Author: clara.kinney@agc.org

FHWA has released an updated Questions & Answers document explaining how the agency is implementing its Manufactured Products Final Rule, issued January 14, 2025 which began the phase out of its longstanding general waiver on manufactured products under the Buy America Act. As a reminder, the phase out began on October 1, 2025, where manufactured products must meet a “final assembly” standard (i.e., be “manufactured in the United States”), and will complete phase out on October 1, 2026, when manufactured products will need to meet final assembly requirements and exceed 55% domestic components by cost. The Q&A focuses heavily on…

Since last week, negotiations over funding the federal government have hit a new hurdle, funding for the Department of Homeland Security (DHS), specifically Immigration and Customs Enforcement (ICE). Specifically, Senate Democrats are now insisting that funding for DHS be stripped out of the larger Consolidated Appropriations package and considered separately. The challenge both sides are up against is that current funding expires on January 30th, and the House of Representatives is not in session this week. This means any changes to the package would have to go through the House again, in which case it would almost ensure a government…

As Congress begins work on the next surface transportation reauthorization bill, stabilizing the Highway Trust Fund (HTF) remains one of AGC’s top priorities. Contractors rely on predictable federal funding to plan work, invest in equipment, and maintain a skilled workforce. As previously reported, current authorization under the Infrastructure Investment and Jobs Act (IIJA) set to expire on September 30, 2026, the need for a sustainable HTF has become increasingly urgent. The core challenge is that HTF revenues have not kept pace with today’s transportation system. In fact, federal gas and diesel taxes have not been adjusted since 1993, even as…

Filing season is always complicated for construction companies, multiple entities, multi-state work, long-duration projects, and year-end equipment decisions that can swing taxable income. This year, make sure your tax team has your full picture early by attending the Beyond the Basics: The Newest Tax Developments and Strategies for Contractors and Their Advisorswebinar on January 27 as the best single reference for what changed and what to watch when preparing. The webinar will go over all of the latest developments as the One Big Beautiful Bill’s (OBBBA) implementation process takes place. A big OBBBA item with real filing-season implications is the…

AGC has joined a large coalition of national and state trade associations in a January 20, 2026 letter to Treasury Secretary Scott Bessent urging the Department to immediately purge the Corporate Transparency Act (CTA) database of beneficial ownership information (BOI) submitted by domestic entities that are no longer required to file, and to move quickly to finalize the rule exempting U.S. businesses from the reporting requirement. The coalition’s message is straightforward: millions of law-abiding small businesses were swept into a reporting regime aimed at combatting illicit finance, and many complied before Treasury narrowed CTA’s scope. The letter notes that sensitive…

This week Congress released the text of the remaining appropriations bills that were negotiated in a bipartisan agreement. You may recall, last week we reported on Congress advancing a three-bill appropriations package that funds construction of our nation’s water systems. This all comes as Congress stares down a January 30th deadline when current federal appropriations expire. The Consolidated Appropriations Act of 2026, or H.R. 7148, includes funding for programs critical to construction at the Departments of Defense, Labor, Transportation, and Housing and Urban Development. Because of the importance to construction, AGC issued a key vote urging lawmakers to support the…

Congress continues to debate federal government spending levels ahead of the January 30th deadline when appropriations run out. With the hangover from the last government shutdown, the longest in history, still fresh on their minds, it appears to be motivation for both sides to reach across the aisle to negotiate. Recently the House passed the Commerce-Justice-Science, Energy Water, and Interior three-bill appropriations package with bipartisan support. AGC supported these bills because they provide increased funding for projects on our nation’s water systems, including dredging and the construction of harbors, levees, and canals. In addition, they fund drinking and wastewater infrastructure…

The Federal Motor Carrier Safety Administration (FMCSA) has issued a Final Determination of Substantial Noncompliance against the State of California, triggering the withholding of approximately $158.3 million in federal highway funding beginning in fiscal year (FY) 2027. The withheld money amounts to four percent of California’s funding under the National Highway Performance Program (NHPP) and the Surface Transportation Block Grant Program (STBG). FMCSA also noted that continued noncompliance could ultimately result in the decertification of California’s Commercial Driver’s License (CDL) program under federal law, further increasing the potential consequences for the state. FMCSA made the decision after the California Department…

AGC of America leadership met with Sean McMaster, Administrator of the Federal Highway Administration, on Thursday, January 8, to discuss several federal policy issues impacting the construction industry. During the meeting, AGC and Administrator McMaster discussed several topics including recent updates to the Disadvantaged Business Enterprise (DBE) program and Buy America requirements. Work zone safety emerged as the primary focus of the meeting. Administrator McMaster stressed his focus on improving safety for the workers building America’s infrastructure as well as the driving public. He also emphasized the need for accurate and timely safety data to develop effective, proactive safety policy.;…

On December 18, 2025, President Donald Trump signed the National Defense Authorization Act (NDAA) into law. The bill is one of the few must pass bills Congress must pass every year as it funds the United States military and covers all appropriations for the Department of Defense. Congress has passed the NDAA for 64 continuous years, and AGC takes any attempt to add harmful construction policy to the bill very seriously. As AGC has previously reported, this year’s NDAA placed strong emphasis on comprehensive acquisition reform. The finalized version of the NDAA included the below AGC priorities: Additionally, an amendment…