Inside Washington: May 2025 Continued
May brought major legislative action on small business and clean energy tax credits, more tariff uncertainties, and promising infrastructure reforms that could benefit electrical contractors nationwide. Our advocacy efforts continue to focus on policies that support job creation, fair competition, and regulatory efficiency for the electrical construction industry.
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One Big Beautiful Bill Passes House
Trump Administration Tariff Developments
NECA Endorsed Infrastructure Expansion Act Introduced
Infrastructure Investment and Jobs Act Funding Fray
NECA NextGen Fly-In: The Future of Advocacy Starts Here!
One Big Beautiful Bill Passes House
The House of Representatives passed a sweeping budget reconciliation bill (H.R. 1, the "One Big Beautiful Bill Act") by a narrow margin of 215-214-1. The bill represents a landmark victory for NECA contractors and Speaker Mike Johnson (R-La.) by permanently extending several cornerstone provisions of the 2017 Tax Cuts and Jobs Act (TCJA).
The bill now heads to the Senate where it faces scrutiny due to its $3.7–$3.8 trillion impact on federal borrowing and medicaid cuts. It is widely expected to go through several revisions, particularly on energy credit rollbacks and SALT provisions. Senate Majority Leader John Thune (R-S.D.) has embarked on a bumpy 4-week sprint to pass a bill that can also clear the House by President Trump’s July 4th deadline. The Government Affairs team will spend this time advocating for revisions to several Clean Energy IRA provisions that were targeted as payors to bring down the overall cost of the bill.
President Trump started whipping Senate holdouts including Sen. Ron Johnson (R-Wisc.), Sen. Rand Paul (R-Ky.), Sen. Josh Hawely (R-Mo.) and Sen. Rick Scott (R-Fl.) on Monday. The administration and GOP congressional leadership face a substantial challenge, and must balance competing deficit-hawk and moderate priorities to ensure final passage.
Read the Government Affairs Team Action Alert on its passage
Take the Government Affairs Team IRA Credit survey
Trump Administration Tariff Developments
The Trump administration's ambitious tariff agenda has faced significant legal setbacks this month, creating uncertainty for businesses that rely on imported materials and equipment. On May 28, the U.S. Court of International Trade blocked the administration's sweeping "Liberation Day" tariffs, ruling that President Trump overstepped his authority by imposing blanket tariffs under emergency powers.
The Court determined that Congress, not the President, holds exclusive power to regulate trade, and that the International Emergency Economic Powers Act (IEEPA) does not grant unlimited tariff authority. However, the legal landscape shifted rapidly when the U.S. Court of Appeals for the Federal Circuit granted an administrative stay on May 29, temporarily reinstating most tariffs while appeals proceed.
The court rulings specifically affected the 10% universal tariff on all imports, 30% tariff on Chinese goods, and 25% tariff on certain products from Mexico and Canada announced on April 2, 2025. Despite the legal challenges, several tariffs remain in effect, including the steel and aluminum tariffs and 25% tariffs on automobiles. Meanwhile, in a late breaking change, President Trump signed a Proclamation imposing a 50% tariff on imported steel and aluminum effective 12:01a.m. on June 4, representing a 25% increase from previous levels.
The administration has pursued some diplomatic solutions, reaching a 90-day suspension agreement with China that reduces U.S. tariffs on Chinese goods from 145% to 30%, while China lowered its retaliatory tariffs from 125% to 10%. Additionally, Trump announced a trade framework with the United Kingdom that reduces tariffs on British steel, aluminum, and automobiles, potentially providing alternative supply sources for NECA members.
Take the Government Affairs Tariff Survey
NECA Endorsed Infrastructure Expansion Act Introduced
Congressman Nick Langworthy (NY-23), introduced H.R. 3548, The Infrastructure Expansion Act this month. The bill aims to address a long-standing barrier to electrical contracting work in New York State. This crucial legislation would modernize liability laws on federally funded construction projects by preempting New York's antiquated Scaffold Law, which uniquely imposes absolute liability on contractors and property owners for elevation-related injuries regardless of worker negligence.
The Infrastructure Expansion Act would align New York with the other 49 states that use comparative negligence standards, potentially saving at least $2 billion in federal tax dollars over the next decade. For NECA members working on federally funded projects in New York, this reform could reduce insurance premiums and project costs while maintaining worker safety protections. The legislation specifically applies to federal infrastructure projects, including roads, bridges, hospitals, schools, and energy networks where NECA members perform essential work.
The Government Affairs Team applauds Rep. Langworthy for his leadership and looks forward to working toward the bill’s passage.
Read NECA’s endorsement statement
Infrastructure Investment and Jobs Act Funding Fray
Legal challenges have emerged regarding the Trump administration's handling of Infrastructure Investment and Jobs Act funding, particularly for electric vehicle charging infrastructure. The Government Accountability Office determined that the administration violated the law by halting funding under the $5 billion National Electric Vehicle Infrastructure program. California and 16 other states filed a federal lawsuit challenging the Federal Highway Administration's actions to withhold these funds. The GAO's finding that the funding suspension constituted an unlawful impoundment highlights the ongoing tension between the administration's policy preferences and congressional appropriations.The bipartisan nature of the original infrastructure law complicates the administration's efforts to redirect these funds.
The legal challenges demonstrate the complex interplay between federal policy changes and existing congressional mandates. The Trump administration still has roughly $294 billion in IIJA funds to award, including $87.2 billion in competitive grants where agency staff will personally determine winners.
If you have been impacted by an IIJA funding please contact the Government Affairs Team.
NECA NextGen Fly-In: The Future of Advocacy Starts Here!
Calling all emerging leaders!
- NECA’s NextGen Fly-In is your chance to step into the spotlight and take your voice to Capitol Hill.
- Join fellow rising professionals in Washington, D.C. for hands-on advocacy training, high-impact meetings with lawmakers, and a front-row seat to the legislative process that shapes our industry.
When: July 21-22, 2025
Where: Washington, D.C