On Feb. 15, the U.S. House Committee on Transportation & Infrastructure Subcommittee on Highways and Transit held a hearing on the Implementation of Buy America Provisions of the Infrastructure Investment and Jobs Act. In a letter to the Subcommittee, ABC expressed concern over the immediate implementation of the guidance’s domestic content requirements. In 2023, ABC commented on the proposed guidance to urge OMB to balance Buy America requirements with safeguards against increased costs and delays of infrastructure projects funded by taxpayers.

You can view the full hearing here.

On Feb. 14, the House Committee on Natural Resources Subcommittee on Water, Wildlife and Fisheries held a hearing on several bills, including the ABC-supported ESA Flexibility Act.

Ahead of the hearing, ABC sent a letter in support of H.R. 6784 recognizing the Endangered Species Act’s purpose of protecting species threatened with extinction and the need for science-based, data-driven actions that conserve those species and the habitats on which they depend. The ESA Flexibility Act gives the U.S. Department of the Interior and U.S. Fish and Wildlife Service additional leeway when dealing with species listed as endangered under the ESA. While these agencies are already granted flexibility with species deemed “threatened,” this bill would allow for fit-for-purpose protections of “endangered” species while reducing undue regulatory burdens on development. The ESA Flexibility Act will allow for better management of species listed as endangered under the Endangered Species Act, such as the ABC-supported delisting of the northern long-eared bat.

You can view a recording the Subcommittee hearing here.

On Feb. 1, ABC joined a letter to members of the U.S. House of Representatives’ Committees on Small Business and of the Judiciary supporting reform in implementation of the Regulatory Flexibility Act. You can find a link to the coalition letter here. The letter urges legislative action to strengthen the meaningful input of small businesses in federal regulatory processes and ensure that the intent of the Regulatory Flexibility Act is fulfilled. The Regulatory Flexibility Act (RFA) encourages federal regulatory agencies to consider negative impacts of new mandates in an effort to prevent excessive red tape on small businesses.

Loopholes in the RFA allow federal regulators to bypass the law's requirements and misrepresent costs of new mandates.

On Jan. 31, the House Transportation and Infrastructure Committee held a scheduled markup on several ABC-supported bills focused on permitting reform and increasing Clean Water Act efficiency. Ahead of the markup, ABC sent a letter in support of H.R. 7023, which was comprised of the five bills below, and joined members of the Waters Advocacy Coalition in a letter encouraging the full committee to report the bills favorably to the full House. This legislation passed the committee by a 32-30 vote and is seen as the 118th Congress’ next step in securing permitting reform wins, some of which were achieved in last year’s Fiscal Responsibility Act. ABC believes the Committee approved bill will streamline the process for permit seekers and holders, as well as provide greater clarity for permitting agencies while eliminating unnecessary delays that can cause budget overruns in construction.

• H.R. 7023: Nationwide Permitting Improvement Act seeks to codify longstanding interpretations and practices concerning Nationwide Permits, offering clarity on several contentious areas within the established process. This bill proposes extending the reissuance period for general permit holders from five to 10 years. It also specifies that only categories falling under the Clean Water Act’s Section 404 authority are considered when issuing NWPs.
• H.R. 7026: Reducing Permitting Uncertainty Act aims to restrict the U.S. Environmental Protection Agency from preemptively vetoing a Clean Water Act Section 404 dredge and fill permit or revoking it after Corps approval without due process. Under this act, the EPA’s veto authority is constrained to the period while a permit application is pending through the standard permitting process, aligning with the original intent of the CWA.
• H.R. 7021: Water Quality Criteria Development and Transparency Act intends to establish a more transparent procedure for EPA's development of water quality criteria, crucial for NPDES permits. This bill seeks to enhance public participation and introduce limited judicial review, ensuring stakeholders have a voice in the process and water quality standards are adequately protected.
• H.R. 7008: Judicial Review Timeline Clarity Act proposes reasonable timelines for judicial review of Clean Water Act Section 404 permits, fostering efficiency in project authorization. It mandates that any lawsuit challenging a Section 404 permit must be filed within 60 days of issuance and sets deadlines for compliance in case of remand by the court.
• H.R. 7023: Creating Confidence in Clean Water Permitting Act aims to ensure that permits only include clear, objective limits on pollutants or water conditions. It also reinforces the principle that permit holders are shielded from liability as long as they adhere to the terms of their NPDES permits and provide relevant information during the application process.

On Jan. 19, the House Ways and Means Committee, held a markup of the bipartisan, bicameral tax proposal to extend key tax proposals, negotiated by Senate Finance Chairman Ron Wyden, D-Ore., and House Ways and Means Chairman Jason Smith, R-Mo. The Committee passed the bill by a bipartisan vote of 40-3, with the panel’s top Democrat, Rep. Richie Neal, D-Mass., supporting the bill, indicating that Democratic House leaders will likely follow his lead.

ABC provided a letter of support for the proposal, but also expressed concerns with the bill’s provisions that end the COVID-related Employee Retention Tax Credit on January 31, 2024, and implement new penalties for taxpayers and preparers. While the program has been heavily criticized for its excessive costs and fraudulent claims, ABC urged the committee to ensure those acting in good faith do not face undue penalties. Sen. Wyden and Rep. Smith aim to pass the tax package before Jan. 29 to avoid disruptions to filing season.

Key to ABC members and the construction industry are the bill’s provisions to expand innovation and competitiveness with pro-growth economic policies that include:

• Research & Development (R&D) expensing so businesses of all sizes can immediately deduct the cost of their U.S. R&D investments instead of over 5 years – supporting innovation and growth here at home.
• Interest deductibility to help small- and medium-sized businesses meet payroll and grow – particularly at a time of high interest rates.
• 100% expensing for business investment in U.S. facilities, equipment, and machines
• Increase in the maximum amount a taxpayer may expense from $1 million to $1.29 million for property placed in service starting in 2024

The Committee’s press release can be found here, markup documents here, and a section-by-section here.

This week, the House will vote on H.J. Res. 98, a resolution to block the National Labor Relations Board’s new joint employer rule. ABC issued a key vote in support of the resolution and against the new rule that has faced opposition from ABC and a number of the nation’s major business groups.

The final rule, set to take effect in February, rescinds and replaces the ABC-supported 2020 NLRB joint employer final rule, which provided clear criteria for companies to apply when determining their joint employer status, and will disrupt existing contractor and subcontractor relationships throughout the construction industry. The resolution is expected to pass the House with at least some bipartisan support and Sens. Bill Cassidy, R-La., and Joe Manchin, D-W.Va., have been leading the effort to defeat the NLRB rule in the upper chamber.

On Dec. 13, ABC sent a letter to the House Committee on Education and the Workforce prior to its markup of key bills impacting the construction industry.

The letter highlights ABC’s support for H.R. 6655, the bipartisan A Stronger Workforce for America Act, which would reauthorize the Workforce Innovation and Opportunity Act for the first time since 2014 and includes several ABC-backed provisions that support an all-of-the-above approach to workforce development, ensures more dollars for tangible worker programs, better aligns programs with in-demand jobs, and allows for better evaluation of WIOA programs. ABC also supported the committee’s markup of H.J. Res. 98, a Congressional Review Act resolution to overturn the Biden administrations harmful joint employer final rule, and H.R. 3400, the Small Business Before Bureaucrats Act, to modernize the National Labor Relations Board’s decades old jurisdictional standards to exempt more small businesses from their regulatory overreach. ABC’s letter also expresses concerns with H.R. 6585, the Bipartisan Workforce Pell Act, which, while seeking to expand Pell Grants to high-quality, short-term workforce programs, could exclude some vital construction workforce education and upskilling programs.

ABC also joined with the Coalition for a Democratic Workplace to comment on the Subcommittee on Health, Education, Labor, and Pensions hearing. The hearing examined the ABC-supported Employee Rights Act (H.R. 2700), Modern Worker Empowerment Act (H.R. 5513), and Save Local Business Act (H.R. 2826), which are designed to protect workers, entrepreneurs, small businesses, and the economy from a rogue National Labor Relations Board.

On Dec. 13, ABC submitted comments to the House Transportation and Infrastructure Committee as they conduct oversight on the U.S. Department of Transportation’s implementation of the Infrastructure Investment and Jobs Act.

ABC’s letter to the Highways and Transit Subcommittee criticized the modal administrators for their deviations from the bipartisan agreement reached during the IIJA's negotiation, and efforts to incorporate partisan language rejected by the House and Senate that would hinder the success of the IIJA. ABC has previously expressed concerns about these administrative actions, including the DOT’s efforts to impose unlawful and overly burdensome policies and restrictive labor requirements on key federal infrastructure funds and projects.

On Dec. 5, ABC sent a letter to Speaker Mike Johnson highlighting the critical provisions of the Tax Cuts and Jobs Act set to expire in 2024. ABC specifically called for extending or making permanent the 20 percent qualified business income deduction for pass through businesses, individual rates, and estate tax exemption provisions included in the TCJA. ABC’s letter also backs efforts of U.S. House Ways and Means Committee Chairman Jason Smith, R-Mo., and a call from nearly 150 House Republicans to strike a deal on critical tax extenders for U.S. businesses and employers.

With only two years left until key provisions of the TCJA sunset, ABC is working to preserve these provisions and ensure that lower tax rates and parity for main street businesses with larger corporations allow the economy to thrive, businesses to grow, and provide more Americans with job opportunities. ABC also continues to push for an end of year tax extenders deal, particularly the extension of the R&D tax credit.

The House Education and the Workforce Committee Subcommittee on Workforce Protection’s held a hearing titled “Bad for Business: DOL’s Proposed Overtime Rule.” The subcommittee heard testimony from witnesses highlighting the dangers of the newly proposed overtime rule that could jeopardize businesses at a critical time when they are facing high inflation and significant workforce shortages.

ABC submitted a letter with comments for the committee record.