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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

Letters to the Hill

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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

On July 14, Rep. James Comer, R-Ky., introduced the Save Local Business Act, which would amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that an entity is only a joint employer if it directly and immediately exercises meaningful control over workers’ essential terms and conditions of employment. The bill would provide clarity and predictability to the regulated community and ensure that the entities that truly have control over a group of workers are at the bargaining table.


The ABC-led Coalition for a Democratic Workplace and 72 undersigned organizations sent a letter to members of the U.S. House of Representatives and U.S. Senate urging them to support and pass the bill.

“The Save Local Business Act will restore balance, clarity, and predictability to labor and employment law,” said Kristen Swearingen, ABC vice president of government affairs. “It ensures the appropriate entities are at the bargaining table and held responsible for any violations committed against workers while shielding businesses from unwarranted liability for the employment decisions of another entity. This legislation will protect small business owners and allow future entrepreneurs to thrive. We strongly support this legislation and urge Congress to pass it.”

CDW’s statement on the bill’s introduction can be read here.

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:

  • Clarifying the Definition of WOTUS: Explicitly excluding groundwater and ephemerals that flow in direct response to precipitation from the definition of Waters of the United States reduces expansive interpretations of WOTUS and limitations on construction taking place on such land.
  • Expediting Jurisdictional Determinations: Directing the U.S. Army Corps of Engineers to expedite procedures and augment personnel and resources will help eliminate the backlog of jurisdictional determinations and Section 404 applications.
  • Extending and Streamlining the Section 404 Dredge and Fill Permit Process: Extending nationwide general permit times from five to 10 years may enable contractors to complete projects within the permitted time frame. Further, allowing the use of environmental assessments for the reissuance of permits will streamline permitting for already approved projects.
  • Extending NPDES Permit Terms: Extending the National Pollutant Discharge Elimination System permit time from five to 10 years provides longer validity for construction permits.
  • Ensuring Permitted Projects Move Forward: Establishing that the U.S. Environmental Protection Agency’s authority to deny or restrict the use of a defined space as a disposal site is limited to the period between a completed application and permit issuance will reduce the risk of late-stage permit cancellation.

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.

On July 1, a diverse group of lawmakers from around the country sent letters to President Trump urging him to rescind the Biden-era rule requiring PLAs on federal construction projects of $35 million or more. 95 members of the U.S. House and 21 members of the U.S. Senate signed the letters, expressing serious concerns over the administration’s decision to double down on a policy that is inherently exclusionary, anti-competitive and costly for American taxpayers.

ABC Supports One, Big, Beautiful Bill as Senate Kicks off Vote-a-Rama:

On June 30, the U.S. Senate began deliberations on their version of the One, Big, Beautiful Bill Act after passing a key procedural vote this past weekend. On June 27, ABC sent a Key Vote letter to the U.S. House and Senate, urging members of Congress to support the bill which includes key tax relief for contractors. ABC also joined a group of organizations representing millions of Main Street businesses in a June 28 letter expressing strong support of the package. ABC supported provisions of the OBBB would:

  • Make the Small Business Deduction Permanent
  • Provide Permanent Estate Tax Relief
  • Restore 100% Bonus Depreciation
  • Revive Expensing of R&D Costs
  • Eliminate tax on Overtime for American Workers
  • Expand 529 Accounts for Skilled Trades Training

The Motion to Proceed to debate the bill on the Senate floor passed in a 51-49 vote, with Senators Thom Tillis, R-N.C. and Rand Paul, R-Ky., voting against the measure. The bill is now in its early stages of a series of votes nicknamed “vote-a-rama,” where the Senate will consider any number of amendments to the package, a process expected to take several hours. Keep in mind, under Senate rules, reconciliation bills can pass the Senate with a simple majority, overriding Senate filibuster rules that typically require a 60-vote supermajority. Republicans currently hold a 53-47 majority in the Senate, but Tillis and Paul are both unlikely to change their minds on Trump’s key agenda item, leaving Senate Majority Leader John Thune, R-S.D., with a slim margin to pass the package. A third GOP defector would force Vice President JD Vance to break the tie, while a fourth would kill the bill all together.

If the Senate approves the package, it will head back to the House where Speaker Mike Johnson, R-La., will face yet another challenge in corralling his Conference. Notably, the House passed their version of the OBBB at the end of May in a slim 215-214-1 vote. The Senate’s version now includes steeper cuts to Medicaid and a phase out of the $40,000 state and local tax deduction cap, not to mention an $800 billion increase to the deficit. These present a clear and present threat to Johnson’s hopes of getting the package through the Chamber and to the president’s desk ahead of their July 4 deadline.

On June 26, ABC announced its strong support for the reintroduction of the Employee Rights Act in the 119th Congress, urging the swift consideration of the ERA to protect worker freedoms nationwide. 

“Worker choice, flexibility and privacy are essential to the success of the construction industry, and the Employee Rights Act delivers much-needed balance to our nation’s labor laws,” said Kristen Swearingen, ABC vice president of federal affairs. “This bill protects all workers’ right to a secret ballot, their control over personal contact information and their freedom to work as independent contractors if they choose. Congress must act now to advance this pro-worker, pro-growth legislation and stop harmful policies that undermine workforce freedoms.”
 
Introduced by Rep. Rick Allen, R-Ga., the ERA would:

  • Guarantee secret ballot union elections on jobsites
  • Safeguard worker privacy and limit forced disclosure of personal information
  • Provide legal clarity for independent contractors
  • Clarifies the definition of a joint employer
  • Prevent the use of employee dues for union political campaigns without consent

On June 25, ABC joined other business groups and trade associations in a letter to Senate Finance Committee Chairman Mike Crapo, R-Idaho, supporting making permanent and expanding the Section 199A deduction from 20 to 23 percent. While ABC supports the Senate’s provision of the One, Big, Beautiful Bill that would make permanent the 199A deduction, it also would cut in half their ability to deduct State and Local Taxes (SALT) as a business expense. The net result will be a tax hike on millions of pass-through businesses relative to what they currently pay.

Locking in the higher deduction under Section 199A will prevent a significant tax hike in 2026 and ensure that ABC members—most of whom are passthrough businesses—can reinvest in their companies, expand their workforce and take on new projects without fear of future tax hikes.

On June 25, the Coalition for Workplace Safety sent a letter to the U.S. Senate Health, Education, Labor and Pensions Committee in support of David Keeling’s nomination to serve as Assistant Secretary of Labor for Occupational Safety and Health. The committee is considering additional nominees at the Department of Education, the Department of Labor, and the Equal Employment Opportunity Commission, including:

  • Nomination of Penny Schwinn to serve as Deputy Secretary of Education, Department of Education
  • Nomination of Kimberly Richey to serve as Assistant Secretary for Civil Rights, Department of Education
  • Nomination of Daniel Aronowitz to serve as Assistant Secretary of Labor for the Employee Benefits Security Administration, Department of Labor  
  • Nomination of Jonathan Berry to serve as Solicitor, Department of Labor
  • Nomination of Andrew Rogers to serve as Administrator of the Wage and Hour Division, Department of Labor
  • Nomination of Anthony D’Esposito to serve as Inspector General, Department of Labor
  • Nomination of Andrea Lucas to serve as a Member, Equal Employment Opportunity Commission 
  • Nomination of Jeremiah Workman to serve as Assistant Secretary of Labor for Veterans’ Employment and Training, Department of Labor

On June 11, the House Committee on Oversight and Government Reform's Subcommittee on Military and Foreign Affairs held the hearing: Clearing the Path: Reforming Procurement to Accelerate Defense Innovation. Ahead of the hearing, ABC sent a letter to the committee, noting projects where PLAs had limited innovation at the U.S. Department of Defense. During the hearing, Representative Andy Biggs, R-Az., expressed concern that the Biden administration's PLA mandate kills competition, inflates prices and blocks nonunion companies from fair opportunities. He said the mandate is sidelining the best contractors and rigging the system. On the other side of the aisle, Representative Stephen Lynch, D-Ma., stated that very few projects at DOD that require a PLA. He said a PLA may exist to build a warehouse. He stated that he does not know of any DOD PLA requirement in place in the entire United States. In addition, Lynch said PLAs ensure workers are highly skilled and able to perform work at levels that meet DOD standards.

On June 4, the U.S. House Committee on Small Business held a hearing titled, “Budgeting for Growth: Testimony from SBA Administrator Kelly Loeffler.” Ahead of the hearing, ABC sent a letter to the committee stressing the need for deregulation. Specifically, ABC expressed its support for the Prove It Act (H.R. 1163) and denounced former President Biden’s executive order and subsequent final rule mandating controversial project labor agreements on federal construction projects of $35 million or more. The letter added that the Biden final rule unfairly limits opportunities for small firms that may be unable or unwilling to operate under the terms of a PLA.  

On June 3, the U.S. House passed two ABC-supported small business bills that will satisfy educational needs and offer clarity to help strengthen small businesses across the country. The Connecting Small Businesses with Career and Technical Education Graduates Act of 2025 (H.R. 1642) requires Small Business Development Centers and Women’s Business Centers to provide information to small businesses about hiring career and technical education graduates, providing critical education to small businesses so they can hire the next generation of skilled workers. The bill passed the House overwhelmingly in 396-5 vote.

The Plain Language in Contracting Act (H.R. 787) aims to ensure that federal contracting opportunities are written in plain language, making it easier for small businesses to secure government contracts, putting Main Street on a level playing field with large businesses so they can more fairly compete to win work. 

On May 22, the U.S. House passed their budget reconciliation bill, H.R. 1, the “One, Big, Beautiful Bill Act,” in a 215-214-1 vote. Reps. Thomas Massie, R-Ky., and Warren Davidson, R-Ohio were the only Republicans to vote against the measure, while House Freedom Caucus Chair Andy Harris, R-Md., voted present.

Ahead of the vote, ABC sent a Key Vote letter expressing strong support for the bill that provides critical tax relief to contractors. Among the many essential reforms in the package, ABC particularly supports:

  • Making the Small Business Deduction Permanent and Stronger: The bill provides the pass-through sector crucial relief via introduction of a boosted 23% deduction for qualified business income. Locking in the higher deduction under Section 199A will not only prevent a significant tax hike in 2026, but it will also ensure that ABC members—most of whom are passthrough businesses—can reinvest in their companies, expand their workforce, and take on new projects without fear of future tax hikes.

  • Permanent Estate Tax Relief: The bill preserves and protects family businesses from destructive estate taxes keeps jobs, skills, and ownership here at home, allowing contractors to pass on the businesses they built to the next generation.

  • Restoration of 100% Bonus Depreciation: Renewing previously expired immediate expensing via 100% bonus depreciation is a powerful incentive for businesses to invest in new equipment and technologies. This policy was based on the understanding that allowing immediate expensing of capital investments would encourage businesses to modernize their operations, increase productivity and, ultimately, drive economic growth. It was particularly aimed at capital-intensive industries like construction, where equipment investments can be substantial.

  • Revived Expensing of R&D Costs: This provision permanently allows taxpayers to immediately deduct domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024. Additionally, small business taxpayers with average annual gross receipts of $31 million or less will generally be permitted to apply this change retroactively to taxable years beginning after December 31, 2021. Furthermore, all taxpayers that made domestic research or experimental expenditures after December 31, 2021, and before January 1, 2025, will be permitted to elect to accelerate the remaining deductions for such expenditures over a one-year period or a two-year period.

  • Continuation of Simplified Tax Code: The bill permanently extends the larger standard deduction and the alternative minimum tax threshold that were set to expire. These two provisions have greatly simplified the tax code for millions of taxpayers, including construction workers and job creators.

  • No Tax on Overtime for American Workers: By exempting overtime pay from federal income tax, the bill delivers direct, meaningful tax relief to the hardworking men and women in the merit shop construction trades—rewarding those who put in the extra hours to get the job done, support their families, and keep America building.

  • Expanded 529 Accounts for Skilled Trades Training: By expanding 529 savings accounts to cover training programs and credentials in the skilled trades, the bill supports the next generation of craft professionals—ensuring more young Americans can pursue rewarding careers in construction without crushing debt.

  • Relief from Overregulation and Red Tape: From the inclusion of the ABC-supported REINS Act to reducing 1099 reporting burdens to improving Opportunity Zones, this bill cuts unnecessary red tape and unlocks new growth in communities that need it most.

  • Expedited Environmental Reviews: By paying 125% of the estimated cost to prepare or supervise the preparation of an Environmental Assessment or Environmental Impact Statement, a project sponsor would receive a deadline of six months for completing an EA and twelve months for completing an EIS along with protection from judicial and administrative reviews.

House leadership’s Managers Amendment added last-minute changes to the legislation ahead of floor consideration, including:

  • Lifting the state and local tax deduction cap to $40,000 for individuals making under $500,000.
  • The accelerated phasing out of certain IRA clean energy credits by 2028. There will be much debate over this item in the Senate, including the prevailing wage and apprenticeship requirements.

The House-passed bill now heads to the Senate, where it is likely to be amended. Given the bill’s privilege under reconciliation rules, the Senate will only need a simple majority to approve their version bill. Both chambers will have to pass the same bill in order to send it to the President’s desk.