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MCAA Government Affairs Update for the Week of November 10, 2025: The Latest Developments Impacting Our Industry

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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, November 10, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

  • Administrators of MCAA pension and health benefit plans should take note of two developments from last week. Health plan trustees should know that Thursday, President Trump announced a deal with pharmaceutical companies Eli Lilly and Novo Nordisk to lower prices for the weight loss drugs Ozempic, Wegovy, Zepbound, and (if approved by the FDA) Orforglipron when purchased directly through the federal government’s TrumpRX web portal set to launch in January. The drug companies also agreed to provide most-favored-nation pricing for their other medications to Medicaid, as well as any new medications they bring to market under the deal. House Ways & Means Committee Ranking Member Richard Neal (D-MA) and Senate Finance Committee Ranking Member Wyden (D-OR) both issued statements saying that the President’s deal was possible because Democrats included the Medicare Price Negotiation program in the Inflation Reduction Act. Separately, pension plan trustees should be aware that last Tuesday, Securities and Exchange Commission (SEC) Chair Paul Atkins confirmed he has met with leadership at the Labor Department (DOL) to discuss how the regulators should implement President Trump’s August 7, 2025 Executive Order “Democratizing Access to Alternative Assets for 401(k) Investors” to add assets such as private equity funds and cryptocurrencies to the investment options of 401(k)s and other defined contribution plans. Chairman Atkins cautioned that before alternative assets can be added to defined contribution plans, the SEC will need more staff to develop a suitable regulatory framework. He also said that the SEC and DOL will plot “out a course to study and then make proposals for these sorts of retirement plans to be able to access alternative investments, but within guardrails, so we’re not just going to fling the gates wide open.”
  • Given MCAA’s interest in tariff issues discussed at this year’s policy conference in Washington, D.C., last Wednesday MCAA’s policy team listened to the Supreme Court’s oral argument over the President’s authority to impose emergency tariffs. A majority of Supreme Court justices sounded skeptical of President Trump’s authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) and encroach on Congress’s power to tax. Three of the conservative justices and all three liberal justices questioned the Trump Administration’s claim that the tariffs were “regulatory, not revenue-raising,” and seemed receptive of the plaintiffs’ argument that the Constitution reserves the power to tax to Congress alone. While skeptical of the Administration’s position, Justice Amy Coney Barrett expressed concern about the process of reimbursing businesses for tariffs they’ve already paid. Justice Neil Gorsuch observed that, “if the court allows Congress to broadly ‘hand off’ its tariff power to the president, there might be no limits on other constitutional powers Congress might be able to relinquish.” Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito sounded more sympathetic to the Administration. Following the oral argument, the odds on prediction market Kalshi for a ruling in favor of Trump’s tariffs plunged from about 44% to around 25%. Although the White House is projecting confidence it will prevail, the Administration has made it known that it has a contingency plan in case it does not. This plan involves using trade laws such as Section 232 of the Trade Expansion Act of 1962, Sections 301 and 122 of the Trade Act of 1974, and Section 339 of the Tariff Act of 1930 to re-create Trump’s IEEPA-based tariff regime. These alternatives, however, are narrower and take longer to deploy, so they would impede the President’s ability to impose new tariffs as quickly as he has been doing under IEEPA.
  • As we continue advocating to maintain President Biden’s Executive Order (EO) 14063 requiring project labor agreements (PLAs) on most large federal construction projects valued at $35 million or more, we wanted to note that last Wednesday, Alaska mechanical contractor Slayden Plumbing and Heating, Inc. sued the federal agencies that comprise the Federal Acquisition Regulatory (FAR) Council over its rule implementing the EO. The lawsuit alleges that the PLA requirement exceeds the president’s authority under the federal Procurement Act. Slayden Plumbing and Heating withdrew two bids on federal projects due to the PLA requirement, and the company says it derives a substantial portion of its work from federal projects.
  • The MCAA continues engaging with the Trump Administration on implementation of the One Big, Beautiful Bill Act (OBBBA), and we wanted MCAA members to be aware of developments last week in the Internal Revenue Service’s (IRS) implementation of the OBBBA’s “No Tax on Overtime” and “No Tax on Tips” provisions. Last Wednesday, the IRS issued Notice 2025-62 granting penalty relief for tax year 2025 related to new information reporting requirements for overtime pay and cash tips under the OBBBA. Employers and other payors will not face penalties for failing to provide separate accountings of “qualified overtime compensation” or cash tips—including the occupation of the employee receiving such tips—on wage statements or information returns, provided the rest of the filing is complete and accurate. This temporary relief applies only to 2025 filings and reflects the IRS’s acknowledgement that many employers lack systems to track and report this information. Last week’s, notice follows the agency’s earlier proposed rule that MCAA highlighted in the September 22, 2025 Government Affairs Update implementing the OBBBA’s “No Tax on Tips” deduction—which included certain home service occupations such as HVAC technicians, residential plumbers, and appliance repairers as “eligible occupations” for the tax deduction for qualifying tips from customers. The public comment period on this IRS proposal closed on October 22, 2025. If this rule is finalized as proposed, MCAA members employing such workers will have new obligations to track and report “qualified tips” for such workers on revised tax forms.
  • Last week, as MCAA continued engaging with the EPA on decarbonization issues, we learned there is an active debate about ending the EPA’s Energy Star program but “no final decision has been made at this time” as to whether it will be terminated or restructured after internal agency discussions flagged it as a “government-sponsored advertising scheme.” The program, which enables companies to display the blue Energy Star label on products meeting efficiency specifications is voluntary. Its future now hinges on the outcome of a broader agency review EPA Administrator Zeldin is undertaking even as the EPA this week renewed key Energy Star contracts through 2030.
  • Last Monday, the Energy Department announced a $100 million funding opportunity to refurbish and modernize the nation’s coal-fired power plants, aiming to extend their lifespan, improve efficiency, and strengthen grid reliability. The Notice of Funding Opportunity (NOFO), part of a broader $625 million plan to revitalize the coal industry, seeks projects focused on advanced wastewater management, coal-to-gas retrofits, and coal-natural gas co-firing technologies. Applications are due January 7, 2026, and will be managed by the National Energy Technology Laboratory.

Congress

  • As the government shutdown broke the record for the longest shutdown in U.S. history last week, prospects for reopening the government dimmed after Tuesday’s elections emboldened Senate Democrats to insist Republicans agree to renew Affordable Care Act subsidies as a condition of ending the impasse. Progressives appear to be persuading the Democratic congressional caucus that last week’s strong election victories show voters want them to hold firm. Congressional Republicans extended an olive branch, offering to rehire thousands of federal workers laid off during the shutdown and to guarantee back pay, but the White House has not yet agreed to those terms. Some Senate Democrats also quietly explored using a discharge petition to force House Republicans to vote on extending the ACA healthcare tax credits, but leadership dismissed the idea as unrealistic. Speaker Mike Johnson (R-LA) insists he will not commit to any vote on the healthcare subsidies, frustrating ongoing Senate negotiations over a “minibus” appropriations package expected to carry a short-term stopgap to end the shutdown and fund the government into January. President Trump is also complicating negotiations to reopen the government by continuing to demand GOP senators forgo negotiations with Democrats and instead abolish the legislative filibuster and then act unilaterally to reopen the government without making any deals with Democrats. Senate Majority Leader John Thune (R-SD) rejected the idea of abolishing the filibuster, saying “it’s just not happening.” Meanwhile, as the shutdown continues, the Federal Aviation Administration announced that ongoing staffing shortages and related safety concerns forced it to reduce flight capacity at 40 major airports beginning last Friday, starting with a 4% reduction that will phase up to 10% as the shutdown continues. On Friday, Secretary Duffy said this could rise to “15 or 20% if the shutdown continues.” The phased cuts impact peak travel hours between 6 a.m. and 10 p.m. and affect key hubs including Washington’s Dulles and Reagan National, the three New York-area airports, and airports in Los Angeles, Chicago, Atlanta, San Francisco, Boston, Dallas, Denver, and Miami. Many airlines are already offering refunds and free re-bookings as delays mounted across the country to end last week.
  • As the MCAA continues to engage the Trump Administration and Congress on matters affecting registered apprenticeship programs, last Wednesday, we attended the Senate Health, Education, Labor, and Pensions (HELP) Committee’s hearing entitled, “Registered Apprenticeship: Scaling the Workforce for the Future.” The witnesses were: (1) Brent Booker, General President of the Laborers’ International Union of North America (LiUNA); (2) John Downey, General President of the International Union of Operating Engineers; (3) Gardner Carrick from the Manufacturing Institute; (4) Latitia McCane from the Apprentice School, Newport News Shipbuilding; and (5) Josh Laney from the Competency-Based Education Network in Alabama. During the hearing, senators and witnesses—particularly LiUNA President Booker—highlighted the negative impact that the Trump Administration’s cancellation of energy and infrastructure projects is having on registered apprenticeship programs in the construction industry and efforts to recruit more young people into these programs. There was also discussion of the administrative and compliance costs small and medium-sized businesses incur when they sponsor registered apprenticeship programs. Senators and witnesses also discussed the importance of wraparound services, such as childcare and transportation, calling them essential to ensuring more people enter and complete apprenticeship programs.

    At the end of the hearing, HELP Chairman Bill Cassidy (R-LA) submitted to the record a letter from ABC arguing that overly prescriptive state regulation of apprenticeship programs discourages contractor participation. ABC wants the federal government to override states that “impose prescriptive requirements and limit adaptability” by having the U.S. Department of Labor redefine the term “trade” used in apprenticeship contract addenda—such as a ‘Schedule of Work Process,’ ‘Trade Information’ or ‘Exhibit A’”—to move away from imposing “required hours for uniform and trade-specific on-the-job training” and to “define on-the-job training hours as 75% uniform and approved by the DOL or a state, and 25% employer-specific, regardless of trade” to “allow contractors nationwide to align apprenticeship training with their operations and encourage greater” participation in apprenticeship programs. ABC also urged the development of “industry-recognized, national credentials that provide craft and safety training for today’s leading construction positions.”
  • In response to the Trump Administration’s ongoing cancellations of federal construction projects during the government shutdown, on October 31st, House Transportation Committee Ranking Member Rick Larsen (D-WA) led Committee Democrats in a letter to the U.S. Army Corps of Engineers requesting information on the Office of Management and Budget’s October 17th announcement that President Trump is pausing or cancelling over $11 billion in projects in Democratic-led states. The letter specifically requests an update on multiple projects of interest to MCAA authorized by Congress under the Water Resources Development Act, including water and wastewater infrastructure improvements in Queens, New York; the replacement of the Bourne and Sagamore bridges over the Cape Cod Canal in Massachusetts; navigational improvements and deepening of the Ports of New York-New Jersey, Long Beach, CA, and Baltimore, MD; and the South San Francisco Bay Shoreline project in California.
  • As MCAA continues advocating for permitting reform and enactment of the SPEED Act, last week we confirmed that House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) intends to include permitting reforms in the upcoming surface transportation reauthorization next year—which funds major infrastructure projects that drive demand across the construction trades. MCAA is educating Congress on the merits of the MCAA-endorsed SPEED Act permitting bill and the need to include it in any deal to advance permitting reform. We also learned that Chairman Graves plans to add money to the Highway Trust Fund  by imposing new user fees for electric vehicles (EVs) and hybrids under the reauthorization. His plan is expected to mirror language left out of the One Big, Beautiful Bill Act that would have imposed a $250 annual fee on EVs and a $100 annual fee on hybrids. Congress must pass the reauthorization before September 30, 2026 when the Biden-era Bipartisan Infrastructure Law expires. The committee is aiming to mark up the reauthorization in early 2026 and bring it to the House floor sometime in the spring. Democrats, however, are continuing to warn that the Administration’s continued cancellations of clean energy and transportation projects may frustrate bipartisan cooperation on the measure. This is a position we reported on in our September 15th report detailing the House Committee on Natural Resources Committee’s hearing on the SPEED Act and some other permitting reform bills. Since that hearing, the Administration has halted more projects in democratically-controlled states since the start of the government shutdown on October 1st.
  • On October 31st, Senate Homeland Security and Governmental Affairs Committee Ranking Member Gary Peters (D-MI), Environment and Public Works Ranking Member Sheldon Whitehouse (D-RI), and Energy and Natural Resources Ranking Member Martin Heinrich (D-NM) sent a letter to President Trump requesting information on the demolition of the East Wing of the White House to construct a ballroom, noting donors have been disclosed for only $60 million of the $200 million contributed by private companies, wealthy individuals, and other donors. The senators requested full disclosure of all donors and warned that the private funding poses “pay-to-play” corruption risks, noting that some of the donations that have been disclosed are from firms with large government contracts, including Lockheed Martin, Google, Booz Allen Hamilton, Meta, Palantir, and Caterpillar. They also raised concerns that the demolition violated federal laws requiring congressional and National Capital Planning Commission review and objected to the October 28th firing of all six members of the Commission of Fine Arts before it was scheduled to review the project. The senators requested contracts and solicitations for the project demonstrating compliance with the Federal Acquisition Regulations, any environmental assessments or impact statements, and documentation that required asbestos and lead-paint abatement plans were developed and followed. Congressional Republicans defended private funding for the ballroom and rejected Democrats’ calls for Congress to prohibit any taxpayer dollars being used for the project, which is expected to cost approximately $350 million. Last Wednesday, JPMorgan Chase CEO Jamie Dimon told CNN that his firm will not contribute to the White House ballroom because the bank has “to be very careful how anything is perceived—and also how the next DOJ is going to deal with it,” insinuating that he is concerned about being dragged into the political firestorm over the project and that he does not expect the controversy to end when Trump leaves office.

Around the Country

  • As the MCAA continues to engage the Trump Administration and Congress on efforts to build out domestic nuclear energy infrastructure, we wanted to be sure that MCAA members were aware that last Thursday, the Nuclear Regulatory Commission (NRC) announced the availability of a Draft Supplemental Environmental Impact Statement (SEIS) for the Tennessee Valley Authority’s (TVA) construction permit to build a GE-Hitachi BWRX-300 small modular reactor (SMR) at TVA’s Clinch River Nuclear Site in Roane County, Tennessee. The 300-megawatt BWRX-300 reactor would be the first SMR constructed and operated in the U.S. It will provide enough electricity to power around 175,000 homes. Comments on the EIS are due by December 22, 2025 and should be submitted through the federal eRulemaking portal using Docket ID NRC-2024-0146. The progress at the TVA comes, it was revealed last Thursday that X-energy, LLC has begun testing to evaluate performance of the TRISO-X advanced nuclear fuel at the Energy Department’s Idaho National Laboratory as part of the company’s efforts to establish the country’s first commercial advanced nuclear fuel fabrication facility supporting the deployment of Xe-100 small modular reactor designs. Testing of TRISO-X fuel will take place over the next 13 months to evaluate how the fuel performs at various power levels, temperatures, and burnup conditions to simulate a wide range of operating scenarios.
  • MCAA members in Texas should be aware that last Tuesday voters approved two constitutional amendments. By a 2-to-1 margin, Texans passed Proposition 1, creating two new state funds with $850 million in dedicated resources to expand vocational training at the state’s technical colleges—funding land purchases, new classrooms and labs, campus repairs, and updated equipment—all managed by the State Comptroller outside the state budget process. This measure may become a model for states focused on addressing the skills gap in construction and other occupations that do not require a four-year college degree. Voters also overwhelmingly approved Proposition 4, which should create work for MCAA members by dedicating up to $20 billion over the next 20 years to fix aging pipes, build reservoirs, and strengthen the state’s water supply. It is funded through annual sales tax revenue that will go into the Texas Water Fund beginning in 2027.
  • As the MCAA continues advocating for permitting reform to accelerate the construction of data centers and other large-scale infrastructure projects, last Tuesday, we learned that the Energy Department’s (DOE) Office of Environmental Management issued a Request for Offer (RFO) seeking proposals from companies to build and power artificial intelligence (AI) data centers at DOE’s Paducah site in McCracken County, Kentucky—one of four federal sites designated for AI infrastructure and clean-energy generation projects that will benefit from expediting permitting because they are on federal land. The solicitation invites companies to enter long-term lease agreements to develop facilities on the former Paducah Gaseous Diffusion Plant property. Selected developers would finance, construct, operate, and decommission their projects and must secure their own utility interconnection agreements. Proposals are due by January 30, 2026 at 4:30 p.m. ET. DOE will post future dates for a sponsored industry event for applicants to learn more about the solicitation process and requirements outlined in the RFO and to tour the sites available for consideration. Registration is required and potential attendees should email Marcia Fultz at marcia.fultz@pppo.gov for more information.
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