Many federally funded highway and other infrastructure projects are destined for delay due to the government shutdown, note a number of sources.
The shutdown, reports the Construction Dive, immediately halts construction activity “on certain sites, both temporarily and in some cases permanently.”
The publication additionally points out that “being in a state of limbo” inevitably impacts contracts and supply chains. The challenges to builders now also include suppliers being forced to reprice bids after projects are put on hold.
The Associated Builders and Contractors has issued an alert for its members, noting the various steps that contractors should be taking in response to the shutdown. Those steps include ongoing communications with subcontractors regarding the status of various projects, as well as keeping employees up to date on the latest developments.
The ABC additionally points out that because of the shutdown “no monthly construction economic data will be collected, and no reports will be issued until sometime after the government reopens.”
That means that the normal government releases on such matters as “government spending, job openings, employment, state unemployment or materials prices” are all on hold.
In a statement, Jeffrey Shoaf, chief executive officer of the Associated General Contractors of America, has warned that the shutdown “has the potential to undermine the construction sector across the country.”
“Federal officials who need to sign off on change orders, conduct project inspections and award new projects are likely to be on furlough,” continued Shoaf, before adding: “In other words, the longer the government is shut, the more likely construction employment around the country could be impacted negatively.”
A statement issued by Brent Booker, president of the Laborers’ International Union of North America, provided a holistic view of shutdown’s impact, remarking that contractor payments are “grinding to a halt,” while Occupational Safety and Health Administration enforcement will slow down.
The union adds that the shutdown will inevitably affect basic services “Americans rely on daily, putting families, workers, and local communities at risk.”
October 6, 2025
By Garry Boulard
Photo courtesy of Pixabay
