Construction News for the Week Ending Aug 14, 2026
Coalition Sues Trump Over Unlawful Tariffs
A 25-state coalition sued the Trump administration over Section 301 tariffs on 60 trading partners, arguing the tariffs were unlawfully imposed under the guise of combating forced labor. The lawsuit claims the tariffs were a workaround for a Supreme Court decision revoking previous tariffs and were imposed without proper justification or mechanisms for remedial action.
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Blue Star Learning: $29M GI Bill Fraud
Blue Star Learning, a fraudulent vocational school, defrauded taxpayers of $29 million in GI Bill funds. The school, a “ghost” or “shell” school, relied on veterans to be complicit in its scheme, with students attending class infrequently and doing little work. This case is part of a larger pattern of GI Bill fraud involving for-profit vocational programs.
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Challenges in Data Center Construction
Despite significant investment in AI infrastructure, data center construction faces major hurdles, including material and power shortages, labor constraints, and public opposition. While the demand for data centers is high, only a fraction of the planned capacity is expected to be built due to these challenges. The situation is exacerbated by the complexity of the supply chain, particularly the reliance on Taiwan’s TSMC for AI chips.
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Tutor Perini’s Megaproject Success
Tutor Perini’s focus on large, complex megaprojects has led to record revenue and profits. The company’s strong backlog, including nine major projects valued at $16 billion, provides a clear path for future revenue and earnings. This approach, while sometimes leading to legal disputes, has allowed Tutor Perini to amass a significant cash reserve, enabling it to pursue projects independently and retain a larger share of profits.
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Data Center Planning Boosts Dodge Index in July
Data center construction planning momentum increased in July, driving a 6.9% month-over-month rise in the Dodge Momentum Index. While commercial planning, including data centers, expanded 4.1%, other commercial sectors slowed.
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Fluor Secures $6.1 Billion in New Awards Amid Strong Demand
Fluor reported $6.1 billion in new awards, driven by strengthening demand in power, mining, nuclear fuels, life sciences, and refining. Despite legacy infrastructure challenges, the company anticipates a full-year book-to-bill ratio above one, with significant opportunities in LNG, copper, rare-earth magnets, and data centers. Fluor is focusing on power and data centers, with a strong pipeline of mining and metals projects.
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Bally’s Chicago Halts Non-Gaming Construction
Bally’s Chicago has slowed construction on its $1.7 billion casino development due to the city’s legalization of video gambling terminals, which Bally’s claims violates its 2022 agreement. While the casino’s opening remains on track for early 2027, construction on non-gaming amenities like a hotel, restaurants, and an events center is on hold.
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Senate Passes Short-Term Funding Bill, Concerns Arise
The Senate passed a continuing resolution to fund the government until December 11th, before adjourning for summer recess. The bill, which will be considered by the House on August 31st, extends transportation programs at fiscal year 2026 levels but does not include advance appropriations from the Infrastructure Investment and Jobs Act. This has raised concerns from transportation advocates about potential disruptions to ongoing projects.
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Commanders Announce $3.8B Stadium Project
The Washington Commanders selected a joint venture of Clark Construction, Mortenson, and Smoot Construction Company to build a new NFL stadium in Washington, D.C. The $3.8 billion project, the largest private investment in the District’s history, will feature a 65,000-seat venue and an 180-acre campus hosting over 200 events annually.
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AECOM’s Growth and Challenges
AECOM reported strong growth in its data center business, driven by increased spending from clients and a healthy funding environment. The company also sees opportunities in commercial, healthcare, water, and Department of Defense projects, with significant expansion in its facilities work for the Army and Navy. Despite these positive developments, AECOM faced a $337 million charge on a construction management project due to subcontractor productivity issues.
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FAA Invests $870M in U.S. Airport Infrastructure
The FAA will invest $870 million in airport infrastructure improvements across the U.S. through its Airport Infrastructure Grants program. This funding, part of the $1.2 trillion Infrastructure Investment and Jobs Act, will support projects like terminal improvements, runway rehabilitation, and safety upgrades at airports nationwide.
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Shrinking Labor Supply and Rising AI Demand
The labor force participation rate for U.S. civilians aged 55 and older decreased, driven by Baby Boomer retirements. This decline, coupled with restrictive immigration policies, has led to a shrinking labor supply, necessitating increased reliance on technology like artificial intelligence. Despite concerns about AI demand, global spending on AI is projected to rise significantly, highlighting the need for technological solutions to address labor market challenges.
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Construction Backlog Declines in July
Construction backlog fell sharply in July, reaching its lowest level since January. While data center projects boosted backlog for some contractors, the overall industry saw a decline, particularly impacting small and mid-size firms.
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Balfour Beatty’s Successful 2026 H1 in U.S. Construction
Balfour Beatty’s emphasis on longstanding relationships and core markets has led to a successful first half of 2026, particularly in the U.S. construction business. The company’s collaboration with Wells Fargo and focus on data centers and aviation jobs have driven revenue growth and improved profitability.
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Pennsylvania Approves $90 Billion Infrastructure Plan
Pennsylvania’s State Transportation Commission approved a $90 billion infrastructure plan for the next 12 years, focusing on roads, bridges, transit, airports, railroads, and active transportation. The plan, pending review by federal agencies, anticipates significant funding for state highways, public transit, multimodal projects, rail freight, and aviation. The state awaits federal reauthorization of the Bipartisan Infrastructure Law, which expires in September 2026.
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Bank of America’s $250 Billion Infrastructure Financing Initiative
Bank of America will finance $250 billion in infrastructure projects over 18 months to support job growth and energy security. The initiative will focus on digital, energy, and core infrastructure, including data centers, power generation, and transportation.
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