When it comes to the actions of our federal government and its impacts on our lives, we are living through tumultuous times. I believe most engaged citizens of this great nation anticipated a challenging transition from one administration to the next. Many verbally acknowledged that it would be this way, but it’s one thing to talk about it and quite a different thing to live with it. My mission is not to comment on the ideology of all that is going on; I want to focus on the facts and impacts.
Of primary consideration is the federal money that funds this nation’s highway infrastructure. In reading through updates and speaking with our contacts at the Associated General Contractors of America (AGC) and the American Road and Transportation Builders Association (ARTBA), it appears the largest block of funding, the programmatic funding, which is distributed to states by formulas set up in law, is safe from holds or recissions. That is good news. Beyond that, discretionary or grant funds are encountering a whipsaw exchange between the administration and the courts as impacted recipients work to secure previously awarded funds. It is impossible to foresee when the next legal challenge is upheld, or the next Executive Order is issued, or who the intended target will be. For now, the Ohio Department of Transportation is focused on the programmatic funding it has received and streamlining processes to get those projects out the door to OCA members to bid on.
The regulatory environment is convulsing as well. Diversity, Equity and Inclusion (DEI) initiatives have been in the crosshairs of the Trump Administration since day one, with DEI-centered personnel and their related activities being halted immediately and staff placed on administrative leave. Again, the outcomes continue to evolve but we see this impetus being perpetuated in statehouse legislatures, including Ohio’s, and even in the private sector. Again, in speaking with others, because the Disadvantaged Business Enterprise (DBE) program in place for the federal-aid highway program is enshrined in federal law, it would be impossible to “do away with the program” without action by Congress. However, we can anticipate that major changes could come about in the requirements and administration of what we now know as the DBE program.
Inquiries have been made regarding the Buy America Build America program. As we’ve seen, this administration retains a strong focus on strengthening use of the American manufacturing industry. To that end, it is anticipated the federal action, such as enlarging the requirements for made-in-America manufactured products, will remain in place and continue towards its planned implementation.
These are just several programs mandated by federal law and administered in conjunction with state agencies. The heat rule comes first to mind. Changes in decision making through the National Labor Relations Board is another. Virtually all these regulatory departments and agencies will have new leadership with a very different perspective than those that came before. And, as we’ve seen, these changes at the federal level percolate to the state legislators and others in governmental leadership.
For our part, OCA will be following these actions closely, primarily through our contacts with AGCA and ARTBA. Both have strong communication tools in place and, as members of one or both, you have the availability of receiving much of this information at the same time as we do. Even with that, we will strive to keep you informed of the latest developments that we believe are noteworthy to our industry. In the meantime, we can look forward to the day when this initial turmoil is in the rearview mirror and it’s only the ongoing complications of big brother that keeps us awake at nights.