Boom or Bottleneck? Construction Faces Crosswinds from New Federal Policies

DPR's Q3 Market Conditions Report reveals how depreciation rules and Pell Grant expansions may drive starts—if inflation, interest rates, and labor headwinds don't stall progress.

REDWOOD CITY, Calif., Aug. 26, 2025 /PRNewswire/ -- Recent policy changes have the potential to supercharge construction activity but may also intensify existing market challenges, according to DPR Construction, one of the nation's top technical builders, and its latest Market Conditions Report. 

"Things are moving fast and this dynamic environment underscores the importance of agility and foresight," said Philip Bartkowski, DPR's national preconstruction leader. "This includes adapting procurement strategies in response to new import duties and ensuring compliance with evolving agency rules. Owners need to simultaneously anticipate potential changes while making real-time decisions in order to secure the best outcomes for their projects."

DPR's report characterizes the "One Big Beautiful Bill Act" as contractor-positive, however, certain sectors may not experience the same benefits and could face new headwinds. Additionally, labor pressures, and how they are handled, will determine how much benefit will come from the legislation. Specifically:

• Tax treatment – New policies have the potential to be exceptionally favorable to construction firms, real estate developers and private firms. The permanent 100% depreciation for commercial and industrial buildings is likely to improve cash flows and help owners recover costs faster, helping bolster new starts. Deductions for the full costs for some equipment and loan interest will also help drive new work.
  
  
• Workforce enablement – The extension of Pell Grants for short-term training programs beginning in July 2026 is expected to expand access to the trades, though the cost and availability of labor will depend on broader immigration and workforce policies.
  
  
• Risk from larger deficits – The bill is expected to have significant fiscal implications, including expanding the federal budget deficit. Some experts suggest this could influence interest rates and capital costs.

DPR has also observed price increases for a variety of materials ranging from structural steel to glazing and more resulting from the continually evolving tariff structure. In fact, out of 26 trades tracked in the report, all but three saw year-to-date price increases for associated materials.

To learn more, explore the full report as well as DPR's interactive market conditions dashboard. 

About DPR Construction
DPR Construction is a forward-thinking, self-performing general contractor and construction manager specializing in technically complex and sustainable projects for the advanced technology, life sciences, healthcare, higher education and commercial markets. DPR's portfolio of work ranges from large-scale new construction to small tenant improvements and special projects. Founded in 1990, DPR is a great story of entrepreneurial success as a private, employee-owned company that has grown to a multi-billion-dollar organization with offices around the world. Strategically focused on delivering more predictable outcomes through applications of virtual design & construction, prefabrication, its team of self-perform craft, and leveraging data to learn and improve from DPR consistently ranks among the top building contractors and employs approximately 11,000 professionals across its family of companies. For more information, visit http://www.dpr.com.

For more information, please contact:

Jay Weisberger
DPR Construction
Email: [email protected]

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SOURCE DPR Construction