Capitol Update 10.17.2025

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from Mark Smith, Advocate, California Builders Alliance

Fed officials split on rate path as job risks rise

New York Fed President John Williams and San Francisco's Mary Daly have signaled support for more rate cuts to cushion a weakening labor market, saying inflation pressures from tariffs remain limited. Fed Governor Michael Barr, however, urged caution, citing persistent inflation risks and uncertainty amid a government data blackout. The divide sets up a contentious debate ahead of the Fed's Oct. 28-29 policy meeting.

Full Story: The Wall Street Journal  Bloomberg  Reuters

 

Data centers, infrastructure prop up construction backlog

Public works and digital infrastructure sustained pipelines as private projects lost momentum over the past year, according to ABC’s backlog report.

Calif. law allows multi-story housing near public transit

A new enacted law in California aims to address the housing crisis by allowing denser residential construction near major transit hubs. The law, effective July 1, 2026, overrides local zoning to permit multifamily buildings up to nine stories within a half-mile of transit stations in urban counties such as Los Angeles, San Francisco and San Diego. The law is expected to increase housing units, boost public transit use and reduce traffic and emissions.

Full Story: Secret Los Angeles (10/15)

 

Commentary: Don't be blindsided by data center risks

Construction companies should approach the data center boom with caution and be prepared if demand vascillates, Engineering News-Record Deputy Editor Richard Korman writes, drawing parallels with past technological revolutions that faced significant setbacks. While AI and data center construction seem poised to reshape industries, the financial risks are substantial, Korman notes, citing heavy borrowing by tech giants and the potential for overbuilding.

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

 

Higher costs, fewer deals ahead for construction

Project starts may not rebound until late 2026, and even then only if interest rates fall and federal spending is renewed, said ABC’s chief economist.

Senate's $925B defense bill includes construction funds

The Senate has passed a $925 billion defense policy bill, which includes $38.5 billion for military construction, surpassing both the House version and the White House's request. The bill allocates $8.5 billion for Army construction, $14.5 billion for Navy and Marine Corps construction, $7.9 billion for Air Force construction and $2.7 billion for Defense Department projects. Additionally, $40.7 billion is set aside for military family housing construction.

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

 

AGC: Ongoing shutdown could disrupt US construction

The Associated General Contractors of America is warning that the US government shutdown could disrupt construction projects nationwide, as federal officials required for project approvals and inspections are likely to be furloughed. "The longer the government is shut, the more likely construction employment around the country could be impacted negatively," AGC CEO Jeffrey Shoaf says.

Full Story: Global Construction Review (UK)

 

Mass timber demand is growing. Ironworkers say they’re ready.

Between the material’s similarities to structural steel and union efforts to prepare the workforce, ironworkers believe that they're primed to deliver.

Trump's tariff on lumber takes effect

The Trump administration has imposed a 25% tariff on upholstered furniture, kitchen cabinets and bathroom vanities, as well as a 10% import tax on softwood timber and lumber, primarily targeting China. The measures come as trade tensions between the US and China escalate, with other countries such as Brazil, Canada, India and Mexico also facing higher US tariffs.

Full Story: MarketWatch (tiered subscription model)

 

Construction Inclusion Week draws record sponsors

Construction Inclusion Week has reached a record 132 sponsors -- a 21% increase from last year, including 23 at the "Visionary" level -- despite a challenging political climate. "Construction Inclusion Week began with a simple but powerful vision -- to make our industry a place where everyone feels they belong and are treated with respect and dignity," said Abrar Sheriff, the 2025 chair and president of Turner Construction.

Full Story: Construction Dive

 

Skanska names new strategy chief, market VP

The move follows Skanska’s expansion of its data center and semiconductor team and will see a new lead overseeing development of the firm’s internal AI tools.

Report: Ill., Wash., N.J. lead in contractor opportunities

Illinois, Washington and New Jersey have emerged as top states for contractors, according to a survey by Eagle Woodworking. The survey shows Illinois offers high wages, with plumbers earning over $93,000, and has more than 5,000 active construction projects. Meanwhile, Washington boasts competitive wages and a robust project pipeline, while New Jersey excels in construction activity and wages. Carpenters are the most in-demand trade in nearly 30 states, although regional demand varies for welders and HVAC technicians.

Full Story: KIRO-TV (Seattle)

 

Swinerton to standardize project management with Autodesk

Swinerton has chosen Autodesk Build as its standard for all building projects, marking a significant step in its digital transformation. The platform will serve as the central hub for noncost project management functions, enhancing efficiency, transparency and collaboration with clients and partners. "This platform assists our teams in providing industry-leading commercial construction, construction management, design-build and self-perform services, communicating more transparently with our clients, and fostering deeper trust across every project," says Kim DeYoung, vice president of digital technology at Swinerton.

Full Story: Design & Make With Autodesk

 

Energy Dept. funding cuts spell trouble for US grid

The Energy Department's recent grant funding cuts include support for five transmission projects that seek to carry power from the Great Plains region into other parts of the US. The cuts involve clawing back a loan guarantee for the Grain Belt Express project and support for a project that aims to connect the Midcontinent Independent System Operator and Southwest Power Pool grids. The cuts are bad news for grid expansion efforts and may make it even more difficult for the US to meet growing power demand from AI data centers.

Full Story: E&E News

 

Cities urged to secure IIJA funds before 2026 expiration

The National League of Cities is urging municipalities to secure funding from the Infrastructure Investment and Jobs Act before it expires in September 2026. The IIJA has made $711.8 billion available for infrastructure projects, and 41% of city leaders prioritize resilience and disaster preparedness. "There's still plenty of opportunity" for cities to apply for IIJA funds, says Carolyn Berndt of the NLC.

Full Story: Construction Dive

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Opinion: US ports show resilience, but more funding

 

US ports have shown resilience and adaptability, earning a "B" grade in the American Society of Civil Engineers' latest infrastructure report card, the highest for any category. The grade reflects the benefits of the Infrastructure Investment and Jobs Act, which nearly doubled funding for the Port Infrastructure Development Program. However, the American Association of Port Authorities notes that the program is oversubscribed, with ports applying for $4.50 for every $1 available. The ASCE estimates that ports will need $38 billion in infrastructure investments through 2033.

Full Story: Construction Dive

 

New checklist aids in contractor safety evaluation

NATE: The Communications Infrastructure Contractors Association has released a checklist to help carriers evaluate the safety practices of communications tower contractors. The checklist covers topics such as written safety programs, the presence of a competent person onsite, the maintenance of safety audits and the ability to provide site-specific safety plans.

Full Story: Safety + Health (

 

Contracts awarded for "Smart Wall" on southern border

The Department of Homeland Security and US Customs and Border Protection have awarded $4.5 billion in contracts for the Smart Wall project along the southern border, which includes steel barriers, waterborne barriers and surveillance technology. Major contractors include BCCG Joint Venture, Fisher Sand & Gravel and Barnard Spencer Joint Venture.

Full Story: The Construction Broadsheet

 

Port of Long Beach receives $20M for Pier Wind project

The Port of Long Beach has secured a $20 million grant from the California Energy Commission to advance the Pier Wind project, a 400-acre terminal for assembling and deploying floating offshore wind turbines. The port will match $11 million to complete engineering, environmental and business planning requirements. The facility aims to generate 25 GW of offshore wind energy by 2045 and create more than 6,000 jobs. Construction could start as soon as 2027.

Full Story: American Journal of Transportation   Press-Telegram (Long Beach, Calif.)

 

L.A. convention center project inches closer to start

Plenary Americas has reached commercial close on the $2.6 billion Los Angeles Convention Center Expansion and Modernization Project. Plenary is the developer, with AEG as co-developer, Populous as the architect, and PCL Construction and Webcor as the construction partners. The project will add 190,000 square feet of exhibit space, 39,000 square feet of meeting rooms and 95,000 square feet of multipurpose space, and is expected to be ready for the 2028 Summer Olympics and completed in 2029.

Full Story: The Construction Broadsheet

 

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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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