President Donald Trump’s budget proposal for fiscal year 2020 has far-reaching implications for many facets of the U.S., including the construction industry. While this proposal is not a law itself, it has set the political landscape for the foreseeable future. For example, the $4.75 trillion proposed budget has just become much more of a reality with the passing of the Bipartisan Budget Act of 2019, which increases discretionary spending limits.
In this two-part article, a Naples construction lawyer will discuss the impact that the president’s 2020 budget will likely have on the construction industry. As we will see, there are many positive and negative aspects to this proposal. While you may be in complete control of your construction company’s daily operations, your company may still be at the whim of lawmakers when it comes to the funding of public construction projects. For a legal partner that can assist you during times of uncertainty, consult the Naples construction lawyers from Cotney Construction Law.
The Budget Proposal
The budget proposal, which was released on March 11, 2019, requests an incredible $4.7 trillion from Congress, and, while this is a staggering amount, it may not translate to growth for the construction industry. State construction projects are thriving, but there are some concerns for lack of funding for federal agency projects. For example, the U.S. Army Corps of Engineers (USACE) would have no funds allocated to new projects. Additionally, the USACE’s public works program would receive less funding than in 2019.
This proposal also would affect government construction projects that are not under the USACE. Construction projects under the Department of Veterans Affairs would receive a significant cut from 2019, while the Department of Defense would receive additional funds to be allocated for emergency construction projects.
Impact on Infrastructure
While much of the above proposals are disheartening for the construction industry, there are some good takeaways. The 2020 Budget Fact Sheet released by the White House asserts that the budget is a step towards a “long-term surface transportation reauthorization bill” that would provide funding for transportation projects. The fact sheet also states that the budget includes $400 billion to other infrastructure projects, such as water infrastructure. As stipulated by the fact sheet, the administration’s plan is to invest over $1 trillion into America’s infrastructure.
For more information on President Trump’s 2020 budget proposal, read part two.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.