How Federal Elections Reshape Transportation Funding and Construction Industry Policy

Every election cycle carries consequences for the construction industry, but few have the concentrated impact of a presidential election combined with competitive Senate races. The decisions voters make at the ballot box determine not only who leads the country but also which infrastructure priorities receive funding, how federal highway programs are structured, and what regulatory environment contractors will operate under for years to come. Understanding these connections helps builders and transportation professionals anticipate changes and prepare their businesses accordingly. For a broader look at the equipment and machinery that keeps these projects moving, see Highway and Bridge Construction Equipment Specialized Machinery for road building and infrastructure development.

Presidential Infrastructure Plans and Their Industry Implications

Both major party candidates in the 2020 election acknowledged the urgent need to address America’s aging infrastructure, but their approaches differed fundamentally in scope, funding mechanisms, and policy priorities. The American Road and Transportation Builders Association (ARTBA) analyzed both plans to help the construction industry understand what each would mean for contractors, engineers, and materials suppliers.

The Trump Administration Infrastructure Approach

The Trump infrastructure plan, announced in February 2018 under the banner “Building a Stronger America,” proposed $200 billion in federal investment designed to leverage $1.5 trillion in total infrastructure spending across highways, transit, brownfields, rail, and water systems. Key features included:

• Federal seed money to incentivize state and private investment through public-private partnerships
• Regulatory reforms supported by ARTBA, including streamlined environmental review processes under the National Environmental Policy Act
• Emphasis on traditional infrastructure categories such as roads, bridges, and waterways
• Reduced federal match requirements to encourage non-federal funding sources

The Biden Infrastructure Vision

The Biden campaign introduced its infrastructure plan through the lens of climate policy and green energy, then expanded it in response to the COVID-19 pandemic with a four-year, $2 trillion economic recovery framework called “Build Back Better.” This plan connected infrastructure investment directly to job creation, manufacturing revitalization, and workforce development. Its key elements included:

• Major investments in roads and bridges alongside schools, broadband, water systems, and energy infrastructure
• Significant funding for “clean” transportation and environmentally sustainable construction materials
• Expanded transit and rail networks as alternatives to highway expansion
• Workforce training programs targeting underrepresented communities

Comparing the Candidates on Infrastructure

The table below summarizes the key differences between the two approaches that contractors and transportation professionals should understand.

What Builders Should Watch For

Regardless of which approach prevails, contractors should monitor the early signals from the incoming administration. Cabinet appointments at the Department of Transportation and the Environmental Protection Agency will indicate whether the priority is rapid permit approvals or stricter environmental standards. The first budget proposal, typically released in February or March following the election, provides the clearest early glimpse of actual infrastructure spending levels. Staying informed about these policy shifts is as important as staying current on equipment and technology. Events like What to Expect At a Residential Construction Trade shows can also help builders prepare for industry changes.

Congressional Control and Transportation Committee Leadership

While the presidential race draws the most attention, the composition of Congress has an equally powerful effect on construction industry policy. The party that controls the House and Senate sets the legislative agenda, determines committee leadership, and decides which infrastructure bills reach the floor for a vote.

House Dynamics and Committee Stability

Heading into the 2020 election, Democrats held a 34-seat majority in the House of Representatives, and forecasters predicted they would retain or expand that advantage. The rules of the House effectively empower the majority party to advance legislation with limited input from minority members, making the continuity of Democratic control significant for transportation policy. ARTBA predicted that leadership of the House Transportation and Infrastructure Committee would remain stable, with Rep. Peter DeFazio (D-OR) continuing as chairman and Rep. Sam Graves (R-MO) as ranking member. Both were expected to begin work on a long-term surface transportation investment bill. The committee was expected to gain at least five new members regardless of the election outcome.

Senate Control and Committee Leadership Shifts

The Senate presented a far more uncertain picture. Of the 35 seats up for election, 23 were held by Republicans and 12 by Democrats. Twelve races were considered competitive. If Democrats gained a net of four seats, or three seats combined with winning the White House (giving the vice president a tie-breaking vote), control would shift for the first time since 2015.

Key Committees and Their Transportation Role

Two Senate committees directly shape construction industry policy:

1. Finance Committee – Oversees all tax issues, including Highway Trust Fund revenue streams. If Republicans retained control, new leaders would take this committee. The top Democrat, Sen. Ron Wyden (D-OR), was expected to remain in his position regardless.
2. Banking Committee – Has oversight of federal public transportation programs and writes that section of surface transportation reauthorization bills. A Senate leadership change could open new leadership on this committee. The top Democrat, Sen. Sherrod Brown (D-OH), was also expected to remain.

The interaction between these committees and the House T&I Committee determines the final shape of infrastructure legislation. Understanding how committee leadership influences policy can help contractors anticipate which funding streams and regulatory changes are likely. Trade associations and How Construction Trade Shows Educate Builders On Product specifications and standards are valuable resources for staying ahead of these policy developments.

Critical Legislative Deadlines and Post-Election Priorities

The 2020 election occurred during a period of unusual legislative uncertainty. Multiple critical deadlines and unresolved policy challenges awaited Congress regardless of the election outcome, and the results would determine how each issue was handled.

FY 2021 Federal Spending and the Lame Duck Session

Federal spending for transportation and general government programs was operating under a continuing resolution that funded agencies at current levels through December 11, 2020. Congress faced two paths:

• Finalize full-year appropriations during the post-election lame duck session
• Pass another interim measure extending current funding levels into early 2021, allowing the new Congress to set spending priorities

ARTBA noted that if Democrats won control of the Senate, House Democrats might prefer to delay final spending decisions until the new majority was sworn in at the beginning of 2021, giving them greater influence over funding levels and allocations.

COVID-19 Economic Recovery Legislation

The economic recovery from the COVID-19 pandemic was expected to stretch well into 2021 and beyond. Pressure on Congress to pass additional relief packages would continue regardless of the election result. A key component of these discussions was aid to state and local governments, including state departments of transportation and other transportation agencies. The scale, scope, and substance of any recovery legislation would be significantly influenced by which party controlled the Senate and whether the president supported broad or targeted relief measures.

Tax Provisions and Equipment Expensing

Each year, legislators attempt to attach expiring tax provisions to must-pass legislation. Given the number of tax provisions included in prior COVID-19 relief bills, there was pressure to extend them beyond 2020. Several key provisions from the 2017 Tax Cuts and Jobs Act were also on the radar, including:

• Full expensing of equipment purchases (bonus depreciation)
• Increased estate tax exemption levels
• Pass-through business deductions

Notably, these provisions did not expire in 2021, but contractors should monitor the tax policy landscape because changes to corporate tax rates or depreciation schedules directly affect equipment purchasing decisions and project profitability.

Surface Transportation Reauthorization Timeline

The federal highway, bridge, and public transit programs were set to expire on September 30, 2021, following congressional action on a one-year extension of the Fixing America’s Surface Transportation (FAST) Act. This meant that despite substantial progress on robust proposals in both the House and Senate, the new Congress would have to restart the reauthorization process and take action before the fall 2021 deadline. The timeline created both urgency and opportunity for the construction industry to advocate for increased investment levels, reformed project delivery methods, and sustainable funding mechanisms for the Highway Trust Fund.

Preparing for Executive Branch Transition and Industry Strategy

Regardless of which candidate won the presidential race, the transition period after Election Day would bring significant changes to the executive branch agencies that oversee construction and transportation policy. Contractors who understand the transition process can position themselves to take advantage of new opportunities.

Cabinet and Agency Appointments

Filling key administration posts was expected to be a major activity in early 2021. Cabinet and sub-cabinet turnover is common during a second term of a reelected president, and populating the executive branch with new appointees is among the most impactful actions of an incoming president. Key positions for the construction industry include:

1. Secretary of Transportation – Sets the agenda for federal highway, transit, and aviation policy
2. Administrator of the Federal Highway Administration – Directly oversees federal-aid highway programs and state DOT relationships
3. Administrator of the Environmental Protection Agency – Controls environmental review processes and emissions standards that affect construction materials and methods
4. Secretary of Labor – Influences workforce regulations, apprenticeship programs, and workplace safety standards

Strategic Actions for Contractors and Firms

Construction firms can take concrete steps during transition periods to protect their interests and identify new opportunities. Industry events provide excellent platforms for networking and learning about policy changes. For example, Construction Trade Shows Build Better Builders Lessons Industry events offer by sharing best practices and policy updates from across the sector.

Recommended Preparation Steps

1. Review your current project pipeline and identify which contracts depend on federal funding sources
2. Engage with industry associations like ARTBA to stay informed about policy developments and advocacy opportunities
3. Evaluate your equipment purchasing plans against potential tax law changes that could affect depreciation benefits
4. Diversify your project portfolio across both federally funded and privately funded work to reduce exposure to policy uncertainty
5. Monitor the appointments process for agency leadership that aligns with or challenges your business model
6. Attend trade shows and industry conferences to network with peers who are navigating the same policy shifts

The connection between election outcomes and construction industry conditions is not always immediate, but the policy decisions that follow from election results shape the market environment for years. By understanding what is at stake in each election cycle and taking proactive steps to prepare, contractors and transportation professionals can position themselves to thrive regardless of which party controls the White House or Congress. The most successful firms treat election cycles not as passive events to observe but as strategic information that informs their planning, investment, and business development decisions.