President Trump Sworn in as 47th President

What Trump’s executive orders mean for construction.

On Monday, President Donald J. Trump officially became the 47th President of the United States. Prior to taking office, AGC met with his transition team and outlined the construction industry’s priorities for his second term. On his first day in office, he wasted no time, issuing a series of executive orders and presidential memorandums to outline his positions on a wide range of issues.

This first wave of executive action included the signing of 26 executive orders by January 22nd. Executive orders are directives from the president that instruct executive agencies and direct the operations of the federal government.

AGC of America is particularly focused on the following executive orders that could impact the construction industry and will be closely monitoring their implementation:

Declaring a National Energy Emergency: The order directs the fast-tracking of energy infrastructure projects and authorizes the use of emergency powers to streamline the permitting process for projects that support the nation’s energy independence.

Unleashing American Energy: The order promotes energy exploration, boosts non-fuel mineral production, and simplifies regulations to strengthen national energy security. Key provisions include:

  • Eliminating the electric vehicle mandate, halting funding for electric vehicle charging stations, and ending state waivers that restrict the sale of gas-powered vehicles.
  • Rescinding the CEQ NEPA regulations.
  • Directing agencies to simplify the environmental review and permitting process by eliminating requirements that exceed the scope of existing laws.
  • Reassessing the EPA’s 2009 finding that greenhouse gases pose a threat to public health and the environment, which underpins much of the agency’s work on GHGs.

Unleashing Alaska’s Extraordinary Resource Potential: This order prioritizes energy availability and security by reopening the Arctic National Wildlife Refuge for oil and gas leasing and streamlining the permitting process for liquid natural gas pipelines. Combined with the declaration of a national energy emergency, it signals that energy production will be a key focus for the second Trump administration.

Ending Illegal Discrimination and Restoring Merit-Based Opportunity: This order marks a significant policy shift from prior administrations. Most notably, it revokes EO 11246 from 1965, which established the Department of Labor’s Office of Federal Contract Compliance Program’s (OFCCP) authority to require federal contractors to implement equal employment opportunity and affirmative action policies. Other key provisions include ending diversity, equity, and inclusion (DEI) practices within the executive branch and requiring federal contractors to certify that they do not participate in such programs.

Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects: This order halts the Biden administration's aggressive leasing of wind energy projects on the Outer Continental Shelf. While rights for existing leases remain unchanged, they will be reviewed and may be modified or revoked. The order also mandates a comprehensive review of all federal wind leasing and permitting practices.

Presidents often use executive orders to address the pressing issues of their day. On his first day in office, President Trump focused on immigration, climate change, energy, and freedom of speech, among other topics. Similarly, President Biden used executive actions on his first day to tackle the pandemic, climate change, and economic relief.

Executive orders, when properly issued, are binding on federal agencies and are controlling over any state laws that conflict. Despite that, courts have consistently ruled that executive orders generally do not create enforceable rights for individuals. To date, no agency has been successfully sued to compel compliance with an executive order.

For those of us outside the federal government, executive orders serve as indicators of a president’s policy priorities and how they intend to manage the executive branch. While executive orders do not create new laws or change existing laws (as only Congress has the power to legislate), they direct agencies to take action, within the scope of their authority, toward achieving the president’s goals.

President Trump also used an executive order to repeal a huge number of Biden-era executive orders. A summary of what was taken off the books is available here. AGC will continue to monitor the issues addressed in these executive orders and keep members informed on any updates.

How these executive orders will impact the construction industry is yet to be seen and will depend on how they are implemented. It is important to remember that executive orders serve chiefly as an indicator of what issues President Trump will pursue and what his goals are. They are not controlling over applicable statutes and any changes to current regimes will be accomplished through the government’s usual means.

For additional information, please contact Spencer Phillips.

 


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