CBA Capital Update | 7/24/26
Canada Tariffs put pressure on Concrete, Cement Prices – Another tariff announcement from Washington may force general contractors to revise their contract terms. President Donald Trump announced plans to impose a 50% tariff on many Canadian imports beginning Aug. 19. The proposed duties will apply to all covered goods, regardless of whether they originate under the U.S.-Mexico-Canada agreement, according to a July 20 fact sheet from the White House.
The United States declined to renew the United States-Mexico-Canada Agreement (USMCA) – Despite this announcement, the agreement remains fully in force, potentially through 2036, unless a party formally withdraws on six months’ notice. Companies should expect near-term continuity, but USMCA will now be subject to annual reviews unless and until the parties agree to extend it
ABC’s Construction Backlog Indicator Slips; Contractors Remain Confident in June – Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator fell to 8.8 months in June, according to an ABC member survey conducted June 22 to July 8. The reading is down 0.3 months from May but up 0.1 months from June 2025.
Iran war energy shock hits the U.S. economy as gas and diesel prices climb – The U.S. economy is more vulnerable than ever to the problems in energy markets caused by the Iran war. The economy has been remarkably resilient, but the buffers that protected Americans from earlier price spikes are wearing thin.
Federal Bill Watch:
- The IIJA’s surface transportation authorizations expire at the end of FY2026. Without a new multi-year bill or a short-term extension, formula funding for highways, bridges, transit, and related programs faces significant uncertainty.
- H.R. 8870 – BUILD America 250 Act
- House Transportation & Infrastructure Committee advanced this bipartisan five-year reauthorization package (~$580 billion for FY2027–2031).
- Emphasizes formula funding and long-term certainty.
- Does not include the large advance appropriations that were a hallmark of the IIJA.
- Status: Committee-approved; floor consideration expected, but timing remains fluid. Senate has not yet released its companion text.
California Update:
Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels – With office values remaining at a historical low, developers see opportunity in conversions previously considered too risky. As such, the financial challenges typical of office-to-multifamily conversions are more approachable.
BLM approves Cadiz water Pipeline – The Bureau of Land Management on Friday, July 10, approved a right-of-way allowing Cadiz Inc. to carry water out of a desert aquifer and into communities across Southern California and possibly Arizona.
Governor Newsom delivers over $100 Million in funding for Housing for Veterans – California is expanding permanent supportive housing through Prop 1-funded Homekey+ investments, helping veterans and Californians who are experiencing or at risk of homelessness access stable housing and behavioral health services.
Governor Newsom signs historic housing affordability reforms – As part of the 2026-27 budget — with ZERO deficit this year and next — Governor Newsom today signed Assembly Bill 179, housing budget trailer bill, modernizing California’s affordable housing finance system to help expand homeownership, reduce costs, support more affordable housing, and strengthen the impact of state housing investments.
CA Bill Watch:
The California Legislature is in recess until Monday, August 3, 2026. Legislators are in their districts meeting with constituents, and no legislative hearings will be held until the Legislature reconvenes. A few of the bills that we continue to monitor as the legislators come back to session in August.
AB 1070 – Small Scale Commercial Residential Streamlining
Would streamline approvals for small-scale residential projects by allowing qualifying developments to utilize the California Residential Code.
AB 1903 – Construction Defect Reform
Would reform construction defect litigation for qualifying condominium and townhouse projects to encourage additional housing production.
AB 2044 – Building Code Cost of Compliance
Requires state agencies to evaluate and disclose the cost impacts of proposed building code changes before they are adopted.
AB 2074 – Downtown Revitalization
Streamlines approvals for qualifying downtown redevelopment and mixed-use housing projects to support revitalization and economic growth.
AB 609 – CEQA Reform for Infill Housing
Expands CEQA exemptions for qualifying infill housing projects to reduce permitting timelines and accelerate housing construction.
Sacramento Region Update:
RIC Robotics Collaborates with K4k Construction on 3D Printing – RIC Robotics and Sacramento-based K4K Construction are building the city’s first permitted 3D-printed accessory dwelling unit using robotic concrete printing technology. The project highlights how emerging construction methods could help reduce labor needs and speed up housing production in the region.
New improvements and an Aviator’s update: What’s going on at Sacramento’s airports? – Sacramento International Airport continues work on its SMForward modernization program, including new parking, terminal improvements, and future gate expansions. The airport is also developing a new 20-year Master Plan to support continued regional growth.
Sacramento Railyards construction – what’s being built – Construction continues at the Sacramento Railyards with new housing, the Kaiser Permanente medical campus, Republic FC stadium, and infrastructure improvements. The project remains one of the region’s largest redevelopment efforts.