On Sept. 10, the House Committee on Small Business's Subcommittee on Contracting and Infrastructure held the hearing, Leveling the Playing Field: Fostering Opportunities for Small Business Contractors. Ahead of the hearing, ABC sent a letter to the committee, noting the construction industry's high concentration of small businesses and role in building America's infrastructure. The letter expressed concern with President Donald Trump's decision to continue the Biden administration's project labor agreement mandate and urged the President to reverse course, end government-mandated PLAs and implement a policy that supports fair and open competition in the federal procurement process.

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 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 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 21, the House Judiciary Committee held a legislative markup on several pieces of legislation, including the ABC-supported Prove It Act (H.R. 1163). Ahead of the hearing, ABC sent a letter in support of the bill, urging members of the Committee to report it favorably for a full House vote. The Committee passed H.R. 1163 in a 14-12 vote and, following passage in the House Small Business committee on April 30, will now be reported for a vote by the full U.S. House.

The Prove It Act strengthens the Regulatory Flexibility Act by allowing small businesses, and groups like ABC, to petition the U.S. Small Business Administration’s Office of Advocacy to examine agency rules and requires that agencies evaluate both the direct and indirect costs of proposed rules on small businesses. What’s more, the bill exempts small businesses from regulatory action when agency’s do not comply with the RFA.

On April 30, the U.S. House Committee on Small Business held a full committee markup on several pieces of legislation, including the ABC-supported Prove It Act (H.R. 1163). Ahead of the markup, ABC sent a letter to the committee urging members to report the bill for a full House vote. The Prove It Act strengthens the Regulatory Flexibility Act by allowing small businesses, and groups like ABC, to petition the U.S. Small Business Administration’s Office of Advocacy to examine agency rules and requires that agencies evaluate both the direct and indirect costs of proposed rules on small businesses. What’s more, the bill exempts small businesses from regulatory action when agency’s do not comply with the RFA.

The Prove It Act was favorably reported for a full House vote in a 15-11 vote.

On April 8, the U.S. Senate Committee on Small Business and Entrepreneurship and the U.S. House Committee on Small Business held a joint hearing titled, “Prosperity on Main Street: Keeping Taxes Low for Small Businesses.” Ahead of the hearing, ABC sent a letter to the committees in support of key provisions from the Tax Cuts and Jobs Act that provided important tax relief for contractors. Specifically, ABC called on House and Senate members to support critical tax policies, such as:

• Maintaining Parity for Pass-Through Entities through the permanence of the TCJA’s Section 199A
• Revived Expensing of Research and Development Costs
• Restoration of 100% Bonus Depreciation

The scheduled expiration of many of these policies would have grave effects, not only for our contractor members, but for the construction market more broadly, specifically harming small businesses around the country. On Jan. 17, ABC sent a letter to the House Ways & Means Committee emphasizing the significance of making permanent the provisions of the TCJA for America’s working families.

On March 11, the U.S. House Committee on Small Business Subcommittee on Oversight, Investigations, and Regulations held a hearing titled, “Restoring the SBA: Putting Main Street America First.” Ahead of the hearing, ABC sent a letter to the Committee calling on Congress to empower the SBA and small businesses around the country to keep federal agencies in check when implementing new regulations. The letter specifically supports the ABC-supported Prove It Act which strengthens the Regulatory Flexibility Act (H.R. 1163) by allowing Main Street businesses, and groups like ABC, to petition the SBA to examine whether a federal regulation would have significant economic effects on a large number of small businesses.

In the hearing, Prove It Act sponsor Rep. Brad Finstad, R-Minn., touted the bill, noting that it helps small business navigate the regulatory environment. Alfredo Ortiz, CEO of Job Creators Network, added that the bill, “is a game changer… for too long, agencies have been given a pass from showing the impact of regulations on small businesses. Having the opportunity to have a seat at the table at the beginning of thew process rather than at the end of the process is critical.” You can watch their exchange here.

On Feb. 5, the U.S. House Committee on Small Business held a hearing titled, “Hope on the Horizon: Prioritizing Small Business Growth in the 119th Congress.” Ahead of the hearing, ABC sent a letter to the committee calling for deregulation and sound legislation in the 119th Congress to help small businesses succeed.

During the hearing, Rep. Brad Finstad, R-Minn., touted the Prove It Act of 2024, which he introduced in the 118th Congress. ABC key voted the bill, which strengthens the Regulatory Flexibility Act by allowing industry groups, like ABC, to petition the Small Business Administration to examine whether a federal regulation would have significant economic effects on a large number of small businesses, among other things. You can view Rep. Finstad’s remarks from the hearing here.

In addition, Rep. Brian Jack, R-Ga., highlighted the need for deregulation for the small business community. When Rep. Jack asked witness Bill New of New Industries, Inc., a steel fabrication company, about the benefits of deregulation could be, New responded, “I think like a lot of small businesses – I’m not looking for a handout, I’m just looking for a level playing field. Then get out of my way.” You can view New’s comment here.

You can view the full committee hearing here.

On Dec. 5, in a 208-196 vote, the U.S. House of Representatives passed H.R. 7198, the Prove It Act of 2024. Ahead of the vote, ABC sent a key vote letter to members of the House urging them to support the bill. The Prove It Act strengthens the Regulatory Flexibility Act by allowing industry groups, like ABC, to petition the Small Business Administration to examine whether a federal regulation would have significant economic effects on a large number of small businesses. Agencies are not required to perform a regulatory flexibility analysis if they certify that a proposed rule would not have a significant economic impact on a substantial number of small entities. The Prove It Act would allow groups like ABC to petition the SBA to challenge an agency’s claim and request an analysis if they see fit. In addition, there is a provision in the bill that would allow the SBA’s Office of Advocacy to throw out rules if the issuing agency doesn’t reevaluate them at least once a decade to assess their continued need, complexity, and economic effects on small businesses.

ABC supported this legislation along with other Regulatory Flexibility Act related bills during the September House Small Business Committee markup.