President Implements Steel and Aluminum Tariffs
AGC Provides Helpful Tips for Contractors
On March 8, President Trump signed proclamations to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, with limited exceptions. AGC previously urged the President to abandon the tariffs because of their negative impacts on the construction industry. AGC members are still encouraged to contact the president and their congressional representatives to stop these tariffs. In addition, AGC has provided two memos for construction contractors—one for direct federal and federally-assisted construction contracts and another for private construction contracts—as they grapple with anticipated steel and aluminum price increases.
These tariffs will have an almost immediate impact on the cost of aluminum and steel purchased for construction projects, as the construction industry consumes 43 percent of American steel according to the American Iron and Steel Institute. The proposed tariffs on steel and aluminum will also have a direct and negative impact on construction employment, putting more than 28,000 construction jobs at risk according to a recent, nonpartisan study. Alarmingly, this figure does not even account for jobs that could be impacted by affected nations’ retaliatory trade measures. AGC will continue to press the White House and Congress to stop these tariffs.
For more information, contact Collin Janich at [email protected] or (703) 837-5435.
Commerce Department Recommends Expansive Steel and Aluminum Tariffs
On Feb. 16, the Commerce Department publicized its investigation into the national security threat posed by steel and aluminum imports. The report determines that the metal imports “threaten to impair the national security,” and lays out three recommendations for imposing tariffs and/or quotas on steel and aluminum imports. AGC will urge the president to consider the potential negative impact of such actions on the construction industry—which uses the materials in a broad array of project types—as he determines his response.
Commerce’s top-line recommendation is a 24 percent global tariff on all steel imports and a 7.7 percent tariff on all aluminum imports. The report also recommends that the Commerce Secretary oversee an appeals and exclusion process, whereby American companies can appeal for specific products to be excluded “if the U.S. lacks sufficient domestic capacity or for national security considerations.”
The Commerce Department’s alternative recommendations can be found here, along with the full steel and aluminum reports.
Because the investigation was carried out under Section 232 of the Trade Expansion Act of 1962, President Trump has the authority to act without Congressional approval. He must implement or reject the steel recommendations by April 11 and the aluminum recommendations by April 19.
For more information, contact Collin Janich at [email protected] or (703) 837-5435.
Support Adoption of Multiemployer Pension Composite Plans
Tell Congress to Approve Composite Plans
Congress recently introduced the AGC-supported Giving Retirement Options to Workers Act (GROW Act), HR 4997. As such, AGC urges you to support the bipartisan bill by contacting your U.S. representative and U.S. senators. The bill would authorize the adoption of composite plans and strengthen the multiemployer pension system.
The legislation was jointly developed and supported by employer and labor organizations. The composite plan is a hybrid of a defined contribution and a defined benefit plan in that it shares risk, provides lifetime income to participants, and limits employer obligations to negotiated contributions. H.R. 4997 is a separate initiative from efforts to address the funding challenges of the PBGC and critically funded plans. AGC is encouraged by the bipartisan bill and will be calling for its swift consideration and enactment alongside our labor partners.
For more information, contact Jim Young at [email protected] or (202) 547-0133.
Congress Readies for Action on Infrastructure
Tell Congress to Invest in Infrastructure NOW
Congress will commence work on infrastructure legislation in early March, as the Senate and House have set hearings on the president’s infrastructure plan. And, as a part of the recent bipartisan budget agreement, lawmakers are considering spending $20 billion over the remainder of fiscal year 2018 and through fiscal year 2019. As such, it is critical that the construction industry lets Congress know that the time for infrastructure investment is now. Contact your U.S. representative and U.S. senators right now so that they understand that investing in and improving our nation’s infrastructure helps our nation prosper.
For more information, contact Jimmy Christianson at [email protected] or (703) 837-5325.
Register Now for the Federal Contractors Conference
Early Bird Discount Ends Soon
Register today for the 2018 AGC Federal Contractors Conference. This discount offer ends Feb. 19 and space is limited. The Federal Contractors Conference is the premier conference for federal construction contractors to discuss the latest projects, policies and contracting issues facing the industry with federal agencies, including the U.S. Army Corps of Engineers, Naval Facility Engineering Command, Air Force Civil Engineer Center, General Services Administration, Department of Veterans Affairs, Department of State, Natural Resources Conservation Service, and Bureau of Reclamation.
In addition to substantive discussions and presentations with federal agencies, attendees will hear from legal experts about the latest federal regulations that will impact their businesses and may have the opportunity to continue a dialogue with federal agencies after the conference. Leading federal construction attorneys will address executive orders, Small Business Administration and Federal Acquisition Regulation rules, and case law trends your company needs to know to work in the federal market. And, when the conference concludes, AGC member attendees will have the opportunity to participate in ongoing dialogue and meetings with agency headquarters later in the year.
For more information and to register, go to http://meetings.agc.org/fedcon/registration/.
Trump Takes Congressional Temperature on Steel & Aluminum Tariffs
On Feb. 15, President Trump held a bipartisan White House roundtable on the national security threat posed by steel and aluminum imports. Republican lawmakers in attendance largely urged the president to proceed cautiously and pursue tightly targeted actions, fearful that broad tariffs could upset the economy and provoke retaliation by China as well as our traditional trade allies. President Trump has until mid-April to determine whether he will raise tariffs on the construction materials.
For more information, contact Collin Janich at [email protected] or (703) 837-5435
AGC- Supported Pension Legislation Introduced in Congress
This week, Representatives Phil Roe (R-TN) and Donald Norcross (D-NJ) introduced the AGC-supported Giving Retirement Options to Workers Act (GROW Act) in Congress (H.R. 4997), a bipartisan bill that would authorize the adoption of composite plans and strengthen the multiemployer pension system.
Jointly developed and supported by employer and labor organizations, the composite plan is a hybrid of a defined contribution and a defined benefit plan, in that it shares risk, provides lifetime income to participants, and limits employer obligations to negotiated contributions. H.R. 4997 is a separate initiative from efforts to address the funding challenges of the PBGC and critically funded plans. AGC is encouraged by the bipartisan bill and will be calling for its swift consideration and enactment alongside our labor partners.
For more information, contact Jim Young at [email protected] or (202) 547-0133.
AGC Calls on Congress to Clarify Joint Employer Definition
This week, AGC joined a coalition effort to clear up confusion surrounding the many legislative definitions for “joint employer” in the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA).
Late last year, the House approved AGC-backed legislation that restores the joint employer standard that existed prior to the National Labor Relations Board’s (NLRB) 2015 Browning-Ferris Industries decision. That decision broadened the definition of joint employer from those that share direct control over terms and conditions of employment to those with indirect control.
Since that time, the NLRB restored the “direct and immediate control” standard for joint employment in a December decision, and under the FLSA there are as many as eight different federal circuit court definitions of “joint employment.” The Supreme Court recently decline to hear a case that would have paved the way for a judicial solution. AGC is urging Congress to enact a permanent solution that locks in a sensible definition for “joint employer.”
For more information, contact Jim Young at [email protected] or (202) 547-0133.
President Releases FY 2019 Budget
This week, President Trump released his budget request covering fiscal year 2019. The proposal, “An American Budget” calls for $4.4 trillion in federal spending in FY 2019, and while offset by $3.4 trillion in tax and other revenue sources, most estimates project the budget will tack on $1 trillion to the national debt. The budget adheres to the status quo, except for $44 billion for the proposed infrastructure initiative. A full analysis of the FY 2019 budget for federal construction accounts can be found here.
Traditionally, administration budget submissions have been largely perceived as messaging documents that outline the president’s priorities while priming the budget and appropriations process for the coming year. This year, the administration’s budget is even less relevant, because last week Congress passed—and President Trump signed—a two-year budget agreement that set spending levels for fiscal years 2018 and 2019. Despite this, the budget does include details on how the administration plans to annually spend the $200 billion identified for their infrastructure plan over the next 10 years. The budget, however, does not indicate how the government will fund the needed $200 billion.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.
Congressional Budget Agreement Extends AGC-Supported 179D Tax Deduction
When Congressional leaders struck their bipartisan budget agreement last week, they included an AGC-supported provision extending an energy efficiency tax deduction for commercial buildings, commonly known as 179D. One of many provisions known as the “tax extenders,” the deduction expired on December 31, 2016, but was retroactively extended through December 31, 2017.
Shortly after the agreement, Kevin Brady, Chairman of the House Ways and Means Committee, announced that he intends to hold hearings over the next year to closely examine these tax extenders, with the goal of narrowing or modifying them in a post-tax reform world. We will closely monitor the Committee’s oversight action over the coming year.
For more information, contact Matt Turkstra at [email protected] or (202) 547-4733.