On March 4, President Trump addressed a joint session of Congress, touting his administration’s accomplishments in the first few weeks and outlining his priorities for the next four years. Here are a few highlights that could impact construction:
Tariffs. President Trump doubled down on his support for tariffs, saying “it’s a beautiful word, isn’t it?” He went on to say, “Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries.” However, since the speech, Trump delayed tariffs for most goods entering the United States from Mexico for one month. You might recall, AGC outlined the top challenges the industry is facing, including our concerns with tariffs, in a letter to President Trump.
Having trouble keeping up with the latest on tariffs? Be sure to check out AGC’s Tariff Resource Center for Contractors for the latest.
CHIPS Act. President Trump did make waves in the infrastructure space by telling Congress they “should get rid of the CHIPS Act, and whatever’s left over, Mr. Speaker, you should use it to reduce debt.” You might recall, AGC supported this legislation because of the billions in direct federal funding that this legislation provided for construction.
This was met with skepticism and disagreement by Republican lawmakers on Capitol Hill as many of them voted for this law that was signed under President Biden. If President Trump tries to withhold funding for CHIPS projects without congressional action, known as impoundment, there will be challenges in the courts, as we have seen with his proposed federal funding freezes.
Taxes. President Trump also talked tax cuts, saying “the next phase of our plan to deliver the greatest economy in history is for this Congress to pass tax cuts for everybody.” He didn’t get into a lot of specifics, other than saying he wants “no tax on tips, no tax on overtime, and no tax on Social Security benefits for our great seniors.” You might recall, AGC outlined our priorities for tax reform to Congress, and participated in many roundtables with members of Congress to discuss the impacts on construction.
For additional information, please contact Alex Etchen.