Capitol Update 7/18/25
AI ushers in “golden age” of infrastructure investment
Infrastructure investing is entering a “golden age” and will require trillions of dollars, BlackRock CEO Larry Fink said in a CNBC interview. “We believe that there’s a need for trillions of dollars investing in infrastructure related to our power grids, AI, the whole digitization of an economy,” Fink said. “We are still going to be investing in decarbonization.”
Full Story: CNBC
Builders fear labor shortage amid immigration crackdown
Commercial builders and construction industry advocates in North Carolina warn that construction projects could slow drastically due to a labor shortage caused by the federal immigration crackdown. Nearly one-third of the state’s construction workforce is foreign-born, and even those with legal status fear being caught in immigration raids. Charlie Wilson of C.T. Wilson highlights the need for a legal pathway for immigrant workers, noting that subcontractors are turning down work due to a lack of labor. The Carolinas chapter of the Associated General Contractors and other organizations have signed a letter to President Donald Trump, urging for a faster and easier pathway for immigrant workers.
Full Story: WRAL-TV (Raleigh, N.C.) The Washington Post
Upcoming tariffs could mean a return to cost volatility
Nonresidential construction material and service costs rose 0.2% in June and 2.3% year over year–the highest annual increase since February 2023–due to spikes in steel, aluminum and lumber prices. The Associated General Contractors of America warns that upcoming tariff increases, especially on copper and other key imports, could worsen cost volatility and dampen the positive effects of recent tax and regulatory reforms.
Full Story: Associated General Contractors of America
New podcast: How tariffs are affecting the construction industry
Tariffs are in the spotlight, and construction firms are feeling the heat. In this episode of ConstructorCast, supply chain leaders Tim Jed from DPR Construction and Jay Pendergrass from Gilbane Building unpack the real-world impact of tariffs on materials costs, project timelines, and client decisions. From supplier price hikes and shifting policies to smart strategies and collaborative solutions, this conversation gets into what contractors need to know now, and how to stay ahead in an unpredictable market.
How contractors are adapting to tariffs
Contractors are grappling with rising material costs and planning uncertainty as the Trump administration’s shifting tariff policies, such as upcoming 50% levies on copper, steel and aluminum, disrupt procurement and delay projects. Economists warn that continued price hikes and limited domestic capacity could lead to stagflation in the construction sector. Firms like Swinerton and its Timberlab affiliate are adapting by turning to alternative materials like mass timber and vertically integrated supply chains.
Full Story: Construction Dive
Electrical contractors brace for copper tariff
The US’ planned 50% tariff on imported copper, set to take effect August 1, has alarmed electrical contractors, who warn it will inflate project costs and strain supply chains nationwide. The National Electrical Contractors Association says the policy threatens infrastructure and energy deployment goals, while commodity prices have already surged in anticipation. The Trump administration defends the move as a national security measure to rebuild domestic copper production, which currently supplies just 5% of global demand.
Full Story: Engineering News-Record (tiered subscription model)
Inflation expected to rise in June as tariffs drive prices
US consumer prices are expected to have risen in June, potentially marking the beginning of a tariff-induced inflation increase. The Consumer Price Index is forecast to increase 0.3% for the month, with core CPI rising 0.3% and 3% year over year. Economists anticipate that inflationary pressures will build as businesses deplete pre-tariff inventories, with significant effects likely in the coming months.
Full Story: CNBC Barron’s Reuters
AGC: One Big Beautiful Bill could help smaller firms
The One Big Beautiful Bill Act will significantly boost construction activity by enhancing cash flow and incentivizing capital investment, especially through 100% bonus depreciation and a permanent 20% pass-through deduction, says Deniz Mustafa, senior director of infrastructure finance at Associated General Contractors of America. These provisions are particularly beneficial for small and mid-sized contractors, improving cash flow and enabling the purchase of safer, more efficient equipment, Mustafa says.
Full Story: Construction Dive
House eyes deep cuts for EPA, Interior in 2026 bill
House Republicans have proposed a fiscal 2026 funding package that would significantly reduce budgets for the Interior Department and the Environmental Protection Agency. The bill allocates $14.8 billion to the Interior and $7 billion to the EPA, a 23% cut for the latter. The potential cut in EPA funding is less than that of the White House’s budget proposal but mirrors some provisions, such as slashing support for the Superfund program and the Chemical Safety and Hazard Investigation Board.
Full Story: E&E News
NEPA reform is taking shape across several agencies
Recent updates to National Environmental Policy Act procedures by multiple federal agencies aim to streamline environmental reviews by enforcing stricter deadlines and page limits, potentially accelerating project approvals. Contractors welcome the changes for reducing permitting delays. The changes follow a Supreme Court ruling, congressional amendments and directives from the Trump administration, signaling a shift toward faster, more discretionary reviews across federal infrastructure projects.
Full Story: Engineering News-Record (tiered subscription model)
Commentary: Construction AI is now “realistic, productive”
While early enthusiasm for AI in construction has cooled, the industry is now entering a more “realistic and productive” phase focused on practical applications like project coordination, safety and billing automation, writes Sidharth Haksar. To fully realize AI’s potential, firms must invest in clean data, connected systems, workforce training and ethical implementation, Haksar writes.
Full Story: Autodesk
DOT raises TIFIA project financing to 49%
The Department of Transportation has updated its Transportation Infrastructure Finance and Innovation Act program policy to finance up to 49% of project costs, up from 33%. The change, sought by construction and transportation groups, aims to boost infrastructure projects, says Transportation Secretary Sean Duffy.
Full Story: Engineering News-Record (tiered subscription model)
Contractors target more mature startups for investment
Construction firms are increasingly investing in later-stage startups through their venture arms, prioritizing companies with proven track records over early-stage ventures. DPR Construction’s WND Ventures, Suffolk Technologies, Webcor Ventures and Turner Ventures exemplify this trend, backing startups that offer immediate, practical solutions to industry challenges such as labor shortages and environmental unpredictability. This approach reflects a broader venture capital landscape that, while flush with cash, sees construction technology as a smaller yet promising sector.
Full Story: Construction Dive
1,200-foot-plus skyscraper planned in San Francisco
Developer Hines has submitted a proposal to build a more-than-1,200-foot skyscraper on the former PG&E headquarters block on Beale Street, which would surpass Salesforce Tower as San Francisco’s tallest building. The project, which is entering the city’s one- to two-year planning and approval process, will include office, residential, retail and entertainment space.
Full Story: KGO-TV (San Francisco) KNTV-TV (San Francisco)
Terminal expansion begins at Port of Long Beach
International Transportation Service has started a $365 million expansion at the Port of Long Beach, adding 19 acres and a 3,400-foot wharf to enhance cargo-handling efficiency. The project, expected to finish by late 2028, will allow the terminal to accommodate two of the world’s largest container ships simultaneously. Local officials have praised the project for its economic and environmental benefits, including job creation and emission reductions.
Full Story: Marine Insight
Calif. vows to fight funding cut for high-speed rail
The Trump administration has revoked $4 billion in funding for the California high-speed rail project, citing mismanagement and inability to meet deadlines. California Gov. Gavin Newsom called the move illegal and said the state would explore all options to fight it. The California High Speed Rail Authority is now seeking private investment to continue the project.
Full Story: Engineering News-Record (tiered subscription model)
Restoration underway on 5 Klamath River tributaries
Restoration work has begun on five tributaries of the Klamath River after the largest dam removal project in US history. Stantec is leading the restoration design as a subcontractor for Resource Environmental Solutions, focusing on Beaver Creek, Jenny Creek, Spencer Creek, Camp Creek and Scotch Creek. The project aims to improve fish passage and habitat, particularly for salmon, by reconfiguring 3.4 miles of stream channel and removing 150,000 cubic yards of sediment.
Full Story: International Water Power and Dam Construction