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.

Rep. Lloyd Smucker, R-Pa., was joined by 22 of his colleagues in the House in the introduction of a Congressional Review Act resolution to overturn the Biden administration inflationary Davis Bacon rule. ABC led a coalition of construction organizations in support for the CRA and continues to urge members to cosponsor the CRA. Last week, ABC also announced the filing of a complaint in the U.S. District Court for the Eastern District of Texas, challenging the U.S. Department of Labor’s controversial final rule, and you can read more in ABC’s press release on the challenge.

On Sept. 20, ABC submitted comments to the House Education and the Workforce Subcommittee on Higher Education and Workforce Development hearing titled, “Strengthening WIOA: Improving Outcomes for Jobseekers, Employers, and Taxpayers.” ABC’s letter calls on the committee to pursue policies that recognize the unique challenges facing the construction industry and provide employers with the tools they need to access a well-educated and dedicated workforce.

On Sept. 20, ABC submitted comments to the House Committee on Transportation and Infrastructure hearing titled, “Oversight of the Department of Transportation’s Policies and Programs.” The hearing featured testimony and questions with DOT Secretary Pete Buttigieg. ABC commented on specific DOT policies that the department is pursuing outside of congressional authorization/intent such as the significant number of Biden administration federal agency grants – totaling more than $230 billion for infrastructure projects procured by state and local governments – subject to language and policies promoting PLA mandates and preferences that will increase costs and reduce competition on federally assisted construction projects. ABC also provided comments on the ABC-opposed union labor requirements on the National Electric Vehicle Infrastructure Formula Program. The DOT NEVI Formula Program will implement provisions of the IIJA that includes $7.5 billion for electric vehicle charging stations (including $5 billion over five years to install EV chargers mostly along interstate highways).

On Sept. 20, ABC also submitted comments to the Senate Health, Education, Labor and Pensions Committee’s markup of S. 2840, the Bipartisan Primary Care and Health Workforce Act, in support of an amendment offered by Ranking Member Bill Cassidy, R-La., that would ensure funds for construction and renovation of community health centers and other health care facilities are not subject to Davis-Bacon prevailing wage requirements. The amendment faced defeat in the Democrat-controlled committee and was offered and withdrawn.

On September 13, ABC submitted comments to the House Oversight and Accountability Subcommittee on Health Care and Financial Services hearing titled, “The Inflation Reduction Act: A Year in Review.” ABC’s letter expressed our concerns about anti-competitive and inflationary policy in the IRA that grants developers of clean energy construction projects a bonus tax credit 500% greater than a baseline tax credit of 6% conditioned on satisfying controversial prevailing wage and government-registered apprenticeship requirements.