On April 8, the U.S. Senate Committee on Small Business and Entrepreneurship and the U.S. House Committee on Small Business held a joint hearing titled, “Prosperity on Main Street: Keeping Taxes Low for Small Businesses.” Ahead of the hearing, ABC sent a letter to the committees in support of key provisions from the Tax Cuts and Jobs Act that provided important tax relief for contractors. Specifically, ABC called on House and Senate members to support critical tax policies, such as:

• Maintaining Parity for Pass-Through Entities through the permanence of the TCJA’s Section 199A
• Revived Expensing of Research and Development Costs
• Restoration of 100% Bonus Depreciation

The scheduled expiration of many of these policies would have grave effects, not only for our contractor members, but for the construction market more broadly, specifically harming small businesses around the country. On Jan. 17, ABC sent a letter to the House Ways & Means Committee emphasizing the significance of making permanent the provisions of the TCJA for America’s working families.

On March 25, the U.S. House Committee on Education and the Workforce Subcommittee on Workforce Protections held a hearing title, “The Future of Wage Laws: Assessing the FLSA’s Effectiveness, Challenges, and Opportunities.” Ahead of the hearing, ABC sent a letter to the committee in support of legislation that clarifies who qualifies as an independent contractor and protects workers who have long been properly classified as independent contractors in the construction industry:

• H.R.1319, the Modern Worker Empowerment Act, introduced by Rep. Kevin Kiley, R-Calif., which amends the FLSA to base worker classification determinations on two clear tests: a business’s control over a worker’s work and how it is performed and the worker’s opportunity to express entrepreneurial discretion. This legislation also clarifies that safety, legal and insurance guidelines and contractual project completion deadlines are not determinants of worker classification. Further, it would ensure the worker classification standard is consistent between the FLSA and the National Labor Relations Act.
• H.R.1320, the Modern Worker Security Act, introduced by Rep. Kiley, which provides businesses with the opportunity to offer flexible or portable benefits to workers without the risk of the provision of these benefits jeopardizing worker classification determinations.

ABC also encouraged representatives to reintroduce H.R.1980, the Working Families Flexibility Act, from the 117th Congress. This legislation amends the FLSA to provide workers choice between compensatory overtime pay and compensatory time off at a rate not less than 1.5 times hours worked.

In addition to the letter, ABC joined other coalitions of trade associations, including the Independent Work Coalition, in submitting letters in support of the Modern Worker Employment Act, Modern Worker Security Act, Working Families Flexibility Act, and the Ensuring Workers get PAID Act.

On March 25, the U.S. House Committee on Natural Resources Subcommittee on Water, Wildlife and Fisheries held a legislative hearing on a number of bills, including the ABC-supported ESA Amendment Act. Ahead of the hearing, ABC sent a letter to the committee in support of the bill’s efforts to modernize the Endangered Species Act.

H.R. 1897 streamlines the approval of voluntary conservation agreements and incidental take permits by removing duplicative permitting processes. The bill also clarifies the ESA Section 7 permitting process and provides regulatory certainty that a critical habitat will not be designated if a private landowner is working to implement a plan that conserves the listed species in question. Each of these provisions will provide additional clarity to the ESA that is critical for allowing construction projects to be completed on time and on budget.

During the hearing, the bill sponsor, Rep. Bruce Westerman, R-Ark., said the ESA, “is a well-intentioned law that has been hijacked by litigation and executive overreach.” He went on to stress the permitting relief this bill would provide. You can view his comments here.

On March 11, the U.S. House Committee on Small Business Subcommittee on Oversight, Investigations, and Regulations held a hearing titled, “Restoring the SBA: Putting Main Street America First.” Ahead of the hearing, ABC sent a letter to the Committee calling on Congress to empower the SBA and small businesses around the country to keep federal agencies in check when implementing new regulations. The letter specifically supports the ABC-supported Prove It Act which strengthens the Regulatory Flexibility Act (H.R. 1163) by allowing Main Street businesses, and groups like ABC, to petition the SBA to examine whether a federal regulation would have significant economic effects on a large number of small businesses.

In the hearing, Prove It Act sponsor Rep. Brad Finstad, R-Minn., touted the bill, noting that it helps small business navigate the regulatory environment. Alfredo Ortiz, CEO of Job Creators Network, added that the bill, “is a game changer… for too long, agencies have been given a pass from showing the impact of regulations on small businesses. Having the opportunity to have a seat at the table at the beginning of thew process rather than at the end of the process is critical.” You can watch their exchange here.

On March 5, the U.S. House Committee on Education and the Workforce Subcommittee on High Education and Workforce Development held a hearing titled, “Strengthening WIOA: Improving Outcomes for America’s Workforce.” Ahead of the hearing, ABC sent a letter to the committee in support of reintroduction and passage of a bipartisan reauthorization of the Workforce Innovation and Opportunity Act. “Reauthorizing WIOA is a critical step in addressing the workforce challenges facing the construction industry and the broader economy,” the letter stated. “By modernizing funding allocation, expanding employer-led training opportunities and streamlining workforce development programs, this legislation will help ensure that businesses have access to a skilled and qualified workforce while providing individuals with pathways to stable, high-paying careers.”

At the end of 2024, ABC-supported A Stronger Workforce for America Act (H.R. 6655), bipartisan legislation that secured funding for workforce development and addressed the construction industry’s evolving need for qualified and skilled craft professionals by modernizing WIOA from its most recent reauthorization in 2014.

On Feb. 26, the U.S. House of Representatives Committee on Education and Workforce held the hearing “Unleashing America's Workforce and Strengthening Our Economy.” Ahead of the hearing, ABC sent a letter to the committee expressing support for an all-of-the-above approach to workforce development, consisting of industry-recognized and government-registered apprenticeships, competency-based learning and more. During the hearing, Representatives questioned witnesses on tax policy, apprenticeships, OSHA's proposed heat rulemaking and the Employee Rights Act. 

On Feb. 5, the U.S. House Committee on Oversight and Government Reform held a hearing, Rightsizing Government. The hearing focused on eliminating waste, fraud and abuse by the federal government. Ahead of the hearing, ABC sent a letter to the Committee highlighting how the Biden administration’s Use of Project Labor Agreements for Federal Construction Projects final rule eliminated merit-based federal contracting and increased taxpayer costs by 12-20%. The letter urged Congress and the Trump administration to Congress and the Trump administration have the opportunity to restore merit to federal contracting by advancing fair and open competition. Rep. Clay Higgins, R-La., who serves on the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs, entered ABC’s letter into the hearing record. The Congressman's remarks may be seen here. 

On Feb. 5, the U.S. House Committee on Small Business held a hearing titled, “Hope on the Horizon: Prioritizing Small Business Growth in the 119th Congress.” Ahead of the hearing, ABC sent a letter to the committee calling for deregulation and sound legislation in the 119th Congress to help small businesses succeed.

During the hearing, Rep. Brad Finstad, R-Minn., touted the Prove It Act of 2024, which he introduced in the 118th Congress. ABC key voted the bill, which strengthens the Regulatory Flexibility Act by allowing industry groups, like ABC, to petition the Small Business Administration to examine whether a federal regulation would have significant economic effects on a large number of small businesses, among other things. You can view Rep. Finstad’s remarks from the hearing here.

In addition, Rep. Brian Jack, R-Ga., highlighted the need for deregulation for the small business community. When Rep. Jack asked witness Bill New of New Industries, Inc., a steel fabrication company, about the benefits of deregulation could be, New responded, “I think like a lot of small businesses – I’m not looking for a handout, I’m just looking for a level playing field. Then get out of my way.” You can view New’s comment here.

You can view the full committee hearing here.

On Jan. 17, the U.S. House of Representatives Committee on Ways & Means held a hearing focused on the family and business provisions included in the Tax Cuts and Jobs Act. Ahead of the hearing, ABC sent a letter to the committee emphasizing the significance of making permanent the provisions of the TCJA for America’s working families.

In the letter, ABC urged the committee to support the following critical tax policies, which are vital to the continued success and economic prosperity of our industry:

• Maintaining parity for pass-through entities (TCJA Section 199A)
• Continuation of TCJA estate tax treatment
• Revived expensing of R&D costs
• Restoration of 100% bonus depreciation
• Opposition to exclusionary labor mandates in IRA green tax credits

In the hearing, there was increased focus on addressing the looming expiration of the Section 199A deduction, which, if allowed to expire, would result in a 20% increased tax on pass-throughs, while C-corps and publicly traded companies will continue to enjoy their lower, 21% permanent rate.

For more information on the hearing, see ABC Newsline.

On January 15, the U.S. House Committee on Transportation and Infrastructure held a hearing: “America Builds: The State of the Nation’s Transportation System.” The hearing focused on permitting and workforce development. Four witnesses participated in the hearing, including Louisiana Governor Jeff Landry, R, and Vice President of Williams Brothers Construction, Seth Schulgen.

ABC sent a letter to the committee ahead of the hearing, encouraging it to consider all-of-the-above workforce development, fair and open competition and Davis-Bacon Act repeal/reform as ways to maximize the effectiveness of federal dollars.

During his opening statement, Chairman Sam Graves, R-Mo., stated the committee’s priority this Congress would be reauthorizing the Surface Transportation Act. He said the committee would hear from stakeholders and committee members as part of an aggressive hearing schedule. On the other hand, Ranking Member Rick Larsen, D-Wa., touted the Bipartisan Infrastructure Law and its investments.

Regarding permitting, Ranking Member Larsen stated the Infrastructure Investment and Jobs Act included streamlining and permitting reform that the Biden administration was unable to implement. He said he expects the Trump administration to advance these measures. Governor Landry expressed support for increasing state responsibilities within the permitting process. Landry noted that Section 404(b) permits were holding up the construction of vital infrastructure and that the states would be able to advance projects faster than the U.S. Army Corps of Engineers.

On workforce development, Schulgen said 90% of contractors reported struggling to find workers and expressed support for increased career and technical education funding.

Regarding construction costs, Schulgen said the IIJA’s impact had been eroded by inflation. He noted the U.S. Department of Transportation’s Federal Highway Administration’s displayed that highway construction costs have risen 70% since 2020.

View the hearing here.