Capitol Update 11.07.2025

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from Mark Smith, Advocate, California Builders Alliance

White House ballroom project grows in scale, speed, cost

The White House's East Wing demolition, part of a new $300 million ballroom project, has drawn attention for its unexpected scale but reflects challenges common in historic renovations. Contractors note that unforeseen structural conditions often necessitate scope changes to preserve safety and integrity, making flexibility essential

Full Story: Construction Dive

 

 

Trump's tie of transport funds to immigration blocked

A federal judge has blocked a Trump administration directive that tied transportation funding to state cooperation with immigration enforcement. US District Judge Mary McConnell issued a preliminary injunction after 20 states filed a lawsuit, arguing that the directive was an overreach. "If President Trump wants to stop losing in court, he should stop breaking the law," says California Attorney General Rob Bonta. "The courts have repeatedly and firmly rejected the Trump Administration's efforts to infringe on states' constitutional right to set their own policy priorities."

Full Story: Politico

 

 

Report: Construction pay growth slows amid market uncertainty

Contractors slowed salary growth in 2025 amid market uncertainty, a Baker Tilly report shows. However, wage growth projections for 2026 and increased merit pay and cash incentives suggest expectations for a rise in construction projects and labor demand. The report also highlights the impact of President Donald Trump's immigration policy on the construction workforce, noting a significant drop in net immigration that could affect both labor supply and project demand.

Full Story: Construction Dive

 

 

Turner, OpenAI partner on AI for all employees

Turner Construction has announced a two-year partnership with OpenAI to provide all employees access to ChatGPT Enterprise. The initiative was unveiled at Turner's Innovation Summit in Nashville, Tenn., where employees participated in AI learning sessions and created more than 100 custom AI agents. "We want to make sure that we're getting everybody up on that learning journey, and that they're really leveraging the capabilities of ChatGPT and other tools," says Jim Barrett, Turner's head of global innovation.

Full Story: Construction Dive

 

 

$490M Calif. state building renovation completed

A progressive design-build team of Tuner Construction, Gilbane Building, Cypress Construction Management and architecture firms AC Martin and HGA has completed a comprehensive renovation of the California Labor and Workforce Development Agency's Resources Building in Sacramento. The $490 million project included full demolition to the steel frame, replacement of all major building systems and the addition of new workspaces and amenities, while preserving the building's original aesthetic.

Full Story: The Construction Broadsheet

 

 

Funding gap threatens US clean water projects

The US faces a $780 billion gap in clean water infrastructure funding by 2026, with federal financing covering less than 2% of the need annually, according to an analysis by Engineering News-Record. The gap is driven by inflation, aging infrastructure and climate change. Local governments are bearing the brunt, as funds from the 2021 Infrastructure Investment and Jobs Act dwindle.

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

 

 

Report: Slow rollout hampered IRA, infrastructure investments

Significant challenges in implementing the Inflation Reduction Act, primarily stemming from slow project deployment and conflicting program objectives, have dampened the legislation's impacts, according to a report by former Department of Energy staffers. Efforts to meet diverse goals -- such as decarbonization, onshoring, labor, equity and national security -- created confusion and delayed action. Requirements such as Build America, Buy America and union labor mandates often clashed with the realities of the energy sector, further hindering progress.

Full Story: Utility Dive     Latitude Media

 

 

Fed officials divided on Dec. rate cut outlook

Three Federal Reserve policymakers - Austan Goolsbee, Mary Daly, and Lisa Cook - have expressed uncertainty over whether the Fed will cut rates again in December. Goolsbee said he's more concerned about inflation, which remains above the 2% target, and noted limited data due to the government shutdown. Daly said she'll "keep an open mind," balancing inflation and job risks, while Cook emphasized her concern for employment but stressed that policy isn't on a predetermined path and each meeting remains "live."

Full Story: Yahoo     Index Box      Financial Times

 

 

Trade pressures mount but US growth shows resilience

Trump's latest tariffs have so far had limited visible impact on growth or inflation, though economists caution that higher costs for businesses and consumers could build over time. The strong dollar, near a three-month high, reflects investor confidence in US resilience but also tighter financial conditions. Markets are watching upcoming economic data and Fed signals closely as they weigh the balance between trade protectionism and monetary policy.

Full Story: The Wall Street Journal     Reuters

 

 

Water reuse to drive $47B in US infrastructure investment

Water reuse projects are set to contribute nearly $47.1 billion in US infrastructure spending through 2035, according to Bluefield Research. The surge is fueled by more than 600 planned or developing projects nationwide, with key investments allocated to conveyance pipelines and engineering design. Major growth is concentrated in states like California, Texas, Florida and Colorado, but eastern states are also ramping up efforts to enhance water quality and combat saltwater intrusion.

Full Story: Underground Infrastructure

 

 

Is high-tech safety making workers...less safe?

Construction sites are adopting advanced safety technology, but overengineered systems can pose risks if misunderstood or misapplied, Nathan McKenzie writes. Frequent false alarms can lead to complacency, while outdated safety protocols may not address the complexity of modern sites. McKenzie highlights the importance of situational awareness and simple, effective safety systems that workers can trust.

Full Story: For Construction Pros

 

 

Study highlights ROI of project management software

A study by Dodge Construction Network and Procore Technologies suggests project management software significantly enhances profitability and efficiency for construction owners and contractors. The survey of 1,100 respondents finds that 77% of highly skilled users report increased profit margins and productivity. Even light users see immediate improvements in data quality and collaboration.

Full Story: Dodge Construction Network

 

 

How do we get low-carbon concrete from idea to solution?

The recent ACI Concrete Convention emphasized the transition from theoretical low-carbon concrete concepts to practical implementation through the new ACI 323-24 code, which provides a performance-based framework for tracking and reducing Global Warming Potential in concrete mixes. Presentations detailed how the code can be integrated into real-world specifications by setting reduction targets by project size and allowing localized benchmarks, all while aligning with sustainability updates in ACI 318-25 and broader acceptance of blended cements. Other discussions covered the practical use of portland-limestone cement and the successful global scale of CarbonCure's CO2 mineralization technology.

Full Story: SmartBrief/Infrastructure

 

 

Q&A: How JE Dunn has adapted to industrial market trends

Two executives from JE Dunn Construction say the industrial and manufacturing construction market in Kansas City and the broader Midwest is experiencing a growing demand for integrated delivery and speed to market, especially in sectors like food and beverage, advanced manufacturing and data centers. Owners are increasingly seeking design-build and EPC solutions, with a focus on single-source accountability and risk mitigation amid economic uncertainty. Market volatility, supply chain challenges and a need for cost certainty are prompting clients to delay decisions, but the outlook points to continued investment as infrastructure and workforce capacity support future growth.

Full Story: The Business Journals (tiered subscription model)

 

 

Border agency to get infrastructure upgrades

US Customs and Border Protection is planning a firm-fixed-price, indefinite-delivery/indefinite-quantity contract worth as much as $100 million for design and construction services at sites in California, Texas, Michigan, New York and Washington. Work will include facility construction, renovation, upgrades, repair, maintenance and project management. The contract is expected to be awarded in the third quarter of fiscal 2026, with a performance period of up to five years.

Full Story: GovConWire

 

 

Video shows progress on Las Vegas ballpark

The Las Vegas ballpark for the Athletics is showing significant progress a few months into construction, with concrete pouring ongoing and the lower-level concourse beginning to take shape. The next major permit, expected in November, will cover steel structure and seating work above the main concourse.

Full Story: Las Vegas Review-Journal (tiered subscription model)

 

 

Skanska breaks ground on SFO cargo redevelopment

Skanska has broken ground on a cargo facilities project at San Francisco International Airport, featuring a 95,000-square-foot cargo area, a 25,000-square-foot mezzanine office space and a 17,000-square-foot ground service equipment maintenance facility. The project, slated for completion in early 2028, aims to enhance operational efficiency and safety while aligning with San Francisco's sustainability goals.

Full Story: Construction Briefing

 

 

$597M wastewater plant upgrade finished in San Mateo, Calif.

Sundt Construction, Jacobs and HDR have completed a $597 million upgrade of the wastewater treatment plant in San Mateo, Calif. The project, part of the $1 billion Clean Water Program, replaces a 75-year-old system, addresses sewer overflow and features advanced treatment technologies, including one of the world's largest biological pretreatment systems.

Full Story: Construction Dive

 

 

Single-bore method picked for BART Silicon Valley tunnel

The Santa Clara Valley Transportation Authority has chosen the single-bore tunnel method for the five-mile tunnel portion of the $12.7 billion BART Silicon Valley Phase II project. This decision is expected to reduce costs and minimize disruption in downtown San Jose. The VTA plans to release a request for proposals for a new tunneling contractor in early 2026, with construction starting in 2029.

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

 

 

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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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