The Construction Economist — August 8, 2026

Senate stopgap lets the infrastructure law's advance appropriations lapse · Construction job openings reach 305,000 · $20B in climate grants unblocked · JLL sees escalation running through H2 · Texas adopts the 2024 I-Codes

Top News

Senate Passes a Stopgap That Extends Highway and Transit Authority — and Lets the Infrastructure Law's Advance Appropriations Expire U.S. Senate Committee on Appropriations · ~6 min read

The Senate passed H.R. 6500, the Continuing Appropriations and Extensions Act of 2027, by a vote of 90-6 on August 7. Division A funds federal agencies through December 11, and Division C — the Surface Transportation Extension Act of 2026 — extends the Infrastructure Investment and Jobs Act's highway and transit authorities through the same date at pro-rated fiscal 2026 contract authority. Neither the Senate bill nor the House version passed in July renews the infrastructure law's advance appropriations, which expire October 1: the American Road & Transportation Builders Association (ARTBA) puts the annualized cut at $9.5 billion for highways and bridges and $4 billion for public transit, while the American Public Transportation Association (APTA) calculates reductions of 20% for transit and 83% for passenger rail against fiscal 2026 levels.

What it means: The shutdown and the funding cut are two different clocks, and a stopgap only stops one. Highway and transit contract authority rides on the Highway Trust Fund and keeps flowing under the extension; the infrastructure law's advance appropriations are separate general-fund money that lapses October 1 whether or not a bill passes — ARTBA's read is that a full year at that level would be the deepest cut to federal surface transportation investment since the Interstate system began in 1956. For second-half bidding, assume fiscal 2026 formula levels hold and the infrastructure-law supplement does not, and watch whether the House takes up the Senate text or forces a September conference.

ABC: Construction Job Openings Rose by 14,000 in June to 305,000 Construction Business Owner · ~3 min read

The construction industry recorded 305,000 job openings on the last day of June, according to an Associated Builders and Contractors (ABC) analysis of the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey. That is an increase of 14,000 from the May reading. The National Association of Home Builders' read of the same release notes that open positions rose in June while the level remains measurably below three years ago, held down by declines in housing activity.

Appeals Court Unblocks $20B in Federal Climate Grants Utility Dive · ~3 min read

A divided federal appeals court rejected the Environmental Protection Agency's attempt to reclaim $20 billion in Greenhouse Gas Reduction Fund grants. The court found the agency had moved to claw back the awards "based solely on a policy disagreement" with the Inflation Reduction Act that created the fund.

Project Finance & Economics

JLL Mid-Year Update: Labor, Trade Policy and Geopolitics Are Stacking on Construction Costs NAIOP Market Share Blog · ~4 min read

JLL's 2026 Construction Perspective: U.S. Mid-year Update finds labor shortages, trade policy pressure and geopolitical disruption compounding to accelerate construction cost escalation, with further increases expected in the second half of 2026. The analysis frames acting before contractors reach capacity as the dividing line between projects that stay manageable and projects that become constrained.

Southern Co.'s Contracted Large Load Climbs to 17 GW Utility Dive · ~3 min read

Southern Co.'s contracted large-load pipeline has risen to 17 GW, with recently announced projects including a 3.2-GW OpenAI data center near Savannah, Georgia. That contract includes 1 GW of flexible demand response for peak shaving — the first such flexibility provision the utility has codified with a data center customer.

Policy, Codes & Regulation

Texas Adopts the 2024 International Mechanical, Fuel Gas and Residential Codes International Code Council · ~2 min read

Texas has adopted the 2024 International Mechanical Code, the 2024 International Fuel Gas Code and the 2024 International Residential Code, the International Code Council announced. The adoption moves the state's mechanical, fuel gas and residential requirements to the 2024 edition.

Michigan Advances Single-Staircase Reform for Mid-Size Apartment Buildings Smart Cities Dive · ~3 min read

Michigan is advancing single-staircase reforms aimed at expanding middle-scale housing construction. State officials say permitting single-stair designs in smaller apartment buildings will make those buildings cheaper and easier to build.

Materials & Supply Chain

June Steel Shipments Up 4.8% From May and 8.7% From a Year Earlier American Iron & Steel Institute · ~2 min read

U.S. steel mills shipped 8,536,500 net tons in June 2026, up 4.8% from the 8,141,900 net tons shipped in May and 8.7% from the 7,854,290 net tons shipped in June 2025, according to the American Iron and Steel Institute. Year-to-date shipments stand at 47,527,101 net tons, up 5.3% from the same period in 2025.

The Construction Economist — What's Moving Construction? The Economic Look-Ahead.