Capitol Update 1/28/25
US Manufacturing Output Soars In December
Reuters reported that US manufacturing output “surged in December likely as production at Boeing picked up following the end of a crippling strike by factory workers at the aerospace giant.” The Federal Reserve said on Friday that factory output “increased 0.6% last month after an upwardly revised 0.4% rebound in November.” Factory production “was unchanged on a year-on-year basis in December,” while manufacturing “has largely stabilized in recent months after the U.S. central bank started cutting interest rates.”
IMF Upgrades Growth Forecasts For US Economy
The Washington Post reported that the International Monetary Fund on Friday said the US economy “will continue to be the developed world’s best performer in 2025, easily topping Europe and Japan.” The economy “is expected to grow this year at an annual rate of 2.7 percent, half a percentage point faster than the fund projected in October.” Nonetheless, the Wall Street Journal reported that the projections “underscore a potent formula that has powered the U.S. economy through a turbulent global backdrop: a stretch of strong productivity growth, a labor market that has softened but stayed resilient, and a largely effective policy response to rising prices from the Federal Reserve.”
Biden authorizes $9B in projects before end of term
In the final days of the Biden administration, nearly $9 billion in transportation and infrastructure funding was authorized, including a $1.89 billion loan to the Port Authority of New York and New Jersey for the reconstruction of the Midtown Bus Terminal. Other significant allocations include $1.32 billion for infrastructure projects under the Rebuilding American Infrastructure with Sustainability and Equity program, $785 million for rural transportation projects and $635 million for electric vehicle charging infrastructure. Full Story: Construction Dive
Trump wants GSA to preserve classical federal architecture
President Donald Trump has issued an executive order to promote “beautiful federal civic architecture,” directing the General Services Administration to recommend designs that reflect regional, traditional and classical styles. The American Institute of Architects has expressed concern that the order could limit design freedom and local input. Full Story: The Architect’s Newspaper
Trump proposes 25% tariffs on Mexico, Canada by Feb.
US President Donald Trump has announced plans to impose 25% tariffs on Mexico and Canada by February 1, citing concerns over border policies. The move threatens to trigger a trade war among the members of the US-Mexico-Canada Agreement, with both Canada and Mexico vowing retaliation. Full Story: Bloomberg The Washington Post CNBC The New York Times
Trump signs orders affecting energy, immigration
President Donald Trump has signed about 100 executive orders shortly after returning to the White House — significantly impacting the construction industry. Key measures include withdrawing from the Paris climate agreement, boosting oil and gas drilling, revoking the electric vehicle mandate, declaring a national emergency to resume the US-Mexico border wall construction and ending birthright citizenship. Full Story: Construction Briefing
AGC outlines what builders want from Trump
The Associated General Contractors of America has outlined five priorities for President Donald Trump’s second term to support construction growth: Addressing workforce shortages through temporary work visas; avoiding tariffs that could strain the supply chain; accelerating permitting to reduce project delays; broadening participation in federal projects by revoking project labor agreements; and supporting infrastructure investment. Full Story: Construction Dive
Architecture Billings Index drops in December
The AIA/Deltek Architecture Billings Index fell to 44.1 in Dec. after flat readings in Oct. and November. Inquiries for new projects rose slowly, and the value of new design contracts decreased. “There remains considerable uncertainty as to the feasibility of many planned construction projects, so the wait-and-see period is extending into 2025,” says Kermit Baker, chief economist at the American Institute of Architects. Full Story: Archinect
Report suggests continued growth in hotel construction
The US hotel construction pipeline reached record levels at the end of 2024, with 6,378 projects and 746,986 rooms, according to Lodging Econometrics. The early planning stage saw unprecedented activity and brand conversions hit a record high. PricewaterhouseCoopers notes that recent federal rate cuts and lower inflation could further boost construction in 2025 although leisure demand might be tempered by slower consumer spending. Full Story: The Construction Broadsheet
New venture investing up to $500B in AI infrastructure
OpenAI, SoftBank and Oracle have announced the Stargate initiative, a joint venture to invest $100 billion in AI infrastructure, potentially scaling to $500 billion. The project includes 10 data centers, with the first already under construction in Abilene, Texas, and plans to expand to 20 facilities. President Donald Trump has pledged to streamline permitting to support the initiative. The venture is gauging interest from general contractors, engineers, EPC firms and suppliers to support the buildout. Full Story: Construction Dive
What should Congress do about the Highway Trust Fund?
The House Highways and Transit Subcommittee is looking to address issues with the Highway Trust Fund, which has been insolvent since 2008. In a recent hearing, Chairman David Rouzer, R-N.C., emphasized the need for a new funding mechanism, as electric vehicles do not contribute to the fund. The subcommittee is considering options like a vehicle-miles-traveled tax and tolls — though these have raised privacy and fairness concerns. Full Story: Land Line Magazine
Funding paused for clean energy projects under IIJA, IRA
President Donald Trump issued several executive orders on his first day in office, including one focused on unleashing American energy. The order aims to promote domestic energy production and lower energy costs by rescinding 12 climate-related executive orders from the previous administration. It also pauses the disbursement of funds for clean energy projects under the Inflation Reduction Act and Infrastructure Investment and Jobs Act, requiring agencies to review their financial disbursement processes. Full Story: Wiley Rein Roads & Bridges
Brightline West seeks $2.5B in bonds for rail project
Brightline West is looking to raise $2.5 billion through a bond offering to fund a $12.4 billion high-speed rail line between Las Vegas and Southern California. Construction is expected to start this year, with service aimed to begin by Dec. 2028. The project has received significant federal support — including a $3 billion grant and $5.5 billion in bonding authority. Full Story: Las Vegas Review-Journal (tiered subscription model)
Anderson Dam rebuild cost goes up with new delay
The Anderson Dam retrofit project in California has been delayed by nearly a year, pushing completion to 2033 and increasing costs by $100 million, Valley Water says. The delay is attributed to the Federal Energy Regulatory Commission’s extended timeline for an environmental impact statement and weather constraints. Despite the setback, Valley Water continues other construction activities. Full Story: Morgan Hill Times (Calif.)