AGC warns stalled BUILD America 250 Act puts U.S. contractor backlog at risk as IIJA expires 30 September

The Associated General Contractors of America issued a formal warning in August 2026 that the BUILD America 250 Act must be enacted before 30 September 2026 or U.S. contractors face a potentially severe disruption to their public-sector project pipelines. The Infrastructure Investment and Jobs Act - the Biden-era law that reshaped federal transportation spending - expires on 30 September 2026, and its successor legislation remains stalled in Congress with no floor vote scheduled in either chamber.

What the bill proposes

The BUILD America 250 Act is a five-year, $580 billion surface transportation reauthorization bill that would fund highways, bridges, transit systems, rail programs, and transportation safety initiatives through fiscal year 2031. The House Transportation and Infrastructure Committee approved it on 22 May 2026 by a bipartisan vote of 62-2, but the full House has not voted on it and the Senate has not released a parallel proposal.

The bill would authorize appropriations through FY2031 out of the Highway Trust Fund for the federal-aid highway program, the TIFIA program, highway safety programs, and bridge programs. It would also extend Amtrak funding through the same period.

Where the money stands now

The IIJA directed roughly $500 billion toward highway, bridge, transit, and safety programs alone over its five-year life. By January 2026:

• 72.6% of DOT-administered IIJA funding had been obligated
• 43% had already been spent on active construction
• Surety premiums grew more than 40% since 2021, driven by the surge in bonded public construction

On 8 August 2026, the Senate Appropriations Committee passed a proposal to extend government funding and many expiring program authorities only until 11 December 2026 - a short-term patch that NACo and AGC both warn would not preserve the advance appropriations for many transportation programs made under the IIJA, meaning some programs would lose portions of their funding while others would lapse altogether.

What a lapse means for contractors

The AGC argues that even a temporary extension falls short of what the industry needs. Transportation agencies plan projects years in advance, and contractors hire workers, purchase equipment, and secure materials based on anticipated funding streams. A lapse or a continuing resolution creates a ripple effect:

• Project approvals are delayed as agencies wait for funding clarity
• Procurement of cement, concrete, steel, and aggregates slows
• Engineering firms, equipment suppliers, and subcontractors face reduced workloads
• Workforce planning is complicated, making it harder to invest in apprenticeships and long-term capacity

The workforce dimension is particularly acute. The U.S. construction industry needs to attract an estimated 349,000 net new workers in 2026 just to meet current demand, rising to 456,000 in 2027, according to Associated Builders and Contractors. Any funding uncertainty that delays project starts directly undermines the case for firms to expand their payrolls.

With roughly 23 days remaining before the 30 September deadline and no Senate bill on the table, the most likely near-term outcome is a short-term continuing resolution - a bridge that AGC says should not become a substitute for a full five-year authorization. Whether the Senate can develop and reconcile its own proposal before the November election calendar tightens further will determine how much certainty U.S. contractors carry into 2027.