As the Trump administration takes office for a second term, the construction industry anticipates potential shifts in regulatory policies, particularly those affecting environmental and safety standards. These regulatory changes are expected to ease restrictions on construction and real estate development, including draft rules that the Biden administration was unable to finalize before leaving office.

While environmental concerns took a backseat in the 2024 election, overshadowed by economic, social, and immigration issues, industry experts predict a more lenient regulatory environment under the new administration. Consultants have noted that such changes could bring both positive and negative effects for the construction sector.

One key regulatory focus is the Occupational Safety and Health Administration’s (OSHA) proposed heat rule. This rule, introduced in July 2024, aims to protect 36 million workers from heat-related injuries and illnesses. However, it has not yet been finalized. Christopher Ward, a construction risk management consultant for K2 Integrity, emphasized the challenges workers face in high heat conditions, saying, "Working in the heat is a big consideration for construction workers. It’s hard for them to take breaks—they have schedules and deadlines."

Despite some business groups supporting lighter regulations, Ward raised concerns about the instability of federal rules. He explained that construction projects take years to plan and execute, and fluctuating regulations make it difficult for contractors to submit accurate bids. He noted, “I think it’s hard, then, when things change a lot.”

The heat rule was developed with input from industry stakeholders, and Ward saw its creation as a positive step. However, experts, including attorneys at Seyfarth Shaw LLP, anticipate that the Trump administration may halt the rule's progress, with the attorneys writing, “Given the anti-regulatory orientation of a second Trump administration OSHA, we anticipate OSHA bringing the heat illness rule-making process to a screeching halt.”

The proposed heat rule, triggered when workers are exposed to temperatures over 80°F for more than 15 minutes in an hour, would require employers to implement safety measures like breaks, drinking water, and cooling systems, particularly for new or returning workers. As climate change leads to hotter summers, with 2024 expected to be the hottest year on record globally, industry professionals are concerned about the rising risks associated with outdoor work.

While OSHA's heat rule remains uncertain, the broader construction industry remains optimistic about the incoming administration’s approach to speeding up pre-construction environmental reviews. Brian Turmail, Vice President of Public Affairs at the Associated General Contractors of America, pointed out the irony that many projects funded during the Biden administration will not move forward until the Trump administration streamlines environmental measures. “The Biden administration made some historic investments in infrastructure and construction projects. The irony is a lot of those projects won’t begin until the Trump administration,” Turmail explained.

Energy efficiency programs, like Energy Star, are expected to remain intact despite regulatory shifts. Chris Fisher, a managing principal at Ducker Carlisle, emphasized the long-term nature of such programs, stating, “It would be very difficult for the new administration to come in and drastically change something. It wouldn’t create a more favorable environment.”

While the construction industry is prepared for a changing regulatory landscape, much remains uncertain as the Trump administration prepares to make key decisions on environmental and safety standards.