MCAA Government Affairs Update for the Week of March 30, 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 30, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

• Last Friday, President Trump issued a memorandum directing the Department of Homeland Security (DHS) to use available funds to continue paying Transportation Security Administration (TSA) employees during the ongoing DHS shutdown, citing national security concerns and disruptions during peak travel for Spring Break and Easter. Following issuance of the memorandum, DHS said that TSA officers will begin receiving paychecks as early as today. The President announced this executive action last Thursday night shortly before the Senate unanimously approved a measure to fund DHS except Immigration and Customs Enforcement and parts of Customs and Border Protection involved in immigration enforcement. Last Friday, however, Speaker Mike Johnson (R-LA) rejected the Senate-passed bill, and the House instead passed a bill funding all components of DHS through May 22, 2026. Democratic Representatives Henry Cuellar (TX), Don Davis (NC), and Marie Gluesenkamp Perez (D) joined all Republicans in supporting the bill. The House did this knowing that the Senate had already left D.C. for a two-week Easter/Passover recess and would not be back until April 13, 2026. Moreover, Senate Democrats have already signaled that they will not allow the House bill to advance in the Senate. Before the House departed for its Easter recess, Representatives Brian Fitzpatrick (R-PA) and Tom Suozzi (D-NY) released a bipartisan compromise called the Bipartisan ICE Reform Act of 2026 to fully fund all components of DHS while imposing new limits on immigration enforcement, including requirements for immigration enforcement officers to wear body cameras and visible identification, satisfy warrant requirements for certain enforcement actions, and curtail operations at sensitive locations, like churches, courts, and hospitals. So the funding lapse continues for DHS, but TSA agents will be paid while the standoff continues. Amidst the funding standoff, the Senate confirmed and President Trump swore in to office new DHS Secretary Markwayne Mullin.

• Oil and gas prices continued to rise and the stock market sold off last week as the conflict in Iran continued. President Trump told aides he wants to conclude the war within four to six weeks and extended his pause on attacking Iran’s energy infrastructure until April 6^th despite Tehran rejecting the Administration’s ceasefire proposal and continuing attacks on Israel, Gulf Arab states, and U.S. military bases in the Middle East. Iran told mediators that it views U.S. peace efforts as trick as additional U.S. Marines and paratroopers arrive in the region and the Pentagon develops options for a potential “final blow” if the Strait of Hormuz remains closed and negotiations fail. Republican lawmakers are starting to question the Administration’s plans in Iran after it requested the reprogramming of $1.5 billion to replenish missile interceptors depleted by the conflict and Trump Administration briefings provided no clear answers on the President’s ultimate strategy for the conflict. House Armed Services Committee Chair Mike Rogers (R-AL) warned the Defense Department could lose congressional support unless it is more transparent with Congress about operations in Iran and related troop deployments. New polling shows declining public support for the conflict, with President Trump’s approval falling to 36%. Only about 35% of those polled support the ongoing conflict and about 61% oppose it. Moreover, just 25% approve of President Trump’s response to cost-of-living concerns as the conflict causes gas prices to rise,  prompts inflation forecasts to be revised upward and import prices to increase.

• MCAA members who are federal contractors or subcontractors need to know that President Trump signed an Executive Order (EO) last Thursday mandating that federal departments and agencies include clauses in contracts and contract-like instruments prohibiting Diversity, Equity, and Inclusion (DEI)-related practices in hiring, training, and contracting. The MCAA policy team reviewed the EO and wants to be sure members are aware that it specifically bans disparate treatment based on race or ethnicity in recruitment, hiring, promotions, participation in training or mentorship programs, and the selection of vendors or subcontractors. This extends to banning disparate treatment in “participation in, or access or admission to: training, mentoring, or leadership development programs; educational opportunities; clubs; associations; or similar opportunities that are sponsored or established by the contractor or subcontractor.” The order requires federal contractors to provide access to records and information so the government can confirm compliance, monitor subcontractor compliance, and report known or suspected violations. Federal contractors are also required to flow these requirements down through their subcontractors. The order also makes compliance with the DEI prohibition material to federal payment decisions under the False Claims Act and authorizes contract termination, suspension, or debarment for violations. The EO requires the White House Office of Management and Budget (OMB) to issue implementing guidance and direct the U.S. Department of Justice to prioritize enforcement of this order. The EO also compels the Federal Acquisition Regulatory (FAR) Council to update the Federal Acquisition Regulations to incorporate these prohibitions across federal procurements. The MCAA policy team will be watching for the forthcoming OMB implementation guidance and FAR Council revisions for federal acquisition regulations related to this EO. A White House fact sheet on the EO is available here.

• Last Wednesday, the Environmental Protection Agency (EPA) issued a temporary emergency fuel waiver allowing nationwide summer sales of ethanol-blended E15 gasoline and removing federal enforcement of state “boutique fuel” requirements in order to increase fuel supply and provide price relief ahead of the summer driving season. The waiver, effective May 1 through May 20, 2026, temporarily suspends low-volatility (Reid Vapor Pressure) limits and blending restrictions, allowing gasoline with 9% to 15% ethanol content to be produced and distributed under a uniform federal standard. U.S. EPA Administrator Lee Zeldin said the agency is prepared to extend the waiver if fuel supply conditions warrant. The EPA action followed Senate Agriculture Committee Chair John Boozman (R-AR) saying last Tuesday that he would support including a provision authorizing year-round sales of higher ethanol blends such as E15 in the forthcoming Farm Bill, provided the Senate Environment and Public Works Committee agrees. Senate Agriculture Committee Ranking Member Amy Klobuchar (D-MN) also voiced support for expanding year-round E15 sales.

• MCAA members should be aware that the Pipeline and Hazardous Materials Safety Administration (PHMSA) is considering updates to its enforcement framework that could change how violations are identified and penalized. Last Tuesday, PHMSA issued a request for stakeholder comments on potential updates to its Section 4 Administrative Enforcement Processes, which outline each stage of the agency’s enforcement framework from case initiation through closure. The agency said the review marks the first formal opportunity in roughly a decade to provide transparent input on the document. PHMSA’s Office of Pipeline Safety will accept feedback for 30 days at phmsaenforcement@dot.gov and plans to publish a red-lined version reflecting any revisions, noting that comments relied upon to support any edits may be made public.

• As the MCAA continues engaging with the Department of Labor (DOL) on its highly publicized efforts to implement President Trump’s Executive Order to create 1 million new active apprentices by 2029, we wanted to share data from DOL showing that the effort is faltering. Data released last Monday showed in fiscal year 2025, the number of active registered apprentices actually declined for the first time in a decade to 700,388, down from 702,191 the prior fiscal year. The Trump Administration has already scaled back its pledge to create one million new apprentices to the less ambitious goal of having one million active apprentices by 2029. The data comes as embattled Labor Secretary Lori Chavez-DeRemer struggles with an ongoing Inspector General investigation as she continues touring the nation touting President Trump’s executive order and the virtues of registered apprenticeship.

• Last Monday, the Treasury Department and Internal Revenue Service requested public recommendations for items to be included in the 2026–2027 Priority Guidance Plan, which the agencies use to identify and prioritize tax issues they intend to address during the period from July 1, 2026, through June 30, 2027. Recommended items may include priorities that can be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. Recommendations must be submitted by Friday, May 29, 2026, to be considered for inclusion in the plan. Commenters are not required to use a particular format but should briefly describe the recommended guidance, explain the need for it, and may include an analysis of how the issue should be resolved. For recommendations to modify, streamline, or withdraw existing regulations or other guidance, taxpayers are encouraged to explain how the proposed changes would reduce taxpayer costs or administrative burdens, improve tax administration, or address issues identified in President Trump’s Executive Order 14219, Sections 2(a)(i)–(vii), which concern regulations that may be unconstitutional or unlawful, reflect an improper interpretation of statutory authority, address significant matters without clear authorization, impose unjustified costs on the private sector, hinder technological innovation, or create undue burdens on small businesses. Commenters proposing more than one guidance project are asked to rank their recommendations in order of importance.

Congress

• As the MCAA continues discussions on Capitol Hill to advance federal permitting reform to speed the build out of data centers and the energy infrastructure needed to power them, last Wednesday, Senate Majority Leader Chuck Schumer (D-NY) laid out Democrats’ energy policy plans in the event that they retake the majority in Congress. On data centers, Schumer said Democrats will push for “strong, enforceable consumer protections” instead of President Trump’s voluntary “Ratepayer Protection Pledge” signed by several big tech companies to prevent increased consumer electricity costs from data centers. Schumer also endorsed the creation of a “prize-based innovation program” for breakthroughs that make data centers more efficient and emphasized the need for data centers to “pay their fair share” as part of broader efforts to lower costs and protect consumers. He also called for speeding up permit approvals for “climate-friendly” energy sources, upgrading the electric grid, and providing “systematic protection for consumers from rising prices.” Finally, Schumer said Democrats also want to boost credits for geothermal and nuclear energy and reinstate tax credits for wind and solar power terminated in the One Big Beautiful Bill Act. The vision Schumer outlined tracks closely with the Energy Bills Relief Act that we reported on last week that was introduced in the House with 120 Democratic cosponsors. Schumer’s remarks come as congressional Republicans begin preparing a second budget reconciliation bill that could include permitting reforms, although that effort faces challenges given Republicans’ narrow House majority and opposition from members such as Rep. Brian Fitzpatrick (R-PA), who have said they will oppose the package if it includes cuts to social services. The MCAA policy team remains engaged in bipartisan Senate permitting reform negotiations while also working in parallel with House leaders to determine what discrete permitting reforms may be viable under the unique rules of the budget reconciliation process the House is initiating.

• Highlighting a schism among congressional Democrats over how to deal with data center development and the concerns it raises, last Wednesday, progressive lawmakers Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) introduced the Artificial Intelligence Data Center Moratorium Act.  In contrast to the Energy Bills Relief Act and Senator Schumer’s vision, this legislation would impose a nationwide halt to the construction or expansion of large AI data centers until Congress enacts comprehensive federal safeguards governing AI safety, worker protections, consumer risks, environmental impacts, and civil rights issues associated with AI. Under the bill, once these issues are addressed and data center construction resumes, developers would be required to use union labor, pay prevailing wages, utilize project labor agreements, and employ registered apprentices. New data centers that get taxpayer subsidies would also be prohibited from increasing electricity costs or environmental impacts in surrounding communities. The bill would further require federal review and approval of AI products before they are deployed, establish policies aimed at preventing job displacement, and mandate the sharing of AI-related economic gains. The bill expands federal transparency and reporting requirements on data center energy use, emissions, water consumption, financing, and workforce impacts. It also restricts exports of advanced U.S.-origin AI chips and computing hardware to countries that lack comparable AI safety, labor, and environmental protections. A section-by-section on the bill is available here.

• MCAA members should be aware of newly proposed bipartisan legislation that could affect business transactions in construction and other industries by increasing the taxes associated with certain mergers and acquisitions. Last Wednesday, Senators Sheldon Whitehouse (D-RI) and Josh Hawley (R-MO) introduced the Stop Subsidizing Giant Mergers Act, which would amend the Internal Revenue Code to eliminate tax-free treatment for certain corporate reorganizations involving companies with combined average annual gross receipts exceeding $500 million over the prior three years. The proposal would apply to a range of merger, acquisition, and asset-transfer transactions and could alter deal structures and investment incentives across industries, including construction. This legislation is not new. Senator Whitehouse introduced it in 2024 with then-Senator JD Vance (R-OH) as the original GOP cosponsor.

• Following Senator Markwayne Mullin’s (R-OK) resignation from the Senate last week to assume his new role as Secretary of Homeland Security, Oklahoma Gov. Kevin Stitt (R) appointed Alan Armstrong, the former CEO of Williams Cos., to temporarily fill the Senate vacancy. Armstrong will only be in office for the remainder of this year. But given his background leading one of the nation’s largest natural gas processing and transportation businesses, we are hopeful he will be supportive of MCAA’s permitting reform efforts and continuing work to unwind decarbonization initiatives from the last Administration. Under Oklahoma law, Armstrong is not permitted to run in the November special election to fill the vacancy created by Secretary Mullin’s resignation. Rep. Kevin Hern (R-OK), who has been endorsed by President Trump, is the leading Republican candidate for the seat in the November special election.

• There were some developments in races for the U.S. Senate last week. In Maine, a new poll found Democrat Graham Platner leading Governor Janet Mills (D) 55% – 28% in the state’s Democratic U.S. Senate primary. In Texas, a new poll found Texas Attorney General Ken Paxton (R) leading incumbent Senator John Cornyn (R-TX) 48.8% – 41.3% in the state’s Republican Senate runoff. In Pennsylvania, former Representative Susan Wild (D-PA) is being urged to challenge Senator John Fetterman (D-PA) in 2028, as Democrats’ frustration with Fetterman reached new heights following his vote last week to confirm Markwayne Mullin to be the Secretary of Homeland Security.

• There were several developments in races for the U.S. House of Representatives last week. In Missouri, the state Supreme Court ruled 4-3 to uphold the Legislature’s mid-decade congressional redistricting plan, allowing the new map to be used in the 2026 midterm elections and positioning Missouri’s 5th Congressional District, currently held by Representative Emmanuel Cleaver (D), as a likely Republican pickup.In Florida, the state’s Republican congressional delegation is growing concerned about an aggressive mid-decade redistricting push after Democrats last week flipped a Palm Beach County state House district Trump carried by roughly 11 points in 2024—raising concerns new maps could weaken GOP incumbents ahead of the midterms as Latino voters appear to be abandoning the GOP. Last week, the Adjudicatory Subcommittee of the House Ethics Committee found merit in 25 of 27 allegations against Representative Sheila Cherfilus-McCormick (D-FL) related to misuse of federal COVID-19 relief funds to finance her campaign and buy jewelry and other personal items. When the House returns from its April recess, the full Ethics Committee will hold a hearing to determine what, if any, sanction(s) to recommend, which may include expulsion from the House. In Utah, a Trump-backed effort to repeal the state’s anti-gerrymandering law will not appear on the November ballot after failing to meet signature requirements, preserving the state’s independent redistricting system and current court-ordered congressional map that creates one new Democratic-leaning district in Salt Lake City.

Around the Country

• MCAA members in Maryland are likely already aware of the federal court ruling upholding Montgomery County, Maryland’s all-electric building mandate. Last Thursday, a federal judge upheld the ordinance, ruling that the county’s ban on gas appliances in new construction is not preempted by the federal Energy Policy and Conservation Act (EPCA) because the ordinance does not regulate how appliances use energy, but instead bans a category of appliances altogether. Industry groups that challenged the ordinance say the decision departs from earlier federal court rulings citing EPCA to strike down laws curtailing or banning gas appliances. The ordinance is scheduled to take effect by the end of 2026.

• MCAA members operating in Florida should be aware that last Thursday, the Environmental Protection Agency (EPA) awarded almost $1.7 billion in supplemental appropriations to Florida to improve water infrastructure resiliency and to address lingering issues from Hurricanes Helene and Milton in 2024. Approximately $844 million will be allocated to Florida’s Drinking Water State Revolving Fund (SRF) to make low-interest loans for the planning, design, and construction of eligible drinking water improvement projects and $806 million will be allocated to its Clean Water SRF for the planning, design, and construction of eligible treatment works improvement projects. Additionally, Florida received $35 million for its Clean Water SRF to improve the resilience of septic systems and assess and connect homes served by septic systems to centralized wastewater systems.

• Legal challenges tied to methane leaks in aging gas distribution systems are increasing regulatory scrutiny and could accelerate pipeline replacement activity in some markets. A federal magistrate judge in Massachusetts last Wednesday recommended allowing portions of a citizen lawsuit against National Grid to proceed, including claims under the federal Pipeline Safety Act alleging ongoing safety violations tied to methane leaks in the company’s metro Boston gas distribution network, as well as state law claims related to damage to public shade trees. According to plaintiffs, surveys identified numerous leak locations posing potential explosion risks, contributing to tree loss and urban heat impacts, and highlighting concerns about the condition of aging pipeline infrastructure. The recommendation now goes to a district court judge, who will determine whether to adopt the ruling and allow the case to move forward.

• MCAA members that work on gas distribution systems should be aware of new federal funding opportunities for pipeline replacement and modernization projects, as well pro-labor factors that will be considered in deciding grant awards. Last Tuesday, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) announced $98 million in available funding from President Biden’s Bipartisan Infrastructure Law’s Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program, which provides funding for city- and community-owned utilities to repair, replace, or modernize aging, leak-prone gas distribution pipeline systems. This is the final year of the NGDISM program. Per the Notice of Funding Opportunity (NOFO), as part of its application review process, PHMSA will assess whether and how project applicants include union participation and project labor agreements (PLAs). In the NOFO, PHMSA explains that PLAs “promote cost-effectiveness and open competition.” Note, however that the NOFO also says grant applicants must certify that they do not operate any programs promoting diversity, equity, and inclusion initiatives in violation of federal anti-discrimination laws as interpreted by the Trump Justice Department. Applications are due by May 22, 2026.

• MCAA members on the West Coast should be aware that last Tuesday, California filed a federal lawsuit seeking to block the Trump Administration from using the Defense Production Act to force the restart of the Santa Ynez Unit pipeline system off the Santa Barbara coast. State officials argue the order exceeds federal authority and improperly overrides state permitting requirements, while the Trump Administration maintains the action is justified by energy security concerns amid rising fuel prices due to the conflict in Iran.

• The Trump Administration continues to shift federal energy priorities away from offshore wind development and toward expanded oil and natural gas production, as evidenced by the Interior Department’s announcement last Monday of an agreement with TotalEnergies under which the company will abandon planned offshore wind development off North Carolina and New York. TotalEnergies pledged to invest $1 billion in the construction of the Rio Grande LNG export facility in Texas, the expansion of shale gas production, and the development of conventional offshore oil resources in the Gulf of America. The federal government will reimburse TotalEnergies the roughly $1 billion the company previously paid in offshore wind lease fees after the new fossil fuel investments are made.

• MCAA health plan administrators and contributing employers should be aware of new litigation challenging pharmacy pricing practices that could affect prescription drug costs for employer-sponsored benefit plans. The Central Midwest Regional Council of Carpenters Welfare Fund recently filed a class-action lawsuit in the U.S. District Court for the Southern District of Ohio alleging Kroger pharmacies overcharged employer health plans by excluding lower cash-pay prices from “usual and customary” rates reported on required forms. The complaint cites significant pricing disparities, including claims the plan paid $938 for the psoriasis drug acitretin while cash-pay customers were charged $174, $480 for the ulcerative colitis drug Apriso compared with $115 in cash pricing, and $362 for the opioid overdose reversal drug naloxone versus a $23 cash price. The fund alleges the pricing practices resulted in tens or even hundreds of thousands of dollars in excess costs and asserts claims including fraud, unjust enrichment, and violations of state laws, while seeking reimbursement and an order requiring Kroger to include cash prices in its rate calculations going forward.