On April 5, White House Press Secretary Jen Psaki stated that the administration is planning to propose that money from its infrastructure package be paid out through a "competitive bidding process," and that states and other entities would "have to apply for funding for rebuilding the infrastructure in their states or local communities. On April 6, Psaki clarified these comments, noting that while "it will be up to Congress" to shape the bill, the administration expected "a mix" of formula grants and competitive grants. She went on to say "…existing transportation funding flows through formula grants, which gives states a lot of flexibility on how to prioritize and spend their federal dollars based on what their needs are," but that "competitive grants are a more targeted way to direct funds to specific policy goals, often based on criteria set by Congress.” It is assumed that money for transportation infrastructure in the Biden plan will be in addition to a surface transportation reauthorization bill, which provides funding for the core highway and transit state formula programs. AGC will continue to monitor the trajectory of President Biden’s infrastructure proposal.

On April 7, AGC of America CEO Stephen Sandherr, Contractors Association of West Virginia Executive Director Mike Clowser and members of AGC Chapter-CAWV met in Charleston, West Virginia with Senator Joe Manchin on the PRO Act—the greatest threat to open shop and union construction firms—and President Biden’s Infrastructure Plan, on which you can find a comprehensive AGC analysis here. Sen. Manchin is one of five Democrats who has not pledged support for the PRO Act. He is also a pivotal player in the Biden’s administration’s plans for enacting any infrastructure legislation through the partisan reconciliation process that would only require 51—instead of 60—votes to pass in the Senate. AGC and its members in West Virginia and around the country will continue to oppose efforts to enact the PRO Act and to support significant investments in our nation’s transportation, building and utility infrastructure.

The infrastructure investment included in the Biden Infrastructure Plan would be funded through a variety of broad tax increases, primarily aimed at multinational corporations, but that would also impact domestic C-corporations, including some construction firms. Increased taxes on pass-through businesses, individual tax rates, estate taxes, capital gains taxes, and payroll taxes, are expected in the next “human infrastructure” package to be released in the near future. The primary funding mechanism would be to increase the corporate tax rate from the current 21% rate to 28%.

Senate Leader Chuck Schumer (D-N.Y.) told AFL-CIO leader Richard Trumka that the PRO Act would receive a vote in the U.S. Senate if 50 senators pledge to support it. Currently, 45 Democratic senators have pledged their support for the PRO Act. The only Democratic senators to not yet lend their names to the PRO Act are Mark Kelly (Ariz.), Joe Manchin (W.Va.), Krysten Sinema (Ariz.), and Mark Warner (Va.); Independent Sen. Angus King (Maine) who caucuses with the Democrats is also on this list. Reading between the lines, Sen. Schumer is letting Mr. Trumka know that he will need to pressure these senators into joining their 45 colleagues in support of the PRO Act. Special interest groups are insisting Senate Democratic leaders immediately gut the filibuster. If successful, the PRO Act could pass on a simple majority vote with Vice President Harris representing the fifty-first vote. AGC continues to oppose effort to pass the PRO Act in the Senate. Learn more about the PRO Act at agc.org/PROAct.

On March 25, the Senate is expected to pass the AGC-supported Paycheck Protection Program (PPP) Extension Act that would extend the deadline for taking out a PPP loan through June 30, 2021. Importantly, while the legislation extends the deadline for loan approval through June 30, borrowers’ applications must be submitted to their lenders by May 31. The House previously passed the bill, and President Biden is expected to sign it if and when it reaches his desk. Without congressional action, the program’s authorization will expire on March 31, 2021. The extension will give construction firms more time to apply for PPP loans, as many firms see waning backlogs.

AGC Enters into Negotiations with SBA; Hoping for Settlement of PPP LawsuitAGC Member Wins Forgiveness of PPP Loan Over $2 Million

On March 18, the U.S. House of Representatives passed the AGC-supported American Dream and Promise Act of 2021 (H.R. 6). This measure seeks to take a first step in reforming our nation’s immigration system by protecting the legal status of work authorized-Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS) holders. Despite today’s outcome, the bill faces an uphill fate in the Senate without a significant breakthrough. There are more than 100,000 construction workers estimated with DACA or TPS status who currently face an uncertain legal future.

AGC Concerned About Impact on PPP Loan Forgiveness State Tax Treatment & More

PRO ACT—The Greatest Threat to Union & Open Shop Construction