Measure’s Modest Amount of Funding for Infrastructure Projects and Clarification that PPP Loans May Not be Taxed Will Help Offset Some of the Challenges Facing the Construction Industry
Other Construction Policy Provisions Pass
Impact on Construction Unclear
On September 22, President Trump issued an “Executive Order on Combating Race and Sex Stereotyping.” While the EO does not establish a blanket prohibition on diversity and inclusion (D&I) training of employees by government contractors, it does set forth restrictions on the content of such training. The U.S. Department of Labor must undertake a rulemaking to implement the terms of the EO and that rulemaking could put forth a better understanding of the restrictions required under the EO before it can take effect. AGC continues to review the EO and will provide additional information.
Regulatory Rule Published
While not ideal, enactment of a short-term continuing resolution (CR) will ensure federal agencies remain open and ongoing projects for direct federal contractors (e.g., those with contracts directly with the U.S. Army Corps, Navy, General Services Administration, etc.) remain uninterrupted through December 11. However, federal construction projects that need fiscal year 2021 funds to begin or start a new phase are prohibited from moving forward. That does not mean that all or many direct federal construction projects will grind to a halt, because the majority continue to utilize funds from previous fiscal years (thus falling outside the new project starts prohibition). Fully funding the government will be back at center stage in December. Nevertheless, AGC has resources available to your company in the event of a partial or complete federal government shutdown: What Contractors Should Know in the Event the Government Shuts Down.
Delay until September 30