The Obama Administration today released additional details regarding its fiscal year 2010 budget request to Congress.  The Administration released a blueprint of its budget in February.  For federal construction spending programs, the Administration proposes a total of $118.7 billion, a $724 million or 0.6 percent decrease below the $119.4 billion appropriated for FY 2009.While the budget recommends a mix of increases and reductions in programs across market areas, it does, however, increase in funding for water and wastewater infrastructure construction.  Specifically, the budget recommends $2.4 billion for the Clean Water State Revolving Loan Fund (SRF) program and $1.5 billion for the Safe Drinking Water SRF program, together representing a 160 percent increase over FY 2009 funding levels. On a related note, Congress on April 29 approved its $3.5 trillion budget resolution for FY 2010.  No Republicans voted for the measure in either chamber.  The budget resolution, which provides a non-binding framework for future tax and spending legislation in Congress, assumes $764 billion in tax cuts over five years, and aims to cut the deficit in half by FY 2012 and by two-thirds by FY 2014.  The agreement sets discretionary funding at $1.1 trillion for FY 2010, $10 billion less than the amount President Obama recommended in his budget, and sets non-defense discretionary spending at $529.8 billion for FY 2010.For a chart comparing the Administration's FY 2010 budget request, click here.

On March 31, 2009, the FAR Councils issued a series of interim rules amending the Federal Acquisition Regulation (FAR) in order to implement several key provisions set forth in the American Recovery and Reinvestment Act of 2009.On a finding of "urgent and compelling reasons," the interim rules were issued without any opportunity for prior public comment.  The FAR Councils will, however, take into consideration public comments submitted on or before June 1, 2009 in formulation of the final rule.In order to facilitate a dialogue between AGC members and the government, AGC has set up a special portal located at the AGC Legislative Action Center and highlighted the key issues that must be addressed:Recovery Act - Buy American Requirements for Construction MaterialRecovery Act - Publicizing Contract ActionsRecovery Act - Reporting RequirementsRecovery Act - Whistleblower ProtectionsRecovery Act - GAO/IG Access The Office of Management and Budget (OMB) also issued its own guidance on April 23 establishing Government-wide guidance and standard award terms for agencies to include in financial assistance awards (namely, grants, cooperative agreements, and loans) as part of their implementation of the Recovery Act. Public comments are due by June 22:Recovery Act - OMB Interim GuidanceAGC has been working to solicit comments from members and is preparing to submit comments on behalf of the entire association by the June 1 deadline.

Senate Environment and Public Works Chairwoman Barbara Boxer (D-CA), Ranking Member James Inhofe (R-OK), Senate Water & Wildlife Subcommittee Chairman Ben Cardin (D- MD) and Ranking Member Senator Mike Crapo (R-IL) are expected shorty to introduce the Water Infrastructure Financing Act of 2009. This bi-partisan bill will authorize $38.9 billion for Environmental Protection Agency (EPA) water infrastructure programs over the next five years.Highlights of the Senate bill include $20 billion for the Clean Water State Revolving Fund Program, $15 billion for the Drinking Water State Revolving Fund Program and $1.85 billion for Sewer Overflow Grants. AGC and the WIN Coalition worked closely with Senate staff on this companion legislation to H.R. 1262, the Water Quality Investment Act of 2009, which passed out of the House of Representatives on March 12 authorizing a total of $19.4 billion over five years for wastewater infrastructure projects. In addition to revising the SRF distribution formula for States, The Water Infrastructure Financing Act of 2009 creates a new Agricultural Pollution Control SRF, includes technical assistance grants for small systems and $250 million for Critical Water Infrastructure Projects (Watershed Improvements).AGC is particularly pleased that the bill does not include any Buy American Provisions similar to those included in the American Recovery and Reinvestment Act. While the bill will not include any Davis Bacon provisions it is likely that amendments for and against the inclusion of Davis Bacon will be introduced in the full committee markup which will occur on Thursday May 14.

The Immigration and Customs Enforcement (ICE) agency issued new guidelines to field offices to specifically instruct agents to step up worksite enforcement on employers. The guidance seeks to refocus agents on employer enforcement because ICE believes that efforts focused on employers is the best way to fight what many consider to be one of the leading causes of illegal immigration. The guidance urges agents to "prioritize the criminal prosecution of actual employers who knowingly hire illegal workers" and to use administrative tools such as I-9 audits, civil fines and debarment proceedings to further these efforts.  This effort specifically seeks to reprioritize ICE's efforts to emphasize criminal prosecutions.

This week, AGC Chief Executive Officer Steve Sandherr wrote and OpEd for The Washington Examiner on the impact of the Employee Free Choice Act (EFCA) on union construction workers. The story illustrates AGC's concerns on the negative effect passage of EFCA could  have on union workers in our industry.AGC continues to educate Members of Congress about the negative impact of EFCA on the construction industry for both union and open shop contractors. Click here to view the OpEd.

This week over 300 construction contractors from across the country came to Washington D.C., to discuss the latest trends in federal contracting at AGC's Federal Contractors Conference and to advocate the industry's priorities to lawmakers.Members attended detailed presentations from agencies such as the General Services Administration and Army Corps of Engineers, and had the opportunity to ask questions and discuss various issues related to government projects.AGC member contractors visited Capitol Hill to discuss how the construction industry would be negatively affected by measures in the proposed "card check" legislation that require Washington-appointed officials to make key business decisions and outlined how investing in construction and infrastructure projects is one of the most effective ways to add jobs, improve the environment and increase America's ability to compete in the future global economy.The meetings proved highly productive and AGC of America will follow up with each office on our legislative priorities.

The Senate Environment and Public Works Committee is scheduled to consider a bill next Thursday that would expand federal jurisdiction over waters and wetlands under the Clean Water Act.  The bill, S. 787, the Clean Water Restoration Act, would create a new legislative definition of "waters of the United States" that would essentially be limitless and would greatly increase the circumstances under which contractors would be required to obtain and be regulated by federal Clean Water Act permits (e.g., section 404 permits).AGC is opposed to the legislation, which would create the greatest expansion of the Clean Water Act since it was signed into law in 1972.  The legislation would expand the federal role beyond protecting wetlands and waters having an understandable "significant nexus" to navigable waters and regulate everywhere that rainwater happens to flow, including roadside ditches.  The legislation would give the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency jurisdiction over all wet areas - however remote or intermittent - and over all activities (e.g., construction) affecting those waters.  The federal permitting process would increase the cost of maintaining and delay necessary improvement of public and private infrastructure. AGC believes Congress should not rush to expand the scope of the Clean Water Act.  Instead, Congress should preserve the role that states and localities have traditionally played.  States and local authorities should lead the regulation of land and water use, not the federal government. AGC asks you to contact your Senators to urge them to oppose the Clean Water Restoration Act.  To contact your Senators, you may use AGC's Legislative Action Center.

Congressional committees in the House and Senate continue to discuss and work towards crafting comprehensive health care reform. The issue remains a top priority of the President and Democratic leaders, but specifics of the reform proposal have not been formulated.The leaders remain committed to an ambitious timeline of drafting a bill in the next couple of weeks followed by final votes on a bill towards the end of July. Democrats have given themselves the added advantage of including special instructions in the recently passed budget resolution that would give Congress the ability to pass legislation with a simple majority rather then customary 60 vote threshold required on controversial legislation in the Senate. The instructions come with caveats, but AGC has advocated the important legislation deserves full consideration and should not be crafted by one party.In response to the pending legislation, AGC has created a task force to evaluate the industry's top priorities for health care reform and to evaluate the bill and its impact when it is available. In the interim AGC is surveying members to identify key issues.

The House and Senate Wednesday approved their $3.5 trillion budget resolution for fiscal year 2010. No Republicans voted for the measure in either chamber. The budget resolution, which provides a non-binding framework for tax and spending legislation in Congress, assumes $764 billion in tax cuts over five years, and aims to cut the deficit in half by FY 2012 and by two-thirds by FY 2014. The agreement sets discretionary funding at $1.1 trillion for FY 2010, $10 billion less than the amount President Obama recommended in his budget, and sets non-defense discretionary spending at $529.8 billion for FY 2010.The budget resolution extends the Bush 2001 and 2003 tax cuts for the middle class, and assumes a continuation of the 2009 estate tax rate of 45 percent on estates worth more than $3.5 million, or $7 million per couple, which would be indexed for inflation. Under current law, the estate tax rate would drop to zero in 2010, but would be reinstated at a top rate of 55 percent and $1 million exemption in 2011.The agreement also includes special instructions that would allow health-care and education overhaul proposals to pass the Senate by a simple majority vote to defeat a filibuster. Republicans have warned that these special instructions could be used by the Democrats to expedite passage of other controversial legislation, such as a carbon emission cap and trade bill.Passage of the budget resolution is the first step in the annual Congressional spending process, which allocates funding for, among other things, federal construction programs. AGC will continue to advocate for the increased federal investment in the nation's infrastructure and public facilities through the nearly 100 construction programs at the federal level.

Following last week's four days of hearings on the House Energy and Commerce Committee's draft cap and trade bill for greenhouse gas emissions, previously scheduled subcommittee consideration of the measure was postponed this week while negotiations continued with Democrats and stakeholders on a way forward. The Committee has tentatively scheduled subcommittee consideration of the bill for next week.Given strong Republican opposition to cap and trade legislation, proponents of the measure need to win over Democrats who represent constituencies that would be most affected by the bill, including low-income consumers, electric utilities, coal industry, oil and gas and manufacturing. Democrats are currently working out how to allocate the emission credits, which is a crucial cost component of the legislation. Energy and Commerce Committee leadership also need to work out differences with the Ways and Means Committee, whose Democratic membership is skeptical of using a market to regulate carbon and have suggested levying a direct tax on carbon emissions (i.e., "carbon tax").AGC's analysis of climate change legislation shows a significant impact on construction in the form of higher energy prices, higher raw materials prices and potential EPA regulation of land use (including local planning decisions) and transportation planning.