The One Big Beautiful Bill Act is opening the door for increased construction investment, but it may also deepen existing challenges tied to labor and supply.

Unlike the Inflation Reduction Act, which concentrated its support on clean energy, the One Big Beautiful Bill Act casts a wider net, said Vance Walter, senior director of legislative affairs at Associated Builders and Contractors.

Nonresidential construction spending dropped 0.2% in May to a seasonally adjusted annual rate of $1.237 trillion, according to an Associated Builders and Contractors analysis released July 1. Spending fell from the month prior in eight of 16 categories, according to ABC. Private nonresidential construction fell 0.4% and public nonresidential spending remained unchanged from the month before.

The construction industry added 15,000 jobs on net in June, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 121,000 jobs, or 1.5%. 

Nonresidential construction employment expanded by 9,200 positions on net, with growth registered in just 1 of 3 major subcategories. Nonresidential specialty trade added 12,400 jobs, while heavy and civil engineering and nonresidential building lost 2,800 and 400 jobs, respectively.

In 2025, more U.S. states are updating building and energy codes to balance climate ambitions, affordability and government roles. Legislative priorities, especially in California, Missouri, Minnesota, Nebraska and Rhode Island, illustrate a dynamic landscape of preemption, progression, preservation and proactive decarbonization.