“Keith Sonderling is uniquely qualified to serve as secretary of labor, with the experience, credentials and proven record of leadership needed to head the department,” said Kristen Swearingen, ABC vice president of government affairs. “As deputy secretary, Sonderling has advanced policies that strengthen the American workforce, expand workforce development opportunities and address harmful Biden-era regulations that restrict worker freedom. His leadership has helped restore a regulatory environment that empowers workers and job creators.”

Earlier this month, the ABC-led Coalition for a Democratic Workplace sent a letter signed by 53 employer organizations urging the Senate HELP Committee to quickly advance Keith Sonderling’s nomination.

ABC encourages the full Senate to swiftly confirm Sonderling so he can continue advancing policies that promote economic growth, protect worker choice and ensure employers have the tools they need to recruit, train and retain the next generation of skilled craft professionals.

SEE ALSO: ARBITRATION NATION: OPPOSING THE FLCA

The post ABC Urges U.S. Senate to Confirm Sonderling as Labor Secretary first appeared on Construction Executive.

Know which tasks to tackle first. Whether it’s tax planning, strategic project selection or rethinking how you’ll deploy capital on work already in progress, a few key moves can help you build a firm foundation for success in 2026.

Work With CPA Advisors on Tax Planning and Projections

More than anything, working with a team of experts who live and breathe tax codes for the construction industry, planning and regulatory changes will produce great results and get things started on the right foot.

Owners and key finance leaders should work closely with their CPAs to build side-by-side tax projections that show their results before and after the OBBBA, so they can spot challenges early and find saving or deferral opportunities. These projections should factor in increased limits on interest deductions, related 100% depreciation deductions on equipment and vehicle or fleet purchases. Don’t forget to focus on planning income through the WIP schedule between years, while also checking that the business is set up to make the most of the now permanent 20% business income deduction for pass-through entities.

Companies should also look at new options for how certain multiunit residential or long-term contracts report revenue for tax purposes. Consider packaging the results in a way that helps with bank conversations, surety support and day-to-day cash planning.

Take Advantage of 100% Bonus Depreciation

One of the most beneficial parts of the OBBBA for contractors, especially specialty subcontractors, is the reinstatement of 100% bonus depreciation, while also doubling Section 179 limits. Purchases of qualifying equipment, machinery, heavy vehicles, certain types of software or other short-lived assets can be expensed in the first year the purchase is placed into service. You can now immediately deduct these costs.

This change creates a short-term tax advantage, but it also means that capital expenditure planning should prioritize assets that drive long-term efficiency, like upgrades to automation, modular systems and data-integrated project management tools. But before taking action, discuss any plans around cash-flow allocation with banking and surety partners.

Time Your Clean Energy Projects Wisely to Secure the Largest Credit

The OBBBA does keep several clean energy incentives, but it accelerates phase-outs for others. Any projects not under construction by mid-2026 may lose eligibility for key credits under prior legislation.

Contractors should reassess any construction plans on renewable generation or storage projects in order to meet the mid-2026 deadline. CFOs should evaluate the credit implications of the building process and work with CPA advisors and financing partners to avoid losing out on clean energy credits.

Innovative design and build-out work can also qualify for R&D tax credits, allowing you to get the tax credit for technical design work while also deducting the expenses of the work, including any research costs or wages, rather than amortizing those expenses over time.

Recalibrate Leverage and Interest Strategy

Section 163(j) is a part of the U.S. tax code that may limit how much interest a business can deduct on its tax return. But under OBBBA, taxpayers can once again add back depreciation and amortization in ATI calculations. This change makes it easier for growing and/or larger companies to deduct more of their interest costs before being phased out, as long as they manage their capital stack responsibly.

Lenders and sureties will continue to emphasize coverage ratios, cash-flow forecasting and working capital stability.

Review Estate and Succession Planning Structures

On Jan. 1, 2026, the OBBBA reinstated significant increases to the lifetime estate tax exemption of up to $15 million per person. Family-owned and closely held construction businesses should continue to make succession and family planning a major priority, even though the lifetime exclusion has been reinstated and will no longer be cut in half pending future legislation.

Coordination between tax advisors, legal counsel, key stakeholders, and surety and valuation advisors is important to align estate strategy with business continuity and bonding requirements. Keeping professionals in the loop with timely and forward-thinking communication is key. Additionally, estate planning around non-voting versus voting shares can provide substantial planning opportunities.

Leverage Workforce and Training Incentives

The lack of skilled tradespeople entering the industry has been a persistent problem for years, but some help could be coming via the expansion of Pell Grant eligibility and a new rule that will allow 529 Plan funds to be used for trade education, offering financial tools to strengthen skilled-labor pipelines. Contractors should integrate these provisions into recruitment and apprenticeship programs, particularly for field operations and equipment technology roles.

The OBBBA also contains a temporary, above-the-line deduction available for overtime compensation up to $12,500 for individuals and $25,000 for married filers (depending on income phase-outs).

The Bottom Line

The OBBBA reshapes the financial framework for construction companies, impacting tax structure, leverage and capital deployment across the industry. The firms that benefit most will be the ones that approach the law proactively through scenario planning, capital strategy and transparent communication with financial and key professional partners.

SEE ALSO: ABC PRAISES FINAL PASSAGE OF THE ONE BIG BEAUTIFUL BILL

The post Winning With the One Big Beautiful Bill: How Contractors Can Build a Plan for Success first appeared on Construction Executive.

“Keith Sonderling is uniquely qualified to serve as secretary of labor, with the experience, credentials and proven record of leadership needed to lead the department,” said Kristen Swearingen, ABC vice president of government affairs. “As deputy secretary, Sonderling has advanced policies that strengthen the American workforce, expand workforce development opportunities and address harmful Biden-era regulations that restrict worker freedom. ABC is proud to support Sonderling’s nomination.”

SEE ALSO: ABC SUPPORTS TRUMP ADMINSTRATION’S CRITICAL IMPROVEMENTS TO APPRENTICESHIP PROGRAMS

The post ABC Applauds President Trump’s Nomination of Keith Sonderling as Labor Secretary first appeared on Construction Executive.

“ABC appreciates the DOL’s decision to drop its defense of part of these regulations,” said Swearingen. “In a victory for the construction industry, taxpayers and the rule of law, yesterday’s order recognizes the illegality of former President Joe Biden’s efforts to expand Davis-Bacon requirements beyond the scope Congress set out.

“However, there is much more to be done. This decision leaves in place the vast majority of the costly and burdensome Davis-Bacon regulations promulgated under the Biden administration. The misguided and unnecessary 2023 final rule continues to unlawfully distort the accuracy of prevailing wage surveys, discourage small business participation in federal contracting and unnecessarily increase costs for taxpayers.

“ABC urges the DOL to swiftly rescind the 2023 final rule, which would be a major step towards cutting red tape and improving the federal government’s delivery of critical construction projects, and to instead pursue commonsense reforms to prevailing wage regulations. ABC continues to pursue litigation seeking to overturn this unlawful and onerous rule entirely.”

This decision blocks the expansion of prevailing wage regulations to cover manufacturing facilities miles away from projects and delivery truck drivers spending any amount of time on a jobsite, and the ability of the government to retroactively impose the measure on already-executed contracts. The decision has no impact on other aspects of the 2023 final rule, which remain in effect.

The decision is the result of a lawsuit filed by the Associated General Contractors of America in November 2023.

The 1931 Davis-Bacon Act and related regulations require contractors and subcontractors that perform work on federal and federally funded construction projects to pay a government-determined prevailing wage and benefit rate.

SEE ALSO: DOUBLING DOWN ON DAVIS-BACON

The post DOL’s Retreat on Davis-Bacon Expansion Welcome, But Full Repeal Is Needed first appeared on Construction Executive.

The FLCA was introduced by Rep. Pete Stauber (R-MN) in the House and Senators Cory Booker (D-NJ) and Josh Hawley (R-MO) in the Senate. The bill would allow federal government-appointed arbitrators to set the terms of first contracts between unions and employers if the parties fail to reach a voluntary agreement within strict, short timeframes.

The FLCA mirrors deeply flawed provisions found in the radical Protecting the Right to Organize Act and the discredited Employee Free Choice Act both of which Congress previously rejected for good reason. Specifically, the FLCA would:

• Impose unrealistic, arbitrary deadlines requiring employers and newly formed unions to reach first-contract agreements on an accelerated timeline that ignores the complexity of real workplace negotiations.
• Require mediation via an obscure government agency—the Federal Mediation and Conciliation Service, which the Trump administration is actively trying to eliminate and which has no experience mediating private sector employment contracts.
• Mandate binding interest arbitration if an agreement is not reached in just 120 days, handing unprecedented authority to federal bureaucrats and undermining the foundational principle of voluntary agreement in U.S. labor and contract law.
• Allow government arbitrators with no knowledge of the industry or business to set a contract dictating employment terms, including wages, benefits, workplace safety procedures and leave policies—areas that should be determined by the parties closest to the workplace, not government appointees. Arbitrators would have the ability to impose any terms they wish, with no requirement that they consider the employer’s ability to handle the contract terms imposed. The contract would be binding for two years.
• Strip workers and businesses of any meaningful recourse. If either party disagrees with the arbitrator’s decision, they have no avenue for appeal. Workers would not even have the right to ratify the contract imposed upon them.

Big picture, the FLCA represents an unprecedented expansion of federal authority into private-sector employment relationships. Never before has the U.S. government been empowered to unilaterally dictate the terms and conditions of employment in the private sector. This legislation does not protect workers—it strips them of their voice.

SEE ALSO: ABC OPPOSES THE EGREGIOUS FASTER LABOR CONTRACTS ACT

The post Arbitration Nation: Opposing the FLCA first appeared on Construction Executive.

“Setting a dangerous precedent, House Democrats and a few unprincipled Republicans today voted to pass the Faster Labor Contracts Act,” said ABC President and CEO Michael Bellaman. “The FLCA imposes arbitrary and unrealistic deadlines on employers to finalize negotiations with newly elected unions or face ‘binding interest arbitration of first contracts.’ In practice, this means, for the first time in American history, a federal government bureaucrat will appoint an individual to dictate exactly what is included in a contract between two private negotiating parties.

“The consequences of this misguided bill include destroying voluntary agreement and good-faith labor-management negotiations and could expand to disputes over wages, benefits and working conditions to include social or political issues unrelated to the day-to-day needs of workers and employers,” said Bellaman. “ABC supports legislation that upholds the intent of the National Labor Relations Act and protects freedom of association. Unfortunately, the FLCA would undermine the bargaining process and counter the freedoms the NLRA was designed to protect.”

Key provisions of the FLCA:

• Within 10 days of receiving a request to collectively bargain with a newly recognized union, the parties must begin bargaining. If the employer and union do not reach an agreement on a first contract within 90 days of the beginning of bargaining—regardless of whether they are negotiating in good faith, and for any reason at all—the parties must participate in mediation. This would be an unprecedented expansion of federal government authority into the private sector.
• If mediation is also unsuccessful within mere weeks, a three-person arbitration panel chosen by the parties will be required to settle the dispute by a majority vote and the decision will be binding. If the parties fail to identify individuals to join the arbitration panel within two weeks, an arbitrator chosen by federal government bureaucrats will impose a collective bargaining agreement on the workers, employer and union.

In order of signing the discharge petition, the Republican supporters who voted for the bill are: Reps. Mike Lawler, N.Y., Max Miller, Ohio, Rob Bresnahan, Pa., Brian Fitzpatrick, Pa., Don Bacon, Neb., Riley Moore, W.Va., and Nick LaLota, N.Y. They were joined by Republican representatives Mike Carey, Ohio, Andrew Garbarino, N.Y., Carlos Gimenez, Fla., John Joyce, Ohio, Nicholas Langworthy, N.Y., Nicole Malliotakis N.Y., Michael Rulli, Ohio, Maria Elvira Salazar, Fla., Christopher Smith, N.J., Pete Stauber, Minn., Mike Turner, Ohio, Jefferson Van Drew, N.J., and Derrick Van Orden, Wis., in the final vote.

“The FLCA fortifies the role of government bureaucrats in private workplace matters and applies a one-size-fits-all contract process on business, workers and unions,” said Bellaman. “The Trump administration and U.S. Senate must reject this egregious legislation. ABC calls on them to instead stand with workers, entrepreneurs and small businesses.”

Visit protectingamericanworkers.org to learn more.

SEE ALSO: ABC OPPOSES EGREGIOUS FASTER LABOR CONTRACTS ACT

The post House-Passed Faster Labor Contracts Act Is a Disgrace to Free Enterprise first appeared on Construction Executive.

“While the working-class identity has too often been conflated with union affiliation, the data shows that nonunion construction workers voted for President Trump at a significantly higher rate in 2024,” said Michael Bellaman, ABC president and CEO. “In fact, through measures of party alignment, candidate support and policy preferences, nonunion workers in the trades consistently align more closely with the GOP than their union counterparts.

“The survey also makes it clear that working-class support should not be confused with union leadership support,” said Bellaman. “Nonunion construction workers not only supported President Trump at a significantly higher rate than union workers in 2024, but they also vastly outnumber union workers in the battleground states that will determine control of Congress next year.

“Despite this political reality, the Trump administration continues to support the controversial project labor agreement mandate that President Joe Biden established via executive order,” said Bellaman. “The PLA mandate tells nonunion construction workers they are unworthy of participating in federally funded projects, which risks alienating a workforce that forms a critical part of the GOP’s electoral base, particularly in swing states where nonunion workers play an outsized role.

“Ahead of the midterms, President Trump and his administration have a choice,” said Bellaman. “They can reverse course and allow all workers, including the nonunion workers who powered their 2024 victory, to participate on federal projects or they can continue appeasing union leadership through policies that restrict competition, raise costs and alienate the overwhelming majority of the construction workforce.

“In the 2026 midterms and beyond, Republicans who embrace fair and open competition will see continued support from the majority of skilled trades workers in their states and districts,” said Bellaman. “Those who support government-mandated project labor agreements in the hope that appeasing union bosses will win over rank-and-file workers are chasing a bargain the data shows does not exist.”

Highlights from the study include:

• Nonunion construction workers outnumber union workers in presidential swing states, comprising 76%-98% of the construction workforce electorate. 
• Merit shop support for President Trump exceeded union support across all six swing states:
  • In Arizona, Georgia and North Carolina, nonunion workers supported President Trump at a rate 19 points higher than union workers.
  • In Michigan, Pennsylvania and Wisconsin, nonunion workers supported President Trump at a rate 7 points higher than union workers.
• Skilled trades workers oppose union preferences in federal contracting by a 2-to-1 margin.
• When asked whether the federal government should have the flexibility to select contractors based on best value for taxpayers, rather than union affiliation, 83% of nonunion construction workers agreed or strongly agreed and 73% of union construction workers agreed or strongly agreed.

SEE ALSO: NONUNION CONSTRUCTION WORKFORCE TOPS 80% IN 41 STATES (2025)

The post Study Shows Nonunion Construction Workers Built the GOP Coalition first appeared on Construction Executive.

In a December 2025 video, Sen. Bernie Sanders, D-Vt., called for a national moratorium on data center construction to “give democracy a chance to catch up and ensure that the benefits of these technologies work for all of us, not just the wealthiest people on Earth.” He was referring to individuals such as Jeff Bezos and Elon Musk, who are investing billions in the AI race.

Sens. Josh Hawley, R-Mo., and Richard Blumenthal, D-Conn., introduced legislation this month that would mandate all data centers supply their own power with off-grid sources. Most important for merit shop contractors, the bill includes a provision mandating the use of project labor agreements in power source construction. This legislation represents another attempt to steer construction projects toward union-only contractors—a scheme that would cut out 98% of the industry from bidding on these jobs.

In 2026, more than 300 bills related to data center construction have already been filed in 30 states. New York, South Dakota and Oklahoma have followed Sanders’ lead by introducing moratorium bills to pause construction while studying data centers’ impact on utilities, the environment and local communities.

Polling on data centers in the United States shows electricity is the top concern for Americans. According to a Politico poll, respondents ranked higher electricity prices and the risk of blackouts as their leading concerns about data centers—above fears of job losses or costs to taxpayers.

On March 4, 2026, in an effort to ensure the data center boom helps address affordability concerns, U.S. tech leaders joined President Donald Trump at the White House to sign the Ratepayer Protection Pledge. Under the pledge, companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI agreed to build, bring or buy new generation resources and cover the cost of power delivery infrastructure upgrades required for their data centers—ensuring those expenses are not passed on to American households.

As policymakers focus on affordability ahead of the 2026 midterm elections, ABC will continue its work to preserve fair and open competition so all qualified contractors can help build this infrastructure. If data center construction continues to create competition for contractors, good-paying local jobs and economic growth for communities, it should remain a win for both the economy and the American workforce.

SEE ALSO: DRY DATA: ZERO-WATER DATA CENTER DESIGN

The post Data Center Debate: The Effect of the Ratepayer Protection Pledge first appeared on Construction Executive.

In 2025, ABC began asking contractors in its monthly Construction Confidence Index and Construction Backlog Indicator whether they were under contract to perform data center work. On average, one in eight responding ABC member contractors reported that they were.

Electrical work represents roughly 50% of the pad-ready scope, meaning the industry’s chronic workforce shortage is increasingly concentrated among electricians. Some data center project owners are offering significant financial incentives to attract workers, disrupting local labor markets and bringing in traveling crews. Many new entrants are being upskilled in core competencies as projects require miles of conduit installation and extensive cable pulling.

At the same time, the boom extends far beyond electrical work. Data center projects require hundreds of thousands of square feet of slab-on-grade concrete and roofing, along with extensive plumbing and HVAC systems. These demands add to the workforce pressures already facing other construction sectors.

The urgency is clear: The race to lead in artificial intelligence is accelerating, and time is of the essence.

Government action is also intensifying. Federal policymakers are considering national legislation, while state and local governments are moving quickly to address community concerns related to energy costs and grid capacity, water usage and resilience, environmental impacts, land use, pollution and noise. Transparency and public trust are also central issues.

The result is a rapidly evolving landscape—one that can feel chaotic at times but is also deeply exciting and potentially transformational.

ABC is engaged at every level, nationally and locally, both politically and practically—serving at times as an author of policy and at other times as a critic. The association is in ongoing communication with project owners, contractors, communities and policymakers.

ABC members and staff are actively working to address workforce shortages, permitting reform, health and safety commitments, and community concerns.

One outcome of this effort will be the continued integration of artificial intelligence, virtual reality, wearables and other advanced technologies into construction. ABC believes the rapid buildout of data center infrastructure presents a significant opportunity for transformational leadership across the industry.

SEE ALSO: DATA CENTERS, INTEREST RATES AND MORE PRIMED TO EXACERBATE LABOR SHORTAGE

The post Wiring the AI Economy: Construction Spending on Data Centers first appeared on Construction Executive.

For those in the construction industry hoping the Learning Resources ruling would restore market stability, the message was unambiguous. The constitutional question may be settled, but the market disruption is not.

A Constitutional Boundary, Not a Market Correction.

The Court’s holding is significant. Writing for the six-justice majority, Chief Justice Roberts concluded that IEEPA’s grant of authority to “regulate … importation” does not include the power to impose tariffs—emphasizing that the statute contains no reference to tariffs or duties, that no President has read IEEPA to confer such power in the statute’s nearly fifty-year history, and that Congress has consistently used explicit language when delegating tariff authority.

In a plurality portion joined only by Justices Gorsuch and Barrett, Roberts went further, invoking the major questions doctrine to underscore that Congress must clearly authorize delegations of authority involving “economic and political significance,” particularly where the claimed power implicates a core congressional prerogative under Article I.

The decision invalidated every tariff imposed under IEEPA since early 2025, including the reciprocal tariffs on virtually all trading partners and the country-specific duties on Canada, Mexico and China that contributed to cost escalations for imported steel, aluminum, lumber, and equipment for the better part of a year. Notably, Justice Kavanaugh, joined by Justices Thomas and Alito, dissented, warning that the process of securing refunds for previously paid IEEPA tariffs will be a “mess.”

Most significantly for the construction market marketplace, the ruling was limited to tariffs imposed under IEEPA’s now-invalidated tariff authority and, therefore, left the executive branch room to explore other pathways for the imposition of tariffs. For example, Section 232 tariffs on steel and aluminum—now at 50%—remain untouched. Section 301 tariffs are unaffected by the ruling. And the administration’s new Section 122 surcharge—set at 10% in a signed proclamation, with the President announcing via social media his intent to raise the rate to the statutory maximum of 15%—applies broadly to imports from all countries not already covered by Section 232 or qualifying under the USMCA. For construction firms, tariff driven market disruption and volatility will likely remain.

Brief Relief, Then Reality

In the hours after the Learning Resources opinion was delivered, a cautious optimism swept through the marketplace. That sentiment faded quickly, however, as industry associations, like the Associated Builders and Contractors, projected modest reductions in prices for specialty equipment, HVAC systems and electrical components—but acknowledged that the structural cost pressures on core materials are likely to be materially unchanged.

The practical reality for the construction industry is that pricing is less affected by whether a tariff is technically lawful under one authority or another, and is far more affected by whether pricing is stable. Stability is likely to remain elusive, as recent patterns of tariff announcement, adjustment and readjustment show no sign of ending.

The Refund Question

One of the most consequential aspects of the ruling is found in its silence:  The opinion did not address whether importers are entitled to refunds for tariffs previously paid under IEEPA and, if so, how the refund process will be administered. By most estimates, the federal government collected upwards of $160 billion in IEEPA duties over the past year. Approximately 2,000 importers have already filed suit with the Court of International Trade to preserve their refund claims. That litigation is just beginning and is likely to extend for months, if not years.

For the construction industry, the refund issue is uniquely complex because the party that paid the tariff at the border is likely to own the refund claim, but the cost implications of the tariffs flowed throughout the market as the costs of construction inputs were adjusted to reflect the market disruptions.  Refunds, if they are ever to be issued, will flow to importers of record, with the consumers of wrongfully tariffed inputs likely excluded from cost recoveries.

Whether an importer has any obligation to pass tariff recoveries back through the supply chain will likely depend on each participant’s contracts, and many of those agreements were never drafted with retroactive tariff relief in mind.  Disputes at every tier of the supply chain should be expected. 

What Now?

The question construction professionals should be asking is not whether IEEPA supports tariffs. The Court answered that question definitively:  it does not. The question is whether tariffs will continue to be deployed as a primary policy instrument of the executive branch, and the administration’s response to the Learning Resources opinion leaves no room for doubt on this important question. Tariffs and market disruptions are here to stay for the foreseeable future.  Almost immediately after the Learning Resources opinion was rendered, U.S. Trade Representative Jamieson Greer announced that Section 301 investigations will be initiated “in short order” against most major trading partners. Multiple Section 232 investigations are already pending. And if those actions evolve into new tariffs, market volatility can be expected to continue.

There was some hope that a Supreme Court ruling would bring clarity and reduce tension in the marketplace. Constitutionally, the Court drew a bright line and rejected one of the broadest assertions of unilateral executive trade authority in modern history.  The Learning Resources decision will have historical resonance for its reaffirmation of the separation of powers among coequal branches of government.  Economically, however, the import markets will remain unsettled and the cost structure for construction inputs has not fundamentally changed. 

The industry should proceed on the assumption that new tariffs will be announced with limited notice, that legal challenges will take time to work through the courts, and that alternative tariff strategies will follow adverse rulings, as the administration seeks to preserve one of its most favored policy tools. Even after tariffs are lifted, as in the Learning Resources case, refund litigation could persist for years, extending uncertainty well beyond the initial imposition of the tariff itself. This, however, does not mean that projects will stall or investment will be deterred. Markets adapt, as pricing models, financing structures, and contracting adjust to reflect the reality of the marketplace. The Court resolved an important constitutional question. It did not bring an end to tariff-driven market disruption.

SEE ALSO: CONSTRUCTION MATERIALS PRICES SURGE AGAIN IN JANUARY, DRIVEN AGAIN BY TARIFFS

The post Supreme Court Rules Tariffs Unconstitutional: Why the Construction Industry Shouldn’t Expect Calm Just Yet first appeared on Construction Executive.