This newsletter covers key regulatory changes for electrical contractors: new tariffs, infrastructure funding adjustments, and code updates. Recent Executive Orders bring both challenges and opportunities in federal contracting and infrastructure projects
👋 Greetings, NECA Members! As we move through the first quarter of 2025, NECA contractors are navigating significant policy changes under the Trump administration.
🔭 Situational awareness: This month's newsletter covers key regulatory changes for electrical contractors: new tariffs, infrastructure funding adjustments, and code updates. Recent Executive Orders bring both challenges and opportunities in federal contracting and infrastructure projects.
Our Government Affairs team is actively working with policymakers to address these changes and advocate for policies benefiting electrical contractors nationwide.
Let’s dive in!
Speaker Johnson wins again
On April 10th, the House advanced the Senate-passed FY 2025 budget resolution.
Why it matters: This marks both another massive win for the Speaker of the House from Shreveport and NECA contractors.
The budget's passage allows committees to work on extending critical tax cuts, benefiting NECA members.
By the numbers: The resolution passed with a narrow margin, 216-214.
What's next: If congressional timelines remain as scheduled, NECA contractors at the NECA Legislative Conference can influence the 2025 tax "super bowl."
Once both chambers pass their reconciliation bills, a conference committee will resolve disagreements before sending the final package to President Trump for his signature.
Koontz-Wagner Hosts Rep. Rudy Yakym for Small Business Roundtable ahead of critical tax discussions
This month, NECA partnered with the Main Street Employers Coalition, and NECA Contractor Koontz-Wagner Services to bring together small business owners for a roundtable discussion on the importance of preserving Section 199A.
Thousands of NECA members rely on the vital pass-through deduction, set to expire in December unless Congress reauthorizes it.
The Government Affairs team would like to thank Koontz-Wagner for their help and hospitality!
On April 2nd, President Trump invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to “address the national emergency posed by the large and persistent trade deficit that is driven by the absence of reciprocity in our trade relationships and other harmful policies.”
Why it matters: This action could seriously impact the electrical contracting industry as the White House works to address the national trade deficit and pressures countries around the world into negotiating fair trade deals.
Higher tariffs were targeted at nations with significant trade deficits with the U.S.
The latest: On April 9th, President Trump announced a 90-day pause on country-specific tariffs to facilitate negotiations, with the following conditions:
The pressure on China to reform its trade and manufacturing-related policies has grown, increasing tariffs to 145% effective immediately.
Tariffs of 84% on all U.S. exports to China were set to begin April 10th.
All other countries, except China, will now face a 10% tariff.
Exemptions: Some goods will not be subject to the Reciprocal Tariff:
Steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs
Copper, pharmaceuticals, semiconductors, and lumber articles
Energy, and other certain minerals that are not available in the United States
Canada and Mexico: The existing fentanyl/immigration-related IEEPA orders remain in effect, and are unaffected by this order. USMCA-compliant goods will continue to see a 0% tariff, non-USMCA-compliant goods will see a 25% tariff, and non-USMCA-compliant energy and potash will see a 10% tariff.
In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA-compliant goods would continue to receive preferential treatment.
In contrast, non-USMCA-compliant goods would be subject to a 12% reciprocal tariff.
The bottom line: The U.S. aims to reform global trade practices, but the lack of a formal adjustment process adds uncertainty.
Domestic suppliers: Partner with U.S.-based steel/aluminum producers (e.g., Nucor, Century Aluminum)
Alternative countries: Source copper from Chile or Canada to avoid Chinese tariffs
2. Contractual Adjustments
Price escalation clauses: Tie project costs to material price indices
Tariff-specific provisions: Define cost-sharing mechanisms for tariff increases
3. Strategic Inventory Management
Bulk purchasing: Stockpile steel, aluminum, and copper before tariffs escalate
Just-in-time delivery: Coordinate with suppliers to minimize storage costs
4. Policy Advocacy
Engage with the government affairs team to lobby for exemptions on critical materials
Push for expanded USMCA exemptions for electrical components
5. Legal and Financial Consultation
Review contracts for force majeure applicability and explore insurance options (58)
Utilize tax strategies to offset tariff-related expenses (8)
The bottom line: Keeping copper and other critical minerals related to energy represents a huge win for NECA members.
Contact your member of Congress and the NECA government affairs team if your business is impacted by President Trump’s Trade Agenda.
NECAPAC fundraising success
As of April 9, 2025, NECAPAC has raised $192,061.68, and operational funds stand at $101,400.
Big thank you to: Darran Ayres (JF Electric), Jacob Davie (Hooper Corp.), Gregory Gibbs (New River Electrical Corp.), Don Laffoon (Electrical Corporation of America), Harry Miller (Miller Bros.), Michael Podkranic (Tice Electric Co.), Ike Poe (New River Electrical Corp.), Mike Quarles (North Kansas City Electric), Earl Restine, III (Fuller Electric), Jeffrey Restine (Fuller Electric), Scott Sheldon (Xtreme Powerline Construction), Michael Stone (Chewning & Wilmer, Inc.), Gary Tucci (Tucci Energy Services) Matthew Turk (Intren LLC), Laura Volpini (New River Electrical Corp.), Gary Walls (UIS), Don Wilson (Wilson Construction Co.), Forrest Wilson (Big State Electric), and Stacy Wilson (Wilson Construction Co.) for contributing to NECAPAC at the PLC Level.
Record-breaking effort: Special recognition to District 10 members and Council Meeting attendees for raising a record-breaking $136,270 to NECAPAC.
Congratulations:Maryland Chapter NECA, Northwest Line Constructors Chapter NECA, Quad Cities Chapter NECA, Southeastern Line Constructors Chapter NECA, Southern Sierras Chapter NECA, and Western Line Builders Chapter NECA for achieving their 2025 PLC Chapter Goal.
National Electrical Contractors Association, 1201 Pennsylvania Ave. NW Suite 1200, Washington, D.C. 20004
