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A number of changes are coming under the Trump administration for infrastructure builders working in the US
Despite anxiety over his tariff and promises of mass deportation, the the construction sector is optimistic about the return of a fellow builder to the Oval Office. The importance of infrastructure is largely recognized as a bipartisan issue, said Mary Scott Nabers, Austin, Texas-based CEO of Strategic Partnerships, a government procurement consultancy.
“I think the construction industry should feel very positive about 2025,” Nabers said. “From all indications, the next three to four years are going to be very good for the construction industry.”
Mary Scott Nabers
Permission granted by Mary Scott Nabers
There is a lot of work to be done: not just for the country massive backlog of repairsbut also the growing demands for climate resilience, harder infrastructure cyber security and new sources of energy to boost the nation’s fast-growing data center and manufacturing industries.
Here are five key ways President-elect Donald Trump could affect civil construction next year:
Potential impact on IIJA funding
Three years into the five-year, $1.2 trillion Jobs and Infrastructure Investment Act, Biden will hand over to Trump with plenty of money left over. The new administration will have to staff and catch up with IIJA’s many programs.
IIJA funds are on track to be fully awarded over the five-year period, according to analysis by Washington, D.C.-based think tank Brookings, but that money hasn’t necessarily reached jobs yet and it will be necessary years after the expiry of the IIJA so that all your projects are completed. Trump may bring back some funds or move them.
“The Biden administration still leaves the Trump administration with $294 billion to award, including $87.2 billion in competitive grants, where Trump agency staff will personally determine the winners,” according to Brookings.
In fact, it’s safe to assume that the Trump administration will carry one out comprehensive review of the IIJA and “seek to scale back those parts of the bill that it considers excessive spending,” said experts at the law firm Holland and Knight.
While it’s impossible to know what Trump and his appointees will do, Highway Trust Fund Dollars and Advance Credits are largely safe, according to SmartBrief. Nabers believes much of the infrastructure funding the construction industry benefits from will continue through at least fiscal year 2026.
“Dismantling the infrastructure programs, because they’re primarily infrastructure and water and critical needs, is not likely to be a high priority for the new administration,” Nabers said. “The Trump team will likely expand the [Transportation Infrastructure Finance and Innovation Act] i [Water Infrastructure Finance and Innovation Act] and community development block grant programs, and that’s driving a lot of construction.”
More attention to traditional infrastructure and rural areas
However, the new administration brings new priorities. Trump may seek to defund high-speed rail projects, according to Holland and Knight, and has been critical of electric vehicle efforts.
Trump will likely focus funding on traditional infrastructure like roads and bridges, said Alex Etchen, vice president of government relations for the Associated General Contractors of America.
“These large discretionary grants go away from the US DOT, I think you’re going to see them re-prioritize project selections,” Etchen said. “I think you’re going to see a shift in the focus on electric vehicles, climate change reduction, or the carbon reduction focus that we saw under the last administration.”
Alex Etchen
Authorization granted by AGC
The Trump administration will also likely shift more money to rural areas, Etchen said.
“In their first mandate, they really made it a priority to guarantee rural areas [areas] obtained [their] fair share of infrastructure funding,” Etchen said.
Emphasis on P3
In his first term, Trump refused to support an infrastructure bill which did not have a massive contribution from the private sector, and will probably continue to advocate for financing projects in this way.
“It looks like the Trump team will push for public-private partnerships and also find other ways to incentivize private sector investment,” Nabers said. “There is not enough public funding, and there won’t be 10 years from now, to address all the infrastructure needs we will have to deal with in our ever-evolving world.”
Frank Banda
Permission granted by Frank Banda
Public opinion is sometimes negative towards P3 projects and Trump called them once “more trouble than it’s worth.” However, it continued to cut government spending, so they are a financing tool it is likely to use, according to Frank Banda, managing partner of Government and Public Sector Advisory at the accounting firm CohnReznick, based in New York City.
“The reality is that I think the P3s will continue to help us achieve what we need to achieve,” Banda said. “We’re going to need a partner to help us do these things.”
Weaker NEPA, faster permits
As president, Trump took a series of actions to speed up the permitting process for construction projects. He issued executive orders in 2020 by holding back NEPA, the Endangered Species Act and the Clean Water Act, and will likely do so again, according to Holland and Knight.
Trump’s first term offers hints about what he could accomplish quickly, without involving Congress. The executive orders he made include concurrent reviews, lead federal agency page limits, deadlines for approvals and repercussions if those deadlines are not met, Etchen said.
“We are anticipating that he will return to this policy at the beginning of his second term,” Etchen said. “We’re also hopeful that a broader reform that will make it through Congress.”
The environmental review process has slowed the launch of infrastructure megaprojects in particular, according to Nabers, and Trump recently indicated that the speed of permits is the main issue. On a December 10 post on your social site of the truthTrump said anyone making a $1 billion investment in the US “will receive fully expedited approvals and permits, including but not limited to all environmental approvals.”
A case that is being discussed in the Supreme Court — Seven County Infrastructure Coalition v. Eagle County — also has the potential to dramatically weaken NEPA reviews.
Builders are also hoping for updates to the Build America, Buy America program, which mandates certain domestically manufactured materials on federal projects. According to Etchen, GCs continue to be frustrated by the slow and complicated BABA exemption process.
“One of the things we’re advocating for is that waiver requests should be released the day they get them and they shouldn’t require, you know, the White House to sign the permission slip for it to be publish on a publicly available website,” Etchen. he said
Looking for waste and fraud
Reinforced with a new Department of Government Efficiency, builders should expect an administration hyper-focused on eliminating waste and abuse of federal funds, according to Banda.
“There will likely be more oversight, even integrity and accountability, because there is a greater focus on reducing fraud, waste and abuse,” Banda said. “The agencies that [builders are] working with will probably need to put some robust controls in place.”
How can contractors prepare? Get your paperwork in order, according to Banda.
“[Builders are] They will need to demonstrate that they have systems and controls in place to manage these projects and control the costs associated with these projects,” Banda said.
