‘be the helper’  

New CPWR data shows a significant jump in anxiety and depression among construction workers, according to a Sept. 11 webinar.

 

The Big Apple has a big talent void to fill

New York and New Jersey transportation agencies are competing for scarce civil engineering talent, leveraging marquee projects to attract personnel, leaders said during The NYNJ Infrastructure Forum hosted by Engineering News-Record. Amtrak fills most management roles without search firms and the Gateway Development Commission keeps a lean staff through partnerships on the Hudson Tunnel Project. The biggest constraint is the pipeline as graduations in civil engineering decline. Some highly skilled roles cannot be outsourced, prompting outreach from grade school to universities by leaders such as the New York State Department of Transportation. To recruit and retain, agencies are adding rotations, mentoring and professional engineering license support and exposing staff to innovation through initiatives like the New York City Department of Environmental Protection Environmental Tech Lab while improving labor forecasting for safety-critical positions that require multiyear training.

Why design-build is the key to building smart and stronger  

The design-bid-build delivery model has been the backbone of U.S. construction for decades, but today’s more complex projects need a different approach, writes a contractor CEO

Calif. bill would allow denser housing near transit

The California Legislature has passed a bill that would allow multifamily housing near high-capacity transit stops, irrespective of local zoning. The bill, which is awaiting Gov. Gavin Newsom's signature, aims to reduce housing costs and support transit systems by increasing housing supply, and includes affordability standards and incentives for deeper affordability.

Full Story: Construction Dive

 

California pledges $1 billion annually to high-speed rail project through 2045

Tutor Perini unit lands $960M California children’s hospital job  

Subsidiary Rudolph and Sletten will build a seven-floor facility in Oakland for UCSF as well as an adjacent parking structure with a rooftop heliport deck. 

Permitting reform proposed in San Francisco

San Francisco Mayor Daniel Lurie has introduced a legislative package aimed at streamlining the city's permitting process, part of the ongoing PermitSF initiative. The reforms include reduced permitting fees for projects costing $100 million or more and more flexibility for historic buildings and accessory dwelling units. "We are getting rid of the nonsense and focusing on common sense," Lurie says.

Full Story: Construction Dive

 

California lawmakers pass bill to expand manufacturing decarbonization projects  

The bill would make thermal energy storage and industrial heat pumps eligible for financial incentives under various state programs.

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Mark Smith
Advocate
California Builders Alliance

5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: 
mark.smith@calbuilders.org 

Email: mark@smithpolicygroup.com 
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