Specialized Heavy and Civil Engineering Construction NAICS 237990

Oct 6, 2025 - FRA Announces Rail Grants, Includes Funds Rescinded from California

• The Federal Railroad Administration (FRA) announced over $5 billion in grants under the National Railroad Partnership Program, including $2.4 billion rescinded from California’s High-Speed Rail Authority, which is now suing to recover the funds, according to Engineering News-Record. Grants are open to states, tribes, Amtrak, and local governments for intercity passenger rail projects, with a focus on safety improvements. The reissued notice replaces the previous Federal-State Partnership program and removes references to six executive orders, while adding one from President Trump. California’s agency claims the funding termination was unlawful and seeks a court injunction to prevent redistribution. Applications for the new funding are due by January 7, 2026.
• Construction firms that work on civil infrastructure projects are holding steady as they manage uncertainties, including waning backlog growth and weaker margins, according to FMI’s third-quarter Civil Infrastructure Construction Index (CICI) survey. The CICI reading for the third quarter was 50.8 compared to 52.2 in Q2 2025 – on a 100-point scale. Any CICI reading above 50 indicates that more civil infrastructure contractors see conditions as good than poor. While about 52% of firms surveyed said their work backlogs had risen in Q3 2025 compared to a year earlier, only 25% expected backlog growth in Q4. While civil infrastructure firms expect backlogs to ease, margins remain under pressure from competitive bidding and higher costs. FMI expects firms to focus on project selection and cost controls to improve margins, as higher work volumes are a less reliable profitability boost.

• 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. In August, a federal judge issued a preliminary injunction to stop the federal government from redirecting funds allocated to the BRIC program.
• 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 is expected to hear arguments on the legality of the Trump administration’s tariffs in November 2025. Steel and aluminum tariffs were not part of the CIT ruling.