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.

• MCAA members with work that has been impacted by the Trump Administration’s pauses on federal funding for infrastructure and other federally supported activity should be aware that last Tuesday, the U.S. First Circuit Court of Appeals largely upheld a lower court injunction blocking the Administration from freezing $3 trillion dollars in federal financial assistance. The court held that the Office of Management and Budget’s directive to pause spending while reviewing programs for alignment with the President’s executive orders and priorities was likely improper and failed to consider the reliance interests of funding recipients.

• MCAA members involved in shipbuilding, repair, and maintenance for the U.S. Navy may be interested in a $71 million Navy contract announced last Tuesday with Pittsburgh-based Gecko Robotics to cut down ship repair times. Under the contract, the company will use robots capable of flying, swimming and climbing to condense a three-month ship inspection process down to as little as two days. Gecko says its robots can assess necessary maintenance 50 times faster than current manual inspection techniques.

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 13^th, 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 27^th. 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.

• There were several developments in races for the U.S. Senate last week. In Illinois, Lt. Gov. Julia Stratton (D) won the state’s Democratic Senate primary and is expected to succeed retiring Sen. Dick Durbin (D-IL) in the heavily Democratic state. In Oklahoma, Senate Majority Leader John Thune (R-SD) and NRSC Chair Senator Tim Scott (R-SC) endorsed Rep. Kevin Hern’s (R-OK) campaign for the open Oklahoma Senate seat being vacated by Sen. Markwayne Mullin (R-OK), who is undergoing confirmation to lead Homeland Security. In Michigan, Senator Elizabeth Warren (D-MA) endorsed Michigan state Senator Mallory McMorrow (D) in the state’s contested Democratic Senate primary to replace retiring Senator Gary Peters (D-MI) and in Maine, Warren endorsed Graham Platner in the state’s Democratic Senate primary. In South Carolina, Senator Tim Scott (R-SC) announced he will seek a third term in 2028, abandoning a long-stated pledge that his 2022 campaign would be his last.

• There were also several developments in races for the U.S. House of Representatives last week. In Illinois, state Rep. La Shawn Ford (D) secured the Democratic nomination in the 7^th Congressional District and will face Republican Chad Koppie. Evanston Mayor Daniel Biss (D) won the primary in Illinois’ 9^th Congressional District and will face Republican John Elleson. Cook County Commissioner Donna Miller (D) captured the nomination in Illinois’ 2^nd Congressional District and will face Republican Michael Noack. And former Rep. Melissa Bean (D) won a comeback bid in Illinois’ 8^th Congressional District and will face Republican Jennifer Davis. Congressional Democrats’ confidence about the midterms continued to grow after Inside Elections adjusted its House ratings, shifting several Republican-held seats—including Colorado’s 3^rd Congressional District, Florida’s 27^th Congressional District, North Carolina’s 11^th Congressional District, and open seats in Texas’ 23^rd and Montana’s 1^st Congressional Districts—from Solid Republican to Likely Republican, while a much smaller number of Democratic seats moved in favor of Republicans. Meanwhile, a spike in fertilizer prices caused by war in Iran is raising new affordability issues in Republican-leaning agricultural states that Democrats believe could make some rural districts more competitive for Democrats heading into the 2026 midterms.

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.

• The Trump Administration is also advancing multiple actions to revive offshore oil and gas production along the California coast. President Trump signed an executive order on March 13^th invoking the Defense Production Act to allow Energy Secretary Wright to direct Sable Offshore Corp. to restore operations at the Santa Ynez Unit and Pipeline System off the coast of Santa Barbara, which could produce roughly 45,000 to 55,000 barrels of crude oil per day. Separately, last Tuesday, the Bureau of Ocean Energy Management (BOEM) issued a Notice of Intent to prepare an Environmental Impact Statement for DCOR, LLC’s proposal to use well stimulation treatments, including hydraulic fracturing, on up to 16 existing wells at Platform Gilda located about 8 miles offshore Ventura County, California. The review will be conducted on an expedited timeline under the Trump Administration’s declared national energy emergency. BOEM opened a scoping period through March 30, 2026 and will host a virtual public scoping meeting this Tuesday, March 24, 2026 at 4pm ET, with registration available here.

• 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 13^th, 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.