The Indiana Department of Transportation (INDOT) is the first state to ask the US DOT to waive its requirements for the Disadvantaged Business Enterprise (DBE) program since a court ruled the requirements are likely unconstitutional. The DBE program requires 10 percent of federal highway construction funds to be paid out to small businesses owned by "socially and economically disadvantaged" individuals - generally defined as women, African Americans, native Americans and Hispanic Americans, and other defined disadvantaged groups. The program is purported to help remove barriers so qualifying businesses can participate in federally assisted contracts. A U.S. District Court for the Eastern District of Kentucky last year found that the race- and gender-based presumptions used by the DOT likely violate constitutional protections. US DOT agreed with that finding.


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Congress returned from its August recess last week and took no action on putting together a plan to avoid a Federal government shutdown. There are now 22 days until the end of the federal fiscal year when the government runs out of funding authority. Republican Congressional leaders and the Trump White House are still strategizing about how to keep the agencies open beyond Sept. 30. None of the 12 appropriations bills has yet been completed and only a few have actually reached the floor in their respective chambers. Congress is in session this week and next, but then lawmakers depart for a week for Rosh Hashanah.


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September 2025 has been designated National Suicide Awareness Month and the construction industry has responded with Construction Suicide Prevention Week to address the unique problems within the industry. Construction Dive reports that contractors across the country will kick off the week with a stand-down and a moment of silence in the afternoon. Other events throughout the week will incorporate education opportunities, such as toolbox talks and webinars, to raise awareness about the mental health crisis and its impact on construction.


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John Deere has recently highlighted the significant financial burden tariffs are placing on its business, estimating that they will cost the company nearly $600 million in fiscal year 2025. Company officials said tariff-related expenses were already about $300 million midway through the year, with the final impact expected to roughly double that amount. Deere noted that these added costs are cutting into margins across its core agriculture, construction, and forestry equipment segments.


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Farmers across the United States are voicing growing concerns about declining income levels as they face a mix of falling commodity prices, higher production costs, and uncertainty in global markets. Net farm income, which had risen to historic highs in recent years due to strong export demand and government support programs, is now projected to decline as demand softens and farm operating expenses remain elevated. Rising interest rates have added to the pressure, making it more expensive for producers to finance equipment, land, and inputs such as seed and fertilizer. For many operations, these tighter margins are raising questions about long-term financial sustainability.


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The U.S. Department of Transportation (DOT) recently issued a Request for Information (RFI) seeking public input on issues that should be addressed when Congress takes up reauthorization of the surface transportation legislation over the next year. The information will help DOT prepare its proposal for the reauthorization effort. The department asked for input to prioritize funding, streamline project delivery, and address emerging challenges in safety, climate resilience, and technology integration. DOT officials emphasized that the RFI is intended to ensure that the law is applied in a way that reflects both congressional intent and the practical needs of state and local transportation agencies, as well as the private sector.


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Injections of federal funding, coupled with pent-up demand from the pandemic shutdowns, created a robust construction market in 2022 and 2023. In 2024, signs of market softening began and continues into 2025. The Associated Builders and Contractors (ABC) reports that its backlog indicator, which reflects the work commercial and industrial contractors have coming in the months ahead, shows a drop in monthly backlog from 8.9 months in 2023 to 8.3 months in 2024 and has fluctuated around that number throughout the first half of 2025.


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Effective immediately, the Trump administration is blocking foreign drivers from obtaining visas to drive commercial trucks on U.S. roads. “We are pausing all issuance of worker visas for commercial truck drivers,” Secretary of State Marco Rubio announced via X on Aug. 21. “The increasing number of foreign drivers operating large tractor-trailer trucks on U.S. roads is endangering American lives and undercutting the livelihoods of American truckers.”


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Union locals representing USDA employees are calling on the Trump administration to release a cost-benefit analysis behind the department’s reorganization plan. The plan calls for USDA to relocate thousands of staff from Washington, D.C., to five regional hubs: Raleigh, Kansas City, Indianapolis, Fort Collins, and Salt Lake City. State and local USDA offices would also be consolidated into these regional hubs. Agri-Pulse reports that, in a letter to Ag Secretary Brooke Rollins, the unions are seeking the rationale behind choosing the five hubs where employees are being consolidated.


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Congress will return from its summer recess and attempt to complete action on the FY 2026 federal budget having thus far taken limited action on the 12 annual appropriations bills. Although some appropriations bills have advanced earlier than in recent years significant differences in funding levels threatens the possibility of a government shutdown. The October 1 start of the new fiscal year looms large, raising the possibility that a short-term continuing resolution (CR) will again be needed to keep the government operating.


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