Capitol Update 2/11/25
Construction jobs rise in most US metro areas
Construction employment increased in 244 of 358 metro areas from December 2023 to December 2024, with the Greater Houston area and Anchorage, Alaska, seeing the most significant gains, according to the Associated General Contractors of America. However, firms are struggling to find qualified workers — a situation exacerbated by government policies on work authorizations. Full Story: Associated General Contractors of America
Construction spending up 4.3% YOY in Dec.
US construction spending rose 0.5% in Dec., exceeding expectations, driven by a 1% increase in single-family homebuilding, according to the Commerce Department. However, high mortgage rates could limit future residential construction gains. Private construction spending increased 0.9%, while public construction spending fell 0.5%. Full Story: U.S. News & World Report/Reuters
It’s time to double check those I-9 forms
President Donald Trump’s administration is intensifying scrutiny of Form I-9 compliance as part of a broader crackdown on illegal immigration. Employers are increasingly using electronic I-9 systems, especially after ICE allowed remote document verification during the pandemic. However, many electronic I-9 vendors produce noncompliant forms — risking significant fines for employers. Full Story: Construction Dive
Global construction costs to rise 2% – 7% amid uncertainty
Construction costs are expected to increase 2% to 7% this year, driven by economic uncertainty, the digital revolution and a skilled labor shortage according to Currie & Brown. The largest cost increases are forecast in Saudi Arabia and India, with significant rises also expected in Australia and the US. Full Story: Construction Briefing
Flurry of Trump activity has contractors on their toes
Contractors are scrambling to adapt as President Donald Trump’s executive orders aim to overhaul federal contracting policies, freeze infrastructure funding, weaken environmental regulations and eliminate diversity, equity and inclusion requirements. The rollback of affirmative action in federal contracts, along with new compliance certifications and potential enforcement under the False Claims Act, has created legal uncertainty, forcing businesses to quickly reassess compliance programs, navigate project funding disruptions and mitigate risks tied to shifting federal priorities. Full Story: Construction Dive
How to be legally prepared for Trump 2.0
Just a week into his second administration, President Donald Trump has already brought a raft of changes to the legal and policy landscape for construction. He signed a deluge of executive orders in the initial days of his presidency that have massive implications for labor, materials prices, permitting and project funding. That means builders will have a lot of issues to watch and plan for this year. To help cut through the noise, here are three areas of focus for the new administration — and how to prepare for them.
EPA funding freeze creates uncertainty for water work
The National Utility Contractors Association is deeply concerned about the ongoing confusion and uncertainty surrounding EPA water infrastructure funding due to a Trump administration freeze on federal grants and loans, despite its official rescission. NUCA and other stakeholders are frustrated by the EPA’s silence, fearing disruptions to critical clean water projects while awaiting clarity from newly appointed Administrator Lee Zeldin. Full Story: Engineering News-Record (tiered subscription model)
Judge doubles down on halt to Trump-era funding freeze
US District Judge Loren AliKhan has issued a temporary restraining order to stop a federal spending freeze initiated by the Trump administration, which had been officially rescinded but was still affecting nonprofits. AliKhan criticized the Office of Management and Budget for not fully ceasing the freeze, highlighting the “potentially catastrophic” impact on organizations aiding vulnerable Americans. Full Story: Politico
Trump considers major sale of federal office buildings
The Trump administration is considering selling two-thirds of federally owned office buildings to private entities and canceling leases on 70 million square feet of privately owned office space in Washington, D.C. according to reports. The move could significantly affect the D.C. commercial property market, where many landlords rely on the government as an anchor tenant. Full Story: Building Design+Construction
What markets are worth pursuing in the Trump era?
The Associated General Contractors of America’s annual outlook survey suggests data center construction and demand for manufacturing facilities and traditional power infrastructure will surge during the second Trump administration. The administration’s stance on wind and solar energy could put a damper on renewable energy energy projects. Additionally, high-speed rail projects supported by the bipartisan infrastructure law could see less federal aid under Trump, according to Holland and Knight. Full Story: Construction Dive Construction Dive
Trump puts 25% tariff on Mexican goods on hold
President Donald Trump has paused a 25% tariff on Mexican goods for one month after Mexican President Claudia Sheinbaum agreed to deploy 10,000 soldiers to the northern border to combat drug trafficking. The leaders have agreed to negotiate a broader agreement during the pause. Full Story: CNBC
Holcim, Jacobs seemingly unfazed by tariffs
Holcim CEO Miljan Gutovic has reportedly said that the proposed US tariffs on imports from Canada, Mexico, China and the EU are unlikely to affect the company because of its local production and sourcing. Gutovic also says the tariffs should not impact the planned spinoff of Holcim’s North American business — which is set for the first half of 2025. Meanwhile, Jacobs CEO Bob Pragada says that despite concerns over tariffs, client demand remains robust, particularly in infrastructure, water and advanced facilities. Full Story: Global Cement Magazine/Reuters Engineering News-Record (tiered subscription model) Construction Dive
AECOM CEO: Deregulation benefits outweigh funding cuts
AECOM CEO Troy Rudd says the benefits of deregulation under President Donald Trump outweigh potential funding cuts, noting that the Environmental Protection Agency and the US Agency for International Development account for a small portion of the company’s revenue. Rudd expressed confidence in the infrastructure sector, especially with Trump’s pledges for permitting reform, and reports a 77% increase in profits for the first quarter of fiscal 2025. Full Story: Construction Dive
WOC highlights process innovation, shift to PLC
The World of Concrete 2025 expo in Las Vegas highlighted major trends shaping the construction industry, including advancements in concrete production, sustainability and the ongoing necessity of concrete in infrastructure. Companies like Fortera showcased innovative methods to reduce embodied carbon emissions, such as its “ReAct” calcium carbonate technology, which could significantly lower cement’s carbon footprint and pave the way for net-zero cement. Meanwhile, industry leaders emphasized the balance between sustainability and durability, with a push for using portland limestone cement (Type 1L) and recycled additives to cut emissions while ensuring long-lasting structures, reinforcing concrete’s critical role in both repair and new construction projects. Full Story: Construction Briefing
Judge rules against federal PLA mandate
A U.S. Federal Claims judge has ruled in favor of a group of construction companies that filed protests against the implementation of former President Joe Biden’s December 2023 executive order that mandated project labor agreements on federal contracts over $35 million. In a briefing earlier this month, Judge Ryan Holte of the U.S. Court of Federal Claims said the implementation of the mandate on seven contract procedures last year ignored federal agencies’ own research indicating PLAs would be anti-competitive and relied on “arbitrary and capricious” presidential policy. The Jan. 21 ruling only impacts those specific bid protests filed in 2024, but construction employer groups touted it as a win for the entire industry. It opens the door for more challenges and puts the future of the rule in question, said Dirk Haire, Washington, D.C.-based partner at Philadelphia-headquartered law firm Fox Rothschild, which represented some of the plaintiffs.
Calif. PUC eases transmission permitting
The California Public Utilities Commission has streamlined transmission permitting to support clean energy goals, requiring developers to meet with staff before filing applications and allowing draft California Environmental Quality Act documents. The changes aim to reduce redundancy and accelerate timelines, with the California Independent System Operator estimating $63 billion in new transmission is needed over 20 years. Full Story: Utility Dive
Calif. invests $1B in sustainable transportation
The California Transportation Commission has allocated $1 billion to enhance transportation infrastructure, focusing on climate resilience and safety. The funding includes $623 million from the Infrastructure Investment and Jobs Act and $295 million from Senate Bill 1. Projects include electric bus charging in San Mateo County, bike lanes in Santa Clara County and light rail improvements in Sacramento. Full Story: Times of San Diego
Calif. wildfires pose future supply chain challenges
Wildfires in Southern California have had minimal immediate impact on supply chains, as most warehouses are outside the fire zones, logistics experts say. However, challenges are expected during rebuilding, with increased demand for building materials and storage. “Even businesses outside the fire zones are experiencing ripple effects from power outages, infrastructure strain and shifting consumer demand,” says Lisa Anderson, president of LMA Consulting Group.Full Story: Construction Dive/Supply Chain Dive
Calif. airport gets approval for $2.2B expansion
Palm Springs International Airport is set for a $2.2 billion expansion after receiving approval from the city council. The project aims to preserve the airport’s mid-century modern architecture while doubling passenger capacity to 6.4 million by 2042. Plans include adding gates, a north concourse, a federal inspection station and expanding baggage claim. Full Story: CalMatters (Sacramento, Calif.)