Construction News for the Week Ending September 25, 2026
Congress Extends Transportation Programs Until Dec. 11
Congress extended surface transportation programs through Dec. 11 via the Continuing Appropriations and Extensions Act, averting a Sept. 30 expiration. The 10-week reprieve lacks advance appropriations and multiyear certainty, raising cost and planning concerns. Industry looks to BUILD America 250 for long-term funding.
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Highmark Stadium: Premium Focus Over Capacity
Highmark Stadium opened with 60,000 seats, reflecting a shift toward premium offerings over capacity. Builders cite rising MEP costs and expanded amenities, including larger locker rooms and audio-visual systems. Renovations or rebuilds depend on structural capacity for upgrades.
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Eli Lilly’s $6.5B Houston Facility in U.S. Reshoring Plan
Eli Lilly broke ground on a $6.5 billion Houston facility within a $50 billion U.S. reshoring plan. Using advanced technologies, it will produce Foundayo ingredients and other medicines. Bechtel may support the project.
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Lego’s $400M Expansion in Monterrey
The Lego Group will invest over $400 million to expand Monterrey, Mexico, adding packing and warehousing space and 1,300 jobs by 2029. The project supports regional supply chains, workforce training, and sustainability efforts.
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Pilot Program for Safer Type II Helmets
Comer Construction, N.C. State, and the Job-Site Safety Institute are piloting Type II helmets to improve head protection. Workers accept the switch despite higher costs, aiming to guide smaller firms toward safer gear.
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Lawsuit Challenges Harborplace Redevelopment in Baltimore
Seven residents and business owners sued Baltimore City, the City Council, Board of Estimates, and MCB HP Baltimore LLC to block Harborplace redevelopment. The complaint challenges three March 2024 bills altering zoning and parkland rules, alleging constitutional violations. No court has ruled; the Mayor’s Office declined comment.
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Sustainable Construction Success at Kaiser Borsari Hall
Mortenson saved $2 million and reduced build time by 25% on Western Washington University’s Kaiser Borsari Hall using prefabricated mass timber and early BIM. Eliminating the basement cut concrete; labor and deliveries dropped. The hall earned Zero Carbon and Zero Energy certifications.
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California High-Speed Rail Faces Funding and Compliance Challenges
The California High-Speed Rail Authority may exhaust funds by December 2027; the OIG found over $2 million in noncompliant consultant travel costs. CEO Ian Choudri warned schedule risks without advance borrowing. Merced opposes station relocation, and Republicans requested an investigation into potential criminal violations.
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Sundt Expands Denton Water Plant
Sundt Construction began a $92 million expansion of Denton’s Pecan Creek Water Reclamation Plant, adding headworks and membrane bioreactor capacity. The project supports regional growth while maintaining operations. Other Texas water contracts include Ferrovial, Burns & McDonnell, and Crescent Constructors.
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Atlanta Approves Beltline Light Rail Loop Resolution
The Atlanta City Council unanimously approved a resolution supporting a 22-mile light rail loop on the Beltline, requiring implementation and funding updates by Jan. 26, 2027. Partners must address routing, costs, and integration; construction is not immediate.
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Texas Halts Data Center Approvals Amid Grid Concerns
Texas Governor Greg Abbott halted new data center approvals and ordered an audit over grid reliability and demand, with 90% of 474 GW linked to data centers. Community concerns over disruption and costs now shape state policy, challenging developers to secure public support amid delayed benefits.
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Newsom Signs Bills for Data Center Transparency and Accountability
Gavin Newsom signed seven bills requiring data centers to disclose energy, water, workforce, and land use, pay grid upgrade costs, and lose blanket environmental exemptions. Laws mandate reporting, onsite clean energy incentives, and water assessments.
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August Construction Starts Decline 24.8%
August construction starts fell 24.8% to $1.34 trillion, reversing July’s surge. Nonresidential dropped 32%, manufacturing 80.8%, and data centers 31.3%; healthcare rose 96.1%. Despite declines, 2026 starts rose 15.2%. Largest projects included Amazon STACK and Steel River.
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FAA Allocates $1.1 Billion for Airport Improvements
The FAA will distribute $1.1 billion via 280 Airport Improvement Program grants for infrastructure, including VMATs and family features. This follows $481 million in Airport Infrastructure Grants for runway and terminal work.
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Bechtel Exits Natrium Project, Plans Virginia Layoffs
Bechtel left TerraPower’s Natrium project in Wyoming due to disagreement on the next phase and filed a WARN notice for about 200 employees in Virginia. Layoffs around Nov. 16 may be reduced by redeployment to other nuclear projects.
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MTA RFQ for Second Avenue Subway Phase 2
The MTA issued an RFQ for the final Second Avenue Subway Phase 2 contract, aiming for contractor selection in mid-2027 and completion by fall 2032. The package adds three Q line stations and systems; three contracts are underway.
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AI Levers in Construction: Cost and Schedule Reductions
Suffolk and MIT found six AI levers—design automation, offsite manufacturing, permitting, scheduling, labor, and supply chain—could cut costs 17–20% and schedules 22–25% in a case study. Design automation enables other gains.
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August Housing Market Trends: Multifamily Decline, Single-Family Rise
Multifamily starts fell 15.5% annually and 22.5% monthly in August, while completions dropped 35.7% and permits rose 9.4%. Single-family starts increased 5.2% annually. Regional declines were largest in the Midwest, where underwriting and moratoriums hinder development. Rising costs and rates constrain builders.
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Fed Raises Rates: Impact on Projects and Treasury Yields
The Federal Reserve raised its benchmark rate by 25 basis points, raising floating-rate costs and potentially delaying or halting marginal projects, Michael Guckes said. Brian Strawberry noted the hike might lower long-term Treasury yields, easing borrowing.
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