Backend Category: Advocacy

MCAA Government Affairs Update for the Week of March 23, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, March 23, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • As military operations in Iran continued last week, the Pentagon is preparing a supplemental funding request exceeding $200 billion to sustain military operations and replenish depleted weapons stockpiles, setting up a likely congressional battle over additional war funding. Even Trump allies in Congress like Sen. Roger Marshall (R-KS) are skeptical of such a large supplemental request and Senate Democratic Leader Chuck Schumer (D-NY) called the request “preposterous” and “unacceptable,” noting that $200 billion is more than the U.S. spent at the height of the war in Iraq. Some Republicans think a second reconciliation bill that can be passed on a party line vote is the only way to advance additional war funding. Meanwhile, oil and gas prices continued to rise with the national average for regular gasoline hovering around $4 per gallon and diesel over $5.00 per gallon. To stem these rising fuel prices, the President announced a 60-day waiver of the Jones Act allowing foreign-flagged vessels to transport commodities between U.S. ports. The Administration is also considering lifting sanctions on Iranian oil at sea to keep oil and gas prices down, but denied that it is considering restricting U.S. oil and gas exports. Iran continued targeting energy infrastructure across the Middle East, knocking out about 17% of Qatar’s liquefied natural gas (LNG) export capacity, damage that officials say will sideline roughly 12.8 million tons of LNG per year from global markets for three to five years while repairs are completed. Amid the widening energy shock, the International Energy Agency is urging governments, businesses, and households to adopt short-term demand-reduction measures such as expanded telework, lower highway speed limits, greater use of public transportation and ride-sharing, and reduced business air travel, arguing that behavioral and policy changes may be needed alongside supply-side interventions to stabilize global fuel markets.
  • The MCAA policy team was busy last Friday analyzing the potential infrastructure development ramifications of President Trump’s “National AI Legislative Framework” that makes recommendations to Congress for a law establishing a single federal standard governing artificial intelligence and to generally preempt the creation of a patchwork of “cumbersome” state-level AI regulations. While the Framework generally calls for preempting state laws on AI, there are exceptions. For example, the Framework says that a national standard should not preempt state and local zoning laws or local determinations about the location of AI infrastructure. The President’s Framework urges Congress to enact streamlined permitting processes for the construction and operation of data centers and related infrastructure to “accelerate AI infrastructure buildout and enhance grid reliability.” This broad proposal is consistent with the permitting reforms MCAA has been advocating. It also calls for any AI legislation to aid in developing an AI-ready workforce. The President also called on Congress to enact into law the “Ratepayer Protection Pledge” proposal from his State of the Union Address that seeks to prevent increased consumer electricity costs from data centers.
  • Last week, the Occupational Safety and Health (OSHA) rolled out two new initiatives. Last Wednesday, OSHA launched its “OSHA Cares” initiative, an agency-wide compliance assistance effort aimed at helping businesses better understand and meet federal workplace safety requirements. The program is designed to expand access to OSHA experts and compliance assistance specialists, improve the availability of training and educational resources, and promote more consistent support for employers during inspections and enforcement meetings. As part of the program, OSHA’s Directorate of Enforcement Programs will implement a training initiative to standardize how OSHA Compliance Safety and Health Officers provide real-time guidance to employers during workplace inspections. Rollout of the OSHA Cares initiative followed the announcement last Monday of OSHA’s new Safety Champions Program, a cooperative initiative aimed at helping employers strengthen workplace safety and health practices. The voluntary program has three tiers—Introductory, Intermediate, and Advanced—aligned with OSHA’s recommended safety management principles, including hazard identification, worker participation, training, and program evaluation. Employers may participate independently or with guidance from safety experts.
  • As the MCAA continues to engage the Trump Administration on our shared priority of expanding domestic nuclear energy, we learned last week that the Nuclear Regulatory Commission is considering drafting a rule that would replace its long-standing “as low as reasonably achievable” (ALARA) radiation protection standard with a less rigid system focused on fixed dose limits and targeted exceptions. The proposal, which could apply across NRC-regulated nuclear power plants, fuel cycle facilities, and medical and industrial users of radioactive materials, is part of a broader Trump Administration effort to accelerate and reduce the cost of developing nuclear power. There is concern that weakening the foundational ALARA safety principle could increase public health risks associated with nuclear energy. The NRC is working towards releasing a proposed rule for public comment by the end of April.

Congress

  • Last week, the MCAA continued lobbying on Capitol Hill to advance permitting reform by working to build on renewed bipartisan engagement on the issue from the Ranking Members for the two key committees with jurisdiction over permitting reform—Senators Sheldon Whitehouse (D-RI), Ranking Member on Environment & Public Works (EPW) and Martin Heinrich (D-NM), Ranking Member on Energy and Natural Resources (ENR). Whitehouse and Heinrich reengaged after the Justice Department declined to appeal court decisions blocking the Administration’s efforts to stop work on offshore wind projects already under construction and after some positive developments on other renewable projects. The Senators warned, however, that they expect no additional Administration interference with already-permitted wind projects and further movement on other renewable energy projects for the larger permitting talks to remain productive. Reports last week that the Administration is considering paying France’s TotalEnergies nearly $1 billion to halt two planned wind projects offshore New York and North Carolina that are not yet under construction do not seem to be halting discussions on permitting reform. The exact scope of a Senate permitting bill remains unclear, but we expect any bill that comes out of the Senate negotiations to be broader than the “SPEED Act” that we worked to get through the House in December. Senate legislation is likely to more broadly accelerate approvals for both fossil fuel and clean energy projects, strengthen transmission capacity and grid reliability, and reduce judicial review timelines—akin to the SPEED Act. Senate negotiators also want to address “permit certainty,” while Democrats want to ensure the Administration cannot continue to interfere with previously-permitted renewable energy projects or deprive renewable projects of the benefits of permitting reforms. The Senate is also trying to figure out the extent to which a permitting reform bill must address community and environmental concerns around infrastructure development, particularly as it relates to the construction of data centers and their associated energy and water needs.
  • The discussion on permitting reform in the Senate comes as federal, state, and local policymakers are increasing scrutiny of AI infrastructure projects. On March 13th, Senate Environment and Public Works Committee Ranking Member Sheldon Whitehouse (D-RI) and Senate Energy and Natural Resources Committee Ranking Member Martin Heinrich (D-NM)—the leading Democrats on the Senate’s permitting reform negotiations—launched an investigation into eight AI companies regarding their plans for new gas-fired power plants to fuel large data center developments. In letters to Meta, OpenAI, xAI, Fermi America, American Intelligence & Power Corporation, Joule, Crusoe, and Fundamental Data, the lawmakers raised concerns about the potential greenhouse gas emissions, local air pollution, and long-term economic assumptions associated with relying primarily on natural gas generation to meet growing AI-related electricity demand. Notably for the MCAA, the Senators are requesting information on whether the projects will incorporate carbon capture technologies, utilize lower-methane-intensity gas supplies, and consider alternative power sources such as renewables, nuclear, or battery storage. The lawmakers also raised concerns about the scale of proposed facilities, including Pacifico Energy’s planned 7.65-gigawatt GW Ranch project in Texas. The companies were asked to respond to the senators’ questions by March 27th. At the state level, Washington lawmakers sent Gov. Bob Ferguson (D) legislation to end sales tax exemptions for data centers, including waivers on equipment, installation, and maintenance costs. The legislation would also halt new exemptions and sunset existing benefits beginning July 1. Meanwhile, local officials in Lowell, Massachusetts approved a one-year moratorium on new data center construction amid a debate over expanding an existing data center. The moratorium was passed over the objections of construction unions that emphasized the jobs the project would create. Residents and environmental advocates prevailed by highlighting concerns about noise, diesel backup fuel storage, and increased water and energy consumption.
  • Last Thursday, the Senate Homeland Security Committee voted 8-7 to advance Senator Markwayne Mullin’s (R-OK) nomination to be the Secretary of Homeland Security to the full Senate. Committee Chair Rand Paul (R-KY) was the only Republican to vote against Mullin and Sen. John Fetterman (D-PA) was the only Democrat to support his nomination. The vote comes as negotiations continued into the weekend over reopening the Department of Homeland Security (DHS). Senate Democrats have tied additional funding to changes in immigration enforcement practices, while the White House has countered with proposals that include expanded use of body-worn cameras, clearer officer identification standards, limits on certain enforcement actions, enhanced oversight of detention facilities, and codification of protections against the deportation or detention of U.S. citizens. As the DHS shutdown continues and Transportation Security Administration airport screeners work without pay, Transportation Secretary Sean Duffy warned travelers to expect much more serious problems with airport operations if TSA personnel miss additional paychecks. The White House is seeking to go around Democratic leadership to get a deal. Border Czar Tom Homan and other senior Administration officials are engaging directly with centrist Senate Democrats who previously broke with party leadership on government funding votes. As the shutdown drags on, Senate Majority Leader John Thune (R-SD) pressured lawmakers to get a deal on DHS funding by threatening to delay the Senate’s planned Easter recess at the end of this week if no deal is reached. Meanwhile, Representatives Brian Fitzpatrick (R-PA) and Tom Suozzi (D-NY) are preparing their own bipartisan compromise to reopen DHS.
  • As the conflict in Iran contributes to global market volatility and rising fuel costs, many lawmakers have renewed urgency about accelerating deployment of renewable energy and strengthening grid reliability. To this end, last Wednesday, 120 House Democrats introduced the Energy Bills Relief Act. The sweeping bill seeks to lower household electricity costs by accelerating deployment of renewable power and modernizing the electric grid. The legislation would restore a range of clean energy tax credits repealed in the One Big Beautiful Bill Act, create new incentives for utilities to improve system efficiency, pass savings on to consumers, and provide financial assistance to help prevent struggling households from having their electricity shut off. The bill is unlikely to garner substantial GOP support, however, because it also seeks to impose new requirements on the development of fossil fuels. For example, it would require the Energy Department to determine that new LNG export terminals would not raise domestic energy prices or worsen climate impacts before granting approvals. It also clarifies federal authority over siting major interstate transmission lines to speed grid expansion and limits the Administration’s use of emergency powers to extend the operation of coal and other fossil fuel plants that the Administration has used to keep generating capacity online. In addition, the legislation seeks to prevent data centers and other large energy users from shifting costs onto residential ratepayers and includes provisions aimed at curbing alleged price gouging by energy companies.

Around the Country

  • MCAA members in Ohio should know that the U.S. Departments Energy and Commerce entered into a partnership with SoftBank and AEP Ohio to redevelop Energy Department land in southern Ohio to modernize energy infrastructure and develop advanced computing. As part of the partnership, Softbank company SB Energy plans to build 10 gigawatts (GW) of new power generation, including 9.2 GW of natural gas generation for a data center development at the Portsmouth Site in Pike County, Ohio. SB Energy is also investing $4.2 billion with AEP Ohio to upgrade and build new transmission lines in Southern Ohio. Construction is expected to begin this year.
  • As the Trump Administration continues to press for the deployment of more nuclear energy to improve the domestic power supply and grid reliability, MCAA members operating in Tennessee and Alabama should be aware that last Thursday President Trump and Japanese Prime Minister Sanae Takaichi announced a $40 billion nuclear power project between GE Vernova Inc. and Hitatchi Ltd. to build BWRX-300 small modular nuclear reactors in the two states. The agreement is the latest initiative supported by the $550 billion U.S.–Japan investment fund established as part of a broader trade arrangement between the U.S. and Japan that included reductions in U.S. tariffs on Japanese autos and other goods.
  • MCAA members operating in Alaska should be aware that last Wednesday, the Interior Department announced that a new oil and gas lease sale in the National Petroleum Reserve in Alaska generated more than $163 million in total receipts from 187 leases covering roughly 1.3 million acres. Officials said the sale, the first in the reserve since 2019 and the first conducted under the One Big Beautiful Bill Act, set program records for revenue and number of tracts receiving bids. The Bureau of Land Management offered more than 5 million acres in the sale, with proceeds to be shared with Alaska and local North Slope communities.
  • MCAA members involved in public water infrastructure work in the western U.S. should be aware of new federal funding to improve water infrastructure in California, Idaho, North Dakota, South Dakota, Utah, and Wyoming. Last Tuesday, the Interior Department announced $889 million in funding from the One Big Beautiful Bill Act for Bureau of Reclamation projects to improve water conveyance, expand water storage, and modernize water infrastructure in these states. California will receive $540 million for Central Valley water system upgrades, including $235 million for Delta-Mendota Canal rehabilitation, $200 million for Friant-Kern Canal subsidence correction, $50 million for San Luis Canal reliability improvements, $15 million to enhance pumping capacity at the Tehama-Colusa Canal Authority facility, and $40 million for planning and preconstruction activities tied to raising Shasta Dam, which would add roughly 634,000 acre-feet of water storage. North Dakota is getting $100 million to support the Eastern North Dakota Alternate Water Supply Project. Utah will receive $100 million to fund replacement of the aging Highline Canal with an enclosed pipeline. And Wyoming is getting $100 million to finance long-term repairs to the Fort Laramie Tunnels. There is also $30 million for a conveyance and pump storage project in Idaho and $11 million for the Belle Fourche Siphon lining project in South Dakota.
  • MCAA members working on federal projects should note new False Claims Act (FCA) enforcement action tied to alleged overcharging on construction-related equipment. Last Tuesday, the Justice Department announced a $10.5 million settlement agreement with industrial and metal fabrication companies W International LLC, W International SC LLC, Precision Metal Equipment Handling LLC, and Edward Walker to resolve allegations the companies violated the FCAby knowingly overcharging the U.S. Air Force and the U.S. Navy for weld tables. The companies were subcontracted for a project to refurbish and equip a large-scale welding facility and submitted claims for payment that overcharged for weld tables supplied for the facility.
  • MCAA members operating in and around the Gulf of America should note that on March 13th, the Interior Department’s Bureau of Ocean Energy Management approved BP’s production plan for the Kaskida ultradeepwater oil project located roughly 250 miles off the coast of Louisiana in the Gulf of America. The approximately $5 billion development is expected to begin producing about 80,000 barrels of oil per day from an initial phase of six wells starting in 2029, tapping a geologic formation believed to contain significant long-term crude resources. The approval advances one of the first major new offshore projects considered under the Trump Administration’s broader push to increase domestic fossil fuel production amid elevated global energy prices and supply disruptions. Additional federal permitting steps remain before drilling can commence, and environmental groups have indicated the decision may face legal challenges.

MCAA Government Affairs Update for the Week of March 16, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, March 16, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Last Friday, President Trump issued two executive orders aimed at reducing housing costs by addressing both housing supply and access to financing. The first order entitled, “Removing Regulatory Barriers to Affordable Home Construction,” directs federal agencies, including the Environmental Protection Agency, Army Corps of Engineers, Department of Housing and Urban Development, Department of Transportation, Department of Energy, Department of Agriculture, and Federal Housing Finance Agency to review and, where appropriate, revise federal requirements affecting residential development, such as Clean Water Act permitting standards, stormwater and environmental review processes, energy efficiency and water use rules, and federal grant and infrastructure programs tied to housing development. The order also calls for new federal guidance encouraging state and local governments to adopt practices such as streamlined permitting timelines, expanded use of manufactured housing, and fewer regulatory constraints on suburban and exurban residential growth. A fact sheet on the order is available here. The second order “Promoting Access to Mortgage Credit,” directs federal financial regulators to consider potential changes intended to expand mortgage credit availability, particularly through community and smaller banks. The order highlights possible revisions to ability-to-repay and qualified mortgage requirements, mortgage disclosure and appraisal rules, capital and liquidity standards applicable to residential lending, supervisory treatment of construction and servicing activities, and broader adoption of digital mortgage processes such as electronic closings and remote notarization. A fact sheet on the order is available here.
  • As the MCAA continues to track the fallout from the Supreme Court’s decision invaliding President Trump’s global tariffs imposed under the International Emergency Economic Powers Act (IEEPA), we wanted to make MCAA members aware that last week, the Administration announced two new Section 301 tariff investigations targeting foreign trade practices. The first investigation focuses on industrial overcapacity in export-reliant economies that U.S. officials say use subsidies to undercut American producers and could lead to higher tariffs on major trading partners including China, India, Mexico, Japan, South Korea, Vietnam, and the European Union. An “illustrative list” of covered sectors includes energy products, steel, aluminum, autos, batteries, chemicals, electronics, machinery, semiconductors, and other transportation and industrial goods. A fact sheet on this investigation is available here. The Office of the U.S. Trade Representative (USTR) will publish a Federal Register notice seeking public comments by April 15, 2026 and USTR plans to hold a public hearing on May 5, 2026. The second investigation will examine 60 economies, including China, Canada, India, Mexico, Japan, South Korea, and Vietnam over alleged failures to combat forced labor and could result in additional tariffs on goods from nations determined to have inadequate policies or practices related to the importation of goods produced with forced labor. A forthcoming Federal Register notice on this investigation is available here and USTR plans to a public hold hearing on April 28, 2026, with written comments and requests to appear due by April 15, 2026. Although Section 301 proceedings often take months or years, U.S. Trade Representative Greer said the Administration aims to complete both reviews by mid-July, when the 10% tariffs imposed under Section 122 following the Supreme Court’s recent ruling are set to expire.
  • As surging electricity demand and interconnection constraints continue to shape timelines for large data center, industrial, and energy projects, the Department of Energy’s Office of Electricity last Thursday announced a $1.9 billion funding opportunity under the Bipartisan Infrastructure Law’s Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program to accelerate modernization of the nation’s power grid and address rising electricity demand. DOE will prioritize funding for projects in three areas: (1) grid reliability and resilience improvements; (2) deployment of smart grid technologies to enhance efficiency, monitoring, and operational flexibility; and (3) large multi-jurisdictional transmission demonstrations intended to facilitate development of new large electricity loads. Concept papers are due April 2, 2026, with full applications due May 20, 2026. DOE expects to announce selections this August, and an informational webinar will be posted on the Office of Electricity website by March 19, 2026.
  • Staff in charge of compliance risk and mitigation at MCAA member companies should be aware of the U.S. Justice Department’s new “Corporate Enforcement and Voluntary Self-Disclosure Policy” (CEP) released last week. It establishes a single framework for resolving corporate criminal cases. Under the policy, companies that promptly self-report previously unknown misconduct, fully cooperate with investigators, and undertake timely remediation may avoid federal prosecution and penalties, although they would still be required to pay restitution and forfeit illicit gains. Companies that do not qualify for full voluntary self-disclosure or whose misconduct involves aggravating factors may still receive non-prosecution agreements and reduced penalties (50 to 75% below the lower end of the federal sentencing guidelines), shorter resolution terms, and avoid having to hire outside compliance monitors. The CEP applies across most Justice Department components handling criminal matters and is intended to shape how companies conduct internal investigations, evaluate the timing of disclosures, and negotiate enforcement outcomes.
  • As we previously noted, the MCAA has been anticipating more activity on implementation of President Trump’s April 2025 Executive Order on Preparing Americans for High-Paying Skilled Trade Jobs of the Future following the confirmation of Henry Mack to lead the Department of Labor’s Employment and Training Administration at the end of last year. It began in earnest last Monday when the Department of Labor’s (DOL) Office of Apprenticeship (OA) released three circulars and one bulletin revising guidelines for Registered Apprenticeship Programs and the standards governing the sponsors of apprenticeship programs, State Apprenticeship Agencies (SAA), and State Apprenticeship Councils (SAC).

    Circular 2026-01 revises program design requirements for registered apprenticeship programs (RAPs) by eliminating the 12-month on-the-job learning requirement for competency-based RAPs, removing caps on allowable training-hour variation in hybrid and time-based RAPs, and lifting the 50% limit on credit for prior work experience for all types of RAPs. The guidance also encourages use of end-point assessments to verify apprentice competency and reiterates safety oversight expectations for RAPs in high-risk industries, such as construction, transportation, and mining.

    Circular 2026-02 clarifies that SAAs must retain authority over core RAP registration, administration, and oversight functions. SAAs are prohibited from formally or informally delegating responsibilities such as determining apprenticeable occupations, approving program standards, or suspending programs to SACs. The guidance directs states to amend any laws, regulations, and practices that allow SACs to exercise such powers and warns that DOL may approve programs directly in SAA states if state processes create inappropriate barriers or delays.

    Circular 2026-03 establishes a standardized methodology for calculating apprenticeship completion rates based on defined participant cohorts and expected completion timelines. It launches a new public data portal on Apprenticeship.gov displaying national and state completion and cancellation rates by industry.

    Bulletin 2026-35 commits DOL OA to issuing program registration determinations within 30 days and introduces a public “shot clock” website tracking registration timelines and monthly approvals for applications submitted to DOL OA. While SAAs are encouraged to adopt similar benchmarks, the 30-day standard does not apply to SAAs.

    The Employment and Training Administration will host a public webinar on March 27, 2026, at 1:00 p.m. ET (register here) to discuss the new guidance documents and their implications for RAP sponsors, prospective applicants, SAAs, and SACs and plans to release additional training modules through the Registered Apprenticeship Academy following the webinar.
  • Also on Monday, the Department of Education published a proposed rule to implement changes to the federal Pell Grant program implementing the One Big Beautiful Bill Act’s creation of “Workforce Pell Grants.” As proposed, Workforce Pell Grants would allow eligible students to receive aid for short-term workforce training programs lasting roughly 8 to 15 weeks and between 150 and 599 clock hours (or equivalent credit hours). Programs serving as the classroom or formal training part of a registered apprenticeship program would be treated as meeting key eligibility criteria, including alignment with high-skill, high-wage, or in-demand occupations and employer hiring needs. Under the rule, students could receive Pell assistance only for these programs. They would be ineligible if non-federal grants or scholarships cover their full cost of participation. The proposal establishes detailed approval and accountability requirements for eligible workforce programs, including certification by state governors in consultation with workforce development boards and review by the Department of Education. Programs would be required to meet completion and job placement thresholds and comply with a new “value-added earnings” standard under which graduates’ median earnings must exceed program tuition and fees. Programs that fail to meet these benchmarks or lose state approval could lose eligibility for Workforce Pell Grants. The Education Department will be coordinating with the U.S. Department of Labor on guidance for programs connected to registered apprenticeships. Comments on the proposed rule are due April 8, 2026.
  • As Congress continues debating changes to the Renewable Fuel Standard (RFS) program, last week, the Department of Justice announced a settlement with Chevron U.S.A. Inc. under which the company agreed to pay a civil penalty of just over $1 million for violations of the existing RFS program. In June 2023, Chevron disclosed that between January and August 2022 it had invalidly generated more than 2.2 million advanced biofuel credits, known as Renewable Identification Numbers (RINs), on renewable diesel volumes that had already been used for RIN generation and were subsequently sold to third parties. To remediate the violation, Chevron retired valid RIN credits valued at approximately $3.6 million prior to executing the settlement. The agreement was filed by the Justice Department’s Environment and Natural Resources Division in federal district court in Texas and is intended to reinforce compliance and integrity in the RFS credit market.
  • As MCAA monitors the newly confirmed General Counsel and members of the NLRB, we wanted to be sure members were aware that on Friday March 6th, the U.S. Sixth Circuit Court of Appeals ruled that the National Labor Relations Board (NLRB) exceeded its authority in issuing the 2023 Cemex decision. Cemex allowed the Board to impose bargaining orders when employers commit unfair labor practices during union election campaigns. The ruling arose from a dispute at Brown-Forman’s Woodford Reserve distillery in Kentucky, where the NLRB had ordered the company to bargain with a Teamsters affiliate after finding the company attempted to undermine union support during an organizing campaign by offering wage increases and other benefits ahead of a representation election the union ultimately lost. While the court upheld the findings that Brown-Forman committed unfair labor practices, it vacated the NLRB’s bargaining order issued under the Cemex framework and sent the case back to the Board.

Congress

  • Last Thursday, the Senate voted 89–10 to pass the 21st Century ROAD to Housing Act, legislation aimed at lowering housing costs by increasing supply, streamlining environmental review, and limiting certain corporate home-buying practices. The MCAA has been engaged on this legislation watching for proposals that would curtail the application of federal prevailing wage or the use of project labor agreements (PLAs) on federally-funded or federally-assisted multi-family housing projects. A Trump-backed provision in the bill restricting large institutional investors from purchasing certain single-family homes has drawn opposition from House conservatives, who argue the policy unfairly constrains private investment and conflicts with elements of the House-passed housing package focused on deregulating smaller financial institutions. House GOP leadership is also concerned about the Senate version of the bill. Speaker Mike Johnson (R-LA) told members that major policy differences remain between the House and Senate as Majority Leader Steve Scalise (R-LA) and Financial Services Chair French Hill (R-AR) indicated the legislation could require a formal conference to resolve disputes. MCAA will be on guard throughout any House-Senate conference process to ensure problematic language impacting prevailing wage and PLAs does not get added.
  • Last week, MCAA saw some meaningful movement related to its advocacy in the U.S. Senate on federal permitting reform. Last Thursday, Senate Majority Leader John Thune (R-SD) said the chamber could turn to legislation on federal permitting reform for energy and infrastructure projects after next week’s debate on the SAVE Act, a bill to require voter ID and proof of U.S. citizenship to vote in federal elections. Thune described permitting reform as an economic and energy policy priority that could advance if lawmakers show a willingness to cooperate. His comments came as key Senate Democrats started reengaging on permitting reform negotiations after the Trump Administration quietly began allowing renewable energy projects to go forward following court decisions invalidating the Administration’s efforts to halt offshore wind projects. But it is unclear if divisions emerging among congressional Democrats over how to address rising electricity costs tied to data center growth will impede progress on permitting reform. A small but vocal group of progressive lawmakers—including Sen. Bernie Sanders (I-VT) and Reps. Pramila Jayapal (D-WA), Maxwell Frost (D-FL), and Hank Johnson (D-GA)—are urging a federal moratorium on new data center construction over concerns about energy use, water demand, and community impacts. While the data center moratorium has drawn bipartisan opposition, powerful House Energy and Commerce Committee Chair Brett Guthrie (R-KY) has expressed interest in addressing localized impacts from data center development without endorsing a nationwide pause.
  • Despite the razor-thin House Republican majority, Speaker Mike Johnson (R-LA) last Tuesday said he hopes to move another reconciliation bill focused on reducing costs for Americans by addressing waste, fraud, and abuse, citing the types of fraud Republicans say is occurring in Democratic states like Minnesota, which was the subject of recent Congressional hearings. House Budget Committee Chair Jodey Arrington (R-TX) suggested using reconciliation to revisit proposals to reduce Medicaid spending that were excluded from last year’s reconciliation package due to the Senate’s “Byrd Rule,” while also identifying potential Pentagon spending cuts to offset new defense investments sought by President Trump after Speaker Johnson said that a supplemental funding package for the Iran conflict is “inevitable.” But as last week ended, the prospects for a second reconciliation bill were uncertain because President Trump made no mention of a second reconciliation bill when he spoke at the House Republican Caucus retreat. He told House Republicans their top priority should be enacting the SAVE Act requiring proof of U.S. citizenship to vote. Without Trump working to unify the GOP, as he did for the first reconciliation bill that became the One Big Beautiful Bill Act, it will be difficult for House leadership to garner the near unanimous support within their caucus required move another reconciliation package.
  • There were a handful of developments in races for the U.S. Senate last week. In Maine, Democratic Senate candidate Graham Platner received an endorsement from Sen. Martin Heinrich (D-NM). It was Platner’s third endorsement by a sitting U.S. Senator in his primary race against Gov. Janet Mills (D-ME). In Oklahoma, House Republican Policy Committee Chair Kevin Hern (R-OK) announced he will run for the U.S. Senate seat being vacated by Sen. Markwayne Mullin (R-OK), who was nominated to lead the Department of Homeland Security. And a growing number of independent candidates including Seth Bodnar in Montana, Dan Osborn in Nebraska, Brian Bengs in South Dakota, and Todd Achilles in Idaho are launching Senate campaigns in deep-red states, arguing they may be more competitive than Democrats in traditionally Republican territory. The Democratic parties in most of these states, however, are refusing to step aside, raising concerns that competing Democratic and Independent candidates could split the anti-GOP vote.

Around the Country

  • MCAA members operating in Texas should be aware that last Wednesday, President Trump announced on social media that America First Refining will build the first new U.S. oil refinery in 50 years in Brownsville, Texas. The project is being funded through a $300 million investment from privately-held Reliance Industries, an Indian company that owns the world’s largest oil refinery in Jamnagar, India. The new refinery will be designed to process 100% American shale oil.
  • At an infrastructure summit last Tuesday, Open AI CEO Sam Altman and North America’s Building Trades Unions (NABTU) President Sean McGarvey announced a collaboration aimed at expanding training pathways into the skilled construction trades as demand grows for infrastructure supporting advanced artificial intelligence. The partnership is intended to help ensure construction of AI-related facilities supports union careers, strengthens union-registered apprenticeship programs, and creates economic opportunity in communities where projects are built. The organizations said the collaboration will focus on engagement related to workforce development, labor standards, project safety, and policy considerations affecting infrastructure expansion. As part of the initiative, OpenAI committed to supporting NABTU’s TradesFutures nonprofit effort to expand recruitment and pre-apprenticeship preparation for construction careers.

MCAA Government Affairs Update for the Week of March 9, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, March 9, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Given the interest MCAA members have in the ENERGY STAR Program and its role in promoting energy-efficient appliances and benchmarking building energy performance, we wanted to be sure members were aware that last Thursday, the Environmental Protection Agency (EPA) and Department of Energy (DOE) signed a memorandum of agreement transferring primary management of the ENERGY STAR program for energy-efficient appliances and other consumer products to DOE. The agreement also transfers responsibility for the program’s widely used ENERGY STAR certification for commercial buildings, which is used in commercial real estate and construction markets to benchmark building energy performance to promote building design, operations, and retrofits to reduce energy consumption and operating costs. Under the agreement, DOE will assume primary responsibility for administering the voluntary labeling program authorized under the Energy Policy Act of 2005, including oversight of partnership agreements, trademarks, and program data systems, while the agencies develop a transition plan within 90 days. ENERGY STAR-certified buildings are generally required to demonstrate energy use at least 25% more efficient than comparable properties. The EPA and DOE said the change is intended to streamline federal oversight of the program.
  • On the decarbonization front, MCAA members involved in offshore energy infrastructure and related industrial construction projects should be aware that the Interior Department last Thursday announced it will propose rolling back requirements on the offshore oil and gas industry imposed in a Biden-era April 2024 final rule on “Risk Management and Financial Assurance for OCS Lease and Grant Obligations” that the agency estimates will save industry about $484 million annually in compliance costs. The Biden-era final rule required operators on the Outer Continental Shelf to set aside about $6.9 billion in new supplemental financial assurance to cover potential costs associated with decommissioning offshore oil and gas infrastructure. The proposed changes would revise how the Bureau of Ocean Energy Management evaluates financial risk and lower the amount of supplemental financial assurance companies must set aside, which officials say will allow operators to redirect capital toward exploration, development, and production activities. The proposed rule will be published in the Federal Register with a 60-day public comment period.
  • As the MCAA continues monitoring the fallout from the Supreme Court’s decision blocking President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA), last Wednesday, a U.S. Court of International Trade judge in New York ordered the Trump Administration to refund more than $130 billion in IEEPA tariffs that were invalidated by the U.S. Supreme Court. The ruling requires U.S. Customs and Border Protection (CBP) to issue refunds by recalculating the duties importers originally paid and excluding the tariffs invalidated by the Supreme Court. CBP subsequently told the court it cannot immediately comply with the order and will need roughly 45 days to develop a system capable of processing the unprecedented volume of refund requests. The administration is appealing the order, but the court denied a Justice Department request to pause the ruling pending the appeal. Following the ruling, a coalition of Democratic-led states filed a separate lawsuit in the Court of International Trade challenging the new global tariffs President Trump imposed under Section 122 after the Supreme Court struck down his IEEPA tariffs, arguing the administration is misapplying the statute. Treasury Secretary Scott Bessent said last Wednesday that the Trump Administration plans to implement a 15% global tariff, an increase over the current 10% the President imposed under Section 122. Separately, a Federal Reserve survey released last Tuesday found tariffs and inflation significantly increased operating costs for 4 in 10 small businesses in 2025.
  • As the MCAA continues engagement with the Trump Administration on accelerating the deployment of nuclear technology, we wanted to highlight a proposed rule from the Nuclear Regulatory Commission (NRC) to streamline contested licensing hearings in response to requirements in the MCAA-supported ADVANCE Act and President Trump’s Executive Order 14300. The NRC proposal would “frontload” adjudications by requiring parties to submit all available evidence early in the process, establish firm hearing schedules, and limit late-filed contentions to new, materially different information raising critical issues. The NRC states the changes are intended to allow most adjudications to be completed within 8 to 14 months, helping meet the statutory goal of resolving licensing hearings within two years of docketing. The proposal comes after the NRC announced last Monday that Jeremy Bowen was appointed to lead the NRC’s new Office of Advanced Reactors, which will license and oversee new and advanced reactors and is responsible for the expeditious review of advanced reactor applications and deployment of innovative technology. In this role, Bowen will lead the team issuing permits and licenses for new reactor facilities and serve as the programmatic lead for construction inspection.
  • As the MCAA continues educating members about implementation of the One Big Beautiful Bill Act (OBBBA), including provisions related to deductions for qualified overtime and qualified tips, we wanted to be sure that members were aware that last Monday, the Internal Revenue Service (IRS) published the long-awaited new Form 1040 Schedule 1-A and accompanying Form 1040 instructions for tax year 2025. The new form and instructionsoutline how taxpayers may calculate and claim deductions of up to $12,500 in qualified overtime compensation ($25,000 for joint filers)and up to $25,000 in qualified tips, both subject to income phaseouts beginning at $150,000 in modified adjusted gross income ($300,000 for joint filers). Workers may claim these deductions retroactively for tax year 2025 whether they itemize or take the standard deduction, though married taxpayers must file jointly to qualify. The instructions provide worksheets for calculating deductible amounts. They also discuss the “No Tax on Overtime” deduction on pages 106-108 and the “No Tax on Tips” deduction on pages 101-105, which is relevant to some MCAA members to the extent it applies to Home Heating and Air Conditioning Mechanics and Installers, Home Plumbers, Home Maintenance and Repair Workers, and Home Appliance Installers and Repairers.
  • Ongoing MCAA engagement with the Department of Labor on apprenticeship, prevailing wage, and other workforce priorities comes amid continued leadership turbulence that may affect the department’s bandwidth, internal coordination, and pace of decision-making. Last Monday, Labor Secretary Lori Chavez-DeRemer’s Chief of Staff Jihun Han and Deputy Chief of Staff Rebecca Wright resigned after the White House told them to step down or face termination. Their departures come amidst an ongoing Department of Labor Inspector General (IG) investigation launched two months ago that has found evidence the two created a “toxic” workplace environment and misused departmental resources for personal travel. The IG also corroborated allegations involving Chavez-DeRemer and Wright related to taxpayer-funded travel to a December 2025 America First Policy Institute event in Palm Beach, Florida during which they disregarded the opinion of DOL ethics officials that they could not use taxpayer funds for portions of the five-day trip during which the Secretary had a single speaking engagement. The investigation has continued to expand, and another close aide to Chavez-DeRemer, director of advance Melissa Robey, was placed on administrative leave last Thursday.
  • New guidance from the National Labor Relations Board (NLRB) signals a shift in enforcement posture. On February 27th, National Labor Relations Board (NLRB) General Counsel Crystal Carey issued new guidance shifting the Board’s enforcement approach. The memo directs regional offices to prioritize settlements over litigation and to reserve enhanced remedies for only the most serious or repeat violations. It also instructs NLRB regional offices to deprioritize cases based solely on the existence of potentially unlawful workplace policies unless there is evidence the policy was enforced or caused harm. The guidance shortens investigative timelines by requiring charging parties to provide supporting evidence within two weeks, limits broad document requests, and narrows the use of federal court injunctions to cases with clear preliminary evidence.
  • MCAA continues monitoring implementation of the American Innovation and Manufacturing (AIM) Act of 2020, which directs the Environmental Protection Agency (EPA) to phase down production and consumption of hydrofluorocarbons (HFCs) by 85% by 2036. Notably, a company called Choice Refrigerants, a Georgia-based refrigerants manufacturer, represented by the New Civil Liberties Alliance (NCLA) and the nation’s preeminent Supreme Court lawyer, Paul Clement, asked the U.S. Supreme Court to review a challenge to the AIM Act and the EPA’s implementation of it. The U.S. Court of Appeals for the D.C. Circuit previously upheld the law and the EPA’s implementation, finding that allocating market share under the phasedown is largely a technical matter within the agency’s discretion. In its petition for review, Choice Refrigerants argues the statute violates the U.S. Constitution’s nondelegation doctrine and the legislative vesting clause by allowing EPA to determine how a shrinking HFC market is divided among companies without meaningful congressional guidance. Choice Refrigerants is seeking amicus briefs to support its request for review in the U.S. Supreme Court. If review is granted, interested parties will have a chance to file amicus briefs on the legality of the AIM Act.

Congress

  • Last Wednesday, the MCAA policy team was busy with the House Education and the Workforce Subcommittee on Higher Education and Workforce Development’s hearing entitled, “Building an AI Ready America: Strengthening Employer-Led Training,” examining how employer-led training programs, apprenticeships, and workforce systems can prepare workers for AI-driven changes in the labor market. This followed separate House Education and Workforce Subcommittee hearings on AI and the workforce that we detailed in our February 9 and February 16 reports. During the hearing, Republicans emphasized that AI is already transforming jobs across the economy and argued that workforce programs must better align with employer demand. Republicans advocated expanding earn-and-learn models including, but not limited to, registered apprenticeships, and prioritized skills-based hiring over traditional degree pathways. Democrats agreed that workforce development is critical but warned that the system remains underfunded and urged Congress to revive the bipartisan Workforce Innovation and Opportunity Act (WIOA) reauthorization negotiated last Congress rather than pursue partisan changes, including proposals to move adult education programs from the Department of Education to the Department of Labor. Tim House of the Wireless Infrastructure Association testified that the rapid expansion of AI infrastructure is intensifying demand for skilled workers and argued that employer-led registered apprenticeship programs are essential to building the workforce needed to deploy and maintain next-generation connectivity. Dr. Scott Ralls of Wake Technical Community College highlighted the role community colleges play in preparing workers for AI-driven industries, describing efforts to embed AI literacy across technical programs and expand community college apprenticeship partnerships in fields like HVAC, building automation, and electrical systems where demand is rising alongside the deployment of AI and electrification. Brent Parton of CareerWise USA emphasized that youth apprenticeships and other employer-led training models can help workers adapt to changing entry-level job requirements. He asserted that apprenticeship programs should be expanded earlier in students’ education and supported through modernization of federal workforce programs. Mary Kate Morley Ryan of Accenture stressed that AI is rapidly shortening the life cycle of workplace skills and called for continuous upskilling, stronger employer-education partnerships, expanded work-based learning programs, and modernization of WIOA to reduce administrative barriers and support apprenticeship and incumbent worker training.
  • Last Monday, the Senate voted 84-6 on the motion to proceed to consideration of a compromise housing package entitled the 21st Century ROAD to Housing Act to address supply and affordability issues. It combines House- and Senate-passed housing bills. The bill would expand federal support for housing production by adding new construction as an eligible activity under the Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program. It increases incentives for development in Opportunity Zones (e.g., low-income census tracts designated for tax-advantaged investment and development) and establishes multiple grant and pilot programs to encourage local housing production, redevelopment of vacant buildings, and infrastructure improvements tied to new housing supply. MCAA engaged on this legislation to ensure the bill preserves federal labor standards by specifying that prevailing wage requirements under Section 110 of the Housing and Community Development Act of 1974 apply to infrastructure improvements funded through the program and may not be waived by the HUD Secretary. We are also supportive of permitting reform provisions in the legislation that would streamline environmental reviews and scale back National Environmental Policy Act (NEPA) requirements for certain housing projects, similar to concepts in the MCAA-advocated SPEED Act. The package also includes a provision restricting certain purchases of single-family homes by large institutional investors that own 350 or more homes, while allowing exemptions for build-to-rent developments, renovation programs, and rent-to-own housing initiatives. As the Senate began debate on the bill, the National Association of Home Builders (NAHB) announced its opposition to the measure focusing on the White House-backed provision targeting institutional investors. NAHB argues that, as currently drafted, the language could “undermine the production of purpose-built single-family rental housing, which often serves families seeking rental homes with three or more bedrooms.” The Senate will resume consideration of the legislation, including amendments, this week.

Around the Country

  • MCAA members in Florida will be interested to know that last Thursday, the Occupational Safety and Health Administration (OSHA) cited Florida-based Hyvac Inc. for exposing workers to struck-by hazards following a fatal workplace incident at a mall expansion project in Bal Harbor Shops in August 2025. OSHA found the contractor failed to verify that HVAC piping was free of stored pressure and did not properly train employees on hazards associated with removing end caps from pressurized systems. The agency proposed $28,135 in penalties for two serious violations. This followed a separate OSHA citation last Wednesday against Florida-based PCE Petroleum Contractors Enterprises Inc. for 12 serious violations after a worker was fatally exposed to benzene and toluene while entering a fuel storage tank at a Lake Worth worksite in July 2025. OSHA found the company failed to implement required confined-space entry procedures, conduct atmospheric testing, and maintain proper respiratory and hazard communication programs for workers handling toxic chemicals. The agency proposed $60,242 in penalties, though the company has contested the citations before the Occupational Safety and Health Review Commission.
  • MCAA members operating in Alaska should be aware that a federal offshore oil and gas lease sale in Alaska’s Cook Inlet Basin drew no bids, despite offering roughly 1 million acres for development. The sale was the first in a series mandated by the One Big Beautiful Bill Act, which requires multiple Cook Inlet lease sales through 2032. A simultaneous Alaska state lease sale also showed limited industry interest, receiving just one bid for a 20-acre tract totaling $600, highlighting continued weak demand for exploration opportunities in the region.
  • MCAA members operating in Wyoming should know that last Tuesday, a federal district court in Washington, D.C. vacated the environmental impact statement (EIS) for the Converse County Oil and Gas Project in Wyoming, halting federal approvals for thousands of planned oil wells after finding that the Interior Department failed to fully evaluate alternatives under the National Environmental Policy Act (NEPA). Judge Tanya Chutkan ruled that the Bureau of Land Management’s (BLM) supplemental analysis did not adequately consider a phased development approach that the agency itself acknowledged could reduce greenhouse gas emissions and air quality impacts. The court concluded that the project, which is expected to include more than 5,000 wells, would produce significant emissions contributing to climate change and other environmental harms, and that vacating the EIS was necessary to ensure the project proceeds only after a more thorough environmental review. The ruling stems from litigation brought by environmental groups challenging BLM’s analysis of groundwater and other environmental impacts and could further delay development in one of the largest proposed oil drilling projects in Wyoming’s Powder River Basin.
  • MCAA members operating in Indiana should be aware that last Tuesday, the Environmental Protection Agency (EPA) issued a carbon sequestration permit to One Carbon Partnership for its Cardinal Ethanol facility in Randolph County, Indiana. With this permit, One Carbon Partnership will construct a well to inject up to 450,000 metric tons of carbon dioxide per year for 30 years. One Carbon Partnership will also be required to monitor the well throughout the injection phase and for 50 years post-injection. The deep formation where the injected carbon would be permanently stored is between 3,100 and 3,659 feet beneath the surface and is protected by a 487-foot-thick confining zone composed of caprock.
  • Last Tuesday, a federal judge in New York ruled that the Trump Administration cannot halt New York City’s congestion pricing program, rejecting the Department of Transportation’s attempt to revoke federal approval after the tolling system had already been implemented. The city’s Metropolitan Transportation Authority sued after the DOT moved to terminate the program, and the court found the Administration’s action was a final agency decision subject to judicial review. The congestion pricing system, which charges vehicles entering Manhattan below 60th Street during peak hours, is intended to reduce traffic and pollution while raising revenue for the MTA’s capital program that funds public transit infrastructure and construction projects. The ruling preserves a key funding stream for the MTA’s multibillion-dollar capital program, which supports ongoing transit infrastructure upgrades and construction projects. In its first year, the program generated roughly $468 million.

MCAA Government Affairs Update for the Week of March 2, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, March 2, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • The MCAA policy team was busy last week distilling the first State of the Union address of President Trump’s second term. Of particular interest to the MCAA, the President responded to the growing state and local resistance to new data centers by promising new “ratepayer protection pledges,” that several technology firms are expected to sign at a White House meeting this week. These pledges are expected to commit AI companies to bearing the cost of the incremental electricity demands of new data centers without shifting costs onto residential customers by building dedicated power generation for their AI facilities. On housing, Trump called on Congress to enact legislation to restrict private equity firms from buying homes. On healthcare, he pressed Congress to codify his “most favored nation” prescription drug pricing policy, tying U.S. drug prices to the lowest prices paid by other developed nations. Finally, the President announced plans to expand access to retirement savings through a program modeled on the Thrift Savings Plan for federal employees, which Treasury Secretary Bessent later said could be enacted through a second budget reconciliation bill, like the one used to enact the One Big Beautiful Bill Act last July. This has renewed moribund congressional discussions about a second reconciliation bill that MCAA is closely monitoring.
  • Following the U.S. Supreme Court’s decision on February 20th in Learning Resources, Inc. et al. v. Trump invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), last week President Trump issued two executive orders and a proclamation related to tariffs. Executive Order 14389 directs agencies to terminate the invalidated IEEPA-based tariffs and modify the Harmonized Tariff Schedule accordingly, while Proclamation 11012 invokes Section 122 of the Trade Act of 1974 to impose a temporary 10% global import surcharge for up to 150 days, effective February 24, 2026, with exemptions for certain energy products, pharmaceuticals, USMCA-compliant goods, and items subject to Section 232 tariff actions unaffected by the Supreme Court’s tariff decision. Executive Order 14388 continues the suspension of duty-free de minimis treatment for low-value imports so that tariffs on these goods continue to be collected. U.S. Customs and Border Protection confirmed it will halt collection of the invalidated IEEPA tariffs and deactivate the associated tariff codes. Meanwhile, Senate Finance Committee Ranking Member Ron Wyden (D-OR) and 26 Senate Democrats introduced legislation to require the approximately $175 billion in collected tariff revenues be refunded with interest over 180 days, prioritizing relief for small businesses. These developments come as Speaker Mike Johnson (R-LA) indicated the Republican Congress is unlikely to codify the Administration’s tariff agenda, raising uncertainty about whether the new temporary 10% tariff ordered under Section 122 will last beyond the 150 days the President can unilaterally impose it without action by Congress.
  • Last Thursday, the Department of Labor’s Wage and Hour Division (WHD) published a proposed rule to rescind the 2024 MCAA-supported, Biden-era independent contractor rule. As the MCAA expected, the proposal replaces the Biden-era rule with the 2021 framework imposed during President Trump’s first term that relies on a streamlined “economic reality” test that makes it easier to classify a worker as an independent contractor instead of as an employee under the Fair Labor Standards Act (FLSA). The proposal goes beyond the 2021 standard insofar as it makes some slight clarifications to the 2021 final rule, modifies and adds some examples, and applies the streamlined test for worker classification determinations beyond the FLSA to the Family and Medical Leave Act and the Migrant Seasonal Worker Protection Act. Comments on the proposed rule are due by April 28, 2026. This outcome was something that the MCAA’s policy team anticipated from our conversations with the Trump Administration. As we previously reported, in April 2025, the Administration stopped defending and paused several pending lawsuits over the Biden-era independent contractor rule, pledging to revisit it. The WHD promptly issued guidance in the spring of 2025 announcing it had ceased enforcement of the 2024 rule. The same day DOL issued the revised standard for worker classification, the National Labor Relations Board (NLRB) formally reinstated its 2020 joint employer rule that the Biden-era NLRB had rescinded and replaced. The reinstated 2020 rule will make it harder for companies to be joint employers under the National Labor Relations Act by requiring a company to exercise “substantial direct and immediate” control over another employer’s workers to be deemed a joint employer. The Board characterized the action as ministerial because it was effectuating a court ruling that invalided the Biden-era NLRB rule. As a result, the NLRB is not accepting comments on this action.
  • As the MCAA continues lobbying to defend the MCAA-supported, Biden-era project labor agreement (PLA) Executive Order and the Federal Acquisition Regulatory Council regulations implementing it, last Thursday we were pleased to see the General Services Administration (GSA) reissue its “Pre-Solicitation Notice for design-build services for the new United States courthouse in Hartford, CT” that was being challenged for including a PLA clause based on recent U.S. Federal Court of Claims rulings holding that requiring PLAs on large-scale federal construction projects violates the full and open competition requirements of the Competition in Contracting Act. GSA is re-soliciting the proposal to move the Hartford Courthouse project forward with a PLA requirement by invoking the public interest exception to full and open competition requirements of the Competition in Contracting Act at 41 U.S.C. § 3304(a)(7) “to respond to the Court of Federal Claims’ decisions on PLAs.” GSA says that invoking the exception “simply allows GSA to comply with FAR subpart 22.5 and Executive Branch policy by including mandatory PLA requirements.” GSA goes on to clarify that “[n]o firms are excluded from the competition” due to the PLA requirement. The GSA Administrator’s accompanying Determination invoking the public interest exception explains that President Biden’s PLA Executive Order “has not been revoked and remains the policy of the Trump Administration” pursuant to OMB Memorandum M25-29, which the MCAA and others in the union construction industry lobbied to secure from OMB last summer. The GSA Determination details the public interest in using a PLA in the same terms the MCAA uses in its advocacy for these contracting vehicles. It says:

    “PLAs have multiple benefits, including predictable labor costs, a steady supply of labor, coordination among multiple employers, and certainty about the terms and conditions of employment. PLAs provide structure and stability, avoid labor-related disruptions by using dispute-resolution processes to resolve worksite disputes, and prohibit work stoppages. PLAs secure the commitment of all stakeholders on a construction site to efficient completion without unnecessary interruptions. These benefits help ensure the efficient and timely completion of construction contracts, particularly where, as here, projects are large, complex, and of extended duration. The public has an interest in achieving these benefits on large-scale construction projects.”
  • As the MCAA continues engagement with the Trump Administration on accelerating the deployment of nuclear technology, we wanted to highlight a proposed rule from the Nuclear Regulatory Commission (NRC) concerning the regulation of fusion machines. The NRC is proposing to regulate fusion machines under its existing byproduct material framework at 10 CFR Part 30, rather than under nuclear power plant licensing regulations, concluding that the radioactive materials and hazards associated with fusion are more aligned with particle accelerator technologies. The proposed rule implements provisions of the Nuclear Energy Innovation and Modernization Act and the MCAA-advocated Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, which formally classified fusion machine-generated radioactive material as byproduct material. While the NRC determined that existing emergency preparedness, physical security, radiation protection, and waste disposal standards are generally adequate, the proposal includes targeted fusion-specific requirements to streamline future licensing. The rule is intended to prepare the agency for anticipated commercial fusion applications and further advance the regulatory framework supporting next-generation nuclear technologies. Comments on the proposed rule are due by May 27, 2026 and should be submitted through the federal eRulemaking portal using Docket ID NRC-2023-0071. The NRC will conduct at least one public meeting on this proposed rule, with dates, times, locations, agendas, and access information to be announced in a future Federal Register notice.
  • As the MCAA continues engaging on registered apprenticeship and workforce development issues with the Trump Administration, we were informed last Wednesday that the Labor Department released an $81 million grant funding opportunity announcement for the Reentry Employment in Skilled Trades, Advanced Manufacturing, Registered Apprenticeships, and Training (RESTART) Initiative. This discretionary grant program administered by the Employment and Training Administration (ETA) will support workforce readiness and employment for ex-offenders through training that prepares them to work or enter apprenticeships in the skilled trades, advanced manufacturing, and other high-demand sectors. ETA anticipates up to 20 awards ranging from $1 million to $5.1 million, with no cost-sharing requirement. The announcement does not expressly reference joint labor-management trusts, but states that eligible applicants include “nonprofits with or without 501(c)(3) status, including national or regional intermediaries that must identify sub-grantees across at least three non-contiguous metropolitan areas or rural regions.” Other eligible applicants include state governments, federally recognized tribal governments, and tribal organizations. Applications must be submitted electronically through Grants.gov no later than 11:59 p.m. ET on April 15, 2026.
  • Following the MCAA’s successful lobbying efforts to turn back cuts to geothermal energy tax credits in the One Big Beautiful Bill Act last year, we have engaged the Administration to support the deployment of geothermal power. So we were pleased last Wednesday when the Energy Department announced $171.5 million in funding for field-scale geothermal projects to advance next-generation technologies and reduce subsurface risk for commercial deployment. The Notice of Funding Opportunity (NOFO) supports enhanced geothermal systems (EGS), closed-loop approaches, and drilling activities to accelerate both next-generation and conventional hydrothermal resource development. DOE analysis indicates geothermal could provide 300 gigawatts or more of power by 2050 if technical barriers are addressed. In this funding round, DOE is accepting applications under Topic Area 1 for enhanced geothermal field tests at sites with potential for commercial-scale electricity generation, including reservoir stimulation to enhance permeability and circulate fluids through hot rock formations. It is also accepting applications for Topic Area 6 for drilling reservoir-depth exploration, characterization, and confirmation wells to gather site-specific data and de-risk future projects, with preference for previously unexamined geologic formations. Additional topic areas—including closed-loop field tests, superhot systems above 375°C, and direct-use thermal applications—are included in the NOFO but are not open in this round. Letters of intent are due March 27, 2026, and full applications are due April 30, 2026.
  • As we continue to engage on issues around retirement plans, we wanted to flag that there is growing interest in Employee Stock Ownership Plans (ESOPs) on Capitol Hill and in the Trump Administration. That interest was illustrated last Tuesday when the Employee Benefits Security Administration (EBSA) released a report to Congress highlighting continued growth in employee ownership and outlining efforts to expand ESOPs, signaling potential legislative or regulatory activity in the coming year. The report found that over the past decade, the number of ESOP participants has increased by 8%, the number of worker cooperatives has more than doubled, and employee ownership trusts have grown in popularity since first being established in the U.S. in 2014. The report details progress under the Employee Ownership Initiative, created by the SECURE 2.0 Act, including outreach and education efforts, support for state-level programs, technical assistance for businesses, and expansion of a public resource website. EBSA said it plans to continue expanding the initiative, subject to available resources, as part of its broader role overseeing retirement, health, and other job-based benefit plans.

Congress

  • As House Republicans continue navigating their razor-thin majority, late last week, Speaker Mike Johnson (R-LA) told GOP donors that Rep. Neal Dunn (R-FL), who announced his retirement last month, may have a “terminal diagnosis.” Johnson’s comments came after Dunn said he wants to serve out the remainder of his term, pushing back on reports that he might narrow House Republicans’ slim majority by resigning ahead of the midterm elections. The developments around Rep. Dunn come as GOP Rep. Tony Gonzales (TX) said he will not resign following the release of inappropriate texts that he exchanged with a former staffer who later committed suicide. Several GOP lawmakers, including Reps. Lauren Boebert (CO), Anna Paulina Luna (FL), Nancy Mace (SC), Thomas Massie (KY), and Tim Burchett (TN), have called for Gonzales’ resignation or for him to end his reelection bid. Gonzales claims that he is being blackmailed in connection with a lawsuit from the deceased staffer’s husband and characterized the matter as politically motivated. Speaker Johnson described the allegations as “very serious” but stopped short of calling for Gonzales’ resignation, saying the issue should be addressed with his constituents in this Tuesday’s primary election.
  • MCAA’s lobbying team is already engaged on appropriations deliberations for fiscal year 2027. Last Wednesday, House Appropriations Committee Chair Tom Cole (R-OK) lifted the ban on Labor-HHS-Education earmarks and increased—from 15 to 20—the number of earmarks lawmakers may seek in the fiscal year 2027 appropriations bills. Cole also set deadlines for members to submit earmark requests for certain appropriations bills. The deadline for earmark proposals for the Agriculture-FDA and MilCon-VA appropriations bills is March 13th. The deadline for earmark proposals on the Energy-Water, Interior-Environment, Transportation-HUD, and Labor-HHS-Education appropriations bills is March 20th.
  • As part of our advocacy on permitting reform, last week the MCAA engaged around a House Science Subcommittee on Investigations and Oversight hearing last Tuesday entitled, “Powering America’s AI Future: Assessing Policy Options to Increase Data Center Infrastructure.” During the hearing, Republicans uniformly emphasized these points and argued that lengthy permitting timelines under NEPA, the Clean Water Act, and other statutes, along with litigation and ineffective federal backstop authority, are delaying transmission lines, power plants, and related infrastructure critical to national security and economic growth. Lawmakers also highlighted the MCAA-supported SPEED Act as a permitting reform measure that will accelerate grid expansion. Democrats acknowledged the economic importance of AI, and some noted the need for permitting reform, but they all expressed concerns about rapid data center expansion straining electric grids, raising residential electricity costs, increasing water consumption and polluting host communities. Hearing witness Paige Lambermont of the Competitive Enterprise Institute attributed rising power scarcity to policy-driven retirements of coal and other types of fossil fuel fired power plants and urged broad-based permitting reform, including changes to environmental statutes and expanded options for off-grid “consumer regulated electricity” models. Marsden Hanna of Google stressed that transmission congestion and fragmented permitting threaten U.S. competitiveness, endorsed expanded federal transmission authority and streamlined reviews, and highlighted Google’s multi-billion-dollar data center investments across several states. Dr. Eric Masanet of the University of California, Santa Barbara focused on the lack of standardized, timely public information on the energy and water data centers use, arguing that federal data collection, and greater transparency are essential for accurately assessing infrastructure needs and community impacts. The hearing comes as a new poll last Monday found data centers are emerging as a political flashpoint ahead of the midterm elections. Pluralities in both parties support new construction, with Republican voters—particularly self-identified MAGA Republicans—more supportive than Democrats. Voters are concerned about higher electricity costs, blackout risks, and taxpayer impacts, and Democrats are more likely to say they would oppose candidates backing local data center development.
  • Last week, the House passed the Don’t Mess with My Home Appliances Act (H.R. 4626), a bill to prohibit the Department of Energy from issuing any new or amended energy efficiency standards for appliances and equipment that are not technologically feasible and economically justified. The bill passed the House last Tuesday by a vote of 217-209 and now heads to the Senate for consideration.

Around the Country

  • Despite the growing resistance to data centers, last week the Trump Administration signaled its continuing support for efforts to build out large-scale power generation and grid infrastructure improvements that data centers require when the Energy Department’s (DOE) Office of Energy Dominance Financing (EDF) closed a $26.5 billion loan package to subsidiaries of Southern Company in Georgia and Alabama. It is the largest loan in the Department’s history. The money will support the development of more than 16 gigawatts of power capacity, including 5 GW of new natural gas generation, 6 GW of nuclear uprates and license renewals, hydropower upgrades, battery storage systems, and more than 1,300 miles of transmission line and grid enhancement projects. The financing is expected to deliver more than $7 billion in electricity cost savings and reduce Southern Company’s interest expenses by over $300 million annually once fully disbursed.
  • Amid mounting grid reliability concerns in the Mid-Atlantic, last Tuesday, Energy Secretary Chris Wright issued an emergency order directing PJM Interconnection (PJM) to coordinate with Constellation Energy Corporation to ensure Units 3 and 4 of the Eddystone Generating Station outside Philadelphia remain available for operation and to employ economic dispatch to minimize costs for consumers. The order is effective through May 24, 2026.
  • MCAA members operating in Colorado should be aware that last Monday, the U.S. Supreme Court agreed to hear an appeal by Exxon Mobil and Suncor Energy seeking to dismiss a Colorado lawsuit brought by the City of Boulder and Boulder County that aims to hold energy companies financially liable for climate change impacts. The companies argue that such claims are preempted by federal law, including the Clean Air Act, and therefore cannot proceed under state consumer protection statutes. The Court’s eventual ruling is expected to have nationwide implications, potentially determining whether similar climate liability lawsuits filed by cities and municipalities across the country may move forward.
  • MCAA members operating in Minnesota should be aware that last Monday, the U.S. Supreme Court denied a petition from business groups in Minnesota that challenged the state’s ban on mandatory anti-union “captive audience” meetings at work. The U.S. Court of Appeals for the Eight Circuit dismissed the lawsuit brought by the business groups, which included the Minnesota Chapter of the Associated Builders and Contractors, in September 2025 without deciding the merits because the plaintiffs failed to show a sufficient threat of imminent enforcement.
  • MCAA members operating in Kansas should be aware that last Monday, the Environmental Protection Agency (EPA) issued a unilateral administrative order under the Clean Water Act to Atlas Operating, LLC, following the discharge of an estimated 33,600 gallons of a mixture of brine production water and crude oil into an unnamed tributary of the Chikaskia River and the Chikaskia River in Kansas. EPA ordered the company to stop the flow, recover and remove oil, contaminated soils, and debris at the discharge site, recover oil and oil-impacted debris along affected shorelines, and properly dispose of all wastes. The agency stated that cleanup actions must be completed by March 13, 2026.

MCAA Government Affairs Update for the Week of February 16, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, February 16, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Last week, President Trump was promising repercussions, including “primaries,” for six House Republicans—Reps. Brian Fitzpatrick (PA), Don Bacon (NE), Kevin Kiley (CA), Thomas Massie (KY), Jeff Hurd (CO), and Dan Newhouse (WA)—who joined nearly all Democrats in a 219–211 vote to disapprove of the President’s 25% tariffs on Canada. The House-passed resolution would terminate the national emergency related to Canada that President Trump declared under the International Emergency Economic Powers Act (IEEPA), which is the justification for the tariffs on Canada. The measure now heads to the Senate, where similar resolutions have previously drawn bipartisan support, but there is not enough support in the House or Senate to override a Presidential veto. The vote came after Speaker Johnson’s (R-LA) effort last Tuesday to prevent any House votes disapproving of President Trump’s tariffs failed by a vote of 214-217 in which Reps. Thomas Massie (R-KY), Kevin Kiley (R-CA), and Don Bacon (R-NE) joined all Democrats to defeat the rule. The measure would have barred votes on resolutions disapproving President Trump’s tariffs through July 2026. The developments come as the New York Federal Reserve reported that Americans are bearing roughly 90% of the cost of the tariffs and foreign exporters have generally not reduced prices to offset the levies.
  • As the MCAA continues engaging on issues related to federal decarbonization policy, members should be aware that last Thursday, the Environmental Protection Agency (EPA) finalized its repeal of the 2009 Obama-era greenhouse gas (GHG) “endangerment finding.” This is the scientific determination that GHG emissions threaten public health and welfare that is the legal basis for regulating six greenhouse gases—hydrofluorocarbons, methane, carbon dioxide (CO₂), perfluorocarbons, nitrous oxide, and sulfur hexafluoride—under the Clean Air Act (CAA). The EPA simultaneously repealed CO₂ standards for cars and trucks, asserting that Section 202(a) of the CAA does not authorize EPA to regulate greenhouse gases in the manner previously used. Gov. Gavin Newsom (D-CA) said his state will sue EPA over the repeal. Because the endangerment finding has long served as the legal underpinning for regulating greenhouse gas emissions from stationary sources—including power plants and major oil and gas facilities—the move is expected to spur broader challenges to existing and future climate regulations beyond the transportation sector.
  • Last Thursday, the Federal Trade Commission (FTC) issued a direct final rule removing from the Code of Federal Regulations its 2024 Biden-era final rule prohibiting most non-compete clauses in employment contracts. As you may recall, MCAA filed comments expressing concerns about this FTC regulation in April 2023 and successfully lobbied the Trump FTC to abandon it last September as we highlighted at the Industry Funds Conference in December. This action by the FTC represents the formal regulatory conclusion of this successful advocacy effort. The FTC has made clear it has no plans to issue a new blanket rule on non-compete agreements. As we have previously reported, the FTC has affirmed legitimate uses of such agreements for purposes such as those raised in MCAA’s 2023 comments. And the Commission is pivoting back to case-by-case enforcement against non-competes that violate longstanding, common law limitations on such agreements and violate fair competition standards enforced by the FTC applicable to labor markets.
  • The Nuclear Regulatory Commission (NRC) last Tuesday issued guidance detailing the steps that NRC licensees should take (or ensure their contractors are taking) to validate the non-immigrant status and identity of foreign nationals prior to granting unescorted access or certifying unescorted access authorization (UAA) for workers doing construction, maintenance, and other work at nuclear power plants and other NRC-regulated facilities. The guidance requires a visual verification of documents and official government-issued photo identification (e.g., passport, Work Authorization Document, or visa) provided by non-immigrant foreign nationals. It also requires that the demographic information of foreign nationals be entered into the U.S. Citizenship and Immigration Services’ Systematic Alien Verification for Entitlements (SAVE) electronic database to confirm the accuracy of documents and identification presented by the foreign national. The NRC stresses that “a licensee that accepts an access authorization program implemented by a contractor or vendor to satisfy 10 CFR 73.56(d)(3) must ensure that this validation has been performed prior to granting unescorted access or certifying UAA.” Such contractors and vendors do not have access to the SAVE database that is available to NRC licensees but can instead use E-Verify.
  • Amid continued growth in data centers and broader electrification, federal energy forecasters are projecting sustained increases in U.S. power demand over the next two years. The U.S. Energy Information Administration (EIA) last Tuesday projected U.S. electricity demand will reach record highs, from 4,195 billion kWh in 2025 to 4,268 billion kWh in 2026 and 4,372 billion kWh in 2027, driven by expanding AI and crypto data centers. The power generation mix is expected to shift modestly over the forecast period. Natural gas will supply 40% of electricity in 2026 and 39% in 2027. Coal will provide 16% in 2026 and 15% in 2027. Nuclear is expected to remain steady at 18%. Conventional hydropower will also hold steady at 6%. Wind will provide 11% in 2026 and 12% 2027, while solar will provide 8% in 2026 and 9% in 2027. Other sources will provide 1%. EIA also forecasts Brent crude averaging $58 per barrel in 2026 and $53 in 2027, while Henry Hub natural gas prices are projected to average $4.31 per MMBtu in 2026 and $4.38 in 2027, reflecting tighter near-term gas markets and rising production later in the forecast period. The federal data comes as a separate report from Goldman Sachs shows that in 2025 electricity prices jumped 6.9% year over year, more than double the headline inflation rate of 2.9%. Goldman says electricity prices will continue to rise through the end of the decade as data centers make up 40% of electricity demand growth. The bank believes that absent increased generating capacity, the nation’s energy situation could lower disposable income, drag down consumer spending, and slightly slow economic growth in the coming years.
  • Last Tuesday, the Labor Department’s Inspector General (IG) transmitted its fiscal year 2026 audit workplan to Congress, flagging several programs of interest to MCAA members for audits and reviews this year. The workplan includes multiple workforce-program audits, including the Office of Apprenticeship’s Apprenticeship Building America grants and the Employment and Training Administration’s management of registered apprenticeship grant programs. The IG is also continuing an audit examining allegations that DOL offices—including the Employee Benefits Security Administration that oversees ERISA retirement and health plans and the Wage and Hour Division (WHD)—inappropriately shared confidential information with plaintiffs’ attorneys in class-action litigation targeting employers and their retirement and health plans. The plan also includes reviews of WHD enforcement of child labor laws, OSHA’s actions to address and prevent workplace violence, and the administration of foreign guestworker programs.
  • Last Monday, President Trump said he does not plan to pursue another party-line budget reconciliation package, like the One Big Beautiful Bill Act (OBBBA) in which MCAA realized several legislative goals last year. The President said his administration has already enacted “everything” needed for the next four years through the OBBBA and “now we just need to manage it.” His comments undercut ongoing discussions MCAA has closely followed among House and Senate Republicans about crafting a follow-up reconciliation package that could bypass a filibuster by Senate Democrats. While President Trump left the door open to additional legislation, he said it would be smaller, targeted bills rather than another sweeping package like the OBBBA. This certainly leaves space for MCAA legislative priorities ranging from permitting reform to improvements to government contracting and further decarbonization efforts.
  • As MCAA members and other employers continue focusing on compliance with the sometimes complex web of federal, state, and local laws and regulations governing family and medical leave, the Labor Department (DOL) marked the 33rd anniversary of the federal Family and Medical Leave Act (FMLA) by highlighting six best practices to help employers ensure compliance with FMLA and avoid common violations. The guidance from the Wage and Hour Division emphasizes correctly determining coverage and employee eligibility, clearly communicating FMLA rights and responsibilities, avoiding interference or retaliation, properly handling medical certifications, and maintaining required health benefits and job protections during leave. DOL cautions that clear notice and consistent communication are among the most frequent compliance gaps identified in investigations and remain key to reducing enforcement risk.

Congress

  • Before leaving for this week’s President’s Day recess, the Senate last Thursday voted 52-47 to block consideration of a House-passed Department of Homeland Security (DHS) funding bill, ensuring a shutdown of most of DHS beginning last Saturday. Negotiations between the White House and Senate Democrats are continuing on Democrats’ demands for limits on immigration enforcement in the wake Alex Pretti’s death in Minneapolis at the hands of federal immigration agents. Because both Immigration and Customs Enforcement and Customs and Border Protection received significant additional funding under the One Big Beautiful Bill Act, a funding lapse will not materially impact the operations of the agencies. And many repercussions of a lapse in funding will not be felt immediately. For example, TSA airport screeners will not miss full paychecks until March. The Federal Emergency Management Agency still has $7 billion dollars it can deploy for immediate response to disasters like hurricanes, tornadoes and floods. And the Department can shift money to ensure Coast Guard personnel get paid. Still, the lapse in funding is expected to reduce personnel working at many DHS components, and will impact the public more directly if it is not resolved this month.
  • Last Wednesday, the MCAA policy team monitored the House Education and Workforce Subcommittee on Workforce Protections’ hearing entitled, “Building an AI-Ready America: Safer Workplaces Through Smarter Technology,” examining how AI and advanced technologies are being deployed to prevent injuries and modernize safety practices in construction, transportation, warehousing, and other high-risk sectors. This followed a separate Subcommittee hearing on AI and the workforce that we detailed in our February 9 report. At this latest AI hearing, Republicans generally emphasized that AI-powered tools—such as wearable sensors, computer vision, and predictive analytics—are helping shift safety management from reactive enforcement to proactive, data-driven prevention, while underscoring the need for human oversight and balanced policy. Democrats acknowledged AI’s potential to improve safety but generally cautioned that automation and algorithmic management can intensify surveillance, increase work pace, and weaken worker protections without clear guardrails and enforcement capacity. Jeff Buczkiewicz, CEO of the Mason Contractors Association of America, testified that the construction trades are developing “purpose-built” AI tools tailored to real-world jobsite risks, including systems that evaluate wall bracing to prevent collapses, monitor personal protective equipment (PPE) in real time, integrate LiDAR scanning to assess performance, and deploy virtual reality forklift simulations to allow workers to learn from mistakes without physical harm. He argued that responsible adoption can extend careers, boost productivity, and help offset looming workforce retirements. Johan Land of Samsara highlighted measurable safety gains from AI-enabled fleet systems, including reductions in crashes and distracted driving. Eric Hoplin of the National Association of Wholesaler-Distributors described warehouse applications such as computer vision and predictive “digital twin” systems to anticipate equipment failures and cautioned against fragmented federal and state regulatory approaches. Former OSHA Assistant Secretary Douglas Parker, representing the National Employment Law Project, supported AI adoption grounded in established safety principles and urged Congress to strengthen the Labor Department’s capacity to oversee emerging technologies.
  • MCAA will be closely monitoring forthcoming conference negotiations over differing housing bills the House and Senate have now passed. Last Monday, the House voted 390-9 to approve the Housing for the 21st Century Act. The bill directs the Department of Housing and Urban Development (HUD) to issue voluntary zoning modernization guidelines to encourage states and localities to update restrictive land-use policies and authorizes grants for “pattern books” featuring pre-approved housing designs to speed local approvals. It establishes federal guidance and pilot programs for single-staircase multifamily buildings (three stories or more), a change intended to expand apartment construction options. The measure also significantly streamlines environmental reviews by expanding National Environmental Policy Act (NEPA) exemptions and categorical exclusions for infill, rehabilitation, and certain new residential construction projects, and by synchronizing HUD and U.S. Department of Agriculture review standards to reduce duplication. Additionally, it updates Federal Housing Administration multifamily loan limits to better reflect current construction costs, expands HOME and CDBG flexibility to support affordable housing construction and related infrastructure, and eases environmental mandates that often delay smaller-scale multifamily and infill developments. The bill must now be reconciled with a notably different Senate housing bill called the ROAD to Housing Act that the chamber passed last October. MCAA will be monitoring to fend off efforts we mentioned at the Industry Funds Conference in December to advance language curtailing federal prevailing wage or the use of project labor agreements on federally-assisted multifamily housing projects. As we noted in December, the U.S. Small Business Administration is among the entities that has asserted that project labor agreements are contributing to the housing affordability crisis.
  • There were also several developments in races for the U.S. House last week. In New Jersey, former Rep. Tom Malinowski (D-NJ) conceded the Democratic primary in the special election for New Jersey’s 11th Congressional District to progressive Analilia Mejia (D-NJ), who will face Republican Joe Hathaway in a special general election on April 16th. In Pennsylvania, Rep. Brian Fitzpatrick (R-PA) holds a considerable fundraising advantage over his Democratic opponent Bob Harvie with over $7.3 million in cash on hand, compared to $400,000 for Harvie. In Illinois, the Justice Democrats endorsed Kat Abughazaleh (D) in the crowded Democratic primary to replace Rep. Jan Schakowsky (D-IL) in Illinois’ 9th Congressional District. In Tennessee and Florida, Democrats are increasingly hopeful they can seriously compete for House seats held by scandal-ridden GOP Reps. Andy Ogles (R-TN) in Tennessee’s 5th Congressional District and Cory Mills (R-FL) in Florida’s 7th Congressional District. Meanwhile, the Democratic Congressional Campaign Committee expanded its House battleground map to five additional red-leaning districts, signaling continued Democratic confidence in flipping the chamber in 2026. The new targets include seats held by GOP Reps. Jeff Crank (CO), Brad Finstad (MN), Ryan Zinke (MT), and John McGuire (VA), along with South Carolina’s 1st District, which is open as Rep. Nancy Mace (SC) runs for governor.

Around the Country

  • Last Thursday, the U.S. Court of Appeals for the Second Circuit declined to block a district court order compelling the Trump Administration to resume funding for the $16 billion Gateway/Hudson Tunnel Project between New York and New Jersey. The appellate court scheduled oral arguments for the week of February 23rd but refused to grant the Justice Department’s request for an interim stay, meaning the Trump Administration may be required to disburse roughly $200 million in near-term project funds. The underlying lawsuit, brought by New York and New Jersey, challenges the Transportation Department’s funding freeze as arbitrary and inconsistent with federal law.
  • As electricity demand accelerates—driven in by AI and data center expansion—the Trump Administration is signaling support for keeping existing coal power plants operating longer. Last Wednesday, President Trump signed an executive order, “Strengthening United States National Defense with America’s Beautiful Clean Coal Power Generation Fleet,” directing the Department of Defense, in coordination with the Department of Energy, to pursue long-term Power Purchase Agreements with coal-fired plants to supply military installations and other mission-critical facilities. The order designates coal generation as essential to grid reliability, blackout prevention, fuel security, and defense “mission assurance.” Following the order, the Energy Department announced $175 million in funding to modernize and extend the life of six coal-fired power plants: the Mountaineer and John E. Amos plants in West Virginia, the Fort Martin Power Station in West Virginia, the Cardinal Plant and Kyger Creek Station in Ohio, the Belews Creek Steam Station in North Carolina, and the Ghent Generating Station in Kentucky, as part of a broader $525 million effort to reinvest in and expand America’s coal-powered generation. Relatedly, the Tennessee Valley Authority (TVA) signaled that it will continue operating two coal-fired plants—the Kingston and Cumberland Fossil Plants in Tennessee. TVA reversed its prior plan to retire remaining coal units by 2035 due to regulatory changes and rising electricity demand. TVA’s revised approach would still include adding natural gas-fired generation at both sites.
  • As the MCAA policy team continues working with the Trump Administration on implementing the ADVANCE Act, federal agencies are continuing to rollout pilot programs to encourage more private-sector investment. An example of this is California startup Deep Fission Inc., which previously participated in an Energy Department pilot program, announcing last Tuesday that it has raised $80 million in new financing to accelerate commercialization of its underground small modular reactor (SMR) technology. The company also announced a strategic partnership with Blue Owl Capital’s Real Assets platform to help deploy its reactors for digital infrastructure projects and said it has a development pipeline representing 12.5 gigawatts of planned future deployments. Deep Fission’s design that was validated in an Energy Department pilot combines traditional pressurized water reactor technology with deep borehole drilling techniques used in the oil and gas industry, aiming to lower construction costs and speed deployment compared to conventional nuclear plants.
  • MCAA members operating in California should note that the Department of Labor last Tuesday announced a settlement with Kaiser Foundation Health Plan Inc. resolving multiple investigations into the company’s failure to provide adequate access to in-network mental health and substance abuse disorder services for millions of Californians covered through employer-sponsored plans. Kaiser maintained insufficient provider networks and used patient questionnaires in ways that improperly limited access to care, forcing many members to seek out-of-network treatment at higher cost. The settlement requires Kaiser to pay at least $28.3 million to reimburse members for out-of-network expenses and a $2.8 million civil penalty. Kaiser is also implementing reforms to reduce wait times, improve medical necessity reviews, and strengthen monitoring of network adequacy. Kaiser has notified potentially affected members enrolled since January 1, 2021 that they may be eligible for reimbursement.
  • As tech companies’ capital expenditures to build out AI infrastructure are projected to reach roughly $610 billion in 2026—nearly triple 2023 levels—state policymakers are continuing to scrutinize the energy, environmental, and ratepayer impacts of rapid data center expansion. In Virginia, the home of “data center alley,” lawmakers last week advanced HB 1132, which would require counties with at least 20 data centers—currently Loudoun, Fairfax, and Prince William—to dedicate 30% of future property tax collections from data centers to residential solar and battery projects and offset the state’s vehicle property tax. Virginia lawmakers also introduced HB 897, which would condition the state’s sales tax exemption on operators procuring more zero-carbon energy, reducing diesel backup generation, and meeting energy efficiency targets. The IBEW and other unions are cautioning the measures could deter investment, citing recent construction growth in the region. In Pennsylvania, following Gov. Josh Shapiro’s (D) call for stronger development standards, Senate leaders have signaled bipartisan support for requiring data center developers to supply their own power to protect grid reliability and affordability. All of this comes as new research from water technology firm Xylem and other organizations projects that water demand tied to data center growth could increase by 129% by 2050, raising concerns about water supply and treatment capacity in certain regions.

With Congress in recess for the President’s Day holiday, there will not be a MCAA Government Affairs Update on Monday, February 23, 2026. Watch for the next update on Monday, March 2, 2026.

MCAA Government Affairs Update for the Week of February 9, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, February 9, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Last Friday, the Office of Personnel Management released a final rule anticipated to result in the conversion of approximately 50,000 career civil servants to a new category of federal employment that would lack traditional civil service job protections. Employees reclassified under this new schedule could be removed by political appointees and replaced without violating civil service laws. Under the new rule, Trump Administration appointees at federal agencies will recommend positions for conversion to this new category, but the final determination will be made by the President through executive order. The rule is expected to primarily affect career officials who draft, edit, interpret, or influence policy, including senior career leadership such as regional directors and heads of operating units across cabinet departments and independent agencies. The final rule is intended to empower political leadership at federal departments and agencies to ensure that people holding key career government posts can be held accountable if they do not faithfully and vigorously advance administration priorities.
  • Last Wednesday, the Internal Revenue Service (IRS) published a proposed rule revising regulations for the Clean Fuel Production Credit (Section 45Z) established by the Inflation Reduction Act (IRA) and amended last year by the One Big, Beautiful Bill Act (OBBBA). The proposal is intended to support expanded sales of domestically produced biofuels, including low-emissions transportation fuels, by implementing OBBBA changes extending the credit for fuel sold on or before December 31, 2029 and broadening the definition of qualifying sales to include transactions involving wholesalers, dealers, and other intermediaries. The Section 45Z credit consolidates prior biodiesel and sustainable aviation fuel incentives and applies to fuels produced after December 31, 2024. The proposed rule also sets detailed eligibility requirements for producers and facilities, clarifies how emissions rates will be calculated for both sustainable aviation fuel (SAF) and non-SAF transportation fuels, and establishes new restrictions related to foreign and foreign-influenced entities. Biofuel producers are still awaiting updated Department of Energy emissions models necessary to take advantage of this credit.
  • Administrators of MCAA health plans should take note that last Thursday, the Trump Administration launched TrumpRx, a new direct-to consumer website intended to lower prescription drug costs by steering patients to manufacturer discounts and cash-pay offers. The platform does not sell drugs directly but instead serves as a clearinghouse linking users to pharmaceutical companies’ own websites or providing coupons for use at pharmacies. At launch, TrumpRx features discounted drugs from five participating manufacturers—AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk, and Pfizer—with a heavy emphasis on GLP-1 obesity and diabetes drugs. However, analysts caution that because direct-to-consumer purchases may not count toward insurance deductibles or out-of-pocket limits, TrumpRx is expected to be of greatest benefit to people who do not have prescription drug coverage.
  • To advance its goal of reducing U.S. reliance on China and strengthening domestic supply chain resilience,the Trump Administration last Monday announced that the Export-Import Bank of the United States (EXIM) approved up to $10 billion in financing to launch Project Vault, a new public-private partnership establishing a U.S. Strategic Critical Minerals Reserve aimed at strengthening supply chain security and domestic manufacturing. Project Vault is designed to support U.S. production and processing of critical minerals while delivering a net positive return for taxpayers and advancing national security objectives tied to energy infrastructure, advanced manufacturing, defense, aerospace, electric vehicles, and consumer electronics. Participants include GE Vernova, Boeing, Western Digital, and Clarios, alongside global commodity suppliers such as Mercuria, Hartree Partners, and Traxys. This comes as Vice President JD Vance separately unveiled plans last Wednesday for a preferential trade bloc of allied nations for critical minerals, proposing coordinated price floors enforced through adjustable tariffs. The proposal is intended to prevent cheap minerals from undercutting domestic producers and help unlock private investment in mining and processing.
  • The Labor Department Inspector General’s Top Management and Performance Challenges report released last Monday indicates that the Occupational Safety and Health Administration (OSHA) could use more inspectors. The ranks of OSHA inspectors have declined from 846 in February 2024 to 736 in June 2025—making it increasingly difficult to inspect a meaningful share of the nation’s 11.6 million worksites. The report notes that in 2026, OSHA and its state partners together are expected to field just 1,720 inspectors responsible for overseeing approximately 144 million workers. The Inspector General warns that a lack of qualified inspectors can lead to fewer inspections, weaker enforcement in high-risk industries like construction, and heightened risks of worker injuries, fatalities, or compromised health. Concern about the dwindling ranks of OSHA inspectors comes as Bureau of Labor Statistics data shows that in 2024 employer-reported nonfatal workplace injuries and illnesses fell to their lowest level since 2003, with 2.5 million injuries reported—down roughly 3% from 2023. The decline was driven by a 26% drop in illness cases, including a 46% reduction in respiratory illness cases to the lowest level reported since the onset of COVID-19 in 2019.
  • As the MCAA continues discussions on federal permitting reform with the Trump Administration, last week we received notice of the Food and Drug Administration’s plans to start accepting requests to participate in its new PreCheck Pilot Program aimed at streamlining the review and inspection process for the construction of pharmaceutical manufacturing facilities. Facilities will be selected for the pilot program based on their alignment with national priorities, including the products to be manufactured, the stage of facility development, timelines for supplying the U.S. market, and the use of innovative approaches in facility design and construction.

Congress

  • Last week, the House voted 217–214 to end a four-day partial government shutdown, approving a bipartisan funding package that provides full fiscal year (FY) 2026 appropriations for the Departments of Labor, Energy, Transportation, Health and Human Services, Defense, Treasury, Justice, State, and Education, along with several independent agencies, while the Department of Homeland Security (DHS) remains on a continuing resolution (CR) that expires February 13th. If DHS funding continues on a CR or lapses after February 13th, key infrastructure, shipbuilding, and disaster-response investments in the House-passed FY2026 Homeland Security Appropriations bill will not go forward, including $26.4 billion for FEMA’s Disaster Relief Fund, $40 million for deferred Coast Guard shoreside maintenance, $30 million for cutter and boat maintenance, and $98 million for Waterways Commerce Cutters. Democrats and Republicans remain far apart on a DHS funding deal due to disagreements over the Trump Administration’s immigration enforcement policies. Last Thursday, House Minority Leader Hakeem Jeffries (D-NY) and Senate Minority Leader Chuck Schumer (D-NY) sent Republicans a letter restating policy demands to “rein in ICE” they have made for weeks, including barring ICE agents from wearing masks and requiring that they wear body cameras. Senate Majority Leader John Thune (R-SD) called Democrats’ demands “unrealistic” and Senate Republicans are preparing a clean, full-year continuing resolution to fund Homeland Security for the remainder of this fiscal year because they doubt they can reach agreement with Democrats ahead of the current February 13th deadline. The DHS funding fight is also unfolding amid the Trump Administration’s efforts to ease tensions in Minnesota over immigration enforcement. Last Wednesday, President Trump ordered Border Czar Tom Homan to draw down roughly 700 federal law enforcement officers in Minnesota, about a quarter of those deployed during the immigration enforcement surge in the state, citing increased cooperation from state and local authorities.
  • MCAA health plan trustees should know that the appropriations package signed into law last Tuesday ending the partial government shutdown included a series of pharmacy benefit manager (PBM) reforms, including new transparency requirements, provisions delinking PBM compensation from drug list prices, and a requirement for full rebate pass-through in Medicare Part D. The package also extended Medicare telehealth flexibilities for two years and the hospital-at-home program for five years, continued funding for community health centers, delayed in-person requirements for tele-mental health services until January 1, 2028, and required the Department of Health and Human Services to issue guidance within one year on delivering telehealth services to individuals with limited English proficiency. The legislation comes as the Federal Trade Commission secured a settlement with Express Scripts and affiliated entities Caremark Rx and OptumRx to resolve allegations that the companies inflated insulin list prices through anticompetitive rebating practices that increased patient out-of-pocket costs. Against this backdrop, Senate Finance Committee Ranking Member Ron Wyden (D-OR), along with Sens. Catherine Cortez Masto (D-NV), Peter Welch (D-VT), and Ruben Gallego (D-AZ) released a Dear Colleague letter outlining a broader framework to lower prescription drug costs by expanding Medicare drug price negotiations, reducing out-of-pocket costs by further cracking down on PBMs, and bolstering domestic pharmaceutical innovation through the tax code and increased funding for federal research, including at the NIH.
  • Last week, the House Republican majority shrank yet again after House Speaker Mike Johnson (R-LA) swore in Democrat Christian Menefee to represent Texas’ 18th Congressional District, filling a seat left vacant by the death of Rep. Sylvester Turner (D-TX) after nearly a year without representation for the Houston-area district. Menefee’s swearing-in narrowed the House GOP majority to 218–214, leaving Speaker Johnson with just a one-vote margin on party-line legislation.
  • Last Tuesday, the MCAA policy team engaged with the House Energy and Commerce Subcommittee on Energy as it held a hearing entitled “Oversight of FERC: Advancing Affordable and Reliable Energy for All Americans,” featuring testimony from all five Federal Energy Regulatory Commission commissioners focused on rising energy costs, grid reliability, and the challenge of meeting rapidly growing electricity demand driven by data centers, manufacturing, and artificial intelligence. During the hearing, Republicans warned that the electric grid is under severe stress from baseload retirements, permitting delays, and infrastructure constraints. They urged FERC focus on its role as an economic regulator to ensure reliability, affordability, and U.S. competitiveness. Democrats countered that electricity prices are rising nationally due to interconnection failures and outdated grid planning, criticized Trump Administration actions to block new clean energy projects, and emphasized that large data centers must pay their fair share without shifting costs to residential and small business ratepayers. FERC Chair Laura Swett stressed the Commission’s bipartisan mission and commitment to legal durability, regulatory certainty, and staffing capacity. She highlighted FERC’s efforts to streamline permitting, reduce interconnection delays, expand blanket authorizations, and establish transparent rules for serving large data center loads while protecting consumers. FERC Commissioners also underscored the urgency of “speed to power” (the ability to bring new generation, transmission, and large loads online quickly enough to keep pace with rising demand without compromising reliability or driving up costs) particularly following Winter Storm Fern. Throughout the hearing, the Commissioners emphasized protecting affordability through fair cost allocation, ensuring new large loads cover the infrastructure costs they trigger, advancing durable long-term solutions rather than temporary fixes, and maintaining bipartisan consensus to provide regulatory predictability and support timely investment in energy.
  • Last week, the MCAA policy team also monitored the House Education and Workforce Subcommittee on Health, Employment, Labor, and Pensions’ hearing entitled, “Building an AI-Ready America: Adopting AI at Work,” which examined how AI is being deployed across workplaces and what that means for productivity, job quality, and worker protections. Subcommittee Chairman Rick Allen (R-GA) emphasized the need to balance innovation with worker safeguards, including the continued applicability of the National Labor Relations Act (NLRA) and the importance of improved federal data collection to understand the workforce impacts of AI. Democratic Ranking Member Mark DeSaulnier (D-CA) warned that unchecked AI adoption could widen power imbalances in the workplace through surveillance and hiring and other processes driven by discriminatory algorithms. Witnesses outlined competing approaches to managing AI in the workplace. Bradford Kelley of management law firm Littler Mendelson argued that existing federal workplace laws, including Title VII, the NLRA, and the Fair Labor Standards Act, are largely sufficient to address AI-related misconduct and cautioned that premature or fragmented AI-specific regulation could stifle innovation and create compliance uncertainty. Revana Sharfuddin of the Mercatus Center at George Mason University contended that current federal data systems are insufficient to measure AI’s task-level effects on workers and recommended targeted investments in Bureau of Labor Statistics and Census Bureau surveys to better track AI adoption, job redesign, and labor-market impacts. Tanya Goldman of Workshop emphasized that workers are already experiencing harm from opaque AI-driven hiring systems, wage setting software, surveillance, and algorithmic management. She called for stronger enforcement resources, transparency and disclosure requirements, human oversight and appeal rights, regular impact assessments, and preservation of states’ ability to enact additional worker protections. The hearing took place amid new reporting on a surge of private-sector investment in AI systems designed to enable robots to perform complex physical tasks in construction, energy, logistics, manufacturing, and other traditionally blue-collar industries. These technologies are heightening concerns that AI-driven job disruption will extend beyond office work and underscoring the urgency of developing clearer data, oversight, and worker protection frameworks.

Around the Country

  • As the MCAA policy team continues working with the Trump Administration on accelerating deployment of nuclear technology, last week we were informed that the Department of Energy’s (DOE) Office of Environmental Management is restarting uranium recovery operations at the Savannah River Site’s H Canyon facility in South Carolina, enabling the production of high-assay low-enriched uranium for advanced reactors as well as the recovery of isotopes for scientific research, medical applications, and commercial uses. H Canyon is the only production-scale, radiologically shielded chemical separations facility in the U.S. The announcement followed a separate move last Tuesday in which DOE said it is partnering with nuclear fuel company General Matter to assess returning the Hanford Site’s Fuels and Materials Examination Facility in Washington State to service for advanced nuclear fuel cycle technologies and materials. Under that partnership, DOE signed a lease granting General Matter access to the 190,000-square-foot facility, with the company responsible for site characterization, evaluating potential upgrades, and leading engagement with local communities and stakeholders to determine feasibility. Finally, DOE’s Office of Nuclear Energy awarded more than $19 million to five companies last Thursday to research and develop recycling technologies for used nuclear fuel. The companies getting the funding are Oklo, Alpha Nur, Curio Solutions, Flibe Energy, and SHINE Technologies.
  • MCAA members operating in Vermont should take note that last Wednesday, the General Services Administration announced the release of a final Environmental Assessment and Finding of No Significant Impact for the Richford, VT Land Port of Entry project, clearing the way for construction to begin this fall. The project will modernize and expand the nearly century-old port of entry at the U.S.–Canada border between Richford, Vermont and Abercorn, Quebec, replacing facilities that no longer meet current U.S. Customs and Border Protection design and operational standards. Planned upgrades include new officer work areas, secure inspection and holding spaces, and major plumbing, mechanical, and electrical improvements, along with exterior enhancements such as reconfigured traffic lanes, mechanical gates, guardrails, and bullet-resistant inspection booths to improve safety, security, and traffic flow for both commercial and non-commercial crossings. The project is expected to cost between $36 million and $44 million.
  • MCAA members involved in energy infrastructure and pipeline construction and maintenance in the Midwest should be aware that last Tuesday, the Trump Justice Department’s Environment and Natural Resources Division and Civil Division filed a statement of interest in a case before the U.S. District Court for the Western District of Wisconsin involving the potential shutdown of Enbridge’s Line 5 pipeline as it crosses the Bad River Reservation. The filing seeks to reverse the district court’s injunction that would require Enbridge to cease pipeline operations by June 16th, arguing that an immediate shutdown would disrupt the nation’s energy supply chain and drive up costs for consumers. The Trump Justice Department emphasized that the case has been under appeal before the U.S. Court of Appeals for the Seventh Circuit since 2023 and warned that imposing operational restrictions while appellate review is ongoing would be premature. Citing President Trump’s declaration of a national energy emergency, DOJ officials said there are no readily available alternatives to transport the energy products currently flowing through Line 5, and that shutting down the pipeline would harm U.S. energy security and economic stability.

  • The rapid expansion of data center development is being shaped by both growing private-sector capital interest and increasingly divergent state policy approaches focused on infrastructure readiness. Prologis, the world’s largest owner of industrial real estate, said it is weighing a dedicated co-investment vehicle focused on data centers, citing rising demand, with a decision expected in the coming months. Prologis expects to break ground on $4 billion to $5 billion in new developments in 2026, with data centers accounting for roughly 40% of the projected value, up from about 10% of its $3 billion in development starts last year. At the same time, states are adopting different strategies to manage that growth. In Pennsylvania, Gov. Josh Shapiro (D) announced “Governor’s Responsible Infrastructure Development” standards that would condition public support for data centers on developers funding their own power generation, hiring and training local workers, engaging communities, and meeting water and environmental requirements in exchange for faster permitting and tax incentives. By contrast, Texas is attracting hyperscale demand by moving projects with power and permits already secured, as evidenced by the Texas Commission on Environmental Quality’s approval of Pacifico Energy’s 7.65-gigawatt GW Ranch project in the Permian Basin. The project is a gas-fired, private-grid power complex designed specifically to support large-scale data center development without drawing on the public grid.
  • As the MCAA defends President Biden’s MCAA-supported 2022 executive order mandating the use of project labor agreements (PLAs) on federally funded construction projects costing $35 million or more, there is a new legal battle involving the Baltimore–D.C. Metro Building and Construction Trades Council, which on January 30th filed a lawsuit in federal court in Virginia against the Metropolitan Washington Airports Authority (MWAA). The suit alleges that MWAA is unlawfully failing to require PLAs on large construction projects at Ronald Reagan Washington National Airport and Washington Dulles International Airport. The complaint argues that MWAA’s decision to forgo PLAs on projects exceeding $100 million violates both a 2022 MWAA resolution and President Biden’s 2022 PLA executive order. The Council is seeking an injunction barring MWAA from awarding federally eligible large-scale construction contracts without a PLA, asserting that continued non-compliance undermines labor stability and the union’s bargaining position with airport contractors.

MCAA Government Affairs Update for the Week of February 2, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, February 2, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • As this week begins, Congress is racing to close a tentative deal the White House and Senate Democrats made late last week to fund the government following the expiration of the stop-gap funding measure enacted in November after the lengthy government shutdown. The deal separates the Department of Homeland Security (DHS) appropriations bill from a broader package containing the five remaining appropriations measures and advances a short continuing resolution (CR) to keep DHS funded at current levels until February 13 while lawmakers debate proposed changes to immigration enforcement. Senate leaders had been expected to quickly clear the remaining bills covering roughly $1.2 trillion in funding for Defense, Labor-HHS, Transportation-HUD (which includes funding for the Pipeline Safety Hazardous Materials Administration), Financial Services-General Government, and State and Foreign Operations funding fiscal year 2026 appropriations for approximately 96% of federal government operations. However, floor action stalled late last week after Sen. Lindsey Graham (R-SC) objected to expedited consideration of the funding package. This week, we will see if divisions within the narrowly divided House GOP majority over both the short-term DHS funding measure and new limits Democrats are pushing on immigration enforcement will further delay finishing the fiscal year 2026 funding bills.
  • Because MCAA has been engaged in ongoing permitting reform and decarbonization discussions with the Trump Administration, this week we got advance notice of President Trump’s surprise Executive Order (EO) 14377, “Addressing State and Local Failures to Rebuild Los Angeles After Wildfire Disasters” and the Interim Final Rule (IFR) the U.S. Small Business Administration (SBA) released on Thursday to implement it. The IFR enables SBA disaster loan borrowers to bypass certain state and local permitting requirements for rebuilding if the borrower has been unable to obtain required permitting approvals for 60 days or longer. Borrowers may have their builders self-certify compliance with state and local regulations and immediately begin rebuilding. The IFR requires builders to certify to the SBA that: (1) all required permit applications and approval requests were properly submitted more than 60 days earlier; (2) the delay in rebuilding is due to government inaction; and (3) all applicable building codes, health and safety requirements, inspections, and any other processes required to obtain a certificate of occupancy have been, and will be, met. More on the certification process and the related forms with the attestations contractors must sign is available here. While the situation in California prompted the Executive Order and the SBA rule, the rulemaking is not limited to California. It establishes a standard of general applicability for rebuilding funded with SBA disaster loans in any federally declared disaster area where state or local permitting delays are the “but-for” cause of delays of 60 days or more. The IFR applies retroactively to disaster loans approved on or after January 1, 2025. Although the rule took effect upon publication on January 29, 2026, the SBA is accepting public comments here through March 2, 2026 using RIN 3245-AI71.
  • The MCAA also saw progress last week on permitting reform on the regulatory front, with the White House Council on Environmental Quality (CEQ) Permitting Innovation Center last Thursday launching a pilot called CE Works. CE Works is a digital platform designed to streamline categorical exclusion determinations under the National Environmental Policy Act (NEPA). The pilot begins at the Bureau of Land Management’s Moab Field Office, with additional agency partnerships expected. The program was developed in coordination with the General Services Administration to modernize federal permitting technology pursuant to President Trump’s April 15, 2025 memorandum “Updating Permitting Technology for the 21st Century.” CEQ says the tool will help cut red tape and accelerate timelines for infrastructure and energy projects.
  • The MCAA’s outreach to the Department of Labor, to the extent it was channeled through the Secretary’s office, is becoming more complicated as the investigation into Labor Secretary Lori Chavez-DeRemer, her Chief of Staff, and her Deputy Chief of Staff continues. Both the Chief of Staff and Deputy Chief of Staff have been placed on administrative leave during the investigation. This week scrutiny of the Secretary expanded to the U.S. Senate Judiciary Committee as Chairman Chuck Grassley (R-IA) sent Secretary DeRemer a letter demanding her response to multiple allegations currently being investigated by the Labor Department’s Inspector General. Chairman Grassley asked the Secretary to respond by February 11, 2026, about allegations that while on official travel she took staff to a strip club in Portland, Oregon and fabricated other official work trips for personal travel at taxpayer expense. The Chairman also requested details about the Secretary’s travel to Palm Beach and four visits to Las Vegas last year, two of which included a staffer with whom she allegedly had an inappropriate relationship. Through her personal attorney, the Secretary has denied any wrongdoing, but she has not remarked on any of the allegations herself.
  • MCAA health plan trustees need to know that last week the Labor Department’s Employee Benefits Security Administration (EBSA) published its long-awaited proposed rulemaking to implement section 12 of President Trump’s April 15, 2025 Executive Order (EO) 14273, “Lowering Drug Prices by Once Again Putting Americans First.” The 78-page proposal is intended to help trustees of self-insured health plans gain greater transparency into the direct and indirect compensation received by pharmacy benefit managers (PBMs). It would require both providers of PBM services and affiliated providers of brokerage and consulting services to disclose compensation information to fiduciaries of ERISA self-insured group health plans. This is intended to enable fiduciaries to satisfy their legal obligation under ERISA to assess both the “reasonableness of the compensation” in light of the services being provided and the potential for or existence of conflicts of interest that may impact the quality of services provided. These disclosures would be provided on an initial basis prior to the self-insured group health plan entering into a service contract or arrangement and then on a semiannual basis thereafter. To ensure further transparency, the proposed rule includes provisions permitting the responsible plan fiduciary to audit PBM disclosures for accuracy. The rule also requires PBMs to detail the authority they retain to change a plan formulary and how often they expect to do so and requires PBMs to state affirmatively when they are acting as a plan fiduciary and list any relevant conflicts of interest. EBSA is also proposing a Prohibited Transaction Exemption intended to ensure that a covered service provider’s failure to comply with the proposed requirements will not result in a prohibited transaction by a responsible plan fiduciary acting diligently and in good faith with this regulation and other applicable laws and regulations. Comments are due by March 31, 2026 and should be submitted through the federal eRulemaking portal using RIN 1210-AB37.
  • MCAA health plan trustees may also be interested to see that the Centers for Medicare and Medicaid Services (CMS) released the list of 15 new medications selected for the Medicare drug price negotiation program under Medicare Part B (medical/outpatient coverage, including certain physician-administered drugs)andPart D (prescription drug coverage). The selected drugs treat conditions including HIV, type 2 diabetes, chronic lung disease, depression, and include Botox for Medicare-covered uses such as chronic migraines and overactive bladder. The medications to be negotiated this year include: Anoro Ellipta, Biktarvy, Botox and Botox Cosmetic, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xeljanz XR, and Xolair. According to CMS, these drugs accounted for approximately $27 billion in combined Medicare Part B and Part D spending between November 2024 and October 2025—about 6% of total Part B and Part D drug spending during that period. A CMS fact sheet on the update is available here.
  • We wanted to be sure that MCAA pension plan trustees were aware that last Tuesday the Pension Benefit Guaranty Corporation (PBGC) released its fiscal year (FY) 2025 Annual Report showing continued improvement in the financial condition of its Multiemployer insurance program, reflecting in part the ongoing effects of the Special Financial Assistance (SFA) program. The Multiemployer Program reported assets of $4.9 billion and liabilities of $2.3 billion as of September 30, 2025, resulting in a positive net position of $2.6 billion—an improvement of $516 million during the fiscal year. PBGC reported paying $6.2 billion in SFA to 48 financially troubled multiemployer plans in FY 2025, helping stabilize plan funding and contributing to the program’s long-term solvency outlook, even as the program also paid $169 million in traditional financial assistance to insolvent plans. Last week, PBGC also released its FY 2024 Projections Report showing the Multiemployer Program is expected to remain solvent for at least the next 40 years.
  • As MCAA continues engaging the Trump Administration on its plans for implementing President Trump’s Executive Order on “Preparing Americans for High-Paying Skilled Trade Jobs of the Future,” we wanted to make you aware that last week the Department of Labor announced that National Apprenticeship Week 2026 will be held April 26 through May 2. The theme will be “America at Work: Making America Skilled Again Through Registered Apprenticeship.” National Apprenticeship Week will feature events across all 50 states and U.S. territories highlighting how Registered Apprenticeship expands career pathways for workers and helps employers meet workforce needs in industries such as the skilled trades, nuclear, energy, shipbuilding, advanced manufacturing, and artificial intelligence.
  • MCAA contractors and workers engaged in pipeline, industrial piping, and energy infrastructure inspection and repair projects may see increased compliance scrutiny and potential retrofit demand following new federal safety guidance from the Pipeline and Hazardous Materials Safety Administration (PHMSA) warning hazardous liquid pipeline operators about the integrity risks associated with the long-term use of Type A repair sleeves, citing multiple incidents that resulted in significant environmental damage and industry costs. PHMSA said incident data shows that failures of Type A sleeves—steel sleeves welded around a pipeline but not welded to the carrier pipe—have been linked to improper installation, moisture intrusion, corrosion fatigue, inadequate cathodic protection, and pressure cycling, particularly where annular spaces are not properly sealed. The advisory highlights recent pipeline releases in South Carolina, North Carolina, and Pennsylvania where leaks originated beneath aging Type A sleeves and urges operators to strengthen integrity management by improving recordkeeping, validating inline inspection data, inventorying and assessing all installed Type A sleeves as potential integrity threats, conducting fatigue analyses for sleeves subject to pressure cycling, and enhancing leak detection and monitoring practices. PHMSA also reminded operators that unauthorized or poorly executed sleeve installations may be subject to enforcement under existing pipeline safety regulations, while emphasizing that the advisory does not impose new regulatory requirements but provides technical guidance to prevent future failures.

Congress

  • As part of our legislative efforts to advance federal permitting reform through Congress, last week MCAA engaged with the Senate Environment and Public Works Committee in connection with its second permitting reform hearing this Congress. Witnesses included LiUNA General President Brent Booker, Bechtel CEO Brendan Bechtel, and Dustin Meyer of the American Petroleum Institute, among other energy and infrastructure stakeholders. The hearing underscored bipartisan concern that current federal environmental review and permitting processes continue to delay or cancel major energy infrastructure projects—particularly interstate natural gas pipelines, liquefied natural gas export facilities, and cross-border oil and gas development—creating uncertainty for contractors, workers, and investors. Witnesses also emphasized that extended litigation timelines and state-level water quality certifications under Section 401 of the Clean Water Act have frequently been used to stall pipeline projects, discouraging capital investment, and contributing to higher regional energy costs.

    The MCAA succeeded in prompting members at the hearing to acknowledge broad agreement that federal permitting reform should be project- and technology-neutral, provide certainty for approved projects, reduce redundant administrative reviews, and impose clear timelines and limits on judicial review while preventing future administrations from unilaterally terminating previously approved projects. These priorities reflect the core principles the MCAA has consistently advanced in its ongoing engagement with lawmakers and industry stakeholders. Committee Chair Shelley Moore Capito (R-WV) and Ranking Member Sheldon Whitehouse (D-RI) both stressed the need to act on legislation this year, although Senator Whitehouse cautioned that progress would remain difficult unless the Trump Administration lifts its pause on previously approved offshore wind and other renewable energy projects approved during the Biden Administration.
  • Last Monday, Senate Health, Education, Labor, and Pensions Committee Republicans announced the creation of a new task force to combat fraud in federal spending, citing concerns that waste, fraud, and abuse are siphoning taxpayer dollars away from programs intended to support families, workers, patients, and retirees. The initiative follows heightened scrutiny of alleged large-scale misuse of federal welfare funds in Minnesota. The Task Force will be organized through the committee’s health, education, labor and pensions subcommittees. The Labor & Pensions component of the task force will be led by Sens. Markwayne Mullin (R-OK) and Tim Scott (R-SC), who will examine fraud affecting federal labor programs, retirement security, and worker benefits, with a focus on improper payments and misuse of funds intended for workers and seniors. Committee leaders said the task force will pursue aggressive oversight and investigations across federal programs and has launched a public tip portal to allow whistleblowers and citizens to report suspected fraud involving taxpayer dollars. MCAA will be watching to see if this Task Force raises issues about multiemployer pension plans or the Special Financial Assistance Program. Meanwhile, the Senate Homeland Security and Governmental Affairs Committee last Monday indefinitely postponed a scheduled hearing on “Examining Fraud in State and Federal Programs.”

Around the Country

  • The Trump Administration’s decision to freeze federal funding for the Gateway Development Commission’s $16 billion tunnel project will halt construction of the Hudson River rail tunnel linking New York City and northern New Jersey if it is not lifted by this Friday, February 6. Federal funds have been frozen since the government shutdown in October 2025. Project backers warn that a construction pause could jeopardize the entire multi-billion dollar project, and that stopgaps, such as additional backing from the Port Authority of New York and New Jersey, won’t be sufficient to close the funding gap. The pause follows public comments last year from President Trump suggesting that the Gateway project had been “terminated,” even as Trump Administration officials sent mixed signals about whether the promised funding will ultimately be released. New York and New Jersey lawmakers from both parties have vowed to fight the funding freeze, arguing that the Gateway Project is critical to the Northeast Corridor, regional economic stability, and thousands of union jobs.
  • On the decarbonization front, MCAA contractors performing work on power plants, industrial facilities, and pipelines should note that last Wednesday, the Environmental Protection Agency (EPA) proposed Phase 1 of its reconsideration of the Biden-era “Good Neighbor Plan,” moving to approve State Implementation Plans (SIPs) related to the 2015 eight-hour ozone National Ambient Air Quality Standards (NAAQS) for Alabama, Arizona, Kentucky, Minnesota, Mississippi, Nevada, New Mexico, and Tennessee. Under the proposal, these states would not be subject to additional federal “Good Neighbor Plan” requirements and could proceed with implementing the remainder of their SIPs. The original rule imposed stringent emissions-control obligations on sectors including power generation, natural gas pipeline operations, cement and steel manufacturing, metal mining, chemical production, and petroleum and coal product facilities.
  • As the MCAA continues advocating for federal policies supporting nuclear energy deployment and expansion of the domestic nuclear supply chain, last week both federal agencies and private industry advanced complementary initiatives strengthening the U.S. nuclear industry. The Department of Energy (DOE) last Wednesday issued a Request for Information (RFI) seeking state input on the potential establishment of Nuclear Lifecycle Innovation Campuses, envisioned as integrated, full-cycle nuclear hubs that could co-locate advanced reactors, data centers, advanced manufacturing, and key fuel cycle capabilities such as fabrication, enrichment, used fuel reprocessing, and waste disposition. DOE invited states to outline their interest in hosting a campus and identify priorities including workforce development, infrastructure investment, economic diversification, and technology leadership, while emphasizing reliance on private and state capital, targeted and time-limited federal support subject to appropriations, and strong financial assurances to protect taxpayers. Responses to the RFI are due April 1, 2026. Separately, advanced nuclear fuel startup Standard Nuclear announced it raised $140 million in Series A financing to scale domestic production of TRISO and HALEU-based fuels for next-generation reactors, with backing from investors including Decisive Point, Chevron Technology Ventures, StepStone Group, and Andreessen Horowitz. Based in Oak Ridge, Tennessee, the company has begun producing HALEU TRISO fuel and plans to expand annual output beyond two metric tons by mid-2026; has secured authorization to receive HALEU feedstock; participates in DOE’s Fuel Line Pilot Program; and has formed a joint venture with Framatome to supply commercial quantities of advanced reactor fuel. The expansion is intended to reinforce the domestic nuclear fuel supply chain as demand grows for advanced reactors supporting clean energy, defense, and data-center power needs.
  • MCAA members operating in New York should be aware that last Wednesday, the New York Department of Environmental Conservation (DEC) intervened in the Federal Energy Regulatory Commission’s (FERC) review of the proposed Constitution Pipeline Company LLC project, reiterating the state’s opposition to construction of roughly 100 miles of natural gas pipeline across New York. The DEC urged FERC to reject the company’s request to reissue a federal certificate and to declare that the state waived its authority under the Clean Water Act to act on the project’s water quality certification, warning it could seek judicial relief if FERC acts contrary to a 2017 U.S. Court of Appeals for the Second Circuit ruling that upheld New York’s earlier permit denial. The pipeline’s developer, a subsidiary of Williams Companies, maintains the project is meeting all environmental requirements and is needed to improve regional energy reliability.
  • MCAA members operating in Michigan should be aware that on January 23rd, Michigan Attorney General Dana Nessel filed a federal antitrust lawsuit against BP, Chevron, Exxon Mobil, Shell, and the American Petroleum Institute, alleging the companies operated as an unlawful cartel for decades to suppress competition from renewable energy and maintain dominance in the transportation and energy markets. Filed in federal court, the lawsuit claims violations of the Sherman Antitrust Act, Clayton Act, and Michigan Antitrust Reform Act, asserting that the defendants coordinated through trade associations, abandoned renewable technologies, manipulated patents and litigation, and misled the public and policymakers about the costs of fossil fuels. Michigan argues these actions inflated home and transportation energy prices, reduced consumer choice, delayed the deployment of cost-effective renewable alternatives, and exacerbated the state’s broader energy affordability and climate-related economic impacts.

MCAA Government Affairs Update for the Week of January 26, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, January 26, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an advisory bulletin in response to the March 2023 natural gas pipeline explosion in West Reading, Pennsylvania that killed seven people and injured ten others. The advisory follows National Transportation Safety Board (NTSB) findings that the incident involved plastic Aldyl A service tees with Delrin inserts and reflects NTSB recommendations that PHMSA strengthen guidance under the Distribution Integrity Management Program (DIMP). In the bulletin, PHMSA urges natural gas distribution operators to inventory plastic pipe and components exposed to elevated temperatures, evaluate risks of degradation and failure, and implement mitigation measures—including leak management, remediation, or replacement—where necessary. PHMSA also advises operators to ensure that new or replacement plastic pipelines are installed with adequate clearance or insulation from heat sources to prevent premature degradation and improve overall pipeline safety.
  • Last Thursday, the Trump Administration ordered a review of federal funding to 14 Democratic-led states and Washington, D.C., escalating its campaign to pressure jurisdictions that oppose or fail to assist with federal immigration enforcement efforts. A memorandum from the Office of Management and Budget directs nearly all federal agencies to inventory funding provided to California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New York, New Jersey, Oregon, Rhode Island, Vermont, Virginia, Washington, and Washington, D.C. MCAA’s advocacy team is closely watching what comes out of this review and if it could lead to freezing some states’ allotments under federally funded programs that create work for MCAA members. Pursuant to the OMB directive, departments and agencies are busy inventorying both current and anticipated fiscal year 2026 obligations to the targeted states. We are cautioning against any disruption of federal funds for EPA Water Infrastructure Finance and Innovation Act (WIFIA) loans, EPA Clean Water and Drinking Water State Revolving Funds, Army Corps of Engineers civil works projects, certain DOT formula and discretionary grants, and DOE grid and energy infrastructure funding critical to data centers.
  • Last week, White House chief of staff Susie Wiles said that this week President Trump will begin regular trips across the country to rally voters ahead of the 2026 midterm elections. His first stop will be Iowa, where he will deliver a speech focused on the economy and energy, as the White House moves to highlight the President’s work on domestic issues and affordability. New polling out this week shows some public dissatisfaction a year into the President’s second term. The White House says some media outlets are only emphasizing negative polling data about the President and his policies and are questioning the integrity of some of the negative polling. Last Thursday, the President threatened to sue the New York Times over a poll it released with Sienna College indicating that the coalition that got him elected in 2024 is fraying.
  • As part of the White House’s increasing focus on housing affordability issues ahead of the November midterms, last week as President Trump floated the idea of allowing ordinary homeowners to take an annual depreciation deduction on their personal residences to recover certain property costs over a set period of time, noting that when a “corporation buys a house, they get depreciation.” This followed President Trump signing an executive order last Tuesday barring “institutional investors” from owning “single family homes.” Under the order, the Treasury Department has 30 days to develop “definitions of ‘large institutional investor’ and ‘single-family home.’” Within 60 days, the Agriculture Department, the Department of Housing and Urban Development, the Department of Veterans Affairs, the General Services Administration, and the Federal Housing Finance Agency are required to issue guidance ensuring that they are not “providing for, approving, insuring, guaranteeing, securitizing, or facilitating the acquisition” of single family homes by large institutional investors. This guidance must include “exceptions for build-to-rent properties that are planned, permitted, financed, and constructed as rental communities, and such other appropriate, narrowly tailored exceptions as the applicable agency may determine appropriate to further the policies of [the] Administration.” The Justice Department and the Federal Trade Commission are directed to review acquisitions by large institutional investors for anti-competitive practices and prioritize enforcement against such practices by institutional investors in the single-family home rental market. A fact sheet on the order is available here.
  • MCAA continues to closely monitor tariff developments impacting MCAA members, including the pending Supreme Court decision on the scope of the President’s tariff authorities. The U.S. Supreme Court still has not issued a decision in the closely watched case over President Trump’s tariff authority under the International Emergency Economic Powers Act that was used to implement his “Liberation Day” tariffs. With the justices heading into a four-week recess, the next likely decision day is February 20th. This leaves MCAA and other groups interested in the tariff policy navigating uncertainty over the administration’s tariff powers and plans.
  • The MCAA policy team also continues to monitor implementation of the One Big Beautiful Bill Act (OBBBA), including the “No Tax on Overtime” provision of the law that we discussed at the Industry Funds Conference last month. Last Friday, the Internal Revenue Service (IRS) released a new Fact Sheet with questions and answers about this deduction. Only two of the questions and answers in the fact sheet cover information that is not in the MCAA policy team’s recently-posted explanation of the deduction. First, question #2 addresses how to ascertain if an employee is exempt from overtime under the Fair Labor Standards Act (FLSA), such that they are ineligible for the deduction. Second, question #7 provides guidance to aid employees who are eligible for the deduction in determining the amount of their deduction for qualified overtime compensation.

Congress

  • As Congress races to avoid a partial government shutdown this Friday, January 30th, the House last Thursday voted 341–88 to pass a minibus appropriations package that includes the fiscal year (FY) 2026 Labor-HHS-Education and Transportation-HUD spending bills. The Labor-HHS-Education bill cuts $5 million from the National Labor Relations Board, marking the agency’s first funding reduction in more than a decade. The bill provides $13.7 billion for the Department of Labor, an increase of $65 million over FY 2025 and roughly $4 billion above the President’s request. It includes: (1) level funding for the Wage and Hour Division for enforcement activities; (2) a $3 million funding cut for the Occupational Safety and Health Administration; (3) level funding for the Employee Benefits Security Administration, which oversees ERISA-governed retirement and health plans; (4) $285 million for Registered Apprenticeships; (5) $2.9 billion for Workforce Innovation and Opportunity Act formula grants; and (6) $1.45 billion for Career and Technical Education grants. Notably, the bill continues funding for the Office of Federal Contract Compliance Programs ($100 million) and the Women’s Bureau ($23 million), both of which the Trump Administration proposed eliminating. The measure also includes bipartisan health provisions targeting pharmacy benefit managers (PBMs) by expanding transparency requirements and mandating the pass-through of drug savings to health plans. Separately, the Transportation-HUD bill provides funding for the Pipeline and Hazardous Materials Safety Administration (PHMSA), including $214.8 million for pipeline safety programs. This includes dedicated funding for state one-call grants, LNG safety oversight, underground natural gas storage safety, emergency preparedness grants, and pipeline safety information grants for communities. The bill also: (1) prohibits the Department of Transportation from withdrawing, terminating, or rescinding previously approved funding without notifying House and Senate appropriators within three days; (2) provides $35 million for small shipyards; and (3) appropriates $103.3 million for port infrastructure accounts at the Maritime Administration. The Senate is expected to consider the package when it returns to session this week.
  • As Congress acknowledges the growing backlash to the rapid expansion of data centers that the MCAA advocacy team is confronting as its advocates for permitting reform, an investigation launched by Sens. Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Richard Blumenthal (D-CT) into how much data centers are driving up Americans’ electric bills has data center developers playing defense. Last Thursday, the Senators announced that the nation’s largest data center developers—including Google, Amazon, Microsoft, Meta, Equinix, CoreWeave, and Digital Realty—have made new commitments to “pay their fair share” of electricity and grid infrastructure costs. In written responses, Google said it is “paying for 100 percent of the electricity” it uses and ensuring that “Google, not local residents, pays for any new grid infrastructure required for our growth.” Equinix emphasized that large energy users “pay a premium for what they’re utilizing so that we don’t impact small ratepayers,” often through long-term, take-or-pay utility agreements designed to insulate other customers from financial risk. At the same time, the companies stressed that many power supply agreements remain confidential, with Google noting that pricing terms are “for the most part confidential” despite being subject to regulatory review. The Democratic Senators feel this limits public transparency. Sen. Van Hollen said he is not satisfied with the companies’ responses and plans to press forward with legislation that would require data centers to fully cover the cost of the electricity they consume, signaling that further scrutiny could shape the pace and structure of future data center development.
  • The importance of the MCAA’s advocacy on permitting reform to the construction of AI data centers, related power generation, and other infrastructure was highlighted last week in new construction and financing data showing that spending on data center construction is projected to rise by roughly 23% in 2026. Data centers are expected to account for more than 6% of all nonresidential construction spending in 2026, up from about 2% in 2023. Much of this growth is concentrated in the states served by grid operator PJM Interconnection, where large load demand from data centers is outpacing the ability to bring new generation and transmission online using current permitting processes. PJM has warned that existing infrastructure cannot support projected load growth and has proposed the “immediate initiation” of backstop reliability measures, including faster—but more restrictive—data center interconnections, enhanced demand forecasting requirements, and new rules requiring large power users to either bring their own generation online or accept early curtailment during periods of system stress. PJM acknowledges these steps are not a long-term solution, but rather a stopgap driven by delays in permitting and building new generation and transmission capacity. The Trump Energy Department is trying to provide loans and other funding for this generation and transmission capacity. For example, last Thursday, the Department of Energy’s Office of Energy Dominance Financing (EDF) said that its federal loan authority is being refocused to support AI-driven load growth and grid reliability. EDF plans to deploy its $289 billion loan authority to back energy and manufacturing projects that “meaningfully contribute to U.S. energy security, grid reliability, and lowering costs,” explicitly tying federal financing decisions to maintaining U.S. leadership in emerging AI technologies. To align with that goal, EDF announced it is restructuring, revising, or eliminating more than $83 billion in Biden-era loans and conditional commitments, de-obligating nearly $30 billion, and redirecting the funding toward dispatchable generation, grid and transmission capacity, and domestic manufacturing. EDF said it will prioritize financing for nuclear, natural gas, geothermal, grid and transmission, and manufacturing projects, while eliminating roughly $9.5 billion in prior wind and solar commitments and redirecting that funding toward other power sources. Taken together, the Administration’s effort to redirect federal loan authority toward AI-supporting energy infrastructure and PJM’s move toward curtailment and self-supply requirements underscore why the MCAA’s advocacy on permitting reform has become increasingly important.
  • MCAA health plan trustees may be interested in last Thursday’s contentious hearing at which health insurance executives faced sharp, bipartisan criticism from the House Energy and Commerce Health Subcommittee over soaring premiums, executive compensation, and opaque pricing practices. Subcommittee Chairman Morgan Griffith (R-VA) argued that “Obamacare coverage is not translating to patient or taxpayer affordability,” while Rep. Brett Guthrie (R-KY) highlighted Congressional Budget Office projections of premium increases between 4–8% after the subsidies expired at the end of last year as insurers in many markets sought rate hikes of 30–50% in 2026. Rep. Buddy Carter (R-GA) pressed CVS Health CEO David Joyner on executive compensation, and Rep. Nanette Barragan (D-CA) warned that stock-based compensation is prompting insurers to prioritize shareholders over patients. Lawmakers also focused on consolidation and pharmacy benefit manager (PBM) practices, with Rep. John Joyce (R-PA) criticizing ACA medical loss ratio rules for creating “perverse incentives,” and Rep. Mariannette Miller-Meeks (R-IA) questioning whether PBM rebates are passed through to patients. Insurers countered that premiums are a “symptom, not a cause” of rising healthcare costs, citing higher hospital, physician, and drug prices, with UnitedHealth Group CEO Stephen Hemsley pledging to return any profits from ACA marketplace plans in 2026. The testimony came amid mounting political pressure from President Trump, who has publicly attacked insurers and called for price cuts, setting the stage for further scrutiny.
  • Relatedly, as Congress continues to debate reforms to pharmacy benefit managers (PBMs), last Wednesday, the House Judiciary Committee released an interim staff report stemming from its 2024 investigation into whether major PBMs use their market power to choke off new competition. The report concludes that CVS Health’s PBM—CVS Caremark—may have engaged in exclusionary conduct that raises serious antitrust concerns. The report focuses on CVS’s response to “hub” pharmacy companies—digital platforms (e.g., BlinkRx and others) that partner with independent pharmacies to provide services like real-time price checks, benefit verification, and streamlined prescription fulfillment—arguing that CVS viewed these hubs as a disruptive threat and responded by pressuring independent pharmacies to sever ties rather than competing on the merits. According to internal documents reviewed by the Committee, CVS allegedly: (1) monitored independent pharmacies for hub-related activity; (2) rewrote its provider manual to restrict or deter hub relationships; (3) used the rule changes as a pretext to launch audits; and (4) issued cease-and-desist letters threatening network termination—a powerful tool given CVS Caremark’s broad pharmacy network reach and large PBM market share. The Committee report says that CVS publicly justified its actions as anti-fraud measures driven by plan sponsor concerns, but did not produce evidence tying legitimate hub relationships to fraud and later quietly backtracked, sending letters to some pharmacies allowing them to work with at least one hub (BlinkRx) and stating that such relationships would not be treated as a basis for audit findings or noncompliance. The report argues CVS’s conduct may fit established theories of unlawful monopoly maintenance under the Sherman Act and warrants the Committee pursuing legislative reforms aimed at curbing emerging PBM practices that suppress innovation and limit pharmacy and patient choice. MCAA will continue engaging to ensure any such proposals do not undermine ERISA preemption.
  • As the long-running controversy over the Trump Justice Department’s handling of the Jeffrey Epstein files continues to consume attention on Capitol Hill and distract from other priorities, last Wednesday the House Oversight Committee advanced contempt resolutions against former President Bill Clinton by a strong bipartisan vote of 34-8 and against former Secretary of State Hilary Clinton by a much narrower vote of 28-15. On a party-line vote, the Committee rejected a Democratic-sponsored amendment to hold Attorney General Bondi in contempt for failing to release the Epstein files in DOJ’s possession. If the contempt resolutions against the Clintons pass the House, the Trump Justice Department will decide whether to pursue criminal charges. The contempt resolutions came as a federal judge declined a request from Reps. Thomas Massie (R-KY) and Ro Khanna (D-CA) to appoint an independent monitor to oversee the Justice Department’s release of files related to Jeffrey Epstein, while acknowledging “legitimate concerns” about whether the department is complying with a recently enacted disclosure law. The judge said his role in the criminal case involving Ghislaine Maxwell does not give him authority to supervise the Justice Department’s disclosures but noted his ruling does not prevent lawmakers from suing.
  • In a preview of the oversight agenda Democrats might pursue if they capture a majority in the House or Senate in the coming midterm elections, House Oversight Committee Democrats released an interim staff analysis accusing President Trump and the Trump family of turning cryptocurrency ventures into a “digital kickback” system—using opaque token sales, stablecoins, and a $TRUMP memecoin to let foreign interests and other actors funnel money to the family with limited public visibility—while potentially seeking favorable treatment, access, or pardons. Alongside the report, House Oversight Ranking Member Robert Garcia (D-CA) launched a “Trump Family Digital Grift Wealth Tracker” that currently lists $2.255 billion in “digital grift profits,” $8.862 billion in total “digital grift wealth,” and $436 million in profits attributed to foreign interests.

Around the Country

  • MCAA members working on data centers, industrial facilities, and energy-intensive manufacturing projects should be aware that the Energy Department’s Office of Critical Minerals and Energy Innovation last Thursday announced the award of $155 million for 16 projects to enhance DOE National Laboratories’ capabilities to develop cross-sector technologies for improving the efficiency and competitiveness of energy-intensive industries. Projects funded under this announcement include: (1) $20 million for the Oak Ridge National Laboratory to accelerate the development and adoption of next-generation cement and concrete materials; (2) $15 million for the Sandia National Laboratories to advance a thermal energy storage testbed; (3) $10 million to National Energy Technology Laboratory to make testbed facilities for the commercial adoption of fuel-flexible combustion technologies; and (4) $6 million for Lawrence Berkeley National Laboratory to form a data center cooling testbed network to bring cooling technologies to market. The full list of projects funded under this announcement are available here.
  • MCAA members engaged in pipeline construction, repair, and integrity management work in Minnesota should be aware that last Thursday, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Corrective Action Order to Northern Natural Gas Company following a rupture impacting approximately 1,000 feet of the 20-inch M440B pipeline near Willow River, Minnesota. The order requires Northern Natural Gas to: (1) maintain a mandatory 20% operating pressure reduction on the affected segment; (2) submit and obtain approval of a restart and repair plan before resuming service, including daylight restart procedures and coordination with local emergency responders; (3) complete mechanical, metallurgical, and soil testing of the failed pipe within 45 days; (4) conduct an independent, third-party root cause failure analysis within 90 days; (5) develop and implement a comprehensive remedial work plan addressing integrity risks along the full affected segment through additional inspections, testing, and repairs; and (6) submit quarterly progress reports and cost documentation to PHMSA until the order is formally closed.
  • MCAA members in the Midwest should take note that, last Thursday, the Environmental Protection Agency (EPA) reached a project agreement with Atlantic Richfield, BP Products North America Inc., and the East Chicago Waterway Management District committing more than $200 million to clean up approximately 240,000 cubic yards of contaminated canal and river-bottom sediment in the Grand Calumet River Area of Concern in northwest Indiana. The Junction Reaches project includes sediment remediation and ecosystem restoration within the Grand Calumet River and the Indiana Harbor and Ship Canal in East Chicago, while the Lake George Canal project will remediate sediment along a one-mile stretch of the Indiana Harbor and Ship Canal in East Chicago and Hammond, Indiana. Both projects are expected to begin in late 2026.
  • As the MCAA members continue advocating for federal and state policies supporting nuclear energy deployment and the expansion of the nuclear supply chain, members in New Jersey should be aware that last Wednesday, newly sworn-in Gov. Mikie Sherrill (D-NJ) signed an executive order establishing a “Nuclear Power Task Force.” The order is intended to position the state to lead in the development of new nuclear power generation. The task force will evaluate pathways for deploying new nuclear capacity as a long-term, zero-carbon baseload resource, alongside accelerated solar and battery storage development, as the state looks to bring on large amounts of new generation to stabilize consumer electricity prices and improve grid reliability.

MCAA Government Affairs Update for the Week of January 19, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, January 19, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Last week, President Trump acknowledged growing backlash to the rapid expansion of data centers that the MCAA advocacy team has been reporting on for weeks. Trump announced a plan aimed at ensuring Americans do not “pick up the tab” for higher electricity bills tied to AI-driven power demand. Under the initiative, the Administration is urging PJM Interconnection—the nation’s largest power grid operator covering 13 states, including data center hubs in Virginia and Pennsylvania—to accelerate construction of new baseload power plants by offering 15-year revenue certainty, capping capacity market costs to protect residential ratepayers, and requiring data centers to fully pay the full cost of new generation built on their behalf. The announcement follows warnings from PJM that it is nearing capacity as data centers come online faster than new generation can be built, driving up rates and increasing the risk of outages during extreme weather. Against this backdrop, New York Gov. Kathy Hochul (D-NY) garnered attention last week when she unveiled the “Energize NY Development” initiative, which would require large power users that fail to deliver significant job growth or other public benefits to either generate their own electricity or pay higher grid costs. The growing debate over the impact of data centers is also forcing major tech companies to revamp their messaging. For example, Microsoft announced a new “Community-First AI Infrastructure” initiative. It commits Microsoft to: (1) preventing data center electricity costs from being shifted onto residential ratepayers; (2) prioritizing job creation and workforce development through labor partnerships, including a newly announced agreement with North America’s Building Trades Unions to expand apprenticeship pipelines; (3) reducing and replenishing water use; (4) paying full local property taxes; and (5) expanding AI education and non-profit support in host communities. These developments come as the Trump Administration announced it completed a trade deal with Taiwan praised by the tech industry because it obligates Taiwanese companies to build at least $250 billion in chip factories in the United States.
  • As the MCAA continues its outreach to the Department of Labor on issues like registered apprenticeship, employee misclassification, Davis-Bacon prevailing wage and more, recent leadership turmoil is diverting attention and capacity within the department at a critical time. Last week, Labor Department Chief of Staff Jihun Han and Deputy Chief of Staff Rebecca Wright were placed on administrative leave following a report detailing a whistleblower complaint alleging that Labor Secretary Lori Chavez-DeRemer had an affair with a subordinate, drank at work, and engineered her official travel to visit family and friends at taxpayer expense. The Department’s inspector general has launched an investigation. Han and Wright are being investigated for their role in facilitating the Secretary’s personal travel with taxpayer funds. The Secretary has not directly commented on the investigation but denied any wrongdoing through her press secretary. And last night, White House Press Secretary Karoline Leavitt said that President Trump is “aware of the investigation, and he stands by the secretary, and he thinks that she’s doing a tremendous job at the Department of Labor on behalf of American workers.”
  • As Congress continues to debate the path forward on legislation to revive expired enhanced Affordable Care Act premium subsidies, last Thursday, President Trump made his first foray into the discussions when he outlined a healthcare affordability framework he wants Congress to consider. It is focused on sending federal funds directly to American consumers through health savings accounts (HSAs) to purchase insurance and cover medical costs. The plan also calls for lowering drug prices by tying U.S. prices to those paid in other countries, expanding direct-to-consumer drug sales through TrumpRx, and allowing certain medications to be sold over the counter if deemed safe, while requiring insurers to disclose more information on pricing, denied claims, and wait times. The framework was released as bipartisan Senate talks to revive the enhanced ACA subsidies remain stalled, with negotiators acknowledging legislative text will not be ready until late January due to continued disputes over abortion-related funding restrictions. In a related development, Johnson & Johnson announced that it reached an agreement with the administration to lower prices on certain prescription drugs and match prices charged in other developed countries in exchange for tariff relief. Under the agreement, J&J will sell select medicines directly to consumers at discounted prices through TrumpRx and offer comparable pricing to Medicaid. Of particular interest to MCAA members, the company also recommitted to its previously announced $55 billion investment in new facilities in Pennsylvania and North Carolina.
  • The White House was forced to do damage control last week after President Trump sparked backlash during a visit to a Ford Motor Company assembly plant in Michigan where he was caught on video giving the middle finger to an auto worker who called the president a “pedophile protector” in reference to Jeffrey Epstein. The United Auto Workers union defended the worker, with UAW Vice President Laura Dickerson saying he was exercising free speech and vowing the union would protect his contractual rights after he was suspended by Ford following the incident. While in Michigan, President Trump spoke at the Detroit Economic Club and touted what he called a “Trump economic boom,” declaring that “inflation is defeated,” while blaming President Biden for what he called an “economic nightmare” of “stagflation.” He also said his administration is freezing or cutting federal payments to states and cities tolerating fraud or operating as “sanctuary” jurisdictions, and attacked Democratic elected officials for enabling fraud, crime, and illegal immigration. We are following up to ascertain if the asserted freeze will extend to federal funding for water infrastructure and other programs that create work opportunities for MCAA members.
  • There were several developments last week that highlighted limits on the Administration’s authority to withhold federal funds and halt federal projects that create opportunities for MCAA members. Despite the President’s threats discussed above to strip federal funding from sanctuary cities and states, last Wednesday the Administration retreated from a legal fight over its earlier effort to condition transportation dollars on states aiding with immigration enforcement. The Department of Transportation (DOT) dropped its appeal of a November court ruling that barred it from withholding highway and transit funding from states that refused to cooperate with federal immigration authorities, ending a case brought by California and 21 other states. The decision leaves in place a ruling that DOT overstepped its statutory authority by conditioning infrastructure funding on immigration policy, providing greater near-term certainty for states relying on federal transportation dollars—even as the administration continues to pursue separate, state-specific funding claw backs and enforcement actions. Moreover, a federal court ruled last week that the Trump Administration violated the U.S. Constitution by canceling billions of dollars in clean energy grants based largely on the political leanings of the states receiving them. U.S. District Judge Amit Mehta found that the Department of Energy unlawfully terminated $7.6 billion in grants supporting hundreds of clean energy projects in 16 states that voted for former Vice President Kamala Harris in the 2024 election and concluded that this violated the Fifth Amendment’s Equal Protection guarantee. While the Trump Administration argued the cancellations were based on economic and energy policy concerns, as well as political considerations, the court said the record showed that the decisions were driven primarily by electoral considerations and lacked a rational government interest. The judge ordered the Department of Energy to immediately reinstate seven grants totaling $27.6 million involving the specific plaintiffs before the court while sharply criticizing the broader, politically motivated rollback of congressionally approved funding.
  • Last Tuesday, the White House transmitted a slate of nominations to the Senate for consideration. Many of them are being re-nominated because they were not confirmed by the Senate prior to the end of the last session in December. MCAA is closely watching some of these nominations because they are for positions that will impact MCAA policy priorities, including: (1) Daniel Bonham to be the Labor Department’s Assistant Secretary for Congressional and Intergovernmental Affairs; (2) former Rep. Stevan Pearce (R-NM) to be Director of the Bureau of Land Management; (3) Carter Crow to be General Counsel of the EEOC; (4) Lee Beaman to be a member of the Board of Directors of the Tennessee Valley Authority; and (5) David MacNeil to be a member of the Federal Trade Commission.
  • MCAA continued making progress on permitting reform through the regulatory process. Last Thursday, the Environmental Protection Agency (EPA) published a proposed rule to revise Section 401 of the Clean Water Act to streamline water quality certification for federally permitted projects. The proposed rule aims to accelerate approvals for data centers, pipelines, fossil fuel infrastructure, and other large-scale energy and development projects by rolling back elements of a 2023 Biden-era rule that the EPA says expanded Section 401 beyond its statutory purpose, allowing states and tribes to delay or block projects for reasons unrelated to water quality. Under the proposal, state and tribal reviews would be limited to assessing whether point-source discharges into waters of the United States comply with applicable water quality standards, consistent with statutory text and Supreme Court precedent. The rule would establish a single, standardized set of application requirements to trigger review, prohibit repeated withdrawal and resubmission of certification requests, reinforce the one year statutory deadline for decisions, and require clearer explanations for certification conditions or denials. The proposal also seeks to increase transparency and predictability by clarifying timelines for public hearings, defining procedures for resolving neighboring state objections, and reducing duplicative regulatory requirements, while preserving the role of states and authorized tribes as co-regulators under a framework of “cooperative federalism.” Additional details on the proposed rule can be found on the EPA’s website here.

Congress

  • As the current January 30th deadline for government funding approaches, the Senate last Thursday took a step toward avoiding a partial shutdown by voting 82-15 to pass and send to the president a three bill minibus spending package sent over from the House that includes the Energy-Water, Interior-Environment, and Commerce-Justice-Science appropriations bills. The Energy-Water spending bill includes: (1) $1.785 billion for nuclear energy at the Department of Energy; (2) $1.47 billion for the Bureau of Water Reclamation’s Water and Related Resources Account; (3) $1.95 billion for Energy Efficiency and Renewable Energy at the Department of Energy (a $1.5 billion decrease from FY2025); (4) $3.473 billion for the Harbor Maintenance Trust Fund; and (5) $396.8 million to the U.S. Army Corps of Engineers for construction projects on the inland waterways system. Additionally, the Interior-Environment spending bill includes: (1) a $7.4 million increase at the Bureau of Land Management for onshore oil and gas development; (2) a $11.2 million increase for the Bureau of Ocean Energy Management to develop offshore energy; and (3) a $21.2 million reduction in funding for renewable energy projects. Enactment of this package means that six of the 12 annual appropriations bills have now been signed into law. And last week ended with the House sending two additional funding bills to the Senate, the Financial Services and National Security–State appropriations bills, and there is some hope that the Senate can pass these two bills when it returns to session on January 26th. As a result, if funding lapses on January 30, it will constitute only a partial government shutdown limited to the agencies covered by the handful of unfinished appropriations bills, rather than a full shutdown of the federal government like we experienced last year. Despite this progress, lawmakers remain divided over the remaining measures. While there is some confidence that additional bills could be enacted before current funding expires on January 30th, lawmakers increasingly expect the Labor-HHS and Homeland Security bills to be punted into a continuing resolution through the end of fiscal year 2026. The Labor-HHS bill remains stalled over disputes related to enhanced ACA subsidies, while DHS funding is tied up by Democratic concerns over financing the Trump Administration’s immigration enforcement operations.
  • The fragility of House Republicans’ razor-thin majority that we have repeatedly commented on in our reports was on full display last Tuesday as the House failed to pass the Flexibility for Workers Education Act (H.R. 2262) by a vote of 209–215. The defeat resulted from not only GOP defections but also mounting attendance problems inside the Republican conference. Six Republicans—Reps. Brian Fitzpatrick (PA), Rob Bresnahan (PA), Nick LaLota (NY), Riley Moore (WV), Chris Smith (NJ), and Jeff Van Drew (NJ)—joined all Democrats in opposing the bill, which would have amended the Fair Labor Standards Act to clarify that “voluntary” training performed outside regular working hours does not count as compensable time for overtime purposes. The loss came amid a historically narrow GOP margin that has been strained by unexpected vacancies following the death of Rep. Doug LaMalfa (R-CA) and the retirement of Marjorie Taylor Greene (R-GA), as well as prolonged member absences. Several Republicans have missed weeks of votes, including Rep. Greg Murphy (R-NC), who is recovering from surgery; Rep. Derrick Van Orden (R-WI), who has been away caring for his sick wife; and Rep. Jim Baird (R-IN), who recently returned to D.C. after a car accident. Meanwhile, Rep. Wesley Hunt (R-TX) has missed dozens of votes already this year because he is prioritizing his primary campaign against Sen. John Cornyn (R-TX), further complicating the math for House Republican leadership, which now effectively needs near-perfect attendance to move legislation that lacks Democratic support. In the wake of the failed vote, Republican leaders pulled the Save Local Business Act (H.R. 4366)—a union-opposed bill to narrow the federal joint-employer standard—and postponed consideration of the Empowering Employer Child Care and Elder Care Solutions Act (H.R. 2270) and the Tipped Employee Protection Act (H.R. 2312), underscoring how absences and defections are increasingly paralyzing the House GOP’s legislative agenda heading into an election year.
  • As the MCAA continues to engage on apprenticeship issues, including plans for implementation of President Trump’s Executive Order on “Preparing Americans for High-Paying Skilled Trade Jobs of the Future” to create one million new active apprentices nationally, we wanted to make MCAA members aware of Republicans’ plans to include apprenticeship provisions in a potential second reconciliation bill that is being discussed. Last Tuesday, the conservative House Republican Study Committee (RSC) unveiled a framework for a second Republican reconciliation bill, as Speaker Mike Johnson (R-LA) signaled he wants to press ahead with another party-line legislative package. Among other things, the RSC reconciliation framework would establish tax-advantaged “Jumpstart Accounts” to help individuals finance apprenticeship training and startup business costs, create a new employer tax credit to incentivize companies to onboard apprentices, and advance housing reforms aimed at expanding homeownership, restructure Affordable Care Act subsidies into health savings accounts rather than payments to insurers, and slash regulations viewed as a barrier to boosting energy production. Last Thursday, Rep. Riley Moore (R-WV) introduced standalone legislation modeled on the RSC framework’s Jumpstart Account proposal in recognition of the fact that any effort at a second reconciliation bill faces challenges within the House Republican caucus. This is because several key committee chairs, including House Ways and Means Committee Chair Jason Smith (R-MO), have publicly questioned whether another reconciliation bill is feasible given ideological divisions within the caucus, the GOP’s narrow majority, and the dynamics created by the upcoming midterm elections.
  • As the MCAA continues to engage with Congress and the Trump Administration to roll back or clarify Biden-era regulations that created uncertainty for mechanical contractors, last Wednesday, the House passed the “SHOWER Act” (H.R. 4593) by a vote of 226-197, with 11 Democrats joining all Republicans in voting for the bill. It revises the definition of showerhead such that each head of a multi-head showerhead fixture is to be considered a separate showerhead allowed to spray up to 2.5 gallons of water per minute. Proponents of the measure argued that the bill will provide clarity and certainty for manufacturers and consumers by removing all ambiguity regarding the regulatory definition of a showerhead, adding that the bill aligns the statutory definition with the definition used by mechanical engineering associations.

Around the Country

  • Given the work MCAA’s lobbying team did to preserve the hydrogen tax credits in the One Big, Beautiful Bill Act (OBBBA) last year, we wanted to be sure MCAA members in Michigan were aware of Gov. Gretchen Whitmer’s (D) plans to make the Wolverine State a leader in geologic hydrogen to power cars, planes and factories without emitting greenhouse gases. To this end, Gov. Whitmer signed an Executive Directive last Thursday entitled, “Establishing the Michigan Geologic Hydrogen Exploration and Preparedness Initiative.” The directive states that Michigan is uniquely positioned to benefit from geologic hydrogen stored in the Midcontinent Rift beneath Michigan, and it directs state agencies to “coordinate infrastructure and workforce strategies to develop the resource in Michigan.”
  • MCAA members who work at the Energy Department’s Portsmouth site in Piketon, OH should be aware that last Wednesday, the Energy Department’s Office of Environmental Management (EM) issued a final request for proposal (RFP) for a contractor to provide infrastructure support services (ISS) for a five-year period at DOE’s Portsmouth Site in Piketon, Ohio. The new contract will replace the current Portsmouth ISS contract held by North Wind Dynamics LLC, which will end in the first half of calendar year 2027. More information on the Portsmouth infrastructure support services program, including access to the final RFP and related documents, is available here.
  • Last Tuesday, Atlantic Alumina Company (ATALCO) announced a $450 million strategic partnership with the U.S. government and private investors to secure and expand the nation’s only domestic alumina refinery in Gramercy, Louisiana, including a $150 million preferred-equity investment from the U.S. Department of Defense and more than $300 million in private capital. The investment will return the facility to full production of more than one million metric tons of alumina annually, strengthening the upstream supply of the primary feedstock used to produce aluminum metal for U.S. manufacturing. Because alumina is the essential input for aluminum used extensively in HVAC systems, heat exchangers, ductwork, and other mechanical components, the expansion is expected to support greater domestic supply stability and reduce exposure to foreign-dominated markets, with direct implications for material availability and pricing.
  • Last week, a new poll showed that a record 45% of U.S. adults identified as political independents in 2025, surpassing prior highs and leaving equal shares—27% each—identifying as Democrats or Republicans. The rise in independence is driven largely by younger generations, with majorities of Gen Z and millennials identifying as independents. While fewer Americans now affiliate with either party, the poll finds that independents increasingly lean Democratic, giving Democrats a 47% to 42% edge in overall party affiliation—their first advantage since 2021—reflecting erosion in support for President Trump rather than increased favorability toward either party.

New Federal Tax Deduction for Qualified Overtime Compensation

MCAA members should be aware of a significant tax change introduced by the “One Big Beautiful Bill Act” (OBBBA). The law creates an above-the-line federal income tax deduction for “qualified overtime compensation,” available for tax years 2025 through 2028. Here’s what it means for your business and employees:

What Is the Deduction?

The OBBBA “No Tax on Overtime” provision allows eligible employees to deduct up to:

  • $12,500 annually
  • $25,000 for married couples filing jointly

This deduction applies only to the overtime premium required under the federal Fair Labor Standards Act (FLSA)—the “half” in “time-and-a-half”—for hours worked beyond 40 in a week.

Example:
An employee earning $20/hour straight time and $30/hour overtime can deduct only the $10/hour premium portion for hours worked over 40 in a week.

What Does NOT Qualify?

The deduction does not apply to:

  • Overtime under collective bargaining agreements that exceed FLSA requirements (e.g., daily overtime rules).
  • Voluntary employer premiums not required by FLSA.
  • Shift differentials, weekend premiums, or other non-FLSA overtime.
  • Overtime required by state laws that go beyond FLSA (e.g., California daily overtime).

Income Limits

The deduction phases out for individuals with modified adjusted gross income (MAGI) over $150,000 ($300,000 for married filing jointly), reducing $100 for every $1,000 above the threshold.
Married taxpayers must file jointly and include both spouses’ SSNs.

Federal Tax Only

This deduction applies only to federal income tax. It does not affect payroll taxes (Social Security, Medicare) or state/local taxes.

Employer Reporting Requirements

Employers must track and separately report qualified overtime compensation on Form W-2:

  • 2025: Treasury offers penalty relief and allows reasonable reporting methods (e.g., Box 14 on Form W-2).
  • 2026 onward: Employers must maintain records distinguishing FLSA-required overtime from other premium pay for accurate W-2 reporting.

Ensure payroll systems are updated to track qualified overtime starting January 1, 2026.

Next Steps:
Refer to IRS resources and consult your tax advisor for guidance on applying this new law.

New Federal Tax Deduction for Qualified Overtime Compensation – PDF

This material is for informational purposes only. The material is general and is not intended to be legal advice. It should not be relied upon or used without consulting a lawyer to consider your specific circumstances, possible changes to applicable laws, applicable CBAs, prime contracts, subcontracts, rules and regulations, and other legal issues. Receipt of this material does not establish an attorney-client relationship.

MCAA Government Affairs Update for the Week of January 12, 2026: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, January 12, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • As the MCAA continues to engage the Trump Administration on its plans for implementation of President Trump’s Executive Order on “Preparing Americans for High-Paying Skilled Trade Jobs of the Future,” to create one million new active apprentices nationally, we wanted to make members aware that last week the Labor Department (DOL) made its largest financial commitment to date towards this goal. Last Tuesday, DOL announced the upcoming availability of $145 million in new funding to expand Registered Apprenticeships through a pay-for-performance incentive program. DOL’s Employment and Training Administration plans to use this money to award no more than five cooperative agreements of between $10 million and $40 million for a four-year period of performance, focusing on the nationwide expansion of newly developed Registered Apprenticeships, as well as the nationwide growth of existing programs, with an “emphasis on apprenticeships tied to: (1) nuclear energy and artificial intelligence infrastructure; (2) shipbuilding and the defense industrial base; and (3) transportation. Applicants eligible for these awards include: (1) registered apprenticeship and workforce intermediary organizations; (2) national industry groups and associations; (3) national labor management organizations; (4) national economic development entities; (5) state agencies and Territories; (6) professional consulting organizations; and (7) consortia led by one or more eligible entities. All applicants must include as required partners of at least one national industry association or regional industry associations and/or multi-regional or national employers. DOL feels that including an industry association not only demonstrates broad industry buy-in but also shows that the applicant will be able to leverage broader business partnerships once funded. Applications are due at 11:59 PM on March 20, 2026, and awardees will be expected to begin performance on July 1, 2026.
  • While the MCAA continues its engagement with the Trump Administration and the Department of Labor’s Wage and Hour Division (WHD) to preserve the Biden-era, MCAA-supported 2023 final rule updating the Davis-Bacon Act regulations, we learned that last Tuesday, the WHD issued six new opinion letters clarifying the application of the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). Four of the letters address the FLSA, including one concluding that a union and an employer may not use a collective bargaining agreement (CBA) to exclude a mandatory 15-minute pre-shift “roll call” for emergency dispatch workers from compensable time for overtime purposes. WHD determined that such roll calls must be counted as hours worked when calculating FLSA overtime eligibility. Notably, the letter provides detailed guidance on the partial overtime exemptions available to employees working under qualifying CBAs and explains how the employer and the union subject to the opinion letter could revise their CBA language to satisfy those requirements. A second FLSA opinion letter held that performance-based incentive bonuses paid to non-exempt employees under pre-established criteria—such as punctuality, attendance, safety compliance, and performance efficiency—are non-discretionary and therefore must be included in the regular rate of pay when calculating FLSA overtime. Two additional opinion letters address application of the FMLA, including guidance clarifying that employees may use FMLA leave for travel time to and from medical appointments related to their own or a family member’s serious health condition, and that medical certifications need not include travel-time estimates to be valid.
  • As the MCAA continues to monitor developments tied to the Trump Administration’s efforts to revive U.S. shipbuilding, the past week underscored both the scale of the Administration’s ambitions and the tensions emerging around how that expansion will be financed and executed. On the positive side, last Thursday the Labor Department awarded nearly $14 million through its Bureau of International Labor Affairs to Delaware County Community College ($8 million) and the Massachusetts Maritime Academy ($5.8 million) to build hands-on training pipelines for the next generation of U.S. shipbuilders. The grants will support development of a specialized, internationally recognized shipbuilding curriculum, expand Registered Apprenticeship opportunities with U.S. shipyards, and promote innovation in areas such as modular construction and icebreaker technology. These workforce investments came alongside broader signals of increased defense spending with President Trump last Wednesday calling on Congress to raise the Pentagon’s budget to a record high $1.5 trillion to support a military buildup, including construction of a new “Trump class” of battleships.
  • While the Administration is proposing a record defense budget, it is also signaling a tougher stance towards defense contractors. In an executive order President Trump signed last Thursday, the President directed the Defense Department to curb stock buybacks and excessive corporate distributions by publicly-traded defense companies during periods the Pentagon deems to reflect underperformance or non-compliance with contractual obligations, or insufficient investment in production capacity. The executive order also instructs the U.S. Securities and Exchange Commission to reconsider the ability of publicly-traded defense contractors that fail to satisfy the Pentagon to avail themselves of safe-harbor protections under federal securities laws allowing share buybacks and repurchases.
  • As the MCAA continues advocating policies that support nuclear energy deployment and the build-out of the nuclear supply chain we were pleased to learn that the U.S. Department of Energy awarded American Centrifuge Operating, General Matter, and Orano Federal Services $900 million each to expand domestic uranium enrichment capacity over the next decade. The award is part of the broader effort to reduce U.S. reliance on Russian nuclear fuel to strengthen U.S. energy security and the reliability of the U.S. nuclear industry. The awards support enrichment services for both low-enriched uranium used in the nation’s 94 existing reactors and high-assay low-enriched uranium (HALEU) needed for advanced and small modular reactors. This investment is a cornerstone of a domestic nuclear supply chain necessary to encourage future deployment of next generation reactors.
  • Following the Trump Administration’s move to cap National Institutes of Health (NIH) “indirect cost” reimbursements at 15% regardless of institutions’ actual expenses, the U.S. First Circuit Court of Appeals last Tuesday upheld a lower court ruling blocking the policy, agreeing that the change would have unlawfully cut billions in research support for universities, medical centers, and other recipients. The court concluded that the Trump Administration’s approach conflicted with congressional intent by bypassing the long-standing requirement that indirect cost rates be negotiated case-by-case with the NIH. The 15% cap had threatened to significantly curtail facility renovation and maintenance activities at universities and other research facilities that provide work for MCAA members.
  • As the MCAA continues working to prevent the rescission of President Biden’s MCAA-supported PLA executive order and the regulations implementing the order, we won a small battle just before the Christmas holiday when the Department of Transportation released its $1.5 billion Notice of Funding Opportunity (NOFO) for the fiscal year 2026 Better Utilizing Investments to Leverage Development (BUILD) grant program established by President Biden’s Infrastructure Investment and Jobs Act. The NOFO outlines several key evaluation criteria for grant awards. Our ongoing advocacy of PLAs appears to have had an effect, as DOT on page 38 of the NOFO states it will consider in selecting grant recipients whether projects include union participation or project labor agreements. The agency will also assess the extent to which projects advance the nation’s domestic energy sector, consistent with Executive Order 14154, Unleashing American Energy, and help revitalize and restore domestic maritime industries pursuant to Executive Order 14269, Restoring America’s Maritime Dominance. The inclusion of PLA language in this end of year NOFO is significant because as discussed during the government affairs presentation at Longboat Key last month, MCAA has been battling a campaign by the U.S. Small Business Administration’s (SBA) Office of Advocacy and Associated Builders and Contractors urging the joint Justice Department/Federal Trade Commission Task Force on anticompetitive regulations to designate both the PLA executive order and the regulations implementing it as anticompetitive to justify eliminating them (see page 6 and 7 of SBA Office of Advocacy Comment Letter from June). This fight is far from over and this small victory seems likely to only renew the determination of our opponents in the New Year.

Congress

  • As Congress returned last week following the two-week holiday recess, the MCAA continued full-court press on permitting reform. In the New Year we are focused on sustaining the momentum garnered from the House passage last month of the MCAA-advocated Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776). We are now lobbying to move this bill and other permitting reform efforts in the Senate. Ahead of meetings with congressional offices this week, MCAA sent a letter last Wednesday to Republican and Democratic leadership of the Senate Environment and Public Works (EPW) and Senate Energy and Natural Resources Committees urging lawmakers to support permitting reform and advance the SPEED Act to the floor. The letter explains how ongoing permitting delays are stalling energy, infrastructure, manufacturing, and data-center projects while undermining energy independence, AI deployment, and efforts to develop the infrastructure to reshore manufacturing. There are some significant obstacles to overcome in the Senate. Most notably, Senate EPW Ranking Member Sheldon Whitehouse (D-RI) publicly threatened on January 2 to stall all permitting reform legislation, the surface transportation reauthorization, and the Water Resources Development Act unless the Trump Administration lifts its recent pause on offshore wind leasing. These political headwinds have been compounded by the growing grassroots opposition to data centers that recently prompted Energy Secretary Chris Wright to warn data center developers that they are “losing control of the narrative.” Grid operators such as PJM Interconnection are also adding to concerns about data center development, warning that the grid is not yet equipped to absorb surging data center demand and suggesting that data centers have on-site backup generators or accept temporary shutdowns during peak demand to avoid blackouts for existing power customers.
  • The chances of avoiding a government shutdown improved last week after the House voted 397–28 to pass a three-bill minibus appropriations package containing the fiscal year 2026 Energy-Water, Interior-Environment, and Commerce-Justice-Science spending bills—an important de-escalation that, if followed by the Senate, would result in lawmakers having enacted six of the twelve annual appropriations bills for the fiscal year. The House-passed Energy-Water spending bill includes: (1) $1.785 billion for nuclear energy at the Department of Energy; (2) $3.473 billion for the Harbor Maintenance Trust Fund; (3) $1.95 billion for Energy Efficiency and Renewable Energy at the Department of Energy (a $1.5 billion decrease from FY2025); (4) $1.47 billion for the Bureau of Water Reclamation’s Water and Related Resources Account; and (5) $396.8 million to the U.S. Army Corps of Engineers for construction projects on the inland waterways system. Additionally, the Interior-Environment spending bill includes: (1) a $7.4 million increase at the Bureau of Land Management for onshore oil and gas development; (2) an $11.2 million increase at the Bureau of Ocean Energy Management for offshore energy development; and (3) a $21.2 million reduction for renewable energy development. Despite this progress, several pitfalls remain that could complicate efforts to keep the government funded past the January 30th deadline, including moves by House appropriators to tighten restrictions on the Department of Homeland Security’s ability to reprogram funds between accounts amid concerns about the Trump Administration’s aggressive use of that authority, an issue that has taken on added political significance following last week’s shooting of a woman by an ICE agent in Minneapolis. Another friction point is the unresolved negotiations over expired enhanced Affordable Care Act (ACA) premium tax credits—which were a central factor in triggering the most recent government shutdown. Last week the House voted 230-196 to extend the expired subsidies for three years while bipartisan Senate talks continue over a potential two-year extension package that could include new income caps, minimum monthly premiums, expanded access to health savings accounts, additional cost-sharing reduction provisions, and a longer open-enrollment period, even as some Republicans question whether such a deal can clear the Senate outside of a partisan budget reconciliation process. Separately, the Senate voted 52-47 along bipartisan lines to advance legislation requiring President Trump to seek congressional approval before initiating any new military action in Venezuela following the January 3 operation to apprehend Venezuelan President Nicolas Maduro, prompting veto threats from the White House and injecting another point of contention into broader negotiations over the spending bills as Democrats look to limit the Administration’s ability to use appropriated funds for such actions in the future without first obtaining congressional approval.
  • Next week we expect to be busy on issues related to independent contractors and ERISA following the House Rules Committee’s announcement of a meeting scheduled for today, January 12, 2026, to develop a rule governing floor consideration of multiple bills reported by the House Education and Workforce Committee. Among the measures expected to be considered is the Save Local Business Act (H.R. 4366), which would amend both the National Labor Relations Act and the Fair Labor Standards Act to significantly narrow the circumstances under which a company may be deemed a joint employer with respect to another entity’s employees, such as those of a subcontractor, effectively limiting liability for worker misclassification and other labor law violations. Lawmakers are also expected to consider the Protecting Prudent Investment of Retirement Savings Act (H.R. 2988), which would amend ERISA to rescind the MCAA-supported Biden-era Prudence and Loyalty rule that restored ERISA fiduciaries to a long-standing framework for evaluating investments with comparable risk and return characteristics and explicitly allowed plan trustees to consider, as a relevant financial factor, whether an investment would generate union work hours that result in contributions to the plan.
  • These congressional developments on the independent contractor issue come as the Labor Department’s Wage and Hour Division last Wednesday sent its long-anticipated proposed rule rescinding the Biden-era, MCAA-supported independent contractor rule that made it harder to misclassify construction workers as independent contractors to the White House Office of Information and Regulatory Affairs for review (a step that typically precedes publication in the Federal Register). The impending rulemaking is of limited impact, however because DOL ceased enforcing the Biden-era rule in May, limiting the immediate practical impact of the rescission. At the same time, WHD emphasized that it is maintaining robust wage-and-hour enforcement, announcing last Thursday that it recovered more than $259 million in back wages for nearly 177,000 workers in fiscal year 2025—the highest total since 2019—an average of $1,465 per worker, which the agency attributed to stepped-up enforcement alongside expanded compliance assistance efforts, including updated Fair Labor Standards Act guidance, revived opinion letters, and the Payroll Audit Independent Determination program allowing employers to self-report violations and pay reduced penalties.

Around the Country

  • Following the MCAA’s successful advocacy to turn back efforts to cut geothermal energy tax credits in the One Big, Beautiful Bill Act, we wanted to be sure members were aware that last Wednesday, the Energy Department’s Geothermal Technologies Office (GTO) launched the Geothermal Power Accelerator, a collaboration between 13 states, GTO, and the private sector and led by the National Association of State Energy Officials (NASEO) to expand the use of geothermal power on the U.S. power grid. Participating State Energy Offices include Arizona, California, Colorado, Hawaii, Idaho, Louisiana, Montana, Nevada, New Mexico, Oregon, Pennsylvania, Utah, and West Virginia. Through the Accelerator, states will collaborate with federal agencies and geothermal developers to set statewide geothermal goals, strengthen resource mapping, and advance policies and programs that reduce project costs and address regulatory barriers. The initiative will begin with a series of strategy sessions and “state of the industry and policy” discussions with federal leaders and private-sector experts to inform specific state actions in 2026. More information and relevant resources regarding the Accelerator are available on the NASEO website.
  • As Congress continues to debate the path forward on permitting reform, state and local resistance to large-scale energy and data center projects is intensifying—highlighting the practical challenges developers face on the ground. Last Tuesday, it was revealed that the recent approval of Eagle Rock Partners’ massive data center project in Twiggs County, Georgia, has sparked a legal challenge over the County Commission’s effort to fast-track the project without first completing a state-required regional impact review. County residents, citing concerns that the rezoning was rushed without sufficient information about the project’s energy and water demands, filed suit seeking to overturn the approval. Meanwhile, in Maryland, a growing pipeline of proposed data center projects that prompted warnings from the regional grid operator about system strain has lawmakers  giving renewed attention to regulating data centers in the upcoming General Assembly session. While last year’s legislature folded some data center provisions into a broader energy reform package, including new utility rate structures for large-load customers, additional legislation could impose new approval requirements, energy-use conditions, or cost-allocation rules that developers will need to factor into project planning and timelines.
  • Reflecting the mounting pressure on regional grids to secure reliable, dispatchable power amid rapid load growth, last Tuesday, Vistra Corp. agreed to acquire Cogentrix Energy for approximately $4 billion, adding 10 modern natural gas–fired power plants totaling 5.5 gigawatts of capacity across three major U.S. power markets. The portfolio includes five facilities on PJM’s grid, which spans much of the Mid-Atlantic and Midwest from New Jersey to Illinois, four combined-cycle plants in ISO New England’s grid, and one cogeneration facility in ERCOT, which serves most of Texas. The deal—priced at roughly $730 per kilowatt after tax benefits—underscores the growing premium on flexible gas generation as load growth from data centers and electrification accelerates and grid operators seek reliable capacity to maintain system stability.
  • Last Wednesday, the Justice Department sued the California cities of Morgan Hill and Petaluma in federal court, arguing that their local bans on natural gas infrastructure in new buildings are preempted by the Energy Policy and Conservation Act, which gives the federal government exclusive authority over energy-use standards for covered appliances. The complaint, filed in the Northern District of California, contends that the ordinances effectively prohibit natural gas piping and the use of federally regulated appliances and therefore conflict with federal law. The Justice Department is seeking a court declaration invalidating the bans and a permanent injunction against their enforcement, following similar federal action opposing New York City’s natural gas ban.
  • In a ruling over the scope of the withdrawal liability exemption for multiemployer plans in the construction industry, last Monday, the Ninth Circuit issued a decision in Walker Specialty Construction, Inc. v. Board of Trustees of the Construction Industry and Laborers Pension Fund for Southern Nevada. The case focused on interpreting the definition of the term “building and construction industry” for purposes of the Multiemployer Pension Plan Amendments Act (MPPAA) exemption from withdrawal liability. The Ninth Circuit agreed with a U.S. District Court that Walker Specialty was exempt from withdrawal liability because its asbestos abatement work fell within the MPPAA’s building and construction industry exemption. In reaching this decision, the Court concluded that for purposes of the MPPAA, the term “building and construction industry” has the same meaning the National Labor Relations Board assigned to this term under the Labor Management Relations Act.
  • Last Monday, the Pharmaceutical Care Management Association (PCMA), which represents pharmacy benefit managers (PBMs), sued California over a state law requiring PBMs to act in their clients’ interests and disclose all commissions and conflicts of interest. The law was enacted in October 2025 and applies to self-insured employer plans regulated under ERISA. PCMA argues that California’s law is preempted by ERISA because it affects who is considered a plan fiduciary.

MCAA Government Affairs Update for the Week of December 22, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, December 22, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • The White House had a difficult week last week, scrambling to contain fallout from a Vanity Fair interview with Chief of Staff Susie Wiles that raised questions about the judgment of key members of the Trump Administration, as well as the execution and consequences of several of President Trump’s signature policies. Wiles pushed back in a social media post, calling the article a “hit piece” that omitted “significant context” and sought to portray the administration as chaotic and dysfunctional. The controversy was compounded by sharp backlash over the President’s social media remarks about the murders of filmmaker and Trump critic Rob Reiner and his wife, which the President suggested were linked to “Trump Derangement Syndrome.” Trump’s comments were widely condemned as inappropriate and inflammatory by Republicans, including Reps. Thomas Massie (KY) and Marjorie Taylor Greene (GA). Against that backdrop, President Trump delivered a rare prime-time address on the economy last Tuesday, arguing that his policies are beginning to bring down prices for everyday goods such as groceries, holiday meals, and airfare, while urging Americans to be patient. The President promised that in the new year he would “announce some of the most aggressive housing reform plans in American history.” New polling showed that Trump’s approval rating slipped to 39%. There also appears to be waning enthusiasm within his base as the share of self-identified MAGA Republicans who strongly approve of his job performance fell to 70% (down 8 points from April) and as fewer Republicans identify with the MAGA wing of the GOP than earlier this year.
  • We can expect the President to remain a strong advocate of nuclear power in the New Year. Last Thursday, Trump Media & Technology Group, the parent company of Truth Social, announced an all-stock merger with nuclear fusion firm TAE Technologies in a deal valued at more than $6 billion that aims to develop utility-scale fusion power to meet the growing energy demands of artificial intelligence. The combined company plans to begin construction next year on what it calls the world’s first commercial fusion power plant, positioning fusion as a long-term clean energy solution for data centers and other energy-intensive industries. The deal, which would create one of the first publicly-traded fusion companies and leave Trump as the largest shareholder.
  • Finding workers who can pass a drug test will likely remain a challenge in the New Year and may be exacerbated by an executive order (EO) President Trump signed last Thursday to reclassify marijuana from a Schedule I to a Schedule III controlled substance. The EO directs the Attorney General to expedite rescheduling marijuana from a Schedule I drug to a less dangerous and easier to purchase Schedule III drug. It instructs the White House to work with Congress to expand lawful access to cannabidiol (CBD) products while restricting unsafe products, and tasks HHS with developing new research methods to study the safety, efficacy, and long-term health effects of medical marijuana and hemp-derived cannabinoids and to inform federal standards of care for patients and clinicians. A fact sheet on the EO is available here. Some senior GOP Senators are worried that the EO poses serious health and economic threats to the nation and expressed their disagreement with the EO in a “sternly-worded” letter to the President spearheaded by Sen. Ted Budd (R-NC), a staunch Trump ally. It was signed by Senate GOP leaders Majority Whip John Barrasso (R-WY), Conference Chair Tom Cotton (R-AR), and Policy Committee Chair Shelley Moore Capito (R-WV).
  • While MCAA successfully lobbied to get the Trump Administration to vacate the Biden-era Federal Trade Commission (FTC) rule that would have broadly prohibited noncompete agreements, as noted during the government affairs presentation at the Industry Funds Conference earlier this month, the Trump FTC has committed to a case-by-case enforcement approach to noncompetes deemed to have anticompetitive impacts on labor markets. As part of this effort, the FTC’s Joint Labor Task Force is hosting a public workshop on January 27, 2026, from 1:00pm to 5:00pm ET, titled “Moving Forward: Protecting Workers from Anticompetitive Noncompete Agreements.” The workshop will feature a keynote address from FTC Chairman Andrew Ferguson and three panels—“Locked Out of Work: Victims of Anticompetitive Noncompetes,” “Unleashing the American Worker: Policy Perspectives on Noncompetes,” and “Counting the Costs: The Economics of Noncompetes.” The event will be held in person at the FTC’s headquarters in Washington, DC, and livestreamed on the FTC website. The Joint Labor Task Force was created by Chairman Ferguson to prioritize enforcement against deceptive, unfair, and anticompetitive labor-market practices.
  • Last Tuesday, the U.S. District Court for the Southern District of Texas blocked the Labor Department from continuing internal adjudication proceedings tied to a former Kinder Morgan Inc. employee’s whistleblower complaint, siding with the company as it challenges the constitutionality of the agency’s in-house enforcement process. Judge Sim Lake ruled that Kinder Morgan is likely to succeed on its claim that Labor Department administrative law judges are unconstitutionally insulated from presidential removal due to dual layers of “for-cause” protections, echoing constitutional concerns raised by the Supreme Court’s 2024 SEC v. Jarkesy decision. The court found that forcing the company to proceed before agency judges while the constitutional challenge is unresolved would cause irreparable harm and granted an injunction halting the case.
  • MCAA plan administrators should be aware that last Monday, the Labor Department, the IRS, and the Pension Benefit Guaranty Corporation (PBGC) released informational copies of the 2025 Form 5500 series and related instructions previewing updates to annual reporting requirements for pension and welfare benefit plans. The agencies added new plan characteristic codes to better track multiemployer defined benefit plans that terminate due to mass withdrawal, plan amendments, or insolvency. Additional updates include a new code identifying defined benefit plans that use variable annuity formulas and clarification that an existing termination code applies only to single-employer plans covered by PBGC. Officials emphasized that the materials are for reference only and that filers must wait for the official electronic versions to be released through the EFAST2 system before submitting 2025 filings.

Congress

  • Last Thursday, the MCAA realized a hard-fought win on the permitting reform front after the House voted 221-196 to pass the MCAA-championed Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776) to revise permitting processes and reviews under the National Environmental Policy Act (NEPA). Eleven Democrats supported final passage and one Republican voted against the bill. To supplement our aggressive advocacy on the SPEED Act, which dates back to this summer, the MCAA sent a letter advocating enactment of the bill to House leadership before the House Rules Committee marked up the legislation earlier this week. The Republican rule for consideration of the bill deemed as passed an amendment from House Freedom Caucus Chair Andy Harris (R-MD) specifying that nothing in the bill would undo any actions taken by President Trump prior to the enactment of the bill. This includes the Trump Administration’s actions to halt, defund, or reconsider offshore wind projects that most Democrats support. Following the adoption of the Harris amendment, the American Clean Power Association withdrew its support for the bill, calling the amendment a “poison pill” that “allows the Trump Administration to continue to discriminate against clean energy technologies.” While this last minute opposition set off a scramble to keep the bill on track for passage, the MCAA worked with our allies to maintain bipartisan support for the bill despite this late stage hiccup.
  • The National Labor Relations Board (NLRB) has a quorum after the Senate last Thursday voted 53-43 to confirm 97 Trump Administration nominees—including both James Murphy and Scott Mayer—to be members of the NLRB and Crystal Carey to be the NLRB General Counsel. This was the third bloc of nominees confirmed since Republicans changed Senate rules to permit approval of dozens of nominees with a single vote. The newly confirmed appointees also include: (1) Henry Mack to be the Labor Department’s (DOL) Assistant Secretary for Employment and Training (which oversees registered apprenticeship and DOL’s guestworker programs); (2) Rosario Palmieri to be DOL Assistant Secretary for Policy; (3) former Rep. Anthony D’Esposito (R-NY) to be DOL Inspector General; (4) Jeffrey Hall to be EPA Assistant Secretary for Enforcement and Compliance; (5) Douglas Troutman to be EPA Assistant Administrator for Toxic Substances; (6) Mitch Graves, Jeff Hagood, Randall Jones, and Arthur Graham to be TVA Board Members; (7) James Percival to be General Counsel of the Department of Homeland Security; and (8) Edward Forst to be Administrator of the General Services Administration.
  • Last Wednesday, following Speaker Mike Johnson’s (R-LA) announcement that the House would not consider legislation to extend expiring enhanced Affordable Care Act (ACA) premium subsidies, GOP Reps. Brian Fitzpatrick (PA), Mike Lawler (NY), Rob Bresnahan (PA), and Ryan Mackenzie (PA) joined Democrats on a discharge petition to force a vote on a straight three-year extension of the subsidies. This development frustrated GOP senators who previously defeated an identical proposal in the Senate. Republican Senators fear a House-passed straight reauthorization will revive pressure on the upper chamber and create additional challenges for Speaker Johnson and his razor-thin House Republican majority. The discharged bill is expected to be considered by the House next month and could spur broader health care negotiations. The prospects for another government shutdown were also increased last Thursday when Colorado’s Democratic Senators Michael Bennet and John Hickenlooper objected to advancing a five-bill appropriations “minibus” that would fund 85% of the federal budget for the remainder of the fiscal year. The package includes the funding bills for Labor-HHS, Defense, Commerce-Justice-Science, Interior-Environment, and Transportation-HUD. The Colorado lawmakers scuttled a last-minute deal to advance the appropriations package because of the Trump Administration’s move to dismantle a Colorado-based climate research center.
  • Last Wednesday, the Senate voted 77-20 to pass the fiscal year 2026 National Defense Authorization Act, sending the more than 3,100-page bill to President Trump. Of interest for the MCAA, the final bill authorizes $26 billion for shipbuilding, including for Virginia-class attack submarines, and authorizes funding to build additional Coast Guard cutters. Also of interest to MCAA, the final bill excluded Sen. Elizabeth Warren’s (D-MA) “Right-to-Repair” language supported by the Trump Pentagon to ensure the U.S. military retains access to data and parts necessary to repair its weapons systems.
  • Scrutiny of large-scale data center expansion intensified on Capitol Hill last week as lawmakers raised concerns about electricity costs, grid impacts, and community oversight associated with the rapid buildout of AI infrastructure. Democratic Sens. Elizabeth Warren (MA), Chris Van Hollen (MD), and Richard Blumenthal (CT) pressed major technology companies for detailed information on data center build-outs and utility agreements, warning that the billions of dollars needed for grid upgrades, transmission expansion, and new power generation are increasingly being funded by increased rates for residential customers. The lawmakers cited estimates showing data centers already account for more than 4% of U.S. electricity use and cautioned that consumers could be left bearing infrastructure costs even if projected data center demand fails to materialize. Separately, Sen. Bernie Sanders (I-VT) called for a moratorium on new data center construction to allow policymakers to better assess the technology’s impacts. Data centers are becoming an increasingly partisan issue in Washington, DC. President Trump continues to champion a rapid buildout of data centers to ensure the U.S. is a leader in AI. Democrats are increasingly opposed to the proliferation of data centers over concerns about their impact on homeowners’ electricity bills—a key component of their “affordability” messaging heading into the November midterms.
  • Last Monday, Senate Commerce Ranking Member Maria Cantwell (D-WA) sent letters to Pipeline Hazardous Materials and Safety Administration (PHMSA) Deputy Administrator Ben Kochman and Chief Counsel Keith Coyle, as well as Interstate Natural Gas Association of America (INGAA) President & CEO Amy Andryszak over conflict of interest allegations raised by a recent ProPublica story. Kochman and Coyle are former employees of INGAA, and Cantwell stated that “PHMSA leadership is not heeding Congress’s directive and is instead pursuing a reckless safety rollback agenda—and that they are doing so at the behest of” INGAA. Cantwell notes that since being appointed to the agency, Kochman has signed at least 23 notices proposing or implementing amendments to pipeline safety rules.

Around the Country

  • Last Thursday, the U.S. Court of Federal Claims ruled that the U.S. Army Corps of Engineers is barred from including a project labor agreement (PLA) requirement in a procurement for the construction of a pump station to mitigate hurricane damage in Louisiana, worth between $250 million and $500 million.
  • MCAA members operating in Texas, Oregon, and Washington should be aware of recent EPA actions advancing major water and wastewater infrastructure projects through the Water Infrastructure Finance and Innovation Act (WIFIA) program. Last week, the EPA approved more than $590 million in WIFIA-backed financing, including a $347 million low-interest loan for Fort Worth, Texas to upgrade wastewater collection and treatment systems and construct a new Mary’s Creek Water Reclamation Facility to support population growth and large-scale water reuse for industrial and irrigation purposes. The EPA also approved $240 million in WIFIA loans for projects in Oregon and Washington, including $147 million for Medford, Oregon to improve water infrastructure and protect water quality in the Rogue River, a $65 million loan for King County, Washington to replace and construct new wastewater system components and pipeline infrastructure, and $28 million for Rockwood, Oregon’s Cascade Groundwater Development Project.
  • MCAA members in Michigan should be aware that last Wednesday, a federal judge ruled that Michigan lacks authority to interfere with Enbridge Energy’s Line 5 pipeline, barring the state from enforcing its 2020 notice revoking a decades-old easement and ordering operations to cease. U.S. District Judge Robert J. Jonker said regulation of Line 5 falls under federal authority and that Michigan’s attempt to shut down the pipeline conflicts with U.S. foreign policy and trade relations with Canada.
  • MCAA members in Washington State should be aware that last Wednesday, Energy Secretary Chris Wright issued an emergency order directing TransAlta to keep Unit 2 of the Centralia Generating Station coal plant in Centralia, Washington, available to operate through the winter, delaying its scheduled shutdown at the end of 2025. The order, which runs from December 16 through March 16, 2026, cites elevated grid reliability risks in the WECC Northwest region and aims to minimize the likelihood and cost of blackouts during periods of extreme cold.
  • With the Energy Department advancing plans to co-locate nuclear reactors and artificial intelligence (AI) data centers on federal land through public-private partnerships, the Trump Administration is leaning on advanced and modular nuclear reactors as a way to meet rapidly growing power demand from AI while supporting domestic nuclear deployment. DOE has identified several federal sites—including Idaho National Laboratory, Oak Ridge, Paducah, and Savannah River—and aims to begin construction as early as late 2025, with operations targeted for 2027, arguing that federal land can help streamline permitting and deployment. Major technology firms such as Anthropic, Nvidia, Amazon, Microsoft, Google, and Meta have increasingly turned to nuclear energy as a potential answer to their emissions-reduction goals while still securing reliable, around-the-clock power for AI-driven data centers.

The MCAA Government Affairs Update will be taking a break while the House and Senate are on holiday recess. Watch for our next report on January 12, 2026.

MCAA Government Affairs Update for the Week of December 15, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, December 15, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • MCAA plan trustees need to be aware and monitor implementation of an executive order President Trump signed last Thursday night to revise ERISA regulations governing ERISA plan fiduciary status and the obligations of such fiduciaries. Specifically, the order directs the Secretary of Labor to “revise all regulations and guidance regarding the fiduciary status of individuals who manage, or, like proxy advisors, advise those who manage, the rights appurtenant to shares held by plans covered under [ERISA],” including “proxy votes and corporate engagement, consistent with the policy of this order.” Among other things, the Secretary of Labor “shall consider whether these proposed revisions should include amendments to specify that any individual who has a relationship of trust and confidence with their client, including any proxy advisor, and who provides advice for a fee or other compensation, direct or indirect, with respect to the exercise of the rights appurtenant to shares held by ERISA plans, is an investment advice fiduciary under ERISA.” Generally, DOL is directed to strengthen ERISA fiduciary rules to increase fiduciaries’ transparency regarding their use of proxy advisors and ensure proxy advisors and plan managers act solely in the financial interest of American workers and retirees. The order also directs the Chairman of the SEC to rescind or revise all rules and regulations related to proxy-advisors that implicate DEI and ESG priorities, as well as rules related to shareholder proxy proposals that are inconsistent with the policies in the order. The order further directs the SEC to enforce anti-fraud provisions in securities laws against proxy advisors with respect to their voting recommendations, and to consider requiring proxy advisors to register as investment advisers and provide increased transparency on conflicts of interest. The SEC is also directed to assess whether proxy advisors serve as a vehicle for investment advisers to coordinate their voting decisions, and whether registered investment advisers breach their fiduciary duties by hiring proxy advisors to advise on non-pecuniary factors—such as DEI and ESG—in making investment decisions and subsequently following their recommendations. Finally, the order directs the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to determine whether proxy advisors are engaged in unfair methods of competition or unfair or deceptive acts or practices and to review ongoing state antitrust investigations into proxy advisors for violations of federal antitrust law.
  • Last Thursday night, President Trump also signed an executive order to prevent states from regulating artificial intelligence (AI), including AI in the workplace, to ensure consistent, nationwide, federal regulation of this emerging technology instead of a patchwork of varying state laws the President fears could impede the deployment of AI technologies. The order directs the Attorney General to establish an AI Litigation Task Force to challenge unconstitutional, preempted, or otherwise unlawful state AI laws that harm innovation. The order directs the Secretary of Commerce to publish an evaluation of state AI laws that conflict with national AI policy priorities and withhold non-deployment Broadband Equity Access and Deployment (BEAD) funding from any state with such AI laws. Other agencies are directed to consider whether to make an absence of similar laws, or a policy of enforcement discretion with respect to any existing such laws, a condition of applicable discretionary grant programs. The order also instructs the FTC and Federal Communications Commission to take actions to limit the ability of states to force companies to embed DEI into their AI models. The order further calls for the development of a national AI legislative framework that would preempt state AI laws that stifle innovation.
  • As MCAA continues working with the Administration and allies in Congress on permitting reform, last Thursday, the Environmental Protection Agency’s (EPA) Office of Air and Radiation (OAR) launched the “Clean Air Act Resource for Data Centers” webpage to provide state and private sector entities developing data centers and artificial intelligence (AI) facilities with regulatory information, guidance, and technical tools for modeling, air quality permitting, and regulatory interpretations under the Clean Air Act. The webpage has three sections: (1) “Regulatory Resources,” providing information on rules that apply to stationary combustion turbines and stationary engines; (2) “Air Permitting Resources,” with EPA guidance documents, letters responding to permitting requests, and interpretations of permitting regulations; and (3) “Modeling Guidance Documents,” listing the agency’s preferred air quality models for use in the Prevention of Significant Deterioration (PSD) programs and providing modeling resources to assist with permit applications and showing compliance.
  • MCAA members who work on water treatment plants and oil well systems should be aware that last Wednesday, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), Federal Bureau of Investigation (FBI), Environmental Protection Agency (EPA), and several other federal agencies and international partners issued a new advisory urging immediate action by critical infrastructure organizations to mitigate the risk of being targeted by pro-Russia hacktivist groups. The agencies warn that these groups are “actively engaging in opportunistic, low-sophistication malicious cyber activity across multiple sectors,” and specifically note that targets include water treatment plants and oil well systems.
  • During oral arguments last Monday, the Supreme Court’s conservative majority sounded inclined to uphold President Trump’s firing of Democratic Federal Trade Commission Commissioner Rebecca Slaughter and potentially overturn Humphrey’s Executor, the 1935 precedent that shields leaders of independent federal agencies from being terminated by the President without cause. Conservative justices suggested that modern federal agencies wield far more power than when the precedent was created, while the court’s liberals warned that reversing Humphrey’s Executor would give the president “massive, unchecked” control over regulatory bodies across finance, labor, and public safety. The case will also impact President Trump’s firing of other independent agency heads, including the termination without cause of Democratic members of the National Labor Relations Board.

Congress

  • Last Thursday, the Senate voted 52-47 to adopt a block of 97 Trump Administration nominees using the new process to confirm nominees in blocks instead of individually. A final vote to confirm the nominees is expected early this week. The new package includes nominations of great interest to MCAA, including both James Murphy and Scott Mayer to be members of the National Labor Relations Board (NLRB) and Crystal Carey to be NLRB General Counsel. Once Murphy and Mayer are sworn in, the NLRB will regain its quorum and be able to start issuing opinions immediately. The package also includes: (1) Henry Mack to be DOL Assistant Secretary for Employment and Training (which oversees registered apprenticeship, workforce training, and DOL’s foreign guestworker programs); (2) Rosario Palmieri to be DOL Assistant Secretary for Policy; (3) former Rep. Anthony D’Esposito (R-NY) to be DOL Inspector General; (4) Jeffrey Hall to be EPA Assistant Secretary for Enforcement and Compliance; (5) Douglas Troutman to be EPA Assistant Administrator for Toxic Substances; (6) Mitch Graves, Jeff Hagood, Randall Jones, and Arthur Graham to be TVA Board Members; (7) James Percival to be General Counsel of the Department of Homeland Security; and (8) Edward Forst to be GSA Administrator.
  • Last week, the MCAA made considerable progress on its priority issue of permitting reform after successfully lobbying the House Rules Committee to schedule a markup of the MCAA-advocated Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776) for today, December 15, 2025. The SPEED Act represents sweeping permitting reform that will improve federal permitting of data centers and other large infrastructure projects and reduce litigation that impedes such projects. Ahead of expected floor action, the bill is facing opposition from both ends of the political spectrum. A handful of Republicans, including Reps. Jeff Van Drew (R-NJ), Chris Smith (R-NJ), and Andy Harris (R-MD), are urging President Trump to oppose the SPEED Act because they are afraid that permit protection language in the bill could inadvertently preserve offshore wind projects the Trump Administration is trying to kill. Democrats say their support hinges on limiting the Trump Administration’s ability to cancel wind, solar, and other renewable energy projects and Rep. Susie Lee (D-NV) offered an amendment to the SPEED Act requiring the Interior Department to treat all energy sources equally and prohibiting additional layers of review or the withholding, delaying, or reversing of state or local decisions for reasons not applied to oil, gas, or coal. A new National Petroleum Council report likewise warns the Trump Administration cannot advance fossil-fuel permitting reform while halting previously permitted renewable energy projects. Meanwhile, the House passed two modest permitting reform bills last week: (1) the Improving Interagency Coordination for Pipeline Reviews Act (H.R. 3668) by a vote of 213-184, which specifies timelines and procedures for FERC and other federal agencies to follow when conducting environmental reviews of natural gas pipelines and exempts interstate natural gas pipeline projects from the requirement to obtain water quality certifications from states under section 401 of the Clean Water Act (CWA); and (2) the Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act (H.R. 3898) by a vote of 221-205, which streamlines CWA permitting by redefining “navigable waters of the United States” to exclude waste treatment systems, prior converted cropland, groundwater, and other features determined to be excluded by the Army Corps of Engineers.
  • As the expiration of enhanced Affordable Care Act (ACA) subsidies looms at the end of this year, lawmakers remain far apart on how to address an issue that is top of mind for voters heading into the 2026 midterms. Last Thursday, the Senate held votes on two partisan health care bills that both required 60 votes to overcome procedural objections. First, the chamber voted 51-48 to reject a Republican proposal to let the enhanced ACA subsidies expire and replace them with new, time-limited health savings account payments for enrollees who switch to lower-cost, high-deductible bronze or catastrophic plans. Sen. Rand Paul (R-KY) was the only Republican to vote with Democrats against the bill. Senators also voted 51-48 to reject a Democratic proposal to extend the enhanced ACA subsidies for three years. GOP Sens. Susan Collins (ME), Josh Hawley (MO), Lisa Murkowski (AK), and Dan Sullivan (AK) joined Democrats in supporting this bill. The votes come as House Republican leadership said they will allow a vote next week on a GOP package of health care bills that does not include an extension of expiring enhanced ACA premium subsidies, but instead offers a package of policies ranging from expanded Health Savings Accounts and stricter oversight of pharmacy benefit managers to enhance “Price Transparency.” House GOP moderates are pushing a discharge petition to force a vote on a bill extending the enhanced ACA subsidies for two years, while some more conservative Republicans are focused on including new abortion-coverage restrictions—leaving the conference with no clear consensus on a path forward. The looming expiration of the subsidies comes as a new poll from Gallup shows that 57% of Americans approve of the ACA, while only 35% disapprove. Support varies depending on respondents’ political affiliation, with approval of the ACA ranging from 91% of Democrats to 63% of independents and only 15% of Republicans. Separately, a New York Federal Reserve survey this week found that U.S. households grew more pessimistic about their current and near-term financial situations last month, with many concerned about increased medical expenses, which jumped 10.1%—the highest in more than a decade.
  • Last Wednesday, the House voted 312-112 to pass the 3,100-page compromise text of the fiscal year (FY) 2026 National Defense Authorization Act (NDAA). Of interest for the MCAA, the final bill authorizes $26 billion for shipbuilding, including for Virginia class attack submarines and authorizes funding to build additional Coast Guard cutters. Also of interest to MCAA, the final bill excluded Sen. Elizabeth Warren’s (D-MA) “Right-to-Repair” language supported by the Trump Pentagon to ensure the U.S. military retains access to data and parts necessary to repair its weapons systems. The final bill text also excluded the bipartisan Road to Housing Act that was in the Senate version of the NDAA to speed construction of multifamily housing and to address housing affordability.

Around the Country

  • As the MCAA continues to engage the Labor Department on our priority issue of preventing the misclassification of construction workers as independent contractors, we learned last Wednesday that the Labor Department’s Wage and Hour Division recovered $596,000 in back wages and fringe benefits for 31 workers after finding that Maryland subcontractor J. Solano HVAC ran a kickback scheme on two D.C.-funded affordable housing projects. Investigators determined the company paid workers the required Davis-Bacon prevailing wage by check but then forced them to return any amount above $30/hour, while also misclassifying some workers as lower-skilled laborers to avoid paying higher hourly rates for HVAC technicians and plumbers. Because the violations were deemed willful, DOL debarred the company and its owner from federal contracting for three years.
  • MCAA members operating in Minnesota should be aware that last Tuesday, the General Services Administration (GSA) awarded a $105 million Design-Build Construction contract to McGough Construction for design and construction of the Land Port of Entry Project in Grand Portage, MN, located on the Grand Portage Indian Reservation and serving passenger and commercial traffic between northeastern Minnesota and Ontario, Canada. Construction is expected to begin next summer, and the project will replace 1960s-era facilities across the 10.4-acre port with new, modernized buildings designed to improve security, efficiency, and processing capacity. The project will also add lanes—including a wider commercial truck lane—to reduce congestion and expand trade. GSA said that it expects substantial completion of the project by fall/winter 2029. Additional information about the project is available here.

MCAA Government Affairs Update for the Week of November 24, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, November 24, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Meanwhile, a new analysis last week furthered perceptions of the link between “affordability issues” and the ongoing buildout of AI infrastructure. It shows Americans are falling further behind on their utility bills, with past-due balances up nearly 10% over the past year, as monthly energy costs rose 12%—largely due to the demands of AI data center and related infrastructure. The growing  political fallout from the growing recognition of the link between data centers and rising consumer energy pricing is increasing the willingness of voters across the country to reject or restrict new data center facilities. Polling that emerged last week found that fewer than half of Americans support building data centers in or near their communities, with opposition spanning the partisan divide and especially strong among younger voters aged 18-49. Analyses by both political parties of the recent off-year elections are pointing to the success Democrats had turning opposition to data centers and rising energy costs into a campaign issue that helped them win statewide elections in Virginia (the No. 1 state for data center development) and Georgia. In Georgia, two Democrats won seats on the Public Service Commission by focusing on data centers and rising energy bills. This growing resistance to data centers has quickly percolated to Washington, D.C. Recognizing the threat to federal support for the buildout of AI infrastructure, last week some of the largest players in the sector launched the AI Infrastructure Coalition (AIIC) to advocate for continued permitting and support of AI infrastructure. Founding members of the coalition include Andreessen Horowitz, Cisco, Corning, Digital Realty, Duke Energy, Entergy, ExxonMobil, Google, Lumen, Meta, Microsoft, NextEra, PG&E, Pinnacle West, and QTS. The AIIC is spending big, hiring former Sen. Kyrsten Sinema (I-AZ) and former Rep. Garret Graves (R-LA) to serve as the new coalition’s co-chairs leading its campaign to educate policymakers and the public on the imperative to support AI infrastructure to “ignite American economic prosperity, create high-quality jobs, and fortify our nation’s security in the AI race against China.”
  • As foreshadowed in previous reports, last week the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers published a proposed rule revising the definition of “waters of the United States” (WOTUS) to clarify EPA Clean Water Act regulations and align them with the Supreme Court’s Sackett v. EPA decision. This proposal is a regulatory permitting reform effort insofar as the Sackett decision curtailed the reach of the federal Clean Water Act so that fewer bodies of water and projects impacting bodies of water will be subject to Clean Water Act regulations and permitting.  Consistent with Sackett, the proposed rule seeks to limit the application of the Clean Water Act to relatively permanent waters and wetlands with a “continuous surface connection” to navigable waters. It removes “interstate waters” as an automatic jurisdictional category, defines “relatively permanent” waters as those that flow or hold standing water year-round or during a predictable wet season, and adopts a two-part test for “continuous surface connection” requiring that a wetland or pond both abut a jurisdictional water and hold surface water at least during the wet season. The rule also proposes a detailed definition of “tributary” that limits Clean Water Act coverage to bodies of water with relatively permanent flow connected to downstream navigable waters, while excluding features that contribute flow only through non-jurisdictional channels, subterranean conduits, or debris fields.

    In addition, the proposed rule revises several longstanding exclusions to clarify what falls outside federal Clean Water Act jurisdiction. It adds definitions and limits for waste treatment systems, clarifies the “prior converted cropland,” and adds an explicit exclusion for groundwater that includes water moved through most subsurface drainage systems. Public comments are due by January 5, 2026 and can be submitted through the federal eRulemaking portal here using Docket ID No. EPA–HQ– OW–2025–0322.

  • There were additional signs of regulatory progress on permitting reform of interest to MCAA last Thursday, as the Federal Energy Regulatory Commission (FERC) initiated a process to consider expedited permitting for certain liquefied natural gas (LNG) and hydropower construction and maintenance activities. To this end, FERC issued two Notices of Inquiry seeking comment on ways to streamline permitting and reduce the need for case-specific approvals for many LNG and hydropower projects. One inquiry asks whether the Commission should revise its regulations to allow some LNG plant activities to proceed without individual orders under the Natural Gas Act, while the other examines potential changes to simplify review of post-licensing maintenance, repairs, and upgrades at hydropower facilities under the Federal Power Act. Comments on both proposals will be due 60 days after publication in the Federal Register.

Congress

  • Trustees of MCAA health plans should know that during a Senate Finance Committee hearing last Wednesday on “The Rising Cost of Health Care: Considering Meaningful Solutions for All Americans,” Chair Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) said they plan to reintroduce bipartisan legislation targeting pharmacy benefit managers (PBMs) for anti-competitive practices that they say raise drug prices and insurance costs. During the hearing, Ranking Member Wyden also released a new minority staff report criticizing Republican plans to expand access to Health Savings Accounts (HSAs) in lieu of renewing Affordable Care Act health insurance premium subsidies and how this plan will “funnel” money “to big banks and big insurance companies, while failing to protect” Americans from “high health costs.” The report highlighted the role large insurance companies play in HSAs, noting that “one out of every five HSAs in the nation is operated by Optum Bank, a subsidiary of UnitedHealth Group.” The hearing and report came the day after White House Deputy Chief of Staff James Blair said last Tuesday that the Administration intends to put forward a package of healthcare bills and left open the possibility of using the budget reconciliation process to move the package on a party-line vote that cannot be filibustered in the Senate. GOP House Majority Leader Steve Scalise (R-LA) later confirmed that such a package is being developed in hopes of bringing it to the floor by the end of the year and that it could include bills to expand HSAs and address association health plans, as well as some proposals that were knocked out of the One Big, Beautiful Bill Act (OBBBA), such as cost-sharing reductions. As part of this broader push by the GOP, Sen. Rick Scott (R-FL) introduced his More Affordable Care Act, which would create HSA-style “Trump Health Freedom Accounts,” allow insurance sales across state lines, codify Trump-era price transparency regulations, maintain ACA exchanges, and preserve pre-existing condition protections. In contrast, House Education and Workforce Ranking Member Bobby Scott (D-VA), Energy and Commerce Ranking Member Frank Pallone (D-NJ), and Ways and Means Ranking Member Richard Neal (D-MA) introduced the Lowering Drug Costs for American Families Act to expand Medicare’s drug price negotiation authority and extend negotiated prices to the commercial market. Their bill would increase the number of drugs subject to negotiation, cap out-of-pocket and insulin costs for privately insured patients, and apply inflation-based rebate penalties to private plans. The healthcare debate in Congress is unfolding as premiums for employer-sponsored coverage—affecting 165 million Americans—are projected to rise 6–7 percent in 2026, the largest increase in 15 years.
  • The MCAA also attended last Wednesday’s House Education and the Workforce Subcommittee on Workforce Protections hearing on “E-Verify: Ensuring Lawful Employment in America” that may interest MCAA members who are federal contractors required to use E-Verify or are compelled by state mandates to participate in E-Verify. Witnesses included Jaime Andress for the Associated General Contractors of America (AGC), Chris Gamvroulas for the National Association of Home Builders (NAHB), Jessie Hahn from the National Immigration Law Center (NILC), and Rosemary Jenks from the Immigration Accountability Project. NILC’s Hahn highlighted studies finding that state E-Verify mandates have resulted in undocumented workers becoming independent contractors and operating through other informal employment arrangements that relieve employers of the obligation to confirm their work authorization, while also reducing tax reporting. She also focused on inaccuracies in the E-Verify system and the impact they have on workers, citing federal evaluations showing higher tentative non-confirmation rates for naturalized citizens and other work authorized non-citizens. Hahn complained about the absence of an appeals process for erroneous final non-confirmations, and described cases where employers misused E-Verify by pre-screening applicants or re-verifying workers during labor disputes. The witness from the Immigration Accountability Project, Ms. Jenks, supported mandating nationwide E-Verify and codifying for all employers requirements that currently exist for federal contractors. She also highlighted USCIS data on E-Verify usage and confirmation rates and advocated for requiring states to share driver’s license data and requiring the Social Security Administration to notify individuals of suspected identity theft.

    AGC and NAHB witnesses described how their companies use E-Verify and stated that the system usually provides fast confirmations. They also raised concerns about E-Verify related to subcontractor oversight, identity fraud, and the need for clearer federal standards. They recommended restoring automatic work authorization alerts, expanding access to state driver’s license data for identity matching, allowing verification earlier in the hiring process, improving support for small businesses, and maintaining safe-harbor protections for employers who use E-Verify in good faith. AGC and NAHB also discussed ongoing construction labor shortages and the need for increased investment in career and technical education, apprenticeship pathways, and consideration of immigration reforms or visa programs to address workforce shortages.
  • Last Wednesday, the MCAA attended the Senate Environment and Public Works Committee’s hearing to “Examine the Future of Per- and polyfluoroalkyl substances (PFAS) Cleanup and Disposal Policy.” The witnesses were: (1) Eric Gerstenberg, the Co-Chief Executive Officer of Clean Harbors (which operates hazardous waste disposal facilities); (2) Leah Pilconis, the General Counsel for the Associated General Contractors of America (AGC); and (3) Kate R. Bowers, a Supervisory Attorney at the Congressional Research Service. There was no discussion of state regulation, state PFAS reporting mandates, or the need for federal preemption of state PFAS laws. Mr. Gerstenberg used his testimony to tout his company’s EPA, RCRA-approved incinerators that can safely dispose of PFAS and PFAS-contaminated materials, as well as solutions to remove PFAS from groundwater, soil and drinking water. He believes EPA needs to issue more guidance on PFAS, including detailed standards on safe disposal of PFAS and PFAS-containing materials so the regulated community, including contractors working with construction materials and chemicals that contain PFAS, know what constitutes a hazard and the nature of the facility where they must dispose of it. Leah Pilconis of AGC said EPA has failed to provide standards that contractors need to manage PFAS and urged Congress to consider exemptions for contractors, farmers, water districts, and other entities that are “passive receivers” of PFAS caught up in CERCLA’s strict liability regime for the substance since the Biden Administration designated PFAS and PFOA as Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) hazards triggering response and clean up liability. She explained that contractors encounter PFAS everywhere and are responsible under law for PFAS encountered during construction activities. Pilconas and several Senators talked about how the threat of PFAS liability and the uncertainties around how to deal with PFAS are driving up project costs. She said landfills are increasingly refusing PFAS contaminated dirt and materials and preventing recycling, while insurers are excluding PFAS liability. Pilconas rejected the Biden Administration’s view that contractors and other receiving parties can rely on EPA enforcement discretion to alleviate unfair PFAS liability. She made four recommendations: (1) Congress must amend CERCLA to recognize contractors as passive receivers of PFAS and not polluters subject to CERCLA clean up liability for PFAS; (2) the EPA must set clear numeric thresholds related to when responsibility to remediate PFAS is triggered; (3) the federal government should require PFAS testing early in federal construction project planning before bids are put out so PFAS-related costs are known and allocated; and (4) Congress should clarify the chain of liability for PFAS pollution.
  • Last Wednesday MCAA also monitored the House Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education hearing entitled, “From Classroom to Career: Strengthening Skills Pathways Through Career and Technical Education.” The witnesses for the hearing were: (1) SME Vice President Dr. Debra Volzer; (2) Kristi Rice a cybersecurity instructor at Spotsylvania High School; (3) Braden Goetz, Policy Advisor at New America; and (4) Nicole Gasper, the CEO of the West Michigan Aviation Academy. During the hearing, Subcommittee Chairman Kevin Kiley (R-CA) emphasized the importance of expanding skills-based pathways as millions of students pursue hands-on learning through Career and Technical Education (CTE). Subcommittee Ranking Member Suzanne Bonamici (D-OR) raised serious concerns about the Administration’s transfer of the Perkins Act and related programs from the Department of Education (ED) to the Department of Labor through interagency agreements, arguing the move violates the law, destabilizes CTE delivery systems, and risks reverting to outdated vocational tracking models.

    There was strong bipartisan support for modernizing CTE, and witnesses stressed the need for stable federal leadership, increased Perkins funding, alignment between CTE and academic standards, and expanded access to high-quality work-based learning. New America’s Braden Goetz—who spent 26 years in the Office of Career, Technical, and Adult Education—testified that outsourcing Perkins to DOL undermines statutory requirements, separates CTE from core federal education programs, creates operational confusion for states, disrupts civil rights compliance under the “Methods of Administration” guidelines, and forces ED to pay DOL to administer programs for which it is legally responsible. He argued that moving Perkins outside ED would reverse decades of bipartisan policy alignment, jeopardize collaboration with other ED offices, and risk rigorous CTE research funded through the Institute of Education Sciences that has helped establish CTE as an evidence-based field.

    The hearing followed the Trump Administration’s announcement last Tuesday of agreements to move the Education Department’s Office of Elementary and Secondary Education and Office of Post-Secondary Education to the Labor Department as part of a larger effort to dismantle the U.S. Department of Education. Under the new interagency agreements, the Labor Department will assume a significantly expanded role in administering federal K-12 and most Higher Education Act grant programs—including running grant competitions, providing technical assistance, and integrating these programs into the Labor Department’s broader workforce and training portfolio.
  • As the MCAA continues monitoring the federal “Right to Repair” debate, we wanted to highlight that bicameral negotiations on the fiscal year 2026 National Defense Authorization Act stalled last week over a Senate provision that would require defense contractors to provide the Pentagon with the technical data needed to operate and repair military equipment. The Senate language—authored by Sens. Elizabeth Warren (D-MA) and Tim Sheehy (R-MT) and supported in principle by the White House and senior Defense Department leadership—would condition contracts on providing the government access to maintenance tools, software, and technical data to avoid costly “vendor lock” and ensure servicemembers can sustain weapons systems in the field. Defense industry groups, however, are mounting an aggressive lobbying push against the measure, arguing that mandatory disclosure of proprietary data and diagnostic tools threatens intellectual property protections and could deter innovation, especially among small and mid-sized firms. Federal contractors favor the House-passed alternative that would provide access to repair data “as a service” through licensing agreements rather than outright transfer. Negotiators now must reconcile the two approaches as NDAA talks continue into December. The debate is creating an unusual alliance between Progressive Senator Warren (D-MA) and the Trump Department of War that is sending a signal to federal regulators.

Around the Country

  • Last Thursday, the Environmental Protection Agency (EPA) announced $6.5 billion in new Water Infrastructure Finance and Innovation Act (WIFIA) financing and released an additional $550 million to state infrastructure financing authorities through the State WIFIA program. EPA also approved five WIFIA loans: (1) $347 million to Fort Worth, Texas, to upgrade wastewater collection and treatment and expand beneficial water reuse; (2) $176 million for Pflugerville, Texas, to modernize drinking water and wastewater infrastructure; (3) $87 million to Joliet, Illinois, to shift the city’s drinking water supply away from an overdrawn aquifer; (4) $73 million to Ashland, Oregon, to construct a new drinking water treatment plant; and (5) $28 million to Wilton Manors, Florida, to reduce pipeline failure risk, curb water loss, and improve system reliability during storms and other emergencies.
  • MCAA members operating in Pennsylvania should be aware that the Energy Department awarded a $1 billion federal loan to Constellation Energy to restart the 835-megawatt nuclear reactor at Pennsylvania’s former Three Mile Island site, now renamed the Crane Clean Energy Center. Constellation plans to bring the shuttered 2019 unit back online by 2027 under a power supply agreement with Microsoft, citing rising electricity demand driven by AI data centers. DOE officials said the project will bolster the PJM regional transmission grid and aligns with the Trump Administration’s push to expand large-scale nuclear generation. The restart still requires Nuclear Regulatory Commission approval and water-related permits. Constellation is already progressing with inspections, equipment orders, and hiring.

MCAA Government Affairs Update for the Week of November 17, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, November 17, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • The federal government reopened last week after President Trump signed legislation last Wednesday providing fiscal year (FY) 2026 funding—through September 30, 2026—for Military Construction and the Veterans Administration, Agriculture and Rural Development, and operations of the Legislative Branch. The bill extends funding for the rest of the government through a continuing resolution (CR) that runs until January 30, 2026. MCAA members working on Navy shipbuilding contracts will be interested to know that the funding measure also provides money for the Navy’s “Shipbuilding and Conversion” account be appropriated at a rate sufficient to sustain current operations for completing prior-year shipbuilding programs—including the Carrier Replacement Program. It also provides $1.5 billion for the Navy’s Shipyard Infrastructure Optimization Program to modernize public shipyards in Virginia, Hawaii, Washington, and Maine.

    The Trump Administration and Congress now face a tight deadline to negotiate the remaining FY 2026 appropriations bills or secure another continuing resolution (CR) to avert a partial government shutdown on January 30th. Continuing work on the remaining full-year funding bills is likely to be complicated by the debate over Affordable Care Act health insurance subsidies expiring at the end of the year on which the Senate will hold a vote in December, as well as the ongoing battle over the release of Justice Department files about convicted sex trafficker Jeffrey Epstein.
  • There was a proposed rule we want to highlight for MCAA members and affiliates concerned about PFAS reporting requirements, as well as those in New Mexico and elsewhere contending with state legislation on PFAS. It is the Environmental Protection Agency (EPA) proposed rule to ease perfluoroalkyl and polyfluoroalkyl substances (PFAS) reporting and recordkeeping requirements adopted in a Biden-era final rule published on October 11, 2023. In this proposed rule, the Trump EPA seeks to create reporting exemptions for: (1) PFAS present at concentrations of 0.1% or lower in mixtures or products; (2) PFAS contained in imported articles; (3) non-commercial byproducts; (4) impurities; (5) non-isolated intermediates; and (6) PFAS manufactured or imported solely for research and development. The EPA asserts that without these exemptions, the 2023 Final Rule would impose “crushing regulatory burdens and nearly $1 billion in implementation costs on American businesses.” It views such burdens as inconsistent with the statutory command of TSCA section 8(a)(5)(A) directing the EPA, to the extent feasible, to avoid unnecessary or duplicative reporting, and TSCA section 8(a)(5)(B) specifically directing the EPA to minimize the cost of compliance for small manufacturers. In light of these statutory commands, the Trump EPA is taking a different view of “whether the volume of potential data collected justifies the total burden of implementing that collection and what result Congress intended.” EPA estimates that the proposed rule would provide cost savings of between $786 and $843 million and a burden reduction of approximately 10 million hours for general industry, while also providing small business with cost savings of between $703 and $761 million and a burden reduction of approximately 9 million hours. Comments on the new proposal are due December 29, 2025, and may be filed through the federal eRulemaking portal using Docket ID EPA-HQ-OPPT-2020-0549.
  • Trustees and Administrators of MCAA retirement plans should know that last Thursday, the Internal Revenue Service (IRS) issued Notice 2025-67 providing the new 2026 contribution limits for qualified retirement plans, including defined benefit plans. Effective January 1, 2026: (1) the limitation on the annual benefit under a defined benefit plan is increased from $280,000 to $290,000; (2) the limitation on contributions to 401(k), 403(b), and 457 defined contribution plans for employees under age 50 is increased from $23,500 to $24,500; (3) the catch-up contribution limit for those aged 50 and older is increased from $7,500 to $8,000 (for a total contribution of $32,500), and may increase to $11,500 for those ages 60-63 (for at total contribution of $36,000); and (4) the overall contribution limit for IRAs is increased from $7,000 to $7,500, with the catch-up contribution for those aged 50 and older increasing to $1,100. The notice also provides limitations for 2026 for Roth IRAs, the Saver’s Credit, and SIMPLE retirement accounts.

    Plan trustees and administrators should also be aware that the Administration is actively discussing executive orders to restrict proxy voting by index fund managers, as well as recommendations by proxy-advisory firms, such as Institutional Shareholder Services and Glass Lewis, on proxy voting matters ranging from corporate climate and environmental policies to executive pay packages. The White House is considering targeting proxy advisory firms by, among other things, imposing a broad ban on the firms making shareholder recommendations and prohibiting proxy advisory firms from making recommendations on companies that have engaged a proxy advisor for consulting work. The White House is looking to constrain index fund managers, like Vanguard and BlackRock, with measures requiring them to vote proxies held through index funds proportionately to the proxy votes of clients who choose to vote their proxies directly. The discussions, which have been going on for weeks, are still fluid, and various drafts of the proposed executive order have been circulating.
  • There were positive developments this week on the permitting reform front as the White House Office of Information and Regulatory Affairs finally concluded its review of a proposed rule from the Environmental Protection Agency “Clarifying Definition of ‘Waters of the United States.’”  This proposed rule will amend the definition of the waters of the United States (WOTUS) in response to the Supreme Court’s decision in Sackett v. Environmental Protection Agency to narrow the application of the Clean Water Act and its related permitting and other regulatory requirements. The changes are expected to include revisions to concepts such as continuous surface connection, “relatively permanent,” and jurisdictional versus non-jurisdictional ditches. In Sackett, the Supreme Court limited the scope of the Clean Water Act by clarifying that wetlands only qualify as WOTUS if they have a “continuous surface connection” to a traditional navigable waterbody. The decision overturned the prior “significant nexus” test which protected wetlands based on attenuated ecological relationships to navigable waters.
  • The nuclear industry got good news last week when Energy Secretary Wright spoke at a conference hosted by the American Nuclear Society last Monday and said that nuclear power will receive most of the money from the Energy Department’s loan office as the Trump Administration pushes to quickly break ground on new reactors. Secretary Wright still expects electricity demand from artificial intelligence to attract billions of dollars in equity capital to build new nuclear capacity from “very creditworthy providers.” He says the Energy Department will match those private dollars by as much as four to one with low-cost debt financing from its loan office.

Congress

  • As noted above, Congress completed work on legislation to reopen the government last week—passing it in the Senate on Monday by a vote of 60–40. All Republicans except for Sen. Rand Paul (KY) supported the reopening bill and were joined by Democratic Sens. Dick Durbin (IL), Catherine Cortez Masto (NV), Jacky Rosen (NV), Maggie Hassan (NH), Jeanne Shaheen (NH), Tim Kaine (VA), John Fetterman (PA), and Angus King (I-ME) in supporting the bill. All of the Democrats who supported the reopening deal are either retiring or not up for reelection in 2026. The House followed last Wednesday, approving the reopening measure in a 222–209 vote, with Republicans joined by Democratic Reps. Jared Golden (ME), Adam Gray (CA), Marie Gluesenkamp Perez (WA), Don Davis (NC), Henry Cuellar (TX), and Tom Suozzi (NY). Only two Republicans—Reps. Thomas Massie (KY) and Greg Stuebe (FL)—opposed the bill. This week, the Senate will try to advance a five-bill minibus covering Labor-HHS-Education, Interior, Defense, Transportation-HUD, and Commerce-Justice-Science, even as work on the remaining bills is complicated by year-end negotiations over expiring Affordable Care Act premium subsidies and the ongoing dispute over the release of Justice Department files related to Jeffrey Epstein.
  • As lawmakers continue negotiations over expiring subsidies for Affordable Care Act (ACA) health insurance premiums, Senate Republicans are  proposing health savings accounts (HSAs) as an alternative to the enhanced ACA premium tax credits. Under the GOP plan, healthcare funds would go directly to households instead of to insurance companies. Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy (R-LA) envisions federally pre-funded flexible spending accounts (FSAs) or HSAs that Americans could use to pay deductibles and other medical costs. Some Democrats counter that the proposal would make health insurance less affordable for low-income Americans by reducing direct subsidies, though a few have signaled openness if Republicans commit to affordability protections. In a sign of how far apart both parties remain from a deal over the expiring ACA subsidies, last Wednesday House Democrats introduced a discharge petition to force consideration of a bill extending the expiring ACA subsidies for another three years. They will need to get a handful of moderate Republicans to endorse the petition to reach the required 218 signatures to force a floor vote over the objections of Republican leaders. Rep. Brian Fitzpatrick (R-PA) carved out his own lane on the issue, leading a letter from the bipartisan House Problem Solvers Caucus urging Senate Majority Leader John Thune (R-SD) and Senate Minority Leader Chuck Schumer (D-NY) to work on a bipartisan basis to secure an extension for ACA health insurance premium subsidies set to expire at the end of this year.
  • Following two hearings on labor law reform over the last two months that we previously reported on, last Monday Senate Health, Education, Labor, and Pensions (HELP) Committee Chairman Bill Cassidy (R-LA) and other Republicans on the Committee introduced several bills to overhaul U.S. labor law. Chairman Cassidy introduced four bills: (1) S. 3115, the NLRB Stability Act, requiring the NLRB to be bound by federal court precedent; (2) S. 3114, the Union Members Right to Know Act, requiring unions to inform members of political spending and requiring workers to opt in to non-representational political spending; (3) S. 3117, the Workers Reforming Elections for Speedy and Unimpeded Labor Talks (RESULTS) Act, requiring secret ballot elections, eliminating card-check elections, and raising from 30% to 67% the workplace support a union must establish to hold a representation election; and (4) S. 3116, the Fairness in Filing Act, requiring parties bringing unfair labor practice charges to present evidence of wrongdoing at the outset of the complaint. In addition to the bills introduced by Chairman Cassidy, three other Senate HELP Committee Republicans introduced bills to change federal labor laws. Sen. Jim Banks (R-IN) introduced the Put American Workers First Act making it an unfair labor practice for a union to organize undocumented immigrants and for an employer to hire them. Sen. Tim Scott (R-SC) introduced S. 3128, the Worker Privacy Act, curtailing the information unions can obtain about workers for organizing efforts and prohibiting the use of this data for efforts not related to labor organizing. And Sen. Tommy Tuberville (R-AL) introduced S. 3124, the Protection on the Picket Line Act, preventing harassment of workers who cross picket lines. MCAA does not expect these bills to get much traction in the Senate, as none of them are bipartisan.

Around the Country

  • MCAA members that perform work for the Navy, operate in shipyards, or otherwise support the shipbuilding industry should know that South Korean shipbuilding giant Hanwha Ocean announced plans last Monday to invest $5 billion into the Philadelphia Shipyard, which the company acquired last year. The investment is intended to revive a shipbuilding workforce and supply ecosystem that has largely disappeared in the United States. Hanwha’s commitment comes in response to a request from President Trump that the company assist in constructing a nuclear-powered submarine for the U.S. Navy at the site as part of South Korea’s broader $150 billion initiative to support Trump’s effort to restore American shipbuilding. The joint U.S.–Korean projects so far include repairing U.S. military vessels, helping design Navy supply ships, and assisting American firms in expanding capacity, training workers, and improving production efficiency.
  • Last Monday, the U.S. Coast Guard (USCG) issued a Request for Information and market research that MCAA members may want to stay updated on as it seeks to identify prospective locations within the 150 largest U.S. metropolitan areas for a new, large training center the USCG wants to stand up very quickly. USCG seeks existing facilities that can be remodeled and made operational within 12 months of acquisition or lease. Prospective locations that meet at least six of the following requirements will be strongly considered: (1) lodging for 1,200 recruits; (2) a dining facility capable of seating 400 personnel; (3) a medical facility to support 1,000 personnel (minimum 200 medical encounters and 200 dental encounters per day); (3) 14 classrooms sized to accommodate 30-60 students; (4) an auditorium with a capacity of 500+ students; (5) a pool with 6 lanes, 25 yards in length, and a minimum depth of 4 feet; (6) a multipurpose gymnasium/athletic/sports facility suitable for sitting 1,200 personnel; (7) office space for 400 staff members; (8) a land area of 150-250 acres; and (9) proximity to a Small Commercial Service or larger airport within 30 miles. Responses are due by December 8, 2025 at 4:00 p.m. EST.

MCAA Government Affairs Update for the Week of November 10, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, November 10, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Administrators of MCAA pension and health benefit plans should take note of two developments from last week. Health plan trustees should know that Thursday, President Trump announced a deal with pharmaceutical companies Eli Lilly and Novo Nordisk to lower prices for the weight loss drugs Ozempic, Wegovy, Zepbound, and (if approved by the FDA) Orforglipron when purchased directly through the federal government’s TrumpRX web portal set to launch in January. The drug companies also agreed to provide most-favored-nation pricing for their other medications to Medicaid, as well as any new medications they bring to market under the deal. House Ways & Means Committee Ranking Member Richard Neal (D-MA) and Senate Finance Committee Ranking Member Wyden (D-OR) both issued statements saying that the President’s deal was possible because Democrats included the Medicare Price Negotiation program in the Inflation Reduction Act. Separately, pension plan trustees should be aware that last Tuesday, Securities and Exchange Commission (SEC) Chair Paul Atkins confirmed he has met with leadership at the Labor Department (DOL) to discuss how the regulators should implement President Trump’s August 7, 2025 Executive Order “Democratizing Access to Alternative Assets for 401(k) Investors” to add assets such as private equity funds and cryptocurrencies to the investment options of 401(k)s and other defined contribution plans. Chairman Atkins cautioned that before alternative assets can be added to defined contribution plans, the SEC will need more staff to develop a suitable regulatory framework. He also said that the SEC and DOL will plot “out a course to study and then make proposals for these sorts of retirement plans to be able to access alternative investments, but within guardrails, so we’re not just going to fling the gates wide open.”
  • Given MCAA’s interest in tariff issues discussed at this year’s policy conference in Washington, D.C., last Wednesday MCAA’s policy team listened to the Supreme Court’s oral argument over the President’s authority to impose emergency tariffs. A majority of Supreme Court justices sounded skeptical of President Trump’s authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) and encroach on Congress’s power to tax. Three of the conservative justices and all three liberal justices questioned the Trump Administration’s claim that the tariffs were “regulatory, not revenue-raising,” and seemed receptive of the plaintiffs’ argument that the Constitution reserves the power to tax to Congress alone. While skeptical of the Administration’s position, Justice Amy Coney Barrett expressed concern about the process of reimbursing businesses for tariffs they’ve already paid. Justice Neil Gorsuch observed that, “if the court allows Congress to broadly ‘hand off’ its tariff power to the president, there might be no limits on other constitutional powers Congress might be able to relinquish.” Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito sounded more sympathetic to the Administration. Following the oral argument, the odds on prediction market Kalshi for a ruling in favor of Trump’s tariffs plunged from about 44% to around 25%. Although the White House is projecting confidence it will prevail, the Administration has made it known that it has a contingency plan in case it does not. This plan involves using trade laws such as Section 232 of the Trade Expansion Act of 1962, Sections 301 and 122 of the Trade Act of 1974, and Section 339 of the Tariff Act of 1930 to re-create Trump’s IEEPA-based tariff regime. These alternatives, however, are narrower and take longer to deploy, so they would impede the President’s ability to impose new tariffs as quickly as he has been doing under IEEPA.
  • As we continue advocating to maintain President Biden’s Executive Order (EO) 14063 requiring project labor agreements (PLAs) on most large federal construction projects valued at $35 million or more, we wanted to note that last Wednesday, Alaska mechanical contractor Slayden Plumbing and Heating, Inc. sued the federal agencies that comprise the Federal Acquisition Regulatory (FAR) Council over its rule implementing the EO. The lawsuit alleges that the PLA requirement exceeds the president’s authority under the federal Procurement Act. Slayden Plumbing and Heating withdrew two bids on federal projects due to the PLA requirement, and the company says it derives a substantial portion of its work from federal projects.
  • The MCAA continues engaging with the Trump Administration on implementation of the One Big, Beautiful Bill Act (OBBBA), and we wanted MCAA members to be aware of developments last week in the Internal Revenue Service’s (IRS) implementation of the OBBBA’s “No Tax on Overtime” and “No Tax on Tips” provisions. Last Wednesday, the IRS issued Notice 2025-62 granting penalty relief for tax year 2025 related to new information reporting requirements for overtime pay and cash tips under the OBBBA. Employers and other payors will not face penalties for failing to provide separate accountings of “qualified overtime compensation” or cash tips—including the occupation of the employee receiving such tips—on wage statements or information returns, provided the rest of the filing is complete and accurate. This temporary relief applies only to 2025 filings and reflects the IRS’s acknowledgement that many employers lack systems to track and report this information. Last week’s, notice follows the agency’s earlier proposed rule that MCAA highlighted in the September 22, 2025 Government Affairs Update implementing the OBBBA’s “No Tax on Tips” deduction—which included certain home service occupations such as HVAC technicians, residential plumbers, and appliance repairers as “eligible occupations” for the tax deduction for qualifying tips from customers. The public comment period on this IRS proposal closed on October 22, 2025. If this rule is finalized as proposed, MCAA members employing such workers will have new obligations to track and report “qualified tips” for such workers on revised tax forms.
  • Last week, as MCAA continued engaging with the EPA on decarbonization issues, we learned there is an active debate about ending the EPA’s Energy Star program but “no final decision has been made at this time” as to whether it will be terminated or restructured after internal agency discussions flagged it as a “government-sponsored advertising scheme.” The program, which enables companies to display the blue Energy Star label on products meeting efficiency specifications is voluntary. Its future now hinges on the outcome of a broader agency review EPA Administrator Zeldin is undertaking even as the EPA this week renewed key Energy Star contracts through 2030.
  • Last Monday, the Energy Department announced a $100 million funding opportunity to refurbish and modernize the nation’s coal-fired power plants, aiming to extend their lifespan, improve efficiency, and strengthen grid reliability. The Notice of Funding Opportunity (NOFO), part of a broader $625 million plan to revitalize the coal industry, seeks projects focused on advanced wastewater management, coal-to-gas retrofits, and coal-natural gas co-firing technologies. Applications are due January 7, 2026, and will be managed by the National Energy Technology Laboratory.

Congress

  • As the government shutdown broke the record for the longest shutdown in U.S. history last week, prospects for reopening the government dimmed after Tuesday’s elections emboldened Senate Democrats to insist Republicans agree to renew Affordable Care Act subsidies as a condition of ending the impasse. Progressives appear to be persuading the Democratic congressional caucus that last week’s strong election victories show voters want them to hold firm. Congressional Republicans extended an olive branch, offering to rehire thousands of federal workers laid off during the shutdown and to guarantee back pay, but the White House has not yet agreed to those terms. Some Senate Democrats also quietly explored using a discharge petition to force House Republicans to vote on extending the ACA healthcare tax credits, but leadership dismissed the idea as unrealistic. Speaker Mike Johnson (R-LA) insists he will not commit to any vote on the healthcare subsidies, frustrating ongoing Senate negotiations over a “minibus” appropriations package expected to carry a short-term stopgap to end the shutdown and fund the government into January. President Trump is also complicating negotiations to reopen the government by continuing to demand GOP senators forgo negotiations with Democrats and instead abolish the legislative filibuster and then act unilaterally to reopen the government without making any deals with Democrats. Senate Majority Leader John Thune (R-SD) rejected the idea of abolishing the filibuster, saying “it’s just not happening.” Meanwhile, as the shutdown continues, the Federal Aviation Administration announced that ongoing staffing shortages and related safety concerns forced it to reduce flight capacity at 40 major airports beginning last Friday, starting with a 4% reduction that will phase up to 10% as the shutdown continues. On Friday, Secretary Duffy said this could rise to “15 or 20% if the shutdown continues.” The phased cuts impact peak travel hours between 6 a.m. and 10 p.m. and affect key hubs including Washington’s Dulles and Reagan National, the three New York-area airports, and airports in Los Angeles, Chicago, Atlanta, San Francisco, Boston, Dallas, Denver, and Miami. Many airlines are already offering refunds and free re-bookings as delays mounted across the country to end last week.
  • As the MCAA continues to engage the Trump Administration and Congress on matters affecting registered apprenticeship programs, last Wednesday, we attended the Senate Health, Education, Labor, and Pensions (HELP) Committee’s hearing entitled, “Registered Apprenticeship: Scaling the Workforce for the Future.” The witnesses were: (1) Brent Booker, General President of the Laborers’ International Union of North America (LiUNA); (2) John Downey, General President of the International Union of Operating Engineers; (3) Gardner Carrick from the Manufacturing Institute; (4) Latitia McCane from the Apprentice School, Newport News Shipbuilding; and (5) Josh Laney from the Competency-Based Education Network in Alabama. During the hearing, senators and witnesses—particularly LiUNA President Booker—highlighted the negative impact that the Trump Administration’s cancellation of energy and infrastructure projects is having on registered apprenticeship programs in the construction industry and efforts to recruit more young people into these programs. There was also discussion of the administrative and compliance costs small and medium-sized businesses incur when they sponsor registered apprenticeship programs. Senators and witnesses also discussed the importance of wraparound services, such as childcare and transportation, calling them essential to ensuring more people enter and complete apprenticeship programs.

    At the end of the hearing, HELP Chairman Bill Cassidy (R-LA) submitted to the record a letter from ABC arguing that overly prescriptive state regulation of apprenticeship programs discourages contractor participation. ABC wants the federal government to override states that “impose prescriptive requirements and limit adaptability” by having the U.S. Department of Labor redefine the term “trade” used in apprenticeship contract addenda—such as a ‘Schedule of Work Process,’ ‘Trade Information’ or ‘Exhibit A’”—to move away from imposing “required hours for uniform and trade-specific on-the-job training” and to “define on-the-job training hours as 75% uniform and approved by the DOL or a state, and 25% employer-specific, regardless of trade” to “allow contractors nationwide to align apprenticeship training with their operations and encourage greater” participation in apprenticeship programs. ABC also urged the development of “industry-recognized, national credentials that provide craft and safety training for today’s leading construction positions.”
  • In response to the Trump Administration’s ongoing cancellations of federal construction projects during the government shutdown, on October 31st, House Transportation Committee Ranking Member Rick Larsen (D-WA) led Committee Democrats in a letter to the U.S. Army Corps of Engineers requesting information on the Office of Management and Budget’s October 17th announcement that President Trump is pausing or cancelling over $11 billion in projects in Democratic-led states. The letter specifically requests an update on multiple projects of interest to MCAA authorized by Congress under the Water Resources Development Act, including water and wastewater infrastructure improvements in Queens, New York; the replacement of the Bourne and Sagamore bridges over the Cape Cod Canal in Massachusetts; navigational improvements and deepening of the Ports of New York-New Jersey, Long Beach, CA, and Baltimore, MD; and the South San Francisco Bay Shoreline project in California.
  • As MCAA continues advocating for permitting reform and enactment of the SPEED Act, last week we confirmed that House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) intends to include permitting reforms in the upcoming surface transportation reauthorization next year—which funds major infrastructure projects that drive demand across the construction trades. MCAA is educating Congress on the merits of the MCAA-endorsed SPEED Act permitting bill and the need to include it in any deal to advance permitting reform. We also learned that Chairman Graves plans to add money to the Highway Trust Fund  by imposing new user fees for electric vehicles (EVs) and hybrids under the reauthorization. His plan is expected to mirror language left out of the One Big, Beautiful Bill Act that would have imposed a $250 annual fee on EVs and a $100 annual fee on hybrids. Congress must pass the reauthorization before September 30, 2026 when the Biden-era Bipartisan Infrastructure Law expires. The committee is aiming to mark up the reauthorization in early 2026 and bring it to the House floor sometime in the spring. Democrats, however, are continuing to warn that the Administration’s continued cancellations of clean energy and transportation projects may frustrate bipartisan cooperation on the measure. This is a position we reported on in our September 15th report detailing the House Committee on Natural Resources Committee’s hearing on the SPEED Act and some other permitting reform bills. Since that hearing, the Administration has halted more projects in democratically-controlled states since the start of the government shutdown on October 1st.
  • On October 31st, Senate Homeland Security and Governmental Affairs Committee Ranking Member Gary Peters (D-MI), Environment and Public Works Ranking Member Sheldon Whitehouse (D-RI), and Energy and Natural Resources Ranking Member Martin Heinrich (D-NM) sent a letter to President Trump requesting information on the demolition of the East Wing of the White House to construct a ballroom, noting donors have been disclosed for only $60 million of the $200 million contributed by private companies, wealthy individuals, and other donors. The senators requested full disclosure of all donors and warned that the private funding poses “pay-to-play” corruption risks, noting that some of the donations that have been disclosed are from firms with large government contracts, including Lockheed Martin, Google, Booz Allen Hamilton, Meta, Palantir, and Caterpillar. They also raised concerns that the demolition violated federal laws requiring congressional and National Capital Planning Commission review and objected to the October 28th firing of all six members of the Commission of Fine Arts before it was scheduled to review the project. The senators requested contracts and solicitations for the project demonstrating compliance with the Federal Acquisition Regulations, any environmental assessments or impact statements, and documentation that required asbestos and lead-paint abatement plans were developed and followed. Congressional Republicans defended private funding for the ballroom and rejected Democrats’ calls for Congress to prohibit any taxpayer dollars being used for the project, which is expected to cost approximately $350 million. Last Wednesday, JPMorgan Chase CEO Jamie Dimon told CNN that his firm will not contribute to the White House ballroom because the bank has “to be very careful how anything is perceived—and also how the next DOJ is going to deal with it,” insinuating that he is concerned about being dragged into the political firestorm over the project and that he does not expect the controversy to end when Trump leaves office.

Around the Country

  • As the MCAA continues to engage the Trump Administration and Congress on efforts to build out domestic nuclear energy infrastructure, we wanted to be sure that MCAA members were aware that last Thursday, the Nuclear Regulatory Commission (NRC) announced the availability of a Draft Supplemental Environmental Impact Statement (SEIS) for the Tennessee Valley Authority’s (TVA) construction permit to build a GE-Hitachi BWRX-300 small modular reactor (SMR) at TVA’s Clinch River Nuclear Site in Roane County, Tennessee. The 300-megawatt BWRX-300 reactor would be the first SMR constructed and operated in the U.S. It will provide enough electricity to power around 175,000 homes. Comments on the EIS are due by December 22, 2025 and should be submitted through the federal eRulemaking portal using Docket ID NRC-2024-0146. The progress at the TVA comes, it was revealed last Thursday that X-energy, LLC has begun testing to evaluate performance of the TRISO-X advanced nuclear fuel at the Energy Department’s Idaho National Laboratory as part of the company’s efforts to establish the country’s first commercial advanced nuclear fuel fabrication facility supporting the deployment of Xe-100 small modular reactor designs. Testing of TRISO-X fuel will take place over the next 13 months to evaluate how the fuel performs at various power levels, temperatures, and burnup conditions to simulate a wide range of operating scenarios.
  • MCAA members in Texas should be aware that last Tuesday voters approved two constitutional amendments. By a 2-to-1 margin, Texans passed Proposition 1, creating two new state funds with $850 million in dedicated resources to expand vocational training at the state’s technical colleges—funding land purchases, new classrooms and labs, campus repairs, and updated equipment—all managed by the State Comptroller outside the state budget process. This measure may become a model for states focused on addressing the skills gap in construction and other occupations that do not require a four-year college degree. Voters also overwhelmingly approved Proposition 4, which should create work for MCAA members by dedicating up to $20 billion over the next 20 years to fix aging pipes, build reservoirs, and strengthen the state’s water supply. It is funded through annual sales tax revenue that will go into the Texas Water Fund beginning in 2027.
  • As the MCAA continues advocating for permitting reform to accelerate the construction of data centers and other large-scale infrastructure projects, last Tuesday, we learned that the Energy Department’s (DOE) Office of Environmental Management issued a Request for Offer (RFO) seeking proposals from companies to build and power artificial intelligence (AI) data centers at DOE’s Paducah site in McCracken County, Kentucky—one of four federal sites designated for AI infrastructure and clean-energy generation projects that will benefit from expediting permitting because they are on federal land. The solicitation invites companies to enter long-term lease agreements to develop facilities on the former Paducah Gaseous Diffusion Plant property. Selected developers would finance, construct, operate, and decommission their projects and must secure their own utility interconnection agreements. Proposals are due by January 30, 2026 at 4:30 p.m. ET. DOE will post future dates for a sponsored industry event for applicants to learn more about the solicitation process and requirements outlined in the RFO and to tour the sites available for consideration. Registration is required and potential attendees should email Marcia Fultz at marcia.fultz@pppo.gov for more information.

MCAA Government Affairs Update for the Week of November 3, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, November 3, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • After returning from his trip to Asia, last Thursday President Trump called on Senate Republicans “to play their ‘TRUMP CARD,’ and go for what is called the Nuclear Option—Get rid of the Filibuster, and get rid of it, NOW!” Trump argued that “Just a short while ago, the Democrats, while in power, fought for three years to do this, but were unable to pull it off because of Senators Joe Manchin of West Virginia and Kyrsten Sinema of Arizona. Never have the Democrats fought so hard to do something because they knew the tremendous strength that terminating the Filibuster would give them.” Senate Republican leadership quickly swatted down the President’s push to eliminate the filibuster, with spokespeople for Senate Majority Leader John Thune (R-SD) and Senate Majority Whip John Barrasso (R-WY) saying the lawmakers’ positions against ending the filibuster had not changed. Still, Trump’s post threw a monkey wrench into nascent bipartisan talks to end the shutdown that began in the Senate last week. Those talks center around sequencing a new continuing resolution—possibly through mid-December or into 2026—with a three-bill appropriations package containing the Agriculture-FDA, MilCon-VA, and Legislative Branch appropriations bills, and a vote to extend expiring Affordable Care Act subsidies. Amid these discussions, Senate appropriators are also continuing work on additional full-year funding bills, hoping to make progress on a second “minibus” package composed of the Defense, Labor-HHS, Transportation-HUD, and Commerce-Justice-Science funding bills consisting of $1.2 trillion in appropriations. Meanwhile, some Senate Democrats are contending that if their party does well in the gubernatorial elections in New Jersey and Virginia tomorrow, congressional Democrats should declare a political victory and begin to finalize the endgame for reopening the government. While Republicans say Democrats could agree to end the shutdown as soon as this week, Thune said longer-term negotiations—potentially including an ACA “working group”—would follow once the government is back open. Meanwhile, the economic toll of the shutdown continues to mount as illustrated by a new U.S. Chamber of Commerce report showing that more than 65,000 small business that are federal contractors have lost a combined $12 billion in October alone—roughly $3 billion a week. As last week ended, several Republicans were alarmed by the impending expiration of Supplemental Nutrition Assistance Program (SNAP) benefits, including Sens. Josh Hawley (R-MO), Lisa Murkowski (R-AK), and Susan Collins (R-ME). But late Friday federal judges in Rhode Island and Massachusetts issued separate rulings barring the Administration from ending SNAP benefits set to expire on Saturday. The judges also ordered the Administration to use a $5 billion contingency fund to continue the food benefits while the government shutdown continues. Heading into the weekend it was not clear if the Administration would appeal the rulings, and if it did not, how quickly the debit cards that SNAP beneficiaries use to buy groceries could be reloaded to comply with the court orders.
  • As part of the MCAA’s advocacy supporting development of large-scale energy infrastructure projects, the Energy Department published an interim final rule last Tuesday amending its loan guarantee regulations to implement the “Energy Dominance Financing” (EDF) authority established by the One Big, Beautiful Bill Act (OBBBA). The EDF replaces the Inflation Reduction Act’s “Energy Infrastructure Reinvestment” (EIR) program. The new EDF authority allows DOE to guarantee up to $250 billion in loans through September 30, 2028 for projects that retool, repower, repurpose, or replace energy infrastructure; expand capacity or output; or enhance grid reliability. Unlike the IRA’s EIR program, the new EDF authority is not limited to projects that reduce or avoid greenhouse gas emissions, the EDF authority broadens eligibility to include midstream fossil fuel infrastructure, baseload generation, and grid-stability resources. Relatedly, the Energy Department last Wednesday closed its second loan under the EDF program, lending $1.5 billion to Wabash Valley Resources, LLC to restart and repurpose a coal gasification plant in West Terre Haute, IN as an ammonia fertilizer facility. The plant, which has been idled since 2016, is expected to produce 500,000 metric tons of anhydrous ammonia per year using coal from a nearby southern Indiana mine and petcoke as feedstock.

  • There were several developments last week that may interest Administrators of MCAA pension and health plans. For pension plans, last week the Pension Benefit Guaranty Corporation set the 2026 multiemployer flat-rate premium at $40 per participant—a $1 increase from 2025. MCAA plans with a 401(k) component may also be interested to know that Sens. Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) warned that President Trump’s Executive Order on “Democratizing Access to Alternative Assets for 401(k) Investors” could expose retirement savers to risky private funds and cryptocurrencies. The Senators called the move “dangerous” amid rising living costs and said it raised conflict-of-interest concerns after reports that the Trump family gained billions in paper wealth from recent crypto ventures. On the healthcare front, last Tuesday, the Centers for Medicare and Medicaid Services (CMS) released its Plan Year 2026 Marketplace Plans and Prices Fact Sheet ahead of the November 1–January 15 open enrollment period, projecting that tax credits will cover 91% of the lowest-cost plan premium next year compared to 85% in 2020—the last year unaffected by temporary ACA subsidies set to expire absent Congressional action. Following the release, Democrats on the Senate Finance Committee accused the Trump Administration of concealing rate information to mask “the biggest premium hike in history,” while the Kaiser Family Foundation and other experts said CMS’s figures are misleading because they highlight the lowest-cost bronze plan rather than the benchmark silver plan that determines tax credits. According to KFF, enrollees could pay about 114% more to keep the same plan if ACA subsidies expire, while actual insurer rates are expected to rise about 26%. Meanwhile, senators from both parties last week reported progress on bipartisan legislation to reform the 340B drug pricing program, which requires drugmakers to sell discounted drugs to hospitals and clinics serving low-income patients but has been criticized for contributing to higher overall costs. Senate HELP Committee Chairman Bill Cassidy (R-LA) is also preparing a separate measure addressing hospitals’ use of drug savings and transparency around contract pharmacies.

  • President Trump signed a proclamation on October 24th granting two years of regulatory relief from a May 2024 Biden EPA rule on “National Emission Standards for Hazardous Air Pollutants: Primary Copper Smelting Residual Risk and Technology Review and Primary Copper Smelting Area Source Technology Review,” which imposed new emissions-control mandates on domestic copper smelters. The Trump Administration argued that the Biden-era “Copper Rule’s” uniform compliance deadlines failed to reflect the technical constraints and high retrofit costs faced by U.S. copper smelters, risking shutdowns that would further tighten global supply. Industry analysts say that the suspension could stabilize domestic refined copper output and ease price pressures, since stricter controls were expected to reduce U.S. production by up to 10% and boost dependence on imports from Chile and China.
  • At the end of last week, Energy Secretary Chris Wright formally directed the Federal Energy Regulatory Commission to assert jurisdiction over large electrical loads—such as AI data centers and major industrial facilities—that connect directly to the interstate transmission grid and to fast-track new rules standardizing and expediting those interconnections. The directive included a draft Advance Notice of Proposed Rulemaking suggesting changes for “large loads” of 20 MW or more and hybrid facilities where load and generation co-locate. Notably, both Democratic FERC Commissioners Allison Clements and David Rosner signaled support for the proposal. If implemented, the rule could streamline approvals for large computing facilities and the power plants that serve them, reshaping how grid operators integrate high-capacity loads and reinforcing DOE’s push to align energy infrastructure growth with the rapid expansion of artificial intelligence and digital industries.

  • This week, there was lots of discussion in D.C. about an October 21st directive to federal agencies issued by acting White House Office of Information and Regulatory Affairs (OIRA) Jeffrey Clark to speed up efforts to repeal existing regulations as part of the Trump Administration’s broader deregulatory push. The memo tells federal agencies to treat repealing rules differently from creating new ones and allows them to skip certain procedural steps, such as conducting impact analyses on energy supply and small businesses or consulting with state and local governments. The memo also shortens OIRA’s review periods to 14 days for rules deemed unlawful and 28 days for other repeals, down from the usual 90 days. The issuance of this memo to speed deregulatory activities during the shutdown is being viewed as “priming the pump” for a wave of deregulatory activity intended to help agencies meet the President’s goal of repealing 10 regulations for every new regulation issued.

Congress

  • The MCAA attended last Wednesday’s Senate Environment and Public Works Committee markup of several nominees and bills of interest to our association. Among the notable nominees, the committee approved Jeffrey Hall to lead EPA’s Office of Enforcement and Compliance Assurance (OECA) and Douglas Troutman to serve as EPA Assistant Administrator for Toxic Substances, each by a 10–9 party-line vote. Ho Nieh was approved 13–6 to join the Nuclear Regulatory Commission, while the nominations of Mitch Graves, Jeff Hagood, Randall Jones, and Arthur Graham to the Tennessee Valley Authority Board of Directors advanced 10–9. Most of the discussion during the markup occurred in relation to Mr. Hall’s nomination to lead OECA, which is responsible for ensuring that companies and other regulated entities are following environmental laws, including the phase down of HFCs pursuant to the AIM Act, and referring criminal violations of EPA standards to the Justice Department for prosecution. Committee Chair Sen. Shelley Moore Capito (R-WV) said that the Biden Administration put too much emphasis on penalizing regulated entities, rather than helping them to ensure compliance, and that she believed Hall would take a more balanced approach. Committee Ranking Member Sen. Whitehouse (D-RI) objected to Hall’s nomination, calling him “another industry crony, here to serve the big polluters who have occupied this administration.” Whitehouse also noted that the Justice Department has filed fewer environmental enforcement complaints under the second Trump Administration than in any previous presidential administration.

    In addition to advancing nominees, the committee also voted 16–3 to favorably report the bipartisan Nuclear REFUEL Act (S. 2082), which clarifies that nuclear fuel recycling facilities producing fuel for advanced reactors would follow the same regulatory path as uranium enrichment and fuel fabrication plants. MCAA members in the DC metro area should know that during the markup, Republicans approved a resolution on a party-line vote authorizing the Trump Administration to relocate the new FBI headquarters to the Ronald Reagan Building in downtown Washington, D.C. instead of the previously selected Greenbelt, Maryland site. The General Services Administration will use roughly $844 million in previously appropriated funds, while the FBI will contribute $555 million toward the move. Maryland Sen. Chris Van Hollen (D) sharply criticized the decision, arguing that the administration provided “minimal planning and zero transparency,” noting the proposal lacks a completed security plan and includes only a partial cost assessment.

Around the Country

  • MCAA members operating in New York City should be aware that last Thursday the U.S. Transportation Department provided updates on the New York Penn Station “Transformation” Project conducted in partnership with Amtrak. DOT highlighted: (1) the release of a solicitation for the project’s master developer, for which Letters of Interest may be submitted through Amtrak’s Procurement Portal; (2) the selection of Public-Private Partnership advisors to help structure the project approach and agreements, including Hunton Andrews Kurth LLP as Legal Advisor, KPMG as Financial Advisor, and AKRF as the project environmental consultant; and (3) the initiation of the project’s Service Optimization Study to analyze how to accommodate passenger service growth at New York Penn Station and the surrounding region.
  • Last week, MCAA’s lobbying to enact the Standardizing Permitting and Expediting Economic Development (SPEED) Act got some notable support from the National Governors Association (NGA). On behalf of the NGA, a group of bipartisan governors from across the country urged Congress to streamline infrastructure project reviews, improve interagency coordination, and modernize the National Environmental Policy Act (NEPA) review process to eliminate duplication and provide greater regulatory certainty. These permitting reform prescriptions mirror provisions of the MCAA-supported SPEED Act. The NGA letter explains that “this set of ideas represents areas of potential common ground and would reduce barriers to developing critical energy infrastructure at the pace needed to win the AI race, lower costs for consumers, and responsibly develop the advanced energy sources of the future.” The NGA letter was signed by the governors of Pennsylvania, Oklahoma, Colorado, Connecticut, Indiana, Louisiana, Maryland, Massachusetts, North Dakota, Rhode Island, Tennessee, Utah, and Wyoming.

  • A new report underscores the importance of the MCAA’s ongoing advocacy for permitting reforms to speed deployment of energy infrastructure and meet growing demand from data centers and emerging AI technologies. Last Monday, the U.S. Energy Information Administration (EIA) projected that the 42% of U.S. households heating with electricity will see winter expenditures rise 4% to an average of $1,133, driven mainly by higher retail electricity prices rather than increased usage. With the Northeast facing the highest costs at $1,520 on average.
  • As MCAA presses to speed the permitting of major technology and energy infrastructure, we are struck by the continuing stream of major public-private partnerships being announced during the government shutdown to advance artificial intelligence (AI) and data center infrastructure. Last Wednesday, the Department of Energy’s Los Alamos National Laboratory in New Mexico selected HPE and NVIDIA to develop and deploy two new AI supercomputers to help scientists assess and modernize U.S. nuclear security capabilities. This followed the Energy Department’s Argonne National Laboratory announcing a partnership with NVIDIA and Oracle last Tuesday to build Solstice—the DOE’s largest AI supercomputer, featuring 100,000 NVIDIA Blackwell GPUs—and a smaller system, Equinox, slated for delivery in 2026. Meanwhile, last Monday, the Energy Department’s Oak Ridge National Laboratory in Tennessee unveiled a new public-private partnership model and two AMD-powered AI supercomputers—Lux and Discovery—representing more than $1 billion in combined public-private investment. Lux is set to come online in early 2026 to expand near-term AI capacity for research in nuclear energy, materials discovery, grid modernization, and advanced manufacturing, while Discovery is expected in 2028. And the U.S. Air Force recently issued a Request for Lease Proposals seeking private developers to construct AI data centers at Air Force five installations—Edwards AFB (CA), Davis-Monthan AFB (AZ), Arnold AFB (TN), Robins AFB (GA), and Joint Base McGuire-Dix-Lakehurst (NJ). The land being offered for lease at these five bases totals roughly 3,000 acres, with each project requiring at least $500 million in investment and 100 megawatts of new power.
  • Energy Secretary Wright highlighted the need to retain all existing generating capacity while the nation works to build more in issuing an emergency order allowing PJM Interconnection, in coordination with Talon Energy, to continue operating Unit 4 of the H.A. Wagner Generating Station in Anne Arundel County, Maryland, beyond its annual 438-hour limit imposed by the EPA to reduce annual greenhouse gas emissions from this oil-fired generating unit. Secretary Wright said the order was necessary to precent blackouts in 13 states that could impact 65 million Americans “in the coming winter months.”
  • MCAA members that perform work for the Navy, operate in shipyards, or otherwise support the shipbuilding industry should know that at the beginning of last week, South Korea’s HD Hyundai Heavy Industries and U.S. shipbuilder Huntington Ingalls Industries signed a memorandum of agreement to jointly build U.S. Navy auxiliary ships, with plans focused on establishing production capacity along the U.S. Gulf Coast, including potential expansion near Pascagoula, Mississippi, where Huntington Ingalls already operates its Ingalls Shipbuilding complex. The companies will explore joint investments to build new shipyards or acquire existing facilities to support fleet logistics.

MCAA Government Affairs Update for the Week of October 27, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, October 27, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Last Friday, it was revealed that the Trump Administration is preparing a new offshore drilling proposal that would open nearly all U.S. coastal waters to oil and gas leasing from 2026 to 2031. The draft plan, developed by the Interior Department’s Bureau of Ocean Energy Management, outlines potential lease sales along the Atlantic, Pacific, Arctic, and Gulf coasts, signaling a significant expansion beyond the long-developed portions of the Gulf of America. The proposal represents the first step in replacing the Biden-era oil and gas leasing program, under which just three lease sales were scheduled through 2029. While the plan could be revised before publication, it aligns with the Trump Administration’s broader strategy to boost domestic energy production pursuant to Trump’s January 20, 2025 Executive Order 14156, “Declaring a National Energy Emergency.”
  • Also last Friday, President Trump selected Laura Swett as the next Chair of the Federal Energy Regulatory Commission (FERC). Swett was confirmed by the Senate as a member of FERC on October 7, 2025 for a term expiring on June 30, 2030. She previously served at FERC advising a former Chairman and Commissioner, and as a lead attorney in FERC’s Office of Enforcement.
  • Last Thursday, MCAA’s Washington, DC team served as a non-participant observer to the Energy Department’s introductory meeting regarding voluntary Defense Production Act (DPA) agreements with a consortium of domestic nuclear energy companies to facilitate an increase in the production and availability of nuclear energy in response to President Trump’s May 23, 2025 Executive Order (EO) 14302 “Reinvigorating the Nuclear Industrial Base.” The EO emphasized that the United States currently faces a variety of serious nuclear energy-related challenges ultimately affecting national security and preparedness, prompting this DPA working group.

    The meeting was an introduction for invited DPA consortium members and was followed by a series of closed meetings between representatives from consortium members and DOE, the Federal Trade Commission (FTC), and Department of Justice (DOJ). During the open public meeting, DOE announced that it has made the draft version of the DPA Voluntary Agreement available on regulations.gov in advance of its publication in the Federal Register next month to gather public comments. Industry participants in this DPA working group must be approved and sign the final DPA voluntary agreement. Pursuant to Section 708 of the DPA, participants in this working group are provided with immunity for liability for collaboration and information sharing that might otherwise result in claims for violations of federal or state antitrust laws. This liability shield is intended to ensure DPA consortium members are free to work with the government and other companies to collaborate and address a national security priority.

    Under the terms and conditions of the Draft DPA Voluntary Agreement, the Assistant Secretary for Nuclear Energy would serve as the consortium’s Chair, while the Deputy Assistant Secretary for Nuclear Fuel Cycle would serve as the Vice Chair. The consortium steering committee will consist of representatives from DOE, DOJ, the FTC, and the National Nuclear Security Administration (NNSA), including DOE’s Deputy Assistant Secretaries for Nuclear Reactors and High Level Waste and Disposition. The consortium will have seven committees consisting of a DOE official, representatives from DOJ, the FTC, and NNSA, and industry participants that have “substantive capabilities, resources or expertise,” to facilitate necessary actions. Each committee will be charged with developing Plans of Action (POAs) to “bolster the domestic nuclear fuel cycle to enable the continued reliable operation of the Nation’s existing, and future, nuclear reactors.” Specifically, the seven committees will develop POAs for the following stages of the nuclear fuel cycle: (1) uranium mining and milling; (2) uranium conversion; (3) uranium deconversion; (4) uranium enrichment; (5) fuel fabrication; (6) spent nuclear fuel recycling and reprocessing; and (7) end-use. In determining committee members, the Chair will select consortium participants representative of the segment of the nuclear industry covered by the POA.
  • MCAA members that perform work for the Navy, operate in shipyards, or otherwise support the shipbuilding industry will be interested to know that last Wednesday the Pentagon sent a memo to Congress detailing how it plans to spend an initial $89.3 billion installment of defense funding authorized by the One Big Beautiful Bill Act. In following up to learn more about the spending outline and how it may generate work for MCAA members, we learned that it directs $17.7 billion for shipbuilding covering construction of new naval vessels and to fund workforce development programs to train workers to build more ships. The naval construction plan includes two guided-missile destroyers, a Virginia-class submarine, and three T-AO oilers. The Pentagon memo also includes $2.5 billion to modernize unspecified Air Force facilities and $1.8 billion for improvements to troop barracks and military housing. These plans for more shipbuilding come ahead of a hearing scheduled for this Tuesday, October 28th in the Senate Commerce Committee’s Subcommittee on Coast Guard, Maritime, and Fisheries on “Sea Change: Reviving Commercial Shipbuilding.” The hearing will examine how to modernize and accelerate U.S. commercial shipbuilding and strengthen America’s broader maritime industrial base.

Congress

  • As the government shutdown heads into its fourth week, congressional leaders are exploring longer-term funding options and potential changes to the Senate filibuster. Senate Majority Leader John Thune (R-SD) last week acknowledged that lawmakers may need to pass a longer continuing resolution (CR)—which would require the House to return to D.C. Among the options Republican leaders are considering are CRs extending funding through December 2025, January 2026, or even September 2026. Congressional appropriators are pushing for a shorter extension because they want to finalize appropriations bills that allow them to fund new priorities, and pass funding for member-directed projects (a.k.a. “earmarks”) that would not be part of a CR. Meanwhile, GOP leaders are quietly discussing scaled-back ACA subsidy extensions with income caps to help vulnerable House Republicans, while contending with a rising trickle of calls to eliminate the Senate filibuster for government funding bills. The calls for filibuster reform are now bipartisan as Sen. John Fetterman (D-PA) and Rep. Chip Roy (R-TX) both urged Leader Thune to take this step, but Thune is a longstanding opponent of altering the filibuster outside the context of confirming Presidential nominees. As this week begins, everyone is watching to see if either party will blink as pressure to reopen the government mounts after federal employees missed another paycheck last Friday and ahead of a looming deadline to pay the military this Friday (October 31st). Some members are also facing pressure from a growing number of states announcing that their SNAP food assistance programs will end on Friday and as open enrollment begins for insurance on Affordable Care Act Exchanges with higher prices reflecting that Congress has not yet extended ACA premium subsidies set to expire at the end of the year. There is also the “wildcard” of growing airport delays and cancellations.
  • Last Wednesday, the MCAA attended the Senate Health, Education, Labor, and Pensions (HELP) Committee’s second labor law reform hearing entitled, Labor Law Reform Part 2: New Solutions for Finding a Pro-Worker Way Forward during which lawmakers debated the future of collective bargaining, worker choice, and union accountability. HELP Chair Bill Cassidy (R-LA) and Republican witnesses such as Thomas Beck of management law firm Littler Mendelson and Vincent Vernuccio of the conservative Institute for the American Worker argued for more disclosure of how unions spend dues—particularly on political activities—and for “worker choice” by mandating secret-ballot elections and outlawing neutrality agreements while also limiting what they called “frivolous” unfair labor practice charges. Chairman Cassidy and Sen. Ashley Moody (R-FL) also focused on making it easier for union members to get back the portion of their union dues used to support political causes with which they don’t agree. GOP witness Jonathan Hartley, a Stanford graduate student, detailed his experience of being required to join a union whose dues funded political activity he opposed. Sen. Josh Hawley (R-MO) discussed Boeing cutting workers’ healthcare during an ongoing strike at its St. Louis facility.

    Democrats argued that the real challenge workers face is corporate resistance to unions and the willingness of companies to commit unfair labor practices that suppress unionization because of the modest penalties associated with doing so. HELP Committee Ranking Member Bernie Sanders (I-VT) and other committee Democrats—including Maggie Hassan (D-NH), Tammy Baldwin (D-WI), Ed Markey (D-MA), and John Hickenlooper (D-CO)—advocated for passage of the Protecting the Right to Organize (PRO) Act. They said the bill is vital to restore collective bargaining rights and hold employers accountable. Witnesses Mary Turner of National Nurses United and IAM shop steward Joshua Arnold described how employers fail to negotiate fair contracts—citing Boeing’s stalled talks with machinists—and endorsed stronger bargaining protections, fair contract standards, and apprenticeship programs that provide hands-on training for skilled union labor. Democrats also highlighted the need for pro-worker reforms to safeguard healthcare benefits and workplace rights during strikes.
  • Last Tuesday, the MCAA team attended the Senate Commerce Committee’s markup of the MCAA-endorsed “PIPELINE Safety Act” (S. 2975) which was approved by unanimous voice vote and now goes to the full Senate. The bill provides a 5-year, $1.65 billion reauthorization of the Pipeline and Hazardous Materials Safety Administration (PHMSA). MCAA has been lobbying in support of this legislation and sent a formal letter of endorsement to the Committee last week in anticipation of the markup. MCAA praised the bill’s provisions to strengthen the nation’s energy infrastructure and enhance worker and community safety, as well as its focus on emerging fuels and energy transition technologies. MCAA specifically cited the bill’s requirements for studies and potential rulemakings related to hydrogen blending and carbon dioxide pipelines, the reauthorization of PHMSA’s grant programs, and the creation of dedicated Natural Gas Distribution Infrastructure Safety and Modernization funding that will support good-paying, skilled jobs in the mechanical and construction industries. The Committee’s markup and approval of S. 2975 moved quickly, reflecting the strong bipartisan support for the legislation. Prior to its passage, the Committee adopted by voice vote a manager’s amendment offered by Chairman Cruz (R-TX) and Ranking Member Cantwell (D-WA). Among other things, it added a provision generally setting a 180-day timeline for granting pipeline operators nonemergency waivers from compliance with federal pipeline safety regulations. The Committee also adopted by voice vote an amendment from Sen. Ben Ray Luján (D-NM) requiring PHMSA to expand a mandated report to Congress on the effects of weather on the safety of natural gas pipeline facilities to specifically include the February 2021 Winter Storm Uri and the December 2022 Winter Storm Elliot. It requires that within 90 days after the report is submitted, PHMSA review the distribution integrity management plans of pipelines that are at increased risk of applicable weather events to ensure that the owners and operators of those pipelines are mitigating those effects to ensure public safety.
  • Last Monday, Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy (R-LA) sent a letter to Labor Secretary Lori Chavez-DeRemer supporting the Labor Department’s plans to replace the Biden-era, MCAA-supported final rule on “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” (Prudence and Loyalty Rule). This rule replaced a regulation from President Trump’s first term called the Financial Factors in Selecting Plan Investments rule that the MCAA and its allies in the National Coordinating Committee on Multiemployer Plans (NCCMP) opposed because it eliminated clear, longstanding procedures for fiduciaries to follow when selecting plan investments and imposed new, vague standards threatening increased legal uncertainty for plan trustees. During the last Administration, MCAA and its allies successfully lobbied to rescind the Trump-era Financial Factors rule and replace it with the Prudence and Loyalty Rule, returning to the clearer standards for plan fiduciaries to use when selecting plan investments. This rule also clarified that it is legitimate for trustees to select from equivalent investments based on whether they create work for plan participants that generate contributions to the plan. In his letter the Labor Secretary, Chairman Cassidy inaccurately characterized the Prudence and Loyalty Rule as allowing fiduciaries to “choose investments or exercise shareholder rights based on subjective, unprovable factors to further an ideological agenda.” Chairman Cassidy also issued a press release on his letter, highlighting his longstanding efforts to prevent the consideration of ESG factors in investment decisions related to retirement assets.

Around the Country

  • As the MCAA continues advocating for permitting reform to accelerate construction of data centers and other large-scale projects, new private-sector projects were announced last week even as federal permitting reform legislation remains stalled with the House having adjourned during the shutdown. Last Wednesday, Applied Digital announced it had signed a $5 billion, 15-year infrastructure lease agreement with an unnamed U.S. hyperscaler to deliver 200 megawatts of capacity at its Polaris Forge 2 campus in North Dakota. The agreement—following a separate $5 billion funding commitment from Macquarie Asset Management earlier this month—brings the company’s total leased capacity to 600 megawatts across its two Polaris Forge campuses. Also last Wednesday, Soluna Holdings announced plans for a new data center in Willacy County, Texas that will be powered by wind energy and designed as a “flexible-load” facility capable of adjusting power use based on grid conditions. These project announcements come as new polling finds mounting public concern over AI’s environmental toll. Nearly four in ten Americans say they are highly worried about AI’s impact on the planet. The survey also revealed that people are more concerned about the environmental impact of AI and related data centers than they are about the environmental impacts of meat production, air travel, or cryptocurrency mining. Public concern seems to focus on the massive energy and water demands of the AI industry, and the fact that data centers are often powered by fossil fuels like natural gas. This is prompting concerns that the rise of AI infrastructure will accelerate climate change, especially as some major tech firms scale back their carbon emission reduction goals.
  • MCAA member companies may want look at Clayco’s second annual mental health survey released last week showing that more than one in five construction executives admit they are less likely to assign important tasks to workers who disclose mental health concerns. The survey, which included responses from over 1,000 industry leaders across the U.S., also found that 30% of executives said such employees are more closely monitored. The survey also highlights a worsening mental health crisis in the construction industry overall, with 64% of workers reporting anxiety or depression in the past year—up from 54% in 2024. While 80% of executives claim their organizations offer mental health support, only 61% of workers believe those services are actually available. More than a third of workers reported discrimination after seeking help, and 45% said they feel ashamed discussing mental health on the job.
  • Last Tuesday, the Energy Department (DOE) issued a solicitation to purchase one million barrels of U.S. produced sour crude oil for delivery to the Strategic Petroleum Reserve (SPR) at the Bryan Mound site in Brazoria County, Texas between December 1, 2025 and January 31, 2026. The One Big Beautiful Bill Act appropriated $171 million to begin refilling the SPR, which currently holds just over 400 million barrels of its 700 million barrel capacity. Bids for the solicitation are due by 11am CT on October 28, 2025.
  • Last Tuesday the Environmental Protection Agency (EPA) issued three Underground Injection Control (UIC) Class VI permits to ExxonMobil for a project in Jefferson County, Texas that will convert three existing test wells to carbon dioxide storage injection wells for long-term storage. The permits allow ExxonMobil to inject an average of 1.1 to 1.67 million metric tons of carbon dioxide per year into each well, with a maximum total of 5 million metric tons per year across all three injection wells. Over the 13-year injection period, ExxonMobil would be allowed to inject a maximum of 53 million metric tons of carbon dioxide.
  • Given the MCAA’s successful efforts to retain tax credits for carbon capture and sequestration in the One Big Beautiful Bill Act, we wanted to be sure that MCAA members operating in Indiana were aware that last Tuesday the Environmental Protection Agency (EPA) opened public comments, until December 8, 2025, on a draft carbon storage permit from One Carbon Partnership for carbon sequestration at the Cardinal Ethanol Facility in Randolph County, Indiana. Under the proposed plan, One Carbon Partnership would be permitted to inject up to 450,000 metric tons of carbon dioxide per year for 30 years. The deep formation where the injected carbon would be permanently stored is between 3,100 and 3,659 feet beneath the surface and is protected by a 487-foot-thick confining zone composed of caprock, preventing carbon from migrating upward into underground sources of drinking water. The EPA will host a public hearing related to this permit at the Winchester Community High School Commons, 700 N Union Street, Winchester, Indiana 47394 on December 4, 2025 from 5:30pm to 9pm. There is no stated requirement to pre-register in order to attend the meeting.
  • MCAA members operating in Michigan should be aware that on October 16th, Michigan sued the U.S. Department of Energy (DOE) in the U.S. Court of Appeals for D.C. over a DOE order extending the life of a coal plant in West Olive, MI that was due for retirement. DOE issued an emergency order on August 20, 2025 to keep the J.H. Campbell plant open in response to concerns over electric grid strains. Michigan’s lawsuit alleges that the August order is based on a fabricated energy emergency and disregards prior regulatory approvals for the plant’s planned retirement. The state also claims the order imposes unnecessary costs on Michigan ratepayers and exceeds DOE’s authority under the Federal Power Act. This case could set a national precedent if it undermines the power of the Trump Energy Department to stop states from closing coal-fired power plants to maintain their power generation on the grid.

MCAA Government Affairs Update for the Week of October 20, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, October 20, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • The MCAA is continuing its advocacy despite the ongoing government shutdown, which entered its third week after the Trump Administration took action last week to reprogram funds to alleviate impending deadlines that could serve as a pressure point to bring congressional leaders to the table. The week started with President Trump ordering Defense Secretary Pete Hegseth to “use all available funds to get our Troops PAID,” which required the Pentagon to redirect $8 billion of unobligated research, development, testing, and evaluation funds from the prior fiscal year to cover the military’s payroll. The Administration also moved money around to ensure that the Women, Infants, and Children (WIC) supplemental food program for low-income women and children continues during the shutdown and is working to find money to pay federal law enforcement, including U.S. Capitol Police and immigration officers who are continuing to work. But there is not enough money to pay everyone doing critical functions for the federal government. Last Thursday, Energy Secretary Chris Wright warned that the Energy Department would begin furloughing contractors at the National Nuclear Security Administration due to the shutdown. And Treasury Secretary Scott Bessent acknowledged that the ongoing government shutdown is beginning to affect the U.S. economy—potentially costing as much as $15 billion per week.
  • Despite the shutdown, the Administration is continuing to take trade actions of interest to MCAA members. The Office of the U.S. Trade Representative (USTR) last Friday issued a notice eliminating and amending certain Section 301 trade actions previously announced on April 23, 2025 to spur U.S. shipbuilding, including a proposal to suspend liquefied natural gas (LNG) export licenses for companies that failed to meet requirements for shipping fuel on U.S.-built LNG tankers starting in the second half of the decade to “avoid potential short-term disruptions to the LNG sector.” Comments on this and other proposed modifications are due by November 10, 2025 and should be submitted through the USTR’s comment portal using Docket ID USTR-2025-0017. This followed a statement last Wednesday on the Administration’s strategy to address China’s threats to manipulate the market for strategic goods, such as rare earth minerals. Treasury Secretary Scott Bessent announced the Trump Administration would backstop domestic production and suppliers in allied nations by establishing price floors across a range of strategic goods. The measures could include the U.S. taking equity stakes in more companies, similar to the deal the Administration announced in July with rare earth miner MP Materials. Additionally, the Administration plans to create a strategic mineral reserve. Secretary Bessent justified centralized, national industrial policy as necessary to compete against China’s non-market economy and to ensure U.S. self-sufficiency in critical industries.
  • MCAA’s work to unwind the prior Administration’s decarbonization agenda also continued last week. Policies hostile to natural gas and oil continue to be rolled back as the nation’s primary banking regulatory agencies (the Federal Deposit Insurance Corporation, the Federal Reserve, and the Office of the Comptroller of the Currency) withdrew interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions. These principles created a framework requiring federally-regulated financial institutions with more than $100 billion in total consolidated assets to manage their climate-related financial risks with a particular focus on reducing not only the use of, but also funding for oil and gas development that the previous administration viewed as a leading cause of climate change and air pollution. The agencies now reject the idea that principles specific to climate-related financial risk are necessary because they say their existing safety and soundness standards require all supervised institutions to have effective risk management commensurate with their size, complexity, and activities. A prepublication notice of this rescission of interagency guidance is available here.
  • As MCAA continues monitoring the National Labor Relations Board (NLRB) and pending nominees to restore the Board’s quorum to operate and the Board’s General Counsel. While these nominees remain pending in the U.S. Senate, last Wednesday the NLRB filed a lawsuit asserting NLRA preemption of a California law giving the state’s Public Employment Relations Board authority to certify union elections and adjudicate unfair labor practice charges in instances where the NLRB lacks a quorum or when the state determines that the board has ceded its authority. California’s Public Employment Relations Board historically has overseen union elections and disputes involving state and local government employees, but the new law extends its jurisdiction to include private sector workers covered by the National Labor Relations Act.
  • As a strong advocate of nuclear energy, MCAA was encouraged last Tuesday by the U.S. Army’s launch of the Janus Program, a nuclear energy initiative to strengthen both national security and the domestic nuclear industry. The program will deploy Army-regulated nuclear microreactors by 2028 using a fast-track contracting and permitting model. The reactors will be commercially owned and operated, with the Army providing oversight and technical support.
  • In another positive development regarding nuclear energy, last week, MCAA received word about (and was encouraged to participate in) an October 23, 2025 Department of Energy meeting of a Defense Production Act (DPA) consortium to discuss development of voluntary agreements and plans of action to utilize DPA authorities to expand domestic production of nuclear power. The consortium is composed of companies involved in the nuclear fuel cycle, as well as end-users of nuclear power. Further details on the consortium and its work are available here. Any interested MCAA members can sign up to listen to the meeting online here. The meeting follows DOE’s August 25, 2025 interim final rule establishing procedures at 10 CFR 821 for reaching DPA agreements with domestic nuclear energy companies to expand U.S. nuclear power production pursuant to President Trump’s May 23, 2025 Executive Order 14032, “Reinvigorating the Nuclear Industrial Base.” The meeting will be held on October 23, 2025 from 10am to 11am ET at the Nuclear Energy Institute at 1201 F Street, NW, Washington, DC, 20024.
  • Trustees of MCAA health plans may be interested to learn that as the 2026 Medicare open enrollment period started last Wednesday, experts are predicting a “nightmare” for many enrollees as Medicare insurers get rid of plans, trim popular benefits, and increase out-of-pocket deductibles and other costs. Medicare insurers are reportedly making these changes to improve the profit margins of their plans. They accept that these changes will make their Medicare Advantage plans less attractive to consumers and cause enrollment in these plans to shrink for the first time in 15 years. It is unclear what impact declining enrollments in Medicare Advantage may have for health plans.

Congress

  • The partisan divisions in Congress over the shutdown deepened last week, threatening to extend the stalemate. The week started with Speaker Mike Johnson (R-LA) predicting the shutdown could become the longest in history and vowing not to negotiate until Democrats relented on their healthcare demands and voted to reopen the government. The week ended with the Senate, for the tenth time since the government shutdown began, failing to advance the House-passed continuing resolution to reopen the federal government. The vote was 51-45, short of the 60 votes necessary to overcome Democrats’ filibuster. Senators Catherine Cortez Masto (D-NV), John Fetterman (D-PA), and Angus King (I-ME) again voted with all Republicans. Senate Majority Leader John Thune (R-SD) appeared to move in Senate Democrats’ direction last Thursday by promising Democrats a vote on extending Affordable Care Act subsidies after the shutdown ends. But his gesture did not generate too much good will as Senate Democrats blocked an effort later in the day by Senate Republicans to take up the House-passed FY 2026 Defense appropriations bill, which many hoped could serve as the foundation for a potential minibus package to pass the Transportation-HUD, Commerce-Justice-Science, and Labor-HHS spending bills. Speaker Johnson and House Minority Leader Hakeem Jeffries (D-NY) did agree last Wednesday to participate in a televised C-SPAN debate about the government shutdown as it entered its third week. The debate will air on C-SPAN’s new show Ceasefire at a yet-to-be announced date.

Around the Country

  • Last week, lobbying continued to enact the MCAA-supported Streamlining Procurement for Effective Execution and Delivery (SPEED) Act. While funding continues to flow to Trump Administration efforts to enhance the power grid to accommodate data center buildouts, bipartisan efforts to enact federal permitting reform to speed these projects has stalled because of the Trump Administration’s hostility towards renewable energy projects. Many Democrats are open to permitting reform, but even those who have joined Republicans in prior efforts to improve the federal permitting process are withholding support for more transformational permitting reform legislation out of fear that President Trump won’t allow wind, solar, and other types of clean energy projects to benefit from the reforms. This fear was reinforced last week as the Administration continued to cancel clean energy projects for which funding has already been appropriated and obligated. Last week’s cancellations included $50 million awarded to American Battery Technology, Co. to design and construct a plant to manufacture battery cathode-grade lithium hydroxide used for the production of clean energy storage systems. These developments also come as the Trump Energy Department finalized a $1.6 billion loan guarantee to AEP Transmission to upgrade nearly 5,000 miles of power lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia primarily serving fossil fuel-powered grids. The loan guarantee is part of the Trump Administration’s new “Energy Dominance Financing” program that aims to boost grid capacity and reliability amid rising power demand from data centers..
  • As part of the Trump Administration’s efforts to expand domestic nuclear energy, last Wednesday, the Department of Energy’s (DOE) Hanford Nuclear Site in Richland, Washington launched its Low-Activity Waste Facility, marking a major milestone in treating and immobilizing radioactive tank waste by turning it into glass. This achievement meets the Department of Energy’s October 15, 2025 Consent Decree commitment with Washington State and demonstrates the facility’s ability to produce high-quality immobilized glass on schedule. By reaching this milestone, DOE’s efforts now shift toward safely operating the facility, advancing treatment of high-level waste, and accelerating cleanup of the 56 million gallons of legacy radioactive and chemical waste stored in 177 underground tanks—remnants of the nation’s World War II and Cold War efforts. Separately, last Monday, California-based startup Radiant Industries announced plans to build a nuclear reactor manufacturing facility at a Department of Energy site in Oak Ridge, Tennessee. The reactor will be built on land that was originally part of the Manhattan Project that developed the first atomic bombs. Radiant aims to break ground in early 2026 and begin producing its 1-megawatt Kaleidos reactors by 2028. If approved by federal regulators, Radiant’s Oak Ridge site would become the first place in the U.S. mass-producing portable nuclear generators.
  • Last Wednesday, it was confirmed that the Trump Administration is backing Sable Offshore Corp.’s effort to restart oil production off the southern California coast, nearly a decade after a catastrophic pipeline spill shut the operation down. With federal support—including moves to roll back offshore drilling bans and fast-track permitting—Sable aims to revive the aging infrastructure it acquired from ExxonMobil despite ongoing legal challenges, multimillion-dollar fines, and strong opposition from California and environmental groups. The company has also indicated plans to bypass state oversight by operating in federal waters and exporting oil by tankers.
  • As we continue advocating for permitting reform to expand construction of new data centers, the backlog of projects is growing. Last Wednesday, BlackRock’s AI infrastructure consortium revealed that it is spending $20 billion to acquire Aligned Data Centers, which is operating or developing 50 data center campuses. The deal marks the first investment of the Artificial Intelligence Infrastructure Partnership composed of BlackRock, Global Infrastructure Partners, MGX, Microsoft, and Nvidia that is seeking to raise up to $100 billion to expand artificial intelligence infrastructure. This comes as a Nvidia-backed AI startup called Poolside announced plans to build a massive data center complex in West Texas called the Horizon Project that will generate its own power using natural gas produced in the Permian Basin. The companies are betting the project’s proximity to natural gas resources could reduce costs and improve the long-term viability of the data center, as many planned facilities across the U.S. have been built without power generation capabilities. The companies also plan to build out a massive data center powered by electricity from the Hoover Dam on the border between Nevada and Arizona. Finally, last Monday, Bloom Energy announced a $5 billion agreement with Brookfield Asset Management to deploy “fuel-flexible” fuel cells capable of running on natural gas, biogas, or hydrogen to power AI data centers. Because these systems operate independently of the electric grid, they can be installed quickly to help meet growing power demand. Bloom Energy has already deployed hundreds of megawatts of its fuel cells through partnerships with utilities such as American Electric Power and data center developers including Equinix and Oracle.
  • Growing private sector investment in nuclear power continues to create opportunities for MCAA contractors engaged in large-scale energy and infrastructure projects. On October 10th, Bechtel Group, one of the world’s largest engineering and construction firms, projected that the United States could have as many as ten large nuclear power plants under construction by 2030 or 2031. Bechtel Chief Operating Officer Craig Albert said the company’s outlook is based on a new “shared risk” construction model that distributes financial and schedule risk more evenly among contractors, utilities, and suppliers.

MCAA Government Affairs Update for the Week of October 13, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, October 13, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • As the week begins, the government shutdown continues as both the House and Senate went home for the Columbus Day holiday weekend. Before the Senate departed last Friday, Sen. Markwayne Mullin (R-OK), who is facilitating shutdown negotiations with Democrats, floated a new continuing resolution to fund the government through December 18th or 19th instead of the House-passed continuing resolution (CR) that expires November 21st. Sen. Mullin also hinted that it could be paired with a promise to negotiate with Democrats on expiring Affordable Care Act (ACA) credits. The proposal came after the Senate failed for the seventh time last Thursday to overcome a filibuster of the House-passed continuing resolution, while a Democratic proposal to extend ACA premium tax credits also failed. On a House Republican conference call last Thursday, Speaker Mike Johnson (R-LA) rejected bringing the House back to Washington, D.C. to vote on a standalone bill to pay the troops before they miss paychecks on October 15th. Speaker Johnson also continued to insist that the House will not reconvene until the Senate approves the House-passed CR. Despite Speaker Johnson’s remarks, the White House is considering options to pay members of the military if the shutdown drags on, including shifting available funds or pressing Republican leadership to put a standalone troop pay bill on the floor. In addition to the impending deadline to pay the military, other deadlines are approaching that could increase pressure to resolve the government funding impasse, including: October 17th when federal courts run out of money; October 20th the pay date for Senate staff; October 24th the next pay date for federal workers; October 31st the pay date for House staff; and November 1st when open enrollment begins for the Affordable Care Act. As the shutdown continues, pressure is also mounting due to significant delays at a growing number of major airports—including Reagan National in D.C., Philadelphia, Miami, Fort Lauderdale, San Francisco, LaGuardia, Newark Liberty, Nashville, Dallas, Chicago, Atlanta, Houston, and Boston Logan. The delays are due to staffing shortages, as air traffic controllers and TSA screeners call in sick during the shutdown (as they did during the 2019 shutdown). And smaller airports may begin halting commercial air service after funding for the Essential Air Service Program expired on Sunday. Concerned about the growing airport delays caused by staffing shortages, Transportation Secretary Duffy is threatening that “problem children” air traffic controllers who call out sick during the shutdown could lose their jobs. The White House also sought to pressure Democrats to end the shutdown by announcing last Friday that the Office of Management and Budget (OMB) has initiated reductions in force of furloughed federal employees at unspecified federal agencies.
  • Evidence of President Trump’s growing influence over corporate America was illustrated last week in the latest installment of the Global Situation Room’s “Reputation Risk Index”— a quarterly survey of executives tracking evolving reputational threats to companies and organizations. The latest edition reveals that executives surveyed view the greatest risk currently facing organizations as targeted criticism from President Trump. This includes potential backlash not only from the President himself, but also from a wide range of “MAGA influencers,” which surveyed executives say can escalate into criticism from the President and investigations or actions by federal agencies or Congress. Notably, this type of political pressure has now surpassed emerging threats associated with the rise of artificial intelligence systems, ransomware attacks, and hacking incidents as executives’ greatest concern.
  • As the MCAA continues lobbying to preserve the Biden-era rules creating a presumption in favor of project labor agreements (PLAs) on construction projects valued at $35 million or more, last week we confirmed that while courts have generally been granting the Administration’s requests to postpone civil cases due to the lapse in appropriations, the Administration’s request for a delay was denied in the pending lawsuit over the MCAA-supported PLA rules brought by Associated Builders and Contractors of Florida that is currently pending before the U.S. Court of Appeals for the 11th Circuit. As a result, briefs were due October 10th in response to the Court’s order questioning its jurisdiction to decide this case. MCAA confirmed that the Trump Administration is continuing to enforce the Biden-era PLA presumption during the pendency of this lawsuit.
  • MCAA members who are federal contractors should be aware that the Trump Justice Department has started using the False Claims Act (FCA) for immigration enforcement  against government contractors who utilized illegal aliens for work in shipyards billed to the federal government. In recent weeks, Bayonne Drydock and Repair Corp. agreed to pay more than $4 million to settle FCA allegations that its subcontractors employed “unauthorized aliens” who worked on federal ship contracts in violation of the E-Verify provision of the Federal Acquisition Regulations. Separately, Bollinger Shipyard paid more than $1 million to settle claims it had failed to verify the employment eligibility of certain workers on a federal contract. The developments come as the Justice Department has pledged that a “focus” of the Criminal Division’s Corporate Whistleblower Awards Pilot Program will include pursuing “violations by corporations of federal immigration law.”

Congress

  • Last Thursday, the Senate Health, Education, Labor, and Pensions (HELP) Committee advanced to the full Senate four nominations of interest to the MCAA by a party-line vote of 12-11: (1) Morgan Lewis attorney Crystal Carey to be General Counsel of the National Labor Relations Board (NLRB); (2) former NLRB attorney James Murphy to be a member of the NLRB; (3) Rosario Palmieri to be Assistant Secretary of Labor for Policy; and (4) former Rep. Anthony D’Esposito (R-NY) to serve as the Labor Department’s Inspector General. Notably, the HELP Committee did not consider the nomination of Boeing chief labor counsel Scott Mayer to be a member of the NLRB over concerns expressed by Ranking Member Bernie Sanders (I-VT) and Sen. Josh Hawley (R-MO) about Boeing’s inability to reach an agreement with the union representing workers on strike at the company’s St. Louis facility.
  • Last Wednesday, the MCAA policy team covered the Senate Health, Education, Labor, and Pensions (HELP) Committee’s hearing entitled, “Labor Law Reform Part 1: Diagnosing the Issues, Exploring Current Proposals.” The hearing largely centered on two labor reform proposals—the Protecting the Right to Organize (PRO) Act and the Faster Labor Contracts Act. During the hearing, witnesses supporting the PRO Act, including former National Labor Relations Board General Counsel Jennifer Abruzzo and UAW union member Steve Cochran, argued that the bill would strengthen workers’ ability to unionize and bargain fairly by giving the NLRB real enforcement power and curbing corporate stalling tactics. Abruzzo and Cochran also noted issues with the current system that allow employers to delay union negotiations for years without consequences. Abruzzo also explained that the NLRB is chronically underfunded and unable to protect workers effectively, while Cochran cited Volkswagen’s prolonged union contract talks as evidence of the need for stronger labor protections, like those in the PRO Act. Notably, Teamsters President Sean O’Brien declined to expressly endorse the PRO Act and instead focused on the more modest Faster Labor Contracts Act introduced by Sen. Josh Hawley (R-MO). O’Brien said that the bill would prevent corporations from dragging out negotiations indefinitely, noting that half of new unions fail to secure contracts within a year. Both O’Brien and Cochran argued that the Faster Labor Contracts Act’s binding timelines for negotiation and arbitration would force companies to bargain in good faith. However, witnesses Rachel Greszler of the conservative Heritage Foundation and former Republican NLRB Chair Marvin Kaplan, warned that the Faster Labor Contracts Act’s “arbitrary deadlines” and reliance on federal mediation could invite government overreach and undermine the voluntary bargaining framework established by the National Labor Relations Act.
  • Last Tuesday, Senate Commerce Committee Chair Ted Cruz (R-TX) and Ranking Member Maria Cantwell (D-WA) introduced the “Pipeline Integrity, Protection, and Enhancement for Leveraging Investments in the Nation’s Energy to assure Safety (PIPELINE Safety) Act” (S. 2975). The legislation would provide $1.65 billion to reauthorize the Pipeline Safety and Hazardous Materials Safety Administration (PHMSA) for five years. The bill also includes provisions revising the pipeline safety technology pilot program created by the 2020 PIPES Act, increasing the maximum civil penalties for violations of federal pipeline safety statutes and regulations, improving whistleblower protections, and requiring PHMSA to conduct a study of the safety, technical, and practical considerations of blending hydrogen into existing natural gas systems. The bill text is available here, and a section-by-section is available here. MCAA’s policy team is evaluating the legislation and is in discussions with Committee staff about it.
  • We are pleased to report that last Tuesday, the Senate voted 51-47 to confirm President Trump’s MCAA-endorsed nominee to lead the Occupational Safety and Health Administration, Davd Keeling. Keeling was one of over a hundred nominees confirmed in a block by a single vote that was made possible by Senate Republicans invoking the “nuclear option” in early September to change Senate rules to permit confirmation of nominees in blocks rather than individually. Several additional Executive Branch nominees of interest to the MCAA were also confirmed as part of this block, including: (1) Andrew Rogers to lead the Wage and Hour Division that oversees federal prevailing wage; (2) Jonathan Berry to be Solicitor of Labor (DOL’s chief legal officer); (3) Janet Dhillon to lead the Pension Benefit Guaranty Corporation; (4) Jonathan Snare to be a member of the Occupational Safety and Health Review Commission; (5) Audrey Robertson to be Assistant Secretary of Energy for Energy Efficiency and Renewable Energy; (6) Timothy Walsh to be Assistant Secretary of Energy for Environmental Management; (7) Catherine Jereza to be Assistant Secretary of Energy for Electricity; (8) Laura Swett and David LaCerte to be members of the Federal Energy Regulatory Commission; (9) Neil Jacobs to lead the National Oceanic and Atmospheric Administration; and (10) Kevin Rhodes to be Administrator for Federal Procurement Policy. As these newly confirmed officials take their posts, MCAA will be engaging with them and we expect the pace of regulatory activity at their agencies to pick up.
  • Given MCAA’s continuous efforts to strengthen and expand participation in registered apprenticeship programs, we wanted to highlight a report from Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bernie Sanders (I-VT) released last Monday on artificial intelligence (AI) that could help encourage people to go into registered apprenticeship programs in the skilled trades as they look to enter careers that won’t be destroyed by the rise of AI-powered robots and systems. The report posits that these robots and systems could result in 100 million people losing their jobs over the next decade, but the skilled trades for which the United Association’s apprenticeship programs train people are not among the occupations expected to be significantly impacted. The report finds that AI could lead to the displacement of: (1) 54% of software developers; (2) 83% of customer service representatives; (3) 47% of operations managers; (4) 47% of heavy and tractor trailer truck drivers; (5) 81% of laborers and freight, stock and material movers; and (6) 62% of retail salespersons.

Around the Country

  • Throughout the government shutdown, MCAA has been busy tracking announcements and rumors about the cancellation of federally funded infrastructure and energy projects. Last week, the Trump Administration made it known that it is considering canceling nearly $12 billion in clean energy projects awarded during the Biden Administration. These include all seven regional hydrogen hubs: (1) the Appalachian Hydrogen Hub in West Virginia, Ohio, and Pennsylvania; (2) the California Hydrogen Hub; (3) the Gulf Coast Hydrogen Hub in Texas; (4) the Heartland Hydrogen Hub in Minnesota, North Dakota, and South Dakota; (5) the Mid-Atlantic Hydrogen Hub in Pennsylvania, Delaware, and New Jersey; (6) the Mid-West Hydrogen Hub in Illinois, Indiana, and Michigan; and (7) the Pacific Northwest Hydrogen Hub in Washington, Oregon, and Montana. Also at risk are $35 million for California’s Lodi Energy Center Hydrogen Project—a facility intended to serve as Northern California’s only hydrogen fueling site for heavy-duty trucks and machinery—and two direct air capture projects: Occidental Petroleum’s South Texas Hub in Kleberg County, Texas, and Battelle’s Point Cypress Hub in southwest Louisiana. In addition, the Trump Administration is weighing the cancellation of $500 million for General Motors to convert its Lansing Grand River Assembly Plant in Michigan to EV production, $335 million for Stellantis to retool the shuttered Belvidere Assembly Plant in Illinois for mid-size electric trucks, and $250 million for Stellantis to convert its Indiana Transmission Plant in Kokomo to produce EV components.
  • MCAA members monitoring the deployment of geothermal may be interested in a legal challenge filed last week to a Biden-era endangered species designation that halted a project in Nevada. Last Tuesday, Reno, NV-based Ormat Technologies sued the U.S. Fish and Wildlife Service (FWS) and the Interior Department over the placement of the “Dixie Valley toad” on the Endangered Species List during the Biden Administration. The listing of the toad has prevented construction of the company’s planned geothermal plant in Churchill County, NV. In the lawsuit, Ormat argued that FWS violated the law by listing the toad because it was not in danger of extinction at the time of listing. Conservationists have countered that the construction of the geothermal plant will lead to the toad’s extinction.
  • MCAA members in North Carolina should be aware that last Wednesday, the Environmental Protection Agency (EPA) announced a public hearing on October 22, 2025 regarding its objection to a North Carolina Department of Environmental Quality proposed National Pollutant Discharge Elimination System permit for the City of Asheboro’s Wastewater Treatment Plant. The Biden-era EPA argued in a Specific Objection Letter earlier this year that the proposed permit “does not include effluent limits stringent enough to meet applicable water quality standards” after a state administrative judge voided the 1,4-dioxane effluent discharge limitation.