Specialized Heavy and Civil Engineering Construction NAICS 237990

Aug 6, 2025 - Twenty States Sue to Protect FEMA Disaster Mitigation Funding

• In July, twenty state attorneys general filed a federal lawsuit challenging the Trump administration’s elimination of FEMA’s Building Resilient Infrastructure and Communities (BRIC) program, according to Engineering News-Record. The BRIC program helps fund projects to protect cities and coasts from flash flooding, storm surges, and other natural disasters caused by extreme weather. The suit argues that FEMA officials lacked legal authority to shut down the program and violated the Constitution by redirecting funds appropriated by Congress. Since its creation in 2018, BRIC has distributed over $5 billion to help cities prepare for extreme weather events. States claim the program’s termination has forced communities to delay or cancel hundreds of projects, increasing vulnerability to natural disasters.
• Spending related to transportation projects - including rail, airports, and ports – is projected to rise 4% in 2025, 4% in 2026, 6% in 2027 and 2028, and 5% in 2029, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. Public spending accounts for about two-thirds of transportation investments, and key infrastructure focus areas include air terminals and ports. Major projects include a cross-border freight railway between Laredo, Texas, and Monterrey, Mexico, to improve logistics, air traffic control modernization programs, and port automation. Spending on conservation and development projects is forecast to decline by 1% in 2025, then grow by 1% in 2026, 5% in 2027, and 6% in 2028 and 2029.

• The total value of construction put in place decreased 0.4% in June compared to May, according to the US Census Bureau. Conservation and development spending dropped 2.8%, and water supply projects saw a 0.1% drop. Spending on sewage and waste disposal decreased by 0.2%. Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending declined in June and has now contracted in 6 of the past 7 months.” He went on to say, “While ABC members remain optimistic about the second half of the year, according to ABC’s Construction Confidence Index, recent data pertaining to both the construction industry and the broader economy suggest weakness could persist in the months to come.”
• Higher steel and aluminum tariffs could increase specialized heavy and civil construction project costs. On May 30, the Trump administration announced it would double the tariffs on all US steel and aluminum imports to 50%, according to Reuters. The increase took effect on June 4. The administration claims the higher duties will protect the US steel and aluminum industries. On May 29, the US Court of International Trade (CIT) ruled that the Trump Administration overstepped its authority in levying widespread tariffs and voided most of them, according to the Wall Street Journal. The following day, the US Court of Appeals for the Federal Circuit paused the CIT ruling pending further arguments. The Supreme Court could ultimately decide the case. In the meantime, the tariffs remain in place. Steel and aluminum tariffs were not part of the CIT ruling.