February 2025 Vol. 80 No. 2
Features
Inside Infrastructure: Trump executive actions offer both promise and concern for construction
By Eben M. Wyman, Wyman Associates
Following a historic election, the lighting speed of President Donald Trump’s efforts to fast track his agenda were unprecedented. The response to the Trump agenda can only be described as vocal and divided, with promising proposals related to energy policy injecting confidence in an industry that has been attacked over the past couple of decades.
At the same time, advocates of other construction markets should be aware: a Republican “trifecta” may seem very positive, but industries that provide for public works and broadband deployment should be wary.
Ideology should never stand in the way of solid policy positions. The many initiatives introduced by Trump executive actions will accelerate getting important infrastructure projects off the ground, but attention will be needed to ensure that the construction industry can continue to build the lifelines that connect us.
Broadband deployment, water and wastewater infrastructure improvements, and hardening the nation’s power grid will need industry attention, and industry will need to respond if needed.
Let’s look at what we know so far; and keep in mind, to call policy decisions on these issues as fluid would be a huge understatement. The construction industry needs to be ready to defend the infrastructure markets we’ve supported for decades.
Benefitting an underappreciated industry
President Trump’s executive orders (EOs) signed on “Day One” (Jan. 20, 2025), reflect the administration’s intention to bring back “American energy independence” and even dominance. So far, the president’s plan has been backed with strong public support.
Many believe the president’s energy policies have been clear and long overdue. Day One activities related to energy policy. Federal agencies were directed to identify any planned actions “to facilitate the Nation’s energy supply” subject to regulations issued by the U.S. Army Corps of Engineers (Army Corps) or through the Endangered Species Act (ESA). All reforms were intended to expedite the expansion and improvement of American energy, and the many benefits that come with it.
The order also initiated new leasing and permitting in the Arctic National Wildlife Refuge (ANWR) and the National Petroleum Reserve in Alaska by rescinding secretarial orders and rules that halted all activities within these areas.
In the “Unleashing American Energy Order,” the president directed all agencies to focus on increasing domestic energy production, reviewing existing energy-related regulations, reforming the permitting process for energy infrastructure, revoking or modifying what are considered over-the-top, existing emission reduction regulations, and expanding access to federal lands.
Among these directives, were:
- All agencies required to review regulations and identify those that impose an undue burden on the identification, development or use of domestic energy – with particular attention to natural gas and oil, among other resources.
- Agencies to “undertake all available efforts to eliminate all delays within their respective permitting process.”
- Agencies to facilitate the permitting and construction of interstate energy transportation and other critical energy infrastructure (including pipelines).
- DOE required to restart reviews of LNG export license applications as soon as possible, and to add consideration of US economic and employment impacts and allies' energy security impacts of US LNG exports. This effectively ended the “pause” on LNG exports as mandated by the Biden administration.
The Department of Interior and Department of Agriculture were directed to revise or rescind agency actions that impose undue burdens on domestic mining and to reassess the withdrawal of public lands for mining.
Several executive actions highlighted the need to address the National Environmental Protection Act (NEPA). NEPA requires agencies to consider environmental impacts when permitting infrastructure projects, but these “reviews” can take years.
The Unleashing American Energy EO directs “all agencies [to] immediately pause the disbursement of funds appropriated” through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. Importantly, a subsequent memorandum issued on Jan. 21 clarified that the pause only applies to funds related to the Biden-era mandates regarding electric vehicle mandates.
Protecting other markets
It’s important to note that a Republican “trifecta” does not equate to unlimited good news for all infrastructure markets, without watching it and sometimes protecting it. Let’s look at other markets, and the need to be vigilant.
Water/Sewer. After what many considered a sweeping and abrupt freeze on federal grant programs, the Trump Administration announced in early February that it would lift the spending freeze on clean water and safe drinking water funding programs. Specifically, the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) loan programs, overseen by the Environmental Protection Agency (EPA), which are crucial for financing water quality protection and drinking water projects across the country.
It was soon clear that uncertainty about restoration of full funding for the SRF programs should be of concern to the utility construction industry. The uncertainty about future funding led to immediate concerns among state agencies and water infrastructure stakeholders, and some states reported concerns about funding for ongoing and planned projects and possible delays for projects.
Broadband Deployment. At the same time, America continues to work to deploy broadband service to all Americans, in rural, urban and all areas in-between. The Broadband Equity, Access and Deployment (BEAD) Program was established under the 2021 IIJA and authorized $42.45 billion to expand high-speed internet access by funding planning, infrastructure deployment and adoption programs.
The “temporary” pause on federal grants, loans, and financial assistance to ensure alignment with presidential priorities did not go unnoticed.
Broadband maps overseen by the Federal Communications Commission (FCC) have been, and will continue to be, scrutinized (and challenged in Court), and for good reasons. However, the federal commitment to provide broadband for all Americans needs to be ensured.
President Trump’s recent executive actions have introduced both challenges and clarifications regarding broadband deployment funding, as well as uncertainly in the water and sewer infrastructure markets.
The construction industry, especially in subsurface infrastructure markets, should be enthusiastic about the future. The need for natural gas and fossil fuels is becoming evident. The industry should continue to push to make that clear to policymakers on both sides of the aisle.
To say that things are moving a mile a minute would also be an understatement. No time to take a sideline position.
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