The Senate returned this week from its Labor Day recess with plans for three weeks of legislative activity in hopes of addressing some top priority issues before adjourning to return home for a final campaign effort prior to the November 3 midterm elections. The House adjourned this week to finalize its reelection efforts. While the Senate has a long list of unfinished business to address, one of its top priorities is to complete action on the Farm Bill. On Wednesday, the Ag Committee reported the bill out, leaving open the possibility of bringing it to the floor for a vote.


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EPA and the Army Corps of Engineers are seeking additional comment on their proposed "waters of the U.S." (WOTUS) rule by suggesting new definitions for critical terminology. The agencies proposed the new WOTUS rule in November and received more than 22,000 comments, most seeking further clarification.


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The H-2B Coalition, which LICA has joined as a participating member, continues to work for an increase in the annual H-2B cap for the number of workers eligible for temporary work status under the program. The U.S. Citizenship and Immigration Services (USCIS), which administers the program, announced it has already received enough petitions to fill the congressionally established H-2B cap for the first half of fiscal year (FY) 2027. Sept. 4, 2026 was the final deadline for worker petitions under the 2027 first-half-year cap requesting an employment start date before April 1, 2027.


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With the midterm elections just over two months away, the House returned to Washington this week to complete action on an extension of Fiscal Year 2027 funding to keep the government operating beyond the September 30 end of the fiscal year. By a vote of 370-48, lawmakers Tuesday passed a continuing resolution (CR) to keep the government fully open through the midterm election season. The House voted to adopt the Senate-approved stopgap legislation — which funds federal agencies through Dec. 11. For construction markets this was the better outcome because the Senate bill extended funding for highway, wastewater and drinking water programs at current levels and also extended highway program authorization through Dec. 11. This action was necessary as the surface transportation legislation also expires on September 30.


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The Environmental Protection Agency this week announced it is granting more exemptions from biofuel-blending rules to oil refineries than initially expected while also seeking to soften the blow to agricultural-based fuels. The decision provides 29 full and partial small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) program. Eighteen refineries received full exemptions, while 11 received partial, three were denied and two were deemed ineligible, according to the rule.


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Transportation Secretary Sean Duffy on Aug. 31 unveiled a series of anti-fraud measures, including the closure of 110 commercial driver license schools linked to 5,000 drivers who failed English-language proficiency tests and a nationwide audit of state third-party CDL testing programs.


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The producer price index for inputs to new nonresidential construction rose 7.1 percent from July 2025 to July 2026 as numerous input prices accelerated to multi-year highs, according to an analysis of government data by the Associated General Contractors of America. AGC reports that the largest price increases affected petroleum products and metals that are subject to tariffs of up to 50 percent. The producer price index for diesel fuel, which reflects prices at the refinery or fuel terminal level, jumped 44.2 percent from July 2025 to last month despite declining for two months in a row. The index for liquid asphalt soared 45.2 percent year-over-year, following a 1.2 percent monthly gain in July.


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The Federal Motor Carrier Safety Administration (FMCSA) has proposed codifying English-language proficiency (ELP) enforcement for commercial truck drivers, a move the agency estimates could put 9,000 drivers out of service each year. Transportation Secretary Sean Duffy announced the notice of proposed rulemaking to solidify the ELP mandate revived last year under the Trump administration. The mandate reversed an Obama-era directive in 2016 stating that FMCSA no longer had to automatically place a driver out of service (OOS) for being unable to read English-language highway signs or speak the language.


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The Internal Revenue Service (IRS) released on August 6, 2026, updated frequently asked questions (FS-2026-13, FAQs) for employers and employees on how to calculate qualified overtime compensation for purposes of the overtime pay deduction. The new FAQs confirm that the 2025 transition relief will not be extended and emphasize the need for extremely thorough federal overtime analysis when calculating qualified overtime compensation for 2026. Employers must identify the portion of compensation that satisfies the FLSA overtime requirements, calculate the applicable overtime premium using the FLSA regular-rate rules and separately report qualifying amounts on Forms W-2.


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