Author: clara.kinney@agc.org

On April 30, 2026, President Trump issued an executive order titled “Promoting Efficiency, Accountability, and Performance in Federal Contracting,” signaling a shift in how federal agencies are expected to procure goods and services. The order establishes fixed‑price, performance‑based contracts as the default method for federal procurement. The rationale for this directive was unpredictable pricing, excessive overhead, and weak performance incentives. The order requires agencies to justify any use of non-fixed-price contracts, including cost-reimbursement contracts, time-and-materials contracts, or labor-hour agreements, going forward. It also mandates senior‑level approval for non-fixed-price contract awards that exceed certain monetary thresholds. In addition, agencies must submit…

As Washington begins work on the next surface transportation bill, AGC of America is actively engaging lawmakers and committee staff to ensure the industry’s priorities are built into the legislation from the start. With federal highway and transit funding set to expire on September 30, 2026, the stakes could not be higher. For contractors, it is not just about getting a bill done, it is about getting it done right. The decisions Congress makes will shape how projects move forward, how quickly they are delivered, and whether contractors have the certainty to plan, hire, and invest. A strong, long-term bill…

On May 1st, the Delaware Contractors Association (DCA) held an event with Senator Chris Coons (D-Del.) and AGC of America to talk about federal issues impacting construction. As part of it, AGC and Senator Coons highlighted the importance of reauthorizing highway and transit funding. AGC also discussed the national campaign, developed with the support of chapters like DCA, America’s Moving Forward, to secure a strong, fully funded highway and transit bill before current law expires on September 30, 2026. At its core, this effort is about protecting project certainty, strengthening long-term investment, and advancing reforms that allow infrastructure work to…

AGC of America released a new advisory on the tariff refund process to help contractors navigate the ever-evolving tariff refund landscape. The advisory will help members understand the current refund process, key limitations on who may be eligible to file, and practical steps for navigating the U.S. Customs and Border Protection (CBP) refund system through the Consolidated Administration and Processing of Entries (CAPE) tool. The AGC document discusses CBP’s recent launch of its long‑awaited, non‑litigation refund pathway for certain International Emergency Economic Powers Act (IEEPA) tariffs. CBP is accepting Phase 1 refund submissions through its CAPE system as of April…

The Supreme Court’s recent tariff decision striking down IEEPA-based tariffs, along with the launch of a tariff refund process, has left contractors facing a new set of questions — both about the legal standing of certain tariffs and about the very practical challenge of managing volatile material prices on active projects. For many contractors, a key question is whether any refund would actually reach the construction firm, since tariff refunds generally flow through Customs to the importer of record and may not be tied directly to the contractor that absorbed higher material costs. To help members make sense of what…

AGC of America recently filed comments in support of the Department of Labor’s proposed rule that clarifies the process for identifying independent contractors. If finalized, the rule would re-impose the “economic reality” test that the first Trump administration had adopted back in 2021.  AGC has long called for federal clarification of the independent contractor status and preservation of legitimate independent contractor relationships, such as those that have historically existed in the construction industry. AGC applauds the Department’s proposal to adopt a consistent, clear and common-sense standard for determining independent contractor status under the Fair Labor Standards Act and supports the…

We have previously reported on President Trump’s executive orders that target diversity, equity and inclusion (DEI) type practices. On April 10, Acting Attorney General Todd Blanche announced the first False Claims Act resolution putting this policy into effect. International Business Machines (IBM), a federal contractor, agreed to pay the United States $17,077,043, inclusive of civil penalties, to resolve allegations that it violated the False Claims Act by failing to comply with anti-discrimination requirements in its federal contracts due to practices the United States contends discriminated against employees and applicants for employment because of race, color, national origin, or sex. It…

AGC of America is releasing a new white paper today to help contractors explain a growing concern tied to recent tariff developments. The U.S. Customs and Border Patrol (CBP) is now moving forward with a tariff refund portal and claims process, however, contractors may not have a clear or realistic path to recovering those costs. The new AGC resource, in conjunction with the AGC Tariff Resource Center, helps explain why the existence of a portal does not solve the larger legal and practical barriers facing most firms. At a time when tariffs remain a major source of uncertainty across the…

Rising fuel prices continue to drive renewed interest in suspending the federal gas tax, but the conversation is now expanding beyond Washington as several states take action and others consider similar measures. Suspending the gas tax, whether at the federal or state level, does not address the underlying causes of higher fuel prices. It also creates challenges for transportation funding. At the federal level, the gas tax is the primary source of revenue for the Highway Trust Fund, which supports investments in roads, bridges, and transit systems. Reducing or suspending that revenue makes it more difficult to maintain consistent funding…

National Work Zone Awareness Week (NWZAW) officially kicked off this week in Farmington, Connecticut, with more than 100 attendees gathering at a Connecticut Department of Transportation (CTDOT) maintenance facility to highlight the importance of work zone safety. The event, hosted by CTDOT, brought together federal, state, and industry leaders to emphasize the shared responsibility of protecting roadway workers and the traveling public. The program featured remarks from Connecticut DOT Commissioner Garrett Eucalitto, who served as emcee, along with speakers representing public safety, labor, and the construction industry. Federal Highway Administration Administrator Sean McMaster and Connecticut Governor Ned Lamont delivered keynote…