Due in part to AGC’s advocacy and others, a House fiscal year 2022 funding bill for the U.S. Department of Labor will not include a provision banning the construction industry from utilizing the H-2B seasonal guest worker visa program. The program provides temporary and seasonal workers when domestic workers are unavailable via a lottery process to a wide range of industries, including construction. Given the widespread worker shortages impacting the construction industry, AGC was very concerned of attempts to target and limit the industry’s ability to access the program. AGC will continue to advocate for immigration reforms that helps address construction workforce shortages.

The U.S. Department of Labor announced a final rule to rescind a Trump administration rule, “Joint Employer Status under the Fair Labor Standards Act” that took effect in March 2020. The rescinded rule included a description of joint employment the Biden administration believes is contrary to statutory language and Congressional intent. The U.S. District Court for the Southern District of New York vacated most of the rule in 2020.

On July 29, the Federal Acquisition Regulation (FAR) Council issued a proposed rule to add and expand Buy American Act requirements on direct federal construction projects (not federal-aid transportation projects). The proposed rule increases the domestic content required to 60% with increases in two years to 70% and then 75% in five years. It permits acceptance of products and construction materials up to six years after publication of the rule which are unavailable at an acceptable cost. It also states that a higher price preference may be identified for critical end products and construction materials. The rule was initiated as a result of President Biden’s Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers. White House staff briefed AGC on the direction of the proposed rulemaking and AGC gave feedback to inform the FAR Council’s process. AGC will provide feedback on how this rule should not exacerbate continuing construction material shortages and price spikes.

On July 28, the Senate agreed, 67-32, to begin debate on a $1.2 trillion bipartisan infrastructure package. Ahead of the vote, the bipartisan group of senators announced it had resolved all major issues on the package. As a result of this initial vote, the Senate will consider the package over the coming days and, perhaps, weeks. However, an actual legislative bill detailing what is in the package has yet-to-be released or formally introduced as of July 29. When a bill is introduced in the Senate and, if passed, the bill will head to the House of Representatives for consideration. A 57-page summary of the bipartisan infrastructure package notes how it includes funding for a host of traditional, physical infrastructure. AGC appreciates and has fought for the significant levels of investment in the package and awaits actual legislative text before considering a formal association endorsement.

Construction employment declined or stagnated in 101 metro areas between February 2020, the last month before the pandemic, and last month, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that labor shortages and supply chain problems were keeping many firms from adding workers in many parts of the country.

Unveiling will be livestreamed on the association’s Facebook page, facebook.com/agcofa

Paul McLaughlin, Manager of Continuous Improvement for the Butz Family of Companies, which includes GBCA member Shoemaker Construction Co., has been a member of GBCA’s Construction Leadership Council Steering Committee since 2020. Representing the CLC, he has also served on GBCA’s Government Affairs and Education Committees. While he was introduced to the construction trades from his family, it was during his freshman year at Drexel University that he cemented his pursuit of a career in construction. Upon learning that Construction Management was a major and after sitting in on a class, he immediately changed his major. Now in the industry, he values seeing the tangible results: The most rewarding thing for him is being able to see a project materialize from design through to a finished product.

On June 22, AGC along with over 100 other trade associations voiced their strong opposition to any attempts to roll back the 20 percent deduction for pass through businesses—S-corps, partnerships, limited liability companies—enacted in the Trump tax cuts under Section 199A of the federal tax code. Despite the opposition, Chairman Ron Wyden announced on July 20 that he would move forward with a bill to phase out Section 199A. AGC will oppose this bill that will increase taxes on small business construction companies.

The U.S. Department of Labor has announced a Notice of Proposed Rulemaking to establish standards and procedures to implement and enforce Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” signed by President Biden on April 27, 2021.

On July 16, AGC submitted regulatory comments on the U.S. Treasury Department's interim final rule governing how state, local, territorial and Tribal governments can spend $350 billion from a COVID-relief fund established under President Biden's $1.9 trillion COVID-19 relief law: the American Rescue Plan Act. AGC’s regulatory comments urge the Department to, among other things: (1) confirm and expand eligibility for all forms of infrastructure and building construction investments and related revenue streams; and (2) drop any reporting requirements encouraging government-mandated project labor agreements, local hiring requirements and the expansion of prevailing wage laws beyond the status quo. And, in a victory for AGC and the construction industry, the Department provided new guidance clarifying that losses of revenues from gas taxes and vehicle licensing fees incurred during the COVID-19 pandemic are eligible to be replenished using these recovery funds. AGC will continue to monitor the distribution of these recovery funds.