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On Sept. 30, the U.S. Department of Transportation released an interim final rule to revise its Disadvantaged Business Enterprise program.
DOT’s DBE program seeks to assist the formation and growth of small businesses owned by economically disadvantaged individuals, by ensuring that state and local governments establish goals for DBE participation on federally assisted projects.
The final rule ends presumptions of disadvantage based on race or gender that have previously been used by businesses to qualify as DBEs.
This rule is in accordance with the DOT’s proposal in May 2025 to settle a lawsuit challenging the constitutionality of these presumptions in the case Mid-America Milling Co. v. U.S. Department of Transportation.
With these presumptions eliminated, existing DBE firms must be reevaluated and will be able to apply for recertification by demonstrating “individualized proof regarding specific instances of economic hardship, systemic barriers, and denied opportunities that impeded the owner's progress or success.”
The final rule took effect Oct. 3. The DOT is accepting comments on the rule until Nov. 3.
Note: This story was updated on Oct. 8 to include additional resources.
As of Oct. 1, the federal government is shut down, as Congress has failed to reach a deal to pass legislation to fund the government.
On Oct. 3, ABC sent out a release, urging the U.S. Senate to take immediate action to end the government shutdown by passing the clean continuing resolution—the Continuing Appropriations and Extensions Act, 2026.
ABC will provide guidance for ABC contractor members in Newsline as we receive it.
Below are links to contingency plans for federal agencies that contractors may work with:
Wiley Law has posted an informative article, Preparing for a Government Shutdown, which we encourage ABC contractors to review.
In addition, ABC’s general counsel, Littler, has posted articles on the shutdown: Possible 2025 Government Shutdown and Impact on Immigration-Related Agencies, What a Government Shutdown Means for Employers: Many Agencies Will Sharply Curtail Operations, Delaying New and Pending Cases | Littler and The Impact of a Federal Government Shutdown on OSHA.
Further, because of the shutdown, no monthly construction economic data will be collected and no reports will be issued until sometime after the government reopens. Because ABC is not receiving any of the data that the government releases on construction spending, jobs openings, employment, state unemployment or materials prices, these ABC releases are all on pause.
Additional Resources:
ABC is continuing to monitor the shutdown and will provide updates in Newsline. Members are encouraged to reach out to ABC’s government affairs team with any questions or concerns.
If Congress fails to reach a deal to pass legislation to fund the federal government, the government will shut down on Oct. 1.
On Sept. 19, the U.S. House of Representatives passed a nearly two-month long Continuing Resolution that would have kept the government funded at current levels through Nov. 21. That CR passed in a 217-212 vote. The U.S. Senate blocked the measure in a 44-48 vote that fell well short of reaching the 60-vote threshold needed to overcome a Senate filibuster. At this point, it is unclear when Congress will return to Washington.
Due to the potential for a government shutdown, ABC will provide guidance for ABC contractor members in Newsline as we receive it. Currently, limited information on shutdown/contingency plans is available on federal agency websites. We will continue to monitor these websites.
In the meantime, Wiley Law has posted an informative article on Preparing for a Government Shutdown, which we encourage ABC contractors to review. Specifically, the article discusses what government contractors should think about in anticipation of a shutdown.
Further, if the government shuts down on Oct. 1, no monthly construction economic data will be collected and no reports will be issued until some time after the government reopens. Because ABC will not receive any of the data that the government releases on construction spending, jobs openings, employment, state unemployment or materials prices, these ABC releases will also pause.
ABC is continuing to monitor this potential shutdown and will provide updates in Newsline. Members are encouraged to reach out to ABC’s government affairs team with any questions or concerns.
Associated Builders and Contractors applauds Rep. Lloyd Smucker, R-Pa., for the reintroduction of the bipartisan H.R. 5494, the Essential Workers for Economic Advancement Act.
In addition to Rep. Smucker, the bill is cosponsored by Reps. Mark Amodei, R-Nev., Juan Ciscomani, R-Ariz., Henry Cuellar, D-Texas, Don Davis, D-N.C., Andy Harris, R-Md., Mike Kelly, R-Pa., Mike Kennedy, R-Utah, Rich McCormick, R-Ga., Maria Elvira Salazar, R-Fla., and Tom Suozzi, D-N.Y.
The act establishes a targeted, nonfarm, temporary worker visa program with built-in safeguards to protect both employers and employees. The bill ensures that jobs remain open and available to American workers first, while giving businesses a legal, reliable pathway to fill long-standing vacancies. It strengthens border security, incorporates strict oversight to prevent abuse and closes loopholes in the asylum system—all while providing flexibility for industries like construction that are struggling with severe workforce shortages.
On Sept. 17, the U.S. House Committee on Education and Workforce passed the ABC-supported H.R. 2844, Michael Enzi Voluntary Protection Program Act, authored by Rep. Diana Harshbarger, R-Tenn. ABC joined with more than 30 organizations in the Coalition for Workplace Safety to support H.R. 2844.
The bill makes permanent the U.S. Occupational Safety and Health Administration’s Voluntary Protection Program and requires the agency to allocate a minimum of 5% of its annual budget to the program. ABC believes that encouraging collaborative partnerships between the regulated community and OSHA, such as VPPs, is a win-win approach, as they benefit both parties by improving compliance efficacy, reducing financial and administrative costs for both parties and strengthening trust and transparency between the agency and the private sector.
On July 16, Kevin Sell, senior manager of corporate development at ABC member Kwest Group, Perrysburg, Ohio, testified on behalf of ABC before the U.S. House Committee on Education and Workforce Subcommittee on Workforce Protections at the hearing “Safe Workplaces, Stronger Partnerships: The Future of OSHA Compliance Assistance,” in support of support H.R. 2844. Watch the hearing and read Sell’s full testimony.
The bill now awaits consideration on the House floor.
On Sept. 9, the U.S. Department of Defense issued a final rule implementing its Cybersecurity Maturity Model Certification Program into the Defense Federal Acquisition Regulation, requiring federal contractors and subcontractors competing for DOD contracts to demonstrate continued compliance with a range of cybersecurity measures in order to maintain eligibility for performing and winning new federal awards.
This is the last step in a multiyear process to finalize CMMC regulations, which will now be phased in over a three-year implementation period beginning on the final rule’s effective date, Nov. 10.
The new requirements apply to all contractors and subcontractors on DOD projects that process, store or transmit information on contractor servers that meet the standards for Federal Contract Information or Controlled Unclassified Information.
Requirements vary from a self-assessment of compliance with cybersecurity measures to triennial assessment and certification of compliance by third-party contractors or the DOD, depending on the data involved in a specific contract.
On Oct. 11, ABC submitted comments on the August 2024 proposed rule, calling for critical clarifications and improvements to ensure CMMC 2.0 does not unnecessarily burden federal contractors. ABC also engaged over 200 members to submit comments urging the DOD to improve the rule through ABC’s grassroots regulatory efforts. Finally, ABC joined an Oct. 15 comment letter from a coalition of industry groups.
Based on public comments by ABC and others, the final rule removed a burdensome and duplicative requirement to report lapses in information security to the contracting officer within 72 hours, provided a definition of Federal Contract Information and made other clarifications.
For more information on ABC’s engagement on the development of this final rule, as well as compliance resources and member-only webinar recordings, visit ABC’s Cybersecurity Resource Guide.
On Sept. 2, ABC submitted comments in support of the U.S. Department of Labor’s proposed rule to end discrimination and streamline rules for registered apprenticeships, Prohibiting Illegal Discrimination in Registered Apprenticeship Programs.
The proposed rule would reduce regulatory burdens on registered apprenticeship program sponsors related to equal employment opportunity regulations. It streamlines complex affirmative action, recordkeeping and utilization goals by replacing them with a requirement to comply with state and federal nondiscrimination laws.
These burdensome regulations were initially implemented under former President Barack Obama’s administration in 2016, and ABC opposed the changes when they were first proposed.
ABC’s Sept. 2 comments supported the proposed rule, which will ease entry to registered apprenticeship programs by new program sponsors, especially small businesses, while maintaining broad and effective protections for both potential and current apprentices.
ABC continues to support further improvements to RAPs, which are part of ABC’s all-of-the-above approach to workforce development that will be critical to addressing the construction industry’s ongoing labor shortage.
On July 14, the U.S. Department of Labor updated its guidance on penalty and debt collection procedures, outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, to help minimize the burden on small businesses and increase prompt hazard abatement. The new policy expands penalty reductions for small employers, making it easier for small businesses to invest resources in compliance and hazard abatement.
As the DOL news release states, “All employers should be offered the opportunity to comply with regulations that help maintain a safe working environment. Small employers who are working in good faith to comply with complex federal laws should not face the same penalties as large employers with abundant resources. By lowering penalties on small employers, we are supporting the entrepreneurs that drive our economy and giving them the tools they need to keep our workers safe and healthy on the job while keeping them accountable.”
The new guidance includes:
The new polices are effective immediately. Penalties issued before July 14, 2025, will remain under the previous penalty structure. Open investigations in which penalties have not yet been issued are covered by the new guidance.
Read ABC general counsel Littler’s analysis to learn more.
On July 27, the U.S. Department of Labor announced programs from six agencies designed to help the regulated community voluntarily assess and improve compliance with federal labor laws. The programs are aimed at strengthening worker protections while reducing the risk of investigations or penalties.
According to the DOL’s news release, “These programs are designed to give employers, unions, and benefit plan officials the tools they need to correct potential violations proactively. By empowering the regulated community with clarity and collaboration, we are continuing to fulfill the Department of Labor’s mission to put both workers and employers first.”
The initiatives span several DOL agencies, including:
Learn more about the programs and access resources at dol.gov/selfaudit.
On July 3, ABC sent a letter in support of H.R.3898, the Promoting Efficient Review for Modern Infrastructure Today Act. The letter urges the U.S. House of Representatives to advance the legislation, providing much-needed, commonsense reforms to the Clean Water Act.
Among the many essential provisions in the PERMIT Act, ABC particularly supports:
ABC also signed onto the Waters Advocacy Coalition’s letter to the House Rules Committee, urging the committee and House to advance the legislation, delivering clarity and certainty for landowners and the regulated community.