Senate Finance Committee releases tax provisions under reconciliation with notable differences from House-passed bill
On June 16, the Senate Finance Committee released its version of tax reform under the “One Big Beautiful Bill,” which addresses many roofing industry priorities but also contains notable differences from the previously passed House bill. The House passed its version of the bill in May, which on balance was positive for the roofing industry. Since the House passage, NRCA has been working diligently to improve the bill, focusing on provisions of energy efficiency; permanency for short-term extensions of important tax credits such as research and development restoration and immediate expensing; and limits on business state and local tax deduction for specified trades and businesses.
Although the Senate bill provides permanency for the restoration of the research and development deduction and 100% bonus deprecation and immediate expensing, it lowers the qualified business income deduction for pass-through entities (Section 199A) from 23% to 20% while further restricting the ability for pass-through entities to deduct their state and local taxes. The Senate bill does provide some additional time to phase out energy incentives, though it adds an additional phase-out that was not in the House bill, section 179D, the energy-efficient commercial buildings deduction.
NRCA continues to work with lawmakers to ensure the best provisions of the Senate and House bills become law and the challenging provisions are changed.
Trump administration ramps up immigration enforcement
The Trump administration continues expanding immigration enforcement efforts by U.S. Immigration and Customs Enforcement with worksite raids nationwide across numerous industries, including roofing and construction. On June 12, President Trump acknowledged the workforce effects of this activity, calling for a pause of enforcement within the agriculture and hospitality industries and hinting at further policy changes coming from the administration. ICE officials reportedly directed a brief pause in enforcement in these industries shortly after the president’s remarks; however, that directive apparently was rescinded June 16. President Trump also has indicated large cities governed by Democrats are likely to be a major focus of increased enforcement moving forward.
NRCA continues to communicate member concerns to the administration and members of Congress, most recently joining allies in the Essential Worker Immigration Coalition in sending a letter to top administration officials regarding recent enforcement efforts and the need for policies that stabilize and meet essential workforce needs. NRCA also has launched an Employer Immigration Resources webpage devoted to providing resources that help members navigate this heightened regulatory environment.
President’s budget request makes changes to adult education programs
On Friday, May 30, the Trump administration released its full fiscal year 2026 budget request. As previously noted, the budget calls for the Perkins State Grants to be level funded for fiscal year 2026 at about $1.44 billion. However, there is language in the budget proposal that indicates the administration wants to shift Perkins funds “to exclusively support middle and high school students at the district level” and not postsecondary programs.
Additionally, the administration requested no funding for adult education programs, which would effectively eliminate the programs if enacted. The budget states: “States and localities, not the Federal government, are best suited to determine whether to support the activities authorized under this program or similar activities within their own budgets and without unnecessary administrative burden imposed by the Federal government.” The document goes on to say federal resources from this account would be redirected to programs such as the Perkins State Grants; however, it does not formally move any additional funding into the Perkins account.
The budget includes a reduction to the maximum Pell Grant award, limiting financial aid available to low-income college students.
It also proposes a nearly 35% cut to the Department of Labor and the consolidation of 11 workforce programs into a $2.96 billion block grant called “Make America Skilled Again.” This block grant would encompass programs under the Workforce Innovation and Opportunity Act, YouthBuild, apprenticeships and reentry employment opportunities. The proposed Make America Skilled Again funding reflects a 24% decrease from current levels. Additionally, the plan calls for the elimination of Job Corps and several other workforce initiatives and proposes moving the Bureau of Labor Statistics to the Department of Commerce. It will be up to Congress to determine whether any of these recommendations are adopted.
Department of Labor expands opinion letter program
On June 2, the Department of Labor announced an expanded opinion letter program designed to provide “meaningful compliance assistance that helps workers, employers and other stakeholders understand how federal labor laws apply in specific workplace situations.” Opinion letters are designed to assist employers with how they should address specific fact scenarios as they apply to certain laws but do not have the same effect as regulations. The program spans five enforcement agencies within the department and includes a dedicated website that allows users to explore past guidance and submit new requests to the appropriate agency.
Termination of parole for immigrants from Cuba, Haiti, Nicaragua and Venezuela
On June 12, the Department of Homeland Security announced it has begun sending termination notices to immigrants from Cuba, Haiti, Nicaragua and Venezuela who came to the U.S. under temporary parole status since 2023. The notice informs the individuals that their parole status and related work authorization is terminated effective immediately and the individuals are urged to self-deport under the CBP Home Mobile App. View the original termination notice issued in March, which had been temporarily blocked by litigation, and additional information.
Support ROOFPAC over drinks at NRCA’s Midyear Committee Meetings in Chicago
Join your roofing friends and colleagues for a lively cocktail reception benefiting ROOFPAC on Wednesday, July 16, from 5:30 to 7 p.m. at Siena Tavern in Chicago. Enjoy catching up with fellow industry professionals over tasty cocktails and Italian treats—all while strengthening the voice of the roofing industry on Capitol Hill ($175 person/$275 per couple). Members of NRCA’s Political Insiders Council and Capitol Hill Club, along with their guests, receive complimentary admission. Special thanks to our sponsor Johns Manville for making this event possible. For more information or to register, please visit www.nrca.net/roofpac-midyear-event. For any questions or to secure the couples’ rate, contact Teri Dorn at (202) 510-0920 or tdorn@nrca.net.
