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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

Letters to the Hill

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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

On March 25, ABC sent a letter to the House Committee on Education and the Workforce in support of H.R. 7784, the Start Applying Labor Transparency Act, introduced by Rep. Burgess Owens, R-Utah. The SALT Act would require labor organizations and their consultants to report when they engage in a coercive tactic known as “salting”— a process where unions send professionally trained organizers into merit shop workplaces under the guise of seeking employment. Once hired, these “salts” often try to create a toxic work environment, mislead co-workers and destroy their employers or deliberately increase costs through various actions, all while concealing that their purpose in the workplace is to serve the interests of organized labor.

On March 21, the House Committee on Education and the Workforce passed the ABC-supported H.J. Res. 116, the Congressional Review Act resolution to nullify the U.S. Department of Labor’s independent contractor final rule, in a 21-13 vote with all Republicans present voting in support. Ahead of the markup, ABC sent a letter in support of the resolution and urged committee members to report it for a full House vote.

Learn more about the 2024 final rule. Also, watch the ABC-members only archived webinar in the Academy, "Learn What the DOL's Final Independent Contractor Rule Means for ABC Members."

On March 19, ABC sent a letter in support of H.R. 7023, “Creating Confidence in Clean Water Permitting Act,” sponsored by Rep. David Rouzer, R-N.C. H.R. 7023 includes provisions from five standalone, ABC-supported bills that passed out of the House Committee on Transportation and Infrastructure on Jan. 31, including the Nationwide Permitting Improvement Act, the Reducing Permitting Uncertainty Act, the Judicial Review Timeline Clarity Act, the Water Quality Criteria Development and Transparency Act, and the Confidence in Clean Water Permits Act. ABC believes that this bill represents the best and most comprehensive federal regulatory permitting and project review reform legislation on the table this Congress and will go a long way toward eliminating unnecessary delays that cause budget overruns in construction.

On March 6, Rep. Kevin Kiley, R-Calif., and Sen. Bill Cassidy, R-La., introduced a Congressional Review Act resolution to overturn the DOL’s new Independent Contractor final rule.

ABC sent a letter to members of the House and Senate expressing support for the CRA resolution. ABC also joined with a coalition of business organizations drafting a letter of support for the CRA resolution.

The resolution faces an uphill battle to passage in both chambers and a likely veto from the President, however, ABC remains committed to ensuring that this issue remains a priority for Congress this session.

Learn more about this issue, including ABC’s lawsuit, above and in Newsline here.

On Feb. 15, the U.S. House Committee on Small Business Subcommittee on Contracting and Infrastructure held a hearing titled “Leveling the Playing Field: Challenges Facing Small Business Contracting.” ABC sent a letter detailing the significant hurdles small businesses face while competing for federal construction projects, specifically through the Biden administration’s implementation of government mandated project labor agreements and a new Independent Contractor Classification standard. Cited in the letter was ABC’s Construction Backlog Indicator that declined to 8.4 months in January, according to an ABC member survey conducted from Jan. 22 to Feb. In addition, the National Federation of Independent Business’ recent study showed that owners who expect higher real sales volumes fell 12% last month and a larger share of small business owners reported lower earnings over the last three months.

You can view the full hearing here.

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.