AGC Calls for Urgent Renewal of Federal Infrastructure Funding

The Associated General Contractors of America (AGC) has issued a critical appeal to federal lawmakers to renew essential highway and transit funding by September 30, 2026. This request arises as construction employment in Long Island, particularly within Nassau and Suffolk counties, has seen a troubling decline for twelve consecutive months. The data indicates a 5% year-over-year loss of jobs, dropping from 77,800 to 73,900 positions between February 2025 and February 2026. This extended downturn not only threatens the livelihoods of many skilled laborers but also has significant implications for the broader economy in the region and nationally.

The job losses are representative of a larger trend impacting construction sectors across various metropolitan areas. For context, New York City alone recorded a decline of 6,600 construction jobs, marking a 5% drop from 137,000 to 130,400 jobs within the same timeframe. The continued decline in construction employment underscores a pressing need for renewed investment in infrastructure projects, as such funding plays a pivotal role in supporting and sustaining job creation in the construction industry

AGC’s Chief Economist, Ken Simonson, highlighted the intertwined relationship between federal funding and construction job stability. He stated, "Although a majority of metro areas added construction jobs in the latest 12-month period, it will become increasingly difficult to sustain job gains unless policymakers in Washington renew the highway and transit spending bill by September 30. If federal funding lapses, many good-paying jobs will disappear. Getting those workers back will be a major challenge." This sentiment resonates particularly for Long Island, which has been disproportionately affected, requiring immediate federal intervention to prevent further job losses.

As the construction industry continues to grapple with labor shortages and economic constraints, the AGC suggests that ongoing investment is crucial not only for job preservation but also for stimulating economic growth across metro areas. The renewal of federal infrastructure funding would signal to contractors and stakeholders that the government is committed to supporting crucial infrastructure projects, which in turn could lead to increased procurement opportunities for construction firms. Such opportunities are vital for contractors looking to bolster their workforce and operations amid challenging market conditions.

Given the urgency of the situation, procurement professionals should brace for a potential surge in infrastructure-related projects linked to federal funding appropriations. The current conditions may translate into increased activity for contractors engaged in bidding and implementing infrastructure contracts, especially if funding is secured. Understanding the dynamics of federal legislation and actively engaging with agencies overseeing infrastructure projects will be essential for stakeholders looking to capitalize on upcoming opportunities.

With the looming deadline for funding renewal, it is imperative for all industry participants to stay informed about legislative developments and advocate for sustained infrastructure investments that will ensure robust job recovery and support the long-term growth of the construction sector. The AGC’s proactive stance highlights the need for immediate action and underscores the importance of federal support in stabilizing an essential economic sector.