Thursday, November 20, 2025
Alaska Contractor Challenges Trump/Biden PLA Mandate on Federal Projects
An Alaska mechanical contractor filed suit to challenge the federal PLA mandate as exceeding statutory authority and violating the non-delegation doctrine. The company is fighting to restore both its right to compete for federal work and the proper separation of powers between Congress and the president. Both the Biden and Trump administrations have claimed authority under the Procurement Act to impose a PLA. But Congress only authorized the executive branch to oversee the government’s internal procurement process, not to impose regulatory mandates on contractors’ labor policies that Congress never contemplated or approved. And if the Procurement Act is the blank check the president claims it is, it violates the constitutional prohibition against delegating lawmaking power to the executive branch.
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Utah Becomes the Sixth State with a New Congressional Map Ahead of the 2026 Elections
Utah became the sixth state to adopt a new congressional map ahead of the 2026 midterms. On Nov. 10, a district court judge rejected a redrawn map submitted by the Utah Legislature. It would have maintained four Republican-leaning districts. Instead, the judge adopted a proposal from the plaintiffs in the case that shifts one of the state’s four congressional districts towards Democrats. Currently, all four members of the Utah U.S. House delegation are Republicans. According to court filings, the new Democratic-leaning Salt Lake City district is approximately 43% Republican. Taken together with redistricting in California, Missouri, North Carolina, Ohio, and Texas, Utah’s map could yield a net gain of 3 districts nationwide. Previously, California voters approved Proposition 50, allowing a new map that makes five districts more favorable to Democrats according to the 2024 presidential results to take effect in the state. The new Texas map shifts five Democratic districts toward Republicans according to the 2024 presidential results. New maps in Missouri and North Carolina each aim to add one more Republican district. Ohio’s new map makes two Democratic-held districts more Republican, according to recent election results shared by the redistricting commission.
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Ruh-roh
Politico reports the California Legislative Analyst’s Office (LAO) released its fiscal outlook for the 2026-2027 budget year, and the state’s finances are not looking good. The LAO estimates Gavin Newsom and the Legislature will be dealing with an $18 billion shortfall, about $5 billion more than the governor’s administration projected in June, even with revenue exceeding expectations. It also projects the state’s deficit will balloon to $35 billion annually starting during the 2027-2028 budget year.
The office suggested California may need to take more drastic measures than in recent years, as “the state has used most of its budget resiliency tools to address prior deficits.”
One factor contributing to the state’s weak budget situation is a potential AI bubble that the LAO warns could burst. This has been the case with past tech innovations that led to significant investments and stock gains. While the AI market is boosting state income tax revenue, the office sees signs of an “overheated” market that could trigger a boom-and-bust cycle, with “dire” consequences for the state.
Newsom’s Department of Finance will release its own financial projections in January, when the governor presents his initial budget plan. In the past, his administration’s outlook has differed from the LAO’s estimates, and the governor has been critical of gloomy coverage of the nonpartisan analyst’s annual fall outlook that could reflect poorly on him.
AI as a Recruiting Tool for Attracting Next-generation Construction Workers?
The construction industry is at a critical juncture. Persistent labor shortages, an aging workforce, and high turnover rates are forcing general contractors to rethink how they attract and retain talent. To meet demand in 2025 alone, the industry will need to hire an estimated 439,000 additional workers, according to the Associated Builders and Contractors.
At the same time, the digital transformation in construction is gaining momentum as AI reshapes the global economy. A recent McKinsey report found that 92% of companies plan to increase their AI investments over the next three years. Firms that embrace advanced construction AI not only improve project outcomes but also position themselves as desirable employers for the next generation of workers.
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Weather Machine Politics
Utah is a Republican state, and many of its officials support long-running weather modification programs that help with the state's water supply. Unfortunately for them, the MAHA movement opposes these programs, especially cloud seeding. And the movement has a powerful ally inside the Trump administration: “I’m going to do everything in my power to stop it,” RFK Jr. told meteorologist, psychic, and brain surgeon Dr. Phil in April. NOTUS’ Margaret Manto and reporter Addy Baird from Washington Bureau Initiative partner The Salt Lake Tribune report on how the GOP’s changing politics around science are playing out in Western states.
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5 Tips for Dealing with Law Enforcement at Work
Every employer should have a law enforcement response plan, experts said recently at the American Bar Association’s annual labor and employment law conference.
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UC Construction Criticism
Politico reported that “A union representing University of California employees is accusing the school system of overspending on construction projects while at the same time laying off its members because of financial pressures. The University Professional and Technical Employees, which counts in its ranks more than 18,000 healthcare workers, researchers and technical support staff, released a report blasting the university for what it described as ‘extravagant spending’ on hospitals and other health care facilities – a claim university officials reject.”
In leveling the allegation, the union pointed to the UC’s ongoing funding for new construction, $20.8 billion in active projects, $31.6 billion in planned projects, and $1.4 billion earmarked for land acquisitions through 2030. The spending, it said, exceeds industry standards and exceeds what was spent on previous projects the university officials identified as similar in scope.
The outlay is particularly troublesome, the union said, given the university’s decision to lay off hundreds of healthcare workers this year, including 230 at UC San Diego Health and 200 at UCSF Health. UC officials have blamed the layoffs on ongoing threats to federal funding stemming largely from the impact of the mega-spending bill Congress passed in June, saying the “federal impacts to health care” and "diminished reimbursements for services” made the staffing cuts necessary.
“We do not have a problem with investing in capital projects,” Dan Russell, president of UPTE, said in an interview. “But when it comes at the expense of investments in frontline staff, investments in patient care, in research and education, that's where we have a problem.” I wonder if Dan would recommend UC eschew PLAs to reduce UC construction costs?
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Fallout
So far, gubernatorial candidate Xavier Becerra has escaped the bright spotlight focused on Gov. Gavin Newsom in the money pilfering scandal involving their former top aides. But that could change. It seems only a matter of time before one of Becerra’s campaign rivals seizes the federal fraud case for attack fodder. I can hear it already: “If the man who wants to be governor can’t protect his own political funds, he shouldn’t be trusted to safeguard your tax money.” That might not be fair, but this is big-time politics. And the word “fair” isn’t in the political dictionary. Neither Becerra nor Newsom is implicated in any wrongdoing.
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Contractor Backlog Slips, Strength Depends on Sector
The data spotlights the difference between contractors with work tied to growth sectors and those exposed to softer areas of the construction industry. For example, nearly 65% of contractors think construction activity is contracting, said Anirban Basu, ABC chief economist. That outlook aligns with October’s lowest backlog reading since May. At the same time, 23% of firms expect sales to decline in the next six months, the largest share in more than a year.
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More 2026 Candidates
Eric Swalwell’s gubernatorial campaign appears imminent and not just because a fundraising page for his campaign was posted on the Democratic platform ActBlue before being taken down Sunday.
Allies have for weeks been circulating polling emphasizing his opening to run as a more moderate alternative to Katie Porter. The Bay Area representative has been making overtures to California labor and other interest groups regarding a run, a key step toward overcoming skepticism in Sacramento fueled by his poor presidential primary performance in 2019 and lack of roots in the state capital. He spent election night not in Washington or his district, but at a local party event in Los Angeles. Alex Padilla’s decision this month not to run for governor opened a path for Swalwell to be the only sitting member of Congress in the race.
There’s also urgency for Swalwell to get in soon. Unlike two other possible entrants, billionaires Rick Caruso and Tom Steyer, he isn’t wealthy and will need to raise money quickly to break through in a crowded field.
Meantime, he’s planning to have at least his second meeting with long-shot Democratic contender Stephen J. Cloobeck, who told Playbook he’d consider backing Swalwell financially and otherwise if he gets in.
“I’m optimistic after meeting all the existing and past candidates that there may be a there, there with Eric. He’s a Fighter and ProtectorTM,” Cloobeck said in a text message. [Politico]
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AZ Rep. Adelita Grijalva Takes Office, Ending the Second-Longest U.S. House Vacancy of the 119th Congress
On Nov. 12, Speaker of the House Mike Johnson (R-La.) swore Rep. Adelita Grijalva (D-Ariz.) into the U.S. House of Representatives, filling the vacancy in Arizona’s 7th Congressional District. Grijalva’s swearing-in brings the Republicans’ majority in the chamber to 219 to 214 with two vacancies.
The vacancy occurred because Grijalva’s father, Rep. Raúl Grijalva (D-Ariz.), died on March 13. In the Sept. 23 special election to fill the vacancy, Grijalva defeated Daniel Butierez (R) 69% to 29%.
The House was out of session from Sept. 19 to Nov. 12, when they returned and approved the continuing resolution that ended the federal government shutdown. On Oct. 2, 180 House Democrats sent a letter to Johnson asking him to swear in Grijalva during a pro forma session. Johnson said he could not swear in Grijalva during a pro forma session and that he would swear her in when everyone returned.
Not including the special election in Arizona's 7th Congressional District, there have been four other special elections to fill vacancies in the 119th Congress (2025-2027). Johnson swore in three winners—Randy Fine (R-Fla.), Jimmy Patronis (R-Fla.), and James Walkinshaw (D-Va.)—of those special elections the day after their respective elections. Both Fine and Patronis were sworn in during a pro forma session. The other special election, in Texas's 18th Congressional District, advanced to a runoff. As of this writing, Gov. Greg Abbott (R) has not yet announced a date for the runoff. [Morning Brew]
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How a Book on Workplace Safety Became a Best Seller
- Professor Matthew Hallowell, who founded the University of Colorado Boulder’s Construction Safety Research Alliance in 2018, recently published a book summarizing more than 100 journal papers on workplace safety.
- “Energy-Based Safety: A Scientific Approach to Preventing Serious Injuries and Fatalities (SIF)” summarizes the research in reader-friendly terms. Within 48 hours of announcing pre-order for the book on Amazon, it became a best-seller in its genre.
- The book explores the unique causes of injuries and fatalities: the so-called “Energy Wheel.”
- “Anytime somebody gets hurt, energy from the environment is contacting them,” Hallowell says in an interview.
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Heard This Before
Per the Union-Tribune, “San Diego Supervisors voted 4-1 to back Supervisor Joel Anderson and Paloma Aguirre’s pitch to lead a county subcommittee that will dig into county contracts and how the county could save cash and improve services. The bipartisan duo said their goal is to investigate where the county can save money without disrupting services and potentially change policies that are impeding progress and revenue opportunities for county government.” Here’s my suggestion: reject union PLA proposals for all county projects!
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Flu Season
A new virus variant and lagging vaccinations could lead to a severe flu season in the US. Health experts are closely monitoring a mutated strain called subclade K, which has caused early surges in the United Kingdom, Canada, and Japan. Flu activity in the US remains low but is rapidly increasing, according to a CDC report. Early analysis indicates that this season's flu vaccines offer some protection against hospitalization from this variant, especially for children. However, data shows many Americans are skipping their flu shots this year. This follows a particularly severe flu season last winter, when the US experienced its highest hospitalization rates in nearly 15 years, and at least 280 children died from influenza, the highest number since 2004.
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California Battery Energy Storage Systems Legislation Update: Safety Requirements and AB 205 “Opt-In” Procedures Amended
In the wake of a catastrophic battery storage facility fire in Moss Landing in January that burned over half the batteries in a 300-megawatt (MW) installation in Monterey County, 2025 has been a rollercoaster year for Battery Energy Storage System (BESS) regulations.
Introduced within days of the Moss Landing fire, Assembly Bill (AB) 303 (Addis) would have immediately banned utility-scale BESS within 3,200 feet of sensitive receptors and removed BESS from eligibility for the California Energy Commission’s (CEC) “Opt-In” permitting procedure under AB 205 (2022) (and required the CEC to deny pending applications).
As the (literal) dust settled, Governor Newsom called for the California Public Utilities Commission (CPUC) to investigate the incident. The CPUC’s investigation, conducted by the Safety and Enforcement Division (SED), as well as several other agencies that investigated water and soil contamination relating to the fire, found no significant impacts. Meanwhile, the CPUC adopted modifications to its General Order (GO) 167 on March 13, 2025, adding new safety standards for BESS.
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Yawn
Feeling bummed about it getting dark so early? Think of the people living in Utqiagvik, Alaska, 330 miles north of the Arctic Circle. Yesterday at 1:36 pm local time, the sun set and it won’t rise again until January 22. For 64 days, residents will experience polar night. Over the entire year, Utqiagvik gets about the same amount of daylight as Miami or any other place on Earth because we all get roughly the same number of hours of sunlight over 365 days. The sun will rise in Utqiagvik in mid-May and won’t set again until August.
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Happy Thanksgiving!
As we wrap up another busy year in construction, Thanksgiving gives us a moment to pause and appreciate the people who make the electrical and low-voltage industry strong.
To the contractors, journeyworkers, apprentices, electrician trainees, estimators, project managers, and everyone who keeps jobs moving, thank you. Your skill, grit, and commitment build more than structures. You build communities, opportunities, and a better future for the people who live and work in the spaces you create.
This season, we’re grateful for your partnership, trust, and the work you do every day: often early, often late, and often in conditions most people never see.
Wishing you and your families a safe, restful, and well-earned Thanksgiving.
Warm regards,
Rex, Richard and the WECA Government Relations Team
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