In response to President Donald Trump’s 2026 State of the Union address, Associated Builders and Contractors reaffirmed support for policies it says affect construction labor markets, federal procurement and project delivery conditions.

ABC said the president’s emphasis on economic growth, worker opportunity and affordability aligns with the organization’s long-standing advocacy. The group noted construction employs more than 8.3 million workers and contributes more than $2 trillion annually to the U.S. economy, factors that directly influence demand for commercial interiors, institutional work and infrastructure-related finishes.

The association emphasized the role of merit shop contractors across public and private sectors, including transportation, health care, education, industrial and energy projects. For wall and ceiling contractors, these market segments represent core backlogs in gypsum board assemblies, exterior sheathing systems, acoustical ceilings and fire-resistance-rated partitions.

A central issue raised by ABC is the federal project labor agreement mandate established under the Biden administration. The organization is urging the Trump administration to reverse that policy and restore what it characterizes as neutrality in federal contracting. ABC cited federal data indicating that nearly 89 percent of the U.S. construction workforce is not unionized, arguing that procurement policy should reflect current labor composition.

For interior contractors bidding federal work, PLA requirements can influence labor sourcing, wage structures, benefit contributions and subcontractor selection. Changes to PLA policy could affect bid strategy, crew availability and compliance administration on General Services Administration (GSA) and Department of Defense projects, among others.

ABC also pointed to recent federal actions it views as supportive of construction activity, including tax legislation referred to as the Working Families Tax Cuts measure. From a field perspective, changes to tax policy can affect contractor cash flow, capital investment in equipment and technology, and expansion of prefabrication or off-site fabrication capacity.

Permitting reform was another focus. Faster federal approvals can accelerate starts on data centers, manufacturing facilities and infrastructure—project types that drive demand for shaftwall systems, high-performance envelope assemblies, cleanroom ceilings and specialty drywall applications. Predictability in the Waters of the United States rule was also cited as reducing regulatory uncertainty, particularly for projects involving site development and foundation scopes that precede interior buildout.

ABC referenced a new majority on the National Labor Relations Board, suggesting a shift in labor policy. For subcontractors, NLRB interpretations can affect joint-employer standards, independent contractor classification and organizing activity: All of which influence workforce stability and compliance risk.

Despite policy momentum, ABC acknowledged ongoing headwinds: elevated material costs, tariff uncertainty and persistent labor shortages. For wall and ceiling contractors, volatility in steel studs, aluminum grid, fasteners and insulation pricing continues to complicate estimating. Workforce gaps remain acute in metal framing, finishing and acoustical ceiling installation, extending schedules and increasing overtime exposure.

ABC called for a market-based construction worker visa program tied to documented demand rather than fixed numerical caps. The group stated that aligning visa availability with real project volume could stabilize labor supply while maintaining enforcement standards. For contractors managing multi-phase commercial interiors or large institutional campuses, predictable labor access directly affects production rates and liquidated damages risk.

Additional priorities include passage of the Fair and Open Competition Act, which would prohibit government-mandated PLAs on federal and federally assisted projects, and expanded industry-driven apprenticeship programs. For interior trades, apprenticeship pipelines are critical to maintaining installation quality for fire-rated assemblies, sound control systems and suspended ceiling grids that must meet ASTM and International Building Code requirements.

As federal policy evolves, contractors should monitor how changes to procurement rules, labor regulations and immigration frameworks translate into bid conditions, workforce availability and compliance obligations. Interior finishes professionals remain directly tied to these shifts, as federal and institutional investment continues to shape demand for walls, ceilings and specialty assemblies nationwide.