November Federal Updates

Learn more about some of the critical developments from the Federal sector, including tariff modifications for Brazil, new K-12 Education Partnerships, potential AI work and more.

White House:

November 2025 U.S. Tariff Modification on Brazil

In November 2025, the White House issued a modification to its prior tariff order on certain Brazilian imports. The update exempts some products, mainly agricultural and raw materials, from the additional 40% tariff. However, most construction-related materials, including steel, sheet metal, structural components, and fabricated metal products, remain subject to tariffs. The change reflects ongoing diplomatic discussions with Brazil but does not remove the broader national emergency framework or existing trade measures on steel and construction materials.

ANNEX I and ANNEX II

Department of Labor:

DOL and Dept. of Ed. Announce New K-12+ Education Partnership:

The U.S. Departments of Labor and Education announced new interagency agreements. The Departments of Labor and Education are establishing the Elementary and Secondary Education Partnership. The Labor Department will take on a greater role in administering federal K-12 programs, with oversight by the Education Department. The Labor Department will manage competitions, provide technical assistance, and integrate Education Department programs with the larger suite of employment and training programs the Labor Department already administers.

View the partnership fact sheet for Higher Education.

DOL Announces New Guidance on Workforce Development System:

Department of Labor’s Employment and Training Administration today announced new guidance to promote waivers that States and Localities can use when developing new workforce systems within their jurisdictions. State and local workforce boards are urged to review their policies and request waivers of statutory requirements that impede their ability to align with the Trump Administration’s strategic pillars for workforce investment. Read Training and Employment Guidance Letter No. 05-25, which applies to the WIOA Youth and Adult and Dislocated Worker programs. 

Department of Energy:

U.S. Energy Department Seeks Proposals for AI Data Centers, Energy Projects at Paducah Site:

Department of Energy’s (DOE) Office of Environmental Management (EM) issued a Request for Offer (RFO) seeking proposals from companies to build and power AI data centers on DOE’s Paducah site. The Paducah site is one of four sites identified by the Department for AI infrastructure and generation projects on federal land. EM is now seeking proposals from U.S. companies to potentially enter into one or more long-term leasing agreements at the site that would be solely funded by the applicants.

Applicants will be responsible for building, operating, and decommissioning each infrastructure project and must secure utility interconnection agreements. Proposals will be competitively evaluated based on technological readiness, financial viability, and detailed plans to meet regulatory and permitting requirements. 

DOE will post future dates for proposal submittal and a sponsored industry day event for applicants to learn more about the solicitation process and requirements outlined in the RFO, and tour the sites available for consideration. Registration is required, and potential attendees should email Marcia Fultz at marcia.fultz@pppo.gov for more information. 

RFOs must be submitted by Jan. 30, 2026.

Additional information on the RFO can be found at SAM.gov.

X-energy Begins First Irradiation Tests of Advanced Nuclear Fuel Pebbles at Idaho National Laboratory

X-energy, LLC began testing at Idaho National Laboratory (INL) to evaluate the performance of its advanced nuclear fuel, TRISO-X.  

This is the first time TRISO-X fuel pebbles will undergo irradiation testing in a U.S. lab, a critical step toward meeting requirements set by the U.S. Nuclear Regulatory Commission for the commercial deployment of advanced reactors that will use the fuel. 

The test campaign is part of X-energy's larger efforts to establish the country’s first commercial advanced nuclear fuel fabrication facility to support the deployment of their small modular reactor design, the Xe-100, and other commercial reactors. 

X-energy's TX-1 fuel fabrication facility is currently under construction in Oak Ridge, Tennessee, and could be the first advanced nuclear fuel fabrication facility licensed by the NRC in more than fifty years. The facility will support the commercial deployment of the Xe-100, which is one of two advanced reactor demonstration projects supported through DOE’s Advanced Reactor Demonstration Program.  

X-energy's subsidiary, TRISO-X Inc., is also participating in DOE’s new Fuel Line Pilot Program to build and operate an additional fuel fabrication laboratory facility to enable pilot-scale integration, training, and system validation to support the TX-1 commercial TRISO fuel fabrication facility. 

Energy Department Announces $355 Million to Expand Domestic Production of Critical Minerals and Materials

Department of Energy (DOE) announced $355 million for two notices of funding opportunities issued by DOE’s Office of Fossil Energy (FE) to expand domestic production of critical materials essential for advancing U.S. energy production, manufacturing, transportation, and national defense. The first funding opportunity provides up to $275 million for American industrial facilities capable of producing valuable minerals from existing industrial and coal byproducts. The second provides up to $80 million to establish Mine of the Future proving grounds for real-world testing of next-generation mining technologies.

FE announced up to $275 million under the Mines & Metals Capacity Expansion notice of funding opportunity (NOFO) to address the potential for America’s industries to recover valuable critical materials by piloting promising future separation and recovery technologies directly at industrial sites.

This NOFO includes two focus areas for the design, construction, and operation of large pilot-scale facilities to produce critical materials:

  • Coal-based feedstocks – advancing and accelerating demonstration of critical material production using coal-based resources as feedstocks.
  • Industrial byproducts and wastes – open to all U.S. industry sectors that produce market-ready materials where industrial byproducts and/or wastes can be a source of crucially needed critical materials.

These pilots will demonstrate the feasibility of recovering critical minerals from existing American infrastructure and industrial activity, reducing waste while building new domestic supply chains for high-value materials. Read the complete NOFO here.

Projects selected under this initiative will also create opportunities for hands-on workforce training to prepare the next generation of American miners and engineers to operate advanced mining systems safely and efficiently. Read the complete NOFO here.

The application deadline for both NOFOs is December 15, 2025, by 5:00 PM ET.

X-energy Starts Building Construction for Advanced Nuclear Fuel Facility 

X-energy announced the start of vertical construction for its TX-1 fuel fabrication facility in Oak Ridge, Tennessee.  

The facility will be the first of its kind in the United States and will manufacture the company’s proprietary TRISO fuel for its commercial reactors.  X-energy subsidiary TRISO-X recently selected Clark Construction Group for a $48.2 million award as part of the U.S. Department of Energy’s Advanced Reactor Demonstration Program (ARDP) to complete vertical construction. ARDP funding provides up to 50% cost sharing with X-energy for their Xe-100 Advanced Reactor Demonstration Project, including construction of the TX-1 fuel fabrication facility.

The group will start building the shell of the 214,812 square foot facility that will be used to fabricate around 700,000 TRISO fuel pebbles each year, which is enough fuel for 11 Xe-100 small modular reactors.

TX-1 will be the first of two facilities planned for the site to fabricate the company’s ceramic fuel designed to withstand extreme temperatures and retain fission products under all reactor conditions.

The facility is on track to be the first Category II fuel fabrication facility licensed by the U.S. Nuclear Regulatory Commission and is expected to bring more than 400 new jobs to the region.

The project is one of two demonstration projects supported by the Department to accelerate the deployment of new reactor technologies.


Energy Department Closes Loan to Restart Nuclear Power Plant in Pennsylvania

DOE announced the Department of Energy’s (DOE) Loan Programs Office (LPO) closed a loan to lower energy costs and restart a Pennsylvania nuclear power plant.

The $1 billion loan to Constellation Energy Generation, LLC (Constellation) will help finance the Crane Clean Energy Center, an 835 MW plant located on the Susquehanna River in Londonderry Township, Pennsylvania. This announcement marks the first project to receive a concurrent conditional commitment and financial close under the Trump Administration. The loan will partially finance the restart of a reactor which ceased operations in 2019 but was never fully decommissioned. Once restarted, pending U.S. Nuclear Regulatory Commission licensing approvals, the 835 MW reactor will provide reliable and affordable baseload power to the PJM Interconnection region, powering the equivalent of approximately 800,000 homes. The Crane Restart project will help lower electricity costs, strengthen grid reliability, create over 600 American jobs, and advance the Administration’s mission to lead in global AI innovation and restore domestic manufacturing industries.

FERC Begins New Process to Consider Expedited Permitting for LNG and Hydropower:

FERC issued two Notices of Inquiry seeking comment on ways to streamline permitting and reduce the need for case-specific approvals for many LNG and hydropower projects. One inquiry asks whether the Commission should revise its regulations to allow some LNG plant activities to proceed without individual orders under the Natural Gas Act, while the other examines potential changes to simplify review of post-licensing maintenance, repairs, and upgrades at hydropower facilities under the Federal Power Act. Comments on both proposals will be due 60 days after publication in the Federal Register.

Secretary Chris Wright Directing FERC over Large Electrical Loads Jurisdiction:

The Secretary proposes that FERC establish jurisdiction over large load interconnections (defined as over 20 MW) to the interstate transmission system, similar to existing rules for generators. Main principles include:

  • Standardized interconnection procedures and agreements
  • Joint studies with generating facilities where practical
  • Study deposits, readiness requirements, and withdrawal penalties to deter speculation
  • Special provisions for "hybrid facilities" (loads co-located with generation)
  • 100% cost responsibility for network upgrades
  • Expedited process for curtailable/dispatchable loads
  • Deadline for FERC action: April 30, 2026

The Secretary argues FERC has jurisdiction because large load interconnections are a "critical component of open access transmission service" and directly affect wholesale electricity rates, while not infringing on state authority over retail sales or generation facility siting.

FERC Commissioners Allison Clements and David Rosner signaled support for the proposal. If implemented, the rule could streamline approvals for large computing facilities and the power plants that serve them, reshaping how grid operators integrate high-capacity loads and reinforcing DOE’s push to align energy infrastructure growth with the rapid expansion of artificial intelligence and digital industries.

Department of Transportation:

DOT Invests $2 Billion in Modernizing America's Transit Bus Infrastructure:

The Department of Transportation invested $2 billion in 165 transit projects in 45 states and Washington, D.C. Funding from the Federal Transit Administration's (FTA) Grants for Buses and Bus Facilities Program and the Low or No Emission Grant Program will help modernize America's bus infrastructure, reduce traffic congestion, and help people travel more efficiently and affordably. 

A full breakdown of the project selections is available here.

FTA's Grants for Buses and Bus Facilities Program supports capital projects to replace, rehabilitate, buy, or lease buses and related equipment and to rehabilitate, buy, build, or lease bus-related facilities. For FY 2025, approximately $400 million was available through this program.

FTA's Low or No Emission Program awards funds on a competitive basis for transit agencies to buy or lease low-emission or zero-emission transit buses, along with related equipment and facilities. For FY 2025, approximately $1.1 billion was made available. The two programs combined created a funding opportunity totaling $1.5 billion for FY 2025. 

In addition, through advance appropriations, FTA is adding $518 million in FY 2026 funding through the Low or No Emission Program to make additional selections.

Treasury Department:

Treasury, IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill:

Notice 2025-62 PDF provides penalty relief from the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB to employers and other payors for not filing correct information returns and not providing correct payee statements to employees and other payees.

Specifically, employers and other payors will not face penalties for failing to provide a separate accounting of any amounts reasonably designated as cash tips or the occupation of the person receiving such tips. In addition, employers and other payors will also not face penalties for failing to separately provide the total amount of qualified overtime compensation. The relief is limited to returns and statements filed and provided for tax year 2025 and applies only to the extent that the person required to make the return or statement otherwise files and provides a complete and correct return or statement.

No tax on overtime: Certain individuals who receive qualified overtime compensation may deduct the qualified overtime compensation that is reported on a Form W-2 or Form 1099. Employers and other payors are required to file information returns with the IRS, or SSA in the case of Form W-2, and provide statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.

Additional guidance for individual taxpayers that addresses how they can claim the deductions for qualified tips and qualified overtime compensation when they file their tax year 2025 returns is forthcoming.

401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500

The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025.

The IRS today also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67 PDF, posted today on IRS.gov.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000, up from $7,500 for 2025. Therefore, participants in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 6,2 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.

Here are the phase‑out ranges for 2026:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025.
  • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

            Commerce Department:

Registration Open for SelectUSA Investment Summit, Taking Place May 2026 in National Harbor, MD

The SelectUSA Investment Summit is the premier event dedicated to promoting foreign direct investment (FDI) in the United States, with a focus on connecting international investors and U.S. economic development organizations (EDOs). The SelectUSA Investment Summit has directly helped generate more than $135 billion in new U.S. investment projects, supporting over 105,000 jobs across the United States and its territories.

Information about the 2026 SelectUSA Investment Summit and registration can be found on SelectUSA’s Investment Summit website, www.selectusasummit.us.

Department of the Interior:

Interior Rescinds 2024 Rule on Alaska Petroleum Reserve:

The Department of the Interior announced a final rule rescinding the 2024 Bureau of Land Management rule governing the National Petroleum Reserve in Alaska. This action is part of a broader effort by Interior to modernize resource policy in Alaska. It complements recent withdrawals of three restrictive policy documents.

Department of Education:

Department of Education Announces Six New Agency Partnerships:

Department of Education (ED) announced six new interagency agreements (IAAs) with four agencies to streamline federal education activities on the legally required programs.

ED and DOL: Elementary and Secondary Education Partnership 

ED and DOL are establishing the Elementary and Secondary Education Partnership to empower parents and states, promote innovation, and deliver program improvements in pursuit of better outcomes for students in elementary and secondary education. DOL will take on a greater role in administering federal K-12 programs, ensuring these programs are better aligned with workforce and college programs to set students up for success at every part of their education journey. With proper oversight by ED, DOL will manage competitions, provide technical assistance, and integrate ED’s programs with the suite of employment and training programs DOL already administers. 

View the partnership fact sheet for Elementary and Secondary Education here

ED and DOL: Postsecondary Education Partnership 
 
ED and DOL are establishing the Postsecondary Education Partnership to better coordinate postsecondary education and workforce development programs. DOL will take on a greater role in administering most postsecondary education grant programs authorized under the Higher Education Act.

View the partnership fact sheet for Higher Education here

Environmental Protection Agency:

EPA Proposes Changes to Make PFAS Reporting Requirements More Practical and Implementable, Reducing Regulatory Burden

The Environmental Protection Agency (EPA) released a proposal to improve the scope of its perfluoroalkyl and polyfluoroalkyl substances (PFAS) reporting regulations under the Toxic Substances Control Act (TSCA). In October 2023, the Biden Administration EPA finalized a one-time PFAS reporting and recordkeeping regulation under TSCA section 8(a)(7) that requires manufacturers (including importers) of PFAS in any year between 2011 and 2022 to report data to EPA related to exposure and any existing environmental and health effects. 

The agency is also proposing technical corrections to clarify what must be reported in certain data fields and to adjust the data submission period.

Upon publication of the Federal Register notice, EPA will accept comments on the proposed changes for 45 days in docket #EPA-HQ-OPPT-2020-0549 on www.regulations.gov. View a prepublication version of this proposal here.

EPA Announces $7 Billion in Newly Available WIFIA Funding and Five New WIFIA Loan Approvals

The Environmental Protection Agency (EPA) announced $6.5 billion in Water Infrastructure Finance and Innovation Act (WIFIA) funding available for water systems, with an additional $550 million available to states. Interested entities can apply for this funding through a rolling application process. The agency is also announcing the approval of five new WIFIA loans to invest in critical water infrastructure projects in Texas, Illinois, Oregon, and Florida. EPA’s WIFIA program provides a powerful financial tool that can significantly accelerate investments in water infrastructure to protect human health and the environment while saving communities millions of dollars.  

The first WIFIA Notice of Funding Availability was issued by the first Trump administration. EPA’s 2025 funding initiates the 9th round of financing with $6.5 billion available. Through a separate Notice of Funding Availability, $550 million is available to State infrastructure financing authorities through the State WIFIA (SWIFIA) program. EPA is currently accepting letters of interest for both WIFIA and SWIFIA financing. 

Approved Loans 

EPA is also announcing its approval of five loans that invest in water infrastructure projects that will benefit communities from coast to coast. The following loans have been approved, and EPA will work with the recipients to formally close loan agreements: 

Fort Worth, Texas – A $347 million loan will be used to upgrade wastewater collection and treatment and support beneficial water reuse. A newly designed and built water reclamation facility will meet the needs of a growing population while treating wastewater to be reused for industrial and irrigation purposes. 

Pflugerville, Texas – A $176 million WIFIA loan will support multiple projects modernizing drinking water and wastewater infrastructure in this growing city. Work will include design and construction of a new wastewater treatment plant, expansion and consolidation of wastewater collection systems, and water main rehabilitation. This is the second WIFIA loan to the City of Pflugerville 

Joliet, Illinois – An $87 million loan will help transition the city’s drinking water supply from a stressed and unsustainable aquifer. Projects will include upgrading the distribution system to reduce water loss as the city prepares to begin using water from Lake Michigan. This is the third WIFIA loan for the City of Joliet under an agreement that will provide a total of $395 million in financing.  

Ashland, Oregon – A $73 million WIFIA loan will help build a new drinking water treatment plant to provide a safer and more resilient supply of clean drinking water to this small, rural community.  

Wilton Manors, Florida – A $28 million WIFIA loan will reduce the risk of pipeline failures, minimize water loss, and improve system reliability, particularly during emergencies such as storm events. Projects include replacing water mains, rehabilitating and replacing wastewater lift stations and force mains, and improving stormwater drainage systems. 

EPA Announces $3 Billion in New Funding for States to Reduce Lead in Drinking Water

The Environmental Protection Agency (EPA) announced $3 billion in new funding for states through the State Revolving Fund (SRF) programs to reduce exposure to lead in drinking water. EPA conducted a thorough review of previously awarded funding and assessed updated lead service line data to increase accountability and ensure funds are properly distributed to achieve maximum impact in removing lead pipes and reducing lead contamination in drinking water systems. This funding will accelerate progress in finding and removing lead pipes (also known as lead service lines that deliver water to homes, schools, and businesses) as the agency also announces a new lead service line inventories dashboard with the latest information provided by states. Lead pipes are the key source of lead—a potent neurotoxin particularly harmful to children—in drinking water.

The agency is also releasing new information indicating that there are fewer lead service lines nationwide than previously estimated. EPA’s updated estimate is 4 million lead service lines, down from 9 million previously estimated. The agency is releasing a new dashboard highlighting information from lead service line inventories provided by states.

EPA is also announcing the redistribution of an additional $1.1 billion in previously announced DWSRF funding to address lead. These funds were made available to states but have not been used. Consistent with the Safe Drinking Water Act’s directive to reallocate unused funds, these investments are now available to different eligible states with lead service line replacement needs. 

The Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers published a proposed rule revising the definition of “waters of the United States” (WOTUS) 

The Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers have issued a proposed rulemaking to redefine "waters of the United States" (WOTUS) under the Clean Water Act, bringing federal regulations into conformity with the Supreme Court's holding in Sackett v. EPA. This rulemaking represents a significant regulatory reform that narrows federal permitting jurisdiction by restricting which water bodies fall under Clean Water Act authority following the Court's limitations on the statute's scope.

In accordance with Sackett, the proposed rule confines Clean Water Act jurisdiction to relatively permanent waters and wetlands demonstrating a "continuous surface connection" to traditionally navigable waters. The proposal eliminates the automatic jurisdictional status of "interstate waters," establishing instead that "relatively permanent" waters must contain flowing or standing water throughout the year or during a consistent seasonal wet period. For wetlands and ponds to qualify as jurisdictional, the rule introduces a two-pronged "continuous surface connection" standard requiring both physical adjacency to covered waters and the presence of surface water at a minimum during wet seasons.

Additionally, the proposal sets forth a comprehensive definition of "tributary" that limits Clean Water Act coverage to water bodies with relatively permanent flow and hydrological connectivity to downstream navigable waters. This definition expressly excludes waters that convey flow solely through non-jurisdictional channels, underground conduits, or accumulations of debris, thereby further limiting the regulatory footprint of federal permitting requirements.

 

 


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