A new legislative effort in Albany could reshape the financial landscape of construction in New York State by easing long-standing liability rules that critics say have driven up project costs and hindered development.

The Infrastructure Expansion Act of 2025, introduced last month, proposes a major shift: it would exempt federally funded construction projects from the Scaffold Law, a state regulation unique to New York. The law, in place since the 19th century, holds employers and property owners absolutely liable for any gravity-related injuries at construction sites—even in situations where worker negligence is involved.

Supporters of the bill argue that the Scaffold Law is outdated and economically harmful, driving up insurance premiums and limiting the number of insurers willing to work in the state. Critics point to large settlements, often reached regardless of the worker's actions leading to the injury.

“Scaffold claims regularly lead to inflated settlements, even in extreme cases where a worker was intoxicated or disregarded safety rules,” noted Ken Girardin, a policy analyst and vocal critic of the law. “Those settlements, in turn, are passed on to other public and private projects in the form of higher insurance premiums.”

These higher premiums ripple across the industry, affecting everything from housing developments to infrastructure upgrades and public works. In practice, it makes New York one of the most expensive states in which to build, and it presents challenges for government agencies attempting to stretch federal infrastructure dollars.

The proposed legislation would allow federally backed construction projects—like those supported by funds from the Infrastructure Investment and Jobs Act—to avoid being subject to the absolute liability standard. Instead, these projects would operate under comparative negligence standards more commonly found in other states, where responsibility for injuries is shared when appropriate.

For contractors, developers, and public agencies alike, the bill represents a rare chance to bring meaningful cost reduction to the state’s high-stakes construction environment.

While supporters see the bill as a pragmatic update aligned with federal construction norms, labor advocates are likely to push back, arguing the Scaffold Law provides critical protections for workers in one of the country’s most dangerous industries.

Still, Girardin and others see the Infrastructure Expansion Act as a necessary correction. “This is a long-overdue opportunity for reform,” he emphasized.

If passed, the legislation could set a precedent for further exemptions—or even broader reform—of the Scaffold Law, a legal structure long considered untouchable in Albany politics. With bipartisan concern mounting over construction affordability and infrastructure delays, the bill may gain traction as part of New York’s broader economic development strategy.

Originally reported by City Journal.