September Federal Updates

A lot has been happening at the federal level, and a great deal of these policy developments will impact our industry and our members, let’s take a look.

White House:
Implementing the United States – Japan Agreement

On September 4, 2025, the President issued an executive order to implement the United States Japan Agreement. The order imposes a baseline 15 percent tariff on nearly all Japanese imports unless the Harmonized Tariff Schedule already sets a duty of 15 percent or higher. These tariffs apply retroactively to August 7, 2025.

The order removes prior additional tariffs on Japanese aircraft, restructures tariffs on automobiles and auto parts, and exempts certain critical goods such as natural resources not available in the United States and generic pharmaceuticals.

Japan has agreed to significantly expand purchases of U.S. goods including a 75 percent increase in U.S. rice procurement, $8 billion annually in agricultural imports, and expanded purchases of U.S. vehicles, aircraft, and defense equipment. Japan also committed to invest $550 billion in the United States.

The Secretary of Commerce is tasked with monitoring Japan’s compliance and reporting to the President. If Japan does not meet its obligations, the President may impose further measures. This order supersedes any conflicting prior executive actions.

Supreme Court Announces Oral Arguments on IEEPA Tariffs on November 5:

The Supreme Court will hear arguments on Nov. 5 in the pair of challenges to President Donald Trump’s authority to impose tariffs under the International Emergency Economic Powers Act. The court on Thursday morning released an updated calendar for its November argument session that reflects the addition of the tariffs dispute, which the justices added to their docket for the 2025-26 term on Sept. 9.

Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements:

On September 5, 2025, the President issued an Executive Order modifying the implementation of reciprocal tariffs established under Executive Order 14257. The order revises the scope of goods subject to tariffs by amending the Harmonized Tariff Schedule. The modifications take effect three days after issuance for covered imports.

The order creates procedures for implementing both framework agreements and final agreements with foreign partners. The Department of Commerce and the United States Trade Representative are directed to assess the need for tariff or non-tariff measures upon conclusion of such agreements. Where conditions are met, they may recommend adjustments, including reduction or elimination of tariffs on certain goods that cannot be adequately produced domestically or that fall within limited categories such as agricultural products, aircraft and parts, and certain pharmaceuticals. The order further directs continuous monitoring of trade deficits, tariff reciprocity, industrial base capacity, and foreign partner policies. Agencies must report to the President and recommend actions consistent with national security and economic objectives. Implementation authority is delegated to Commerce, USTR, Homeland Security, and Customs, subject to law and available appropriations.

The order does not create enforceable rights for private parties and does not supersede existing statutory or budgetary constraints.

OMB Announces Office of Federal Procurement Policy working with SBA on FAR Reforms:

The Office of Federal Procurement Policy, working with the Small Business Administration, announced reforms to the Federal Acquisition Regulation aimed at expanding small business participation in federal contracting. The initiative is part of the broader “Revolutionary Federal Acquisition Regulation Overhaul” (RFO), which is intended to simplify the FAR, align it more closely with statutory requirements, and eliminate unnecessary or burdensome rules.

The reforms reduce boilerplate requirements, expand use of simplified acquisition procedures, and preserve mandatory set-asides for small businesses when competition exists. They also encourage new “on-ramps” that allow small firms to enter large governmentwide contracts, while promoting more competitive awards under SBA’s 8(a) program as firms graduate.

Additional measures include stronger post-award debriefings, streamlined registration in the System for Award Management, and non-regulatory support tools such as best-practice guides and technical demonstrations. These changes are designed to lower barriers to entry, increase competition, and create greater contracting opportunities for small businesses across the federal marketplace.

Department of Labor:
DOL Releases Semiannual Regulatory Agenda:

The Trump Administration announced its Unified Agenda of Regulatory and Deregulatory Actions including nearly 150 proposals under the U.S. Department of Labor’s jurisdiction. The list of regulatory actions affecting SMCANA Contractors can be found here.

USDOL Announces $8 million in Funding for Domestic Shipbuilding:

Department of Labor announced the availability of up to $8 million in funding to reinvigorate the U.S. shipbuilding industry. Administered by the department’s Bureau of International Labor Affairs, the grant funding aims to advance the next generation of American shipbuilders. Priority trades for the project include boilermakers, industrial electricians, steel workers, steamfitters, shipwrights, and welders. Eligible applicants include any commercial, international, educational, or non-profit organizations, including any faith-based organizations, community-based organizations, or public international organizations.

The deadline for applications is Friday, Sept. 26, 2025.

Learn more about the funding opportunity and apply.

Labor Department and Department of Education merge for on Workforce Development Partnership:

U.S. departments of Labor and Education announced they have taken steps to integrate the federal government’s workforce portfolio through its innovative partnership announced earlier this year. The departments are launching an integrated state plan portal that will streamline federal workforce development programs and allow Labor and Education to administer core Workforce Innovation and Opportunity Act programs, including adult education and family literacy programs. The Department of Education will transfer program funds and detail staff to the Department of Labor to support the programs. 

On May 21, the departments of Labor and Education signed an Interagency Agreement, a tool routinely utilized by government agencies to procure services, share resources, collaborate, and ensure efficient service delivery. Under the partnership, the Labor Department will perform certain day-to-day administrative services for the Education Department’s career and technical education programs funded by the Carl D. Perkins Career and Technical Education Act and WIOA Title II programs in accordance with 31 U.S.C. § 1535, alongside the larger suite of workforce programs Labor already administers. Education will maintain all statutory responsibilities for these programs, including policymaking authority and oversight responsibilities.

DOL Administrative Review Board Overhauls Website on Cases:

The board’s website improvements include streamlined navigation features; improved access to research and guidance; and a frequently asked questions page with fresh insights on a variety of key topics, like submitting new evidence, finding case status updates, and responding to different motions.

Visit the Administrative Review Board’s revamped website.

Labor Department Launches new H-1B ‘Project Firewall’ Program:

Department of Labor today announced the launch of Project Firewall, an H-1B enforcement initiative that will safeguard the rights, wages, and job opportunities for workers. As authorized by federal law, the department will conduct investigations of employers through Project Firewall to maximize H-1B program compliance. To achieve this goal, the Secretary of Labor will personally certify the initiation of investigations for the first time in the department’s history. 

Additionally, the department will share information and coordinate with relevant government agencies, as permitted by law, to combat discrimination against American workers and ensure the law is properly enforced by leveraging the full force of the federal government. 

Within the department, the Office of Immigration Policy, Employment and Training Administration, and Wage and Hour Division will lead Project Firewall in collaboration with federal partners, including the Civil Rights Division of the Department of Justice, the Equal Employment Opportunity Commission, and U.S. Citizenship and Immigration Services.

DOL Publishes Advisory Opinion on 401(k) Alternative Assets:

The advisory opinion follows President Trump’s Executive Order 14330, “Democratizing Access to Alternative Assets for 401(k) Investors,” which directed the department to reexamine its guidance regarding fiduciary duties under the Employee Retirement Income Security Act in connection with making asset allocation funds that include alternative asset investments available to participants.

In addition to today’s advisory opinion, the department recently rescinded guidance from a Dec. 21, 2021, supplemental statement that discouraged fiduciaries from considering alternative assets in 401(k) retirement plan investment menus. 

DOL Awards $12.5 million for Registered Apprenticeship Programs with Alabama and Colorado:

Department of Labor announced Alabama and Colorado have each received $12.5 million in funding to develop resources and invest in educational pipelines that lead to more Registered Apprenticeship opportunities. In Alabama, the state’s Commission on Higher Education will support the expansion of Registered Apprenticeships as a workforce training solution by making it easier to register new programs and reduce start-up costs. 

Key components of the cooperative agreement with Alabama include:

• Working with state apprenticeship agencies and the department’s Office of Apprenticeship to create a template for evaluating existing apprenticeship work processes and occupational frameworks.
• Developing a publicly available online tool to catalog, display, and distribute apprenticeship training outlines in an accessible, machine-readable format.
• Using an employer-demand driven approach to create national frameworks for occupations where no models exist, or where existing models do not meet employer needs. 

In Colorado, the state’s Department of Labor and Employment will develop tools and resources to expand pre-apprenticeships and ensure youth-serving apprenticeships are fully integrated with career and technical education and post-secondary education. 

Key components of the Colorado cooperative agreement include: 

• Developing tools, frameworks, and resources to help expand pre-apprenticeships that lead to Registered Apprenticeships.
• Ensuring pre-apprenticeship and Registered Apprenticeship models align with career, technical education, and post-secondary education.
• Integrating Registered Apprenticeship into secondary and post-secondary pathways, expanding career exploration resources in schools, and addressing regulatory barriers for youth employment. 
  

Department of Energy:
Energy Department Seeks Proposals for AI Data Centers, Energy Projects at Idaho National Laboratory:

Department of Energy (DOE) issued a Request for Application (RFA) and is seeking proposals from U.S. companies to build and power AI data centers at Idaho National Laboratory. Idaho National Laboratory is one of four sites identified by the Department for AI infrastructure and generation projects on federal land. DOE’s Idaho Operations Office 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.  

The DOE site office previously identified approximately 44,000 acres of land for AI infrastructure projects and will prioritize applications that integrate innovative energy generation and storage projects with AI data centers, which could include advanced nuclear reactors, enhanced geothermal systems, and cold underground thermal energy storage.  

Applicants will be responsible for building, operating, and decommissioning each infrastructure project and must secure utility interconnection agreements for new power generation and storage systems. Proposals will be competitively evaluated for technological readiness, financial viability, and detailed plans to complete regulatory and permitting requirements.  

Initial applications are due by November 7, 2025, with subsequent applications allowed on a rolling basis

Additional information on the RFA can be found HERE. 

DOE Approves Sixth Loan Disbursement to Restart the Palisades Nuclear Plant:

Department of Energy announced the release of the sixth loan disbursement to Holtec to help fund the restart of the Palisades Nuclear Plant. Today’s action disburses $155,944,659 of the up to $1.52 billion loan guarantee to Holtec for Palisades, which will be America’s first restart of a commercial nuclear reactor in decommissioning, subject to U.S. Nuclear Regulatory Commission (NRC) approvals. Once complete, the plant will generate 800 MW of affordable and reliable baseload power, helping to increase grid reliability in Michigan. 

This marks Holtec’s sixth disbursement of funds from the Loan Programs Office (LPO) since the September 2024 announcement of the loan’s financial close. To date, $491,056,853 of DOE-guaranteed loan funds have been disbursed to Holtec as it continues to make progress toward plant restart, including the NRC’s issuance of the final environmental assessment and finding of no significant impact, and the NRC’s approval of a series of licensing and regulatory actions to transition the Palisades Nuclear Plant from decommissioning status back to operations. 

DOE Approves Loan Disbursement to ENTEK:

Department of Energy (DOE) today announced the disbursement of $77,217,590 to ENTEK Lithium Separators LLC (ENTEK) to help finance a lithium-ion battery separator manufacturing facility in Terre Haute, Indiana. This is the first disbursement of the up to $1.3 billion DOE loan to be issued to ENTEK through the Loan Programs Office (LPO). 

The ENTEK manufacturing facility will make a significant contribution to domestic production capacity for lithium-ion battery separators, which are predominantly produced in Asia with approximately 41% in China, drive American competitiveness in the AI race, increase American energy security, and bring back American jobs. The project is expected to create approximately 763 construction jobs and 635 operations jobs in Terre Haute upon completion.

Energy Department Launches Speed to Power Initiative, Accelerating Large-Scale Grid Infrastructure Projects

Department of Energy (DOE) announced today the Speed to Power initiative, to accelerate the speed of large-scale grid infrastructure project development for both transmission and generation.  DOE analysis shows that the current rate of project development is inadequate to support the country’s rapidly expanding manufacturing needs and the reindustrialization of the U.S. economy. To kickstart the Speed to Power initiative, DOE is issuing a Request for Information focused on large-scale grid infrastructure projects, both transmission and generation, that can accelerate the United States speed to power. This includes input on near-term investment opportunities, project readiness, load growth expectations, and infrastructure constraints that DOE can address.

Department of Transportation:
DOT Announces $86 Million in Grants to Support State Pipeline Safety Programs:

Transportation Department announced $86 million in grants to enhance states’ pipeline safety programs. The funds, administered by the Pipeline and Hazardous Materials Safety Administration (PHMSA), will help state partners inspect more than 85 percent of the nation’s 3.3-million-mile pipeline network. or FY 2025, the award amounts are:

• $82 million in Pipeline Safety State Base Grants and 
• $4 million in Underground Natural Gas Storage Grants.

These two formula-based programs support state enforcement of federal pipeline safety regulations by reimbursing up to 80% of state costs for personnel, equipment, or activities related to pipeline safety inspection and enforcement.

Funding amounts for each state are available here.

More information on PHMSA’s grant programs can be found here. 

DOT and Federal Railroad Administration Offers $5 million in Funding:

Federal Railroad Administration (FRA) issued a Notice of Funding Opportunity (NOFO) for the National Railroad Partnership Program. The new NOFO allocates more than $5 billion in funding for projects that enhance safety on intercity passenger rail networks. The FRA is reissuing the NOFO for fiscal year (FY) 2024 and adding funding for the FY 2025 National Railroad Partnership Program. The FY 2024 NOFO was originally published last September as the Federal-State Partnership for Intercity Passenger Rail Grant Program.

Eligible National Railroad Partnership Program applicants include:  

• a State,  
• a group of States,  
• an Interstate Compact,  
• a public agency or publicly chartered authority established by one or more States,  
• a political subdivision of a State,  
• Amtrak, acting on its own behalf or under a cooperative agreement with one or more States,  
• a Federally recognized Indian Tribe, and  
• any combination of the entities described above.  

The NOFO is available on FRA’s website here and on www.Grants.gov. Applications are due no later than 11:59 p.m. ET, Wednesday, January 7, 2026, and FRA will provide technical assistance to potential applicants prior to the deadline. More information about the National Railroad Partnership Program can be found on FRA’s website here.  

Department of Commerce:
Department of Commerce Publish Notice of Section 232 Steel and Aluminum Tariffs:

On September 17, 2025, the U.S. Department of Commerce, via the Bureau of Industry and Security (“BIS”), published a notice opening an inclusions request window for derivative steel and aluminum articles under the Section 232 steel and aluminum tariffs. This action follows Presidential Proclamations 10895 and 10896, which were issued on February 10, 2025, and imposed duties on certain steel and aluminum articles, including specified derivative products. Those proclamations also directed the Secretary of Commerce to create a process by which additional derivative steel and aluminum products could be brought within the scope of these duties. The current inclusion window opened on September 15, 2025, and will close on September 29, 2025, at 11:59 p.m. Eastern Time. During this period, interested parties may submit requests to include additional derivative steel or aluminum articles that are not already covered by the tariffs. Requests must be submitted by email to the Defense Industrial Base Programs inbox at DIBPrograms@bis.doc.gov. Once received, accepted requests will be posted on Regulations.gov under Docket ID BIS-2025-0023, and each request will be subject to a two-week public comment period.

Department of Education:
Department of Education Proposed rule on New Definitions for Grant Programs:

Department of Education is going to revise their grant programs to proposed priority in expanding career pathways and workforce readiness. This reads to me a recreation of the CTE apprenticeship programs the ‘Apprenticeship Enhancements’ proposed rule was attempting to make.

Proposed Priority: Projects or proposals designed to do one or more of the following:

(a) Support workforce development programs that are aligned with State priorities. This may include one or more of the following:

(i) Activities aligned to State and local workforce priorities.

(ii) Activities that support alignment of workforce activities across State agencies that support workforce development ( e.g., education, higher education, workforce transformation, job and family services, vocational rehabilitation services including pre-employment transition services and transition services, etc.).

(iii) Activities that support States in identifying in-demand and high-value industry-recognized credentials and/or re-evaluating existing lists of credentials.

(iv) Providing support for the skilled trades.

(v) Developing industry-led sector partnerships.

(vi) Promoting the attainment by individuals of an in-demand and high-value industry-recognized postsecondary credential.

(vii) Providing work-based learning opportunities ( e.g., internships, externships, pre-apprenticeships, and registered apprenticeships) for which a student receives wages, academic credit, or both.

(viii) Expanding the availability of pre-apprenticeships and registered apprenticeships, including through dual or concurrent enrollment (as defined in 20 U.S.C. 7801(15)), by doing one or more of the following:

(1) Supporting apprenticeship intermediaries.

(2) Creating pre-apprenticeships.

(3) Creating new registered apprenticeships to include apprenticeships for in-school and out-of-school youth.

(4) Providing technical assistance for states to create new registered apprenticeships to include apprenticeships for in-school and out-of-school youth.

(b) Provide career and/or college exploration and advising opportunities to promote greater awareness of the range of postsecondary educational and career options.

(c) Provide opportunities for students to use financial tools to compare the cost and benefits of the career options and educational pathways they are considering, including the long-term impact of taking out student loans on their financial security, including likely entry and mid-career earnings in fields selected by students as compared to entry and mid-career earnings in high wage, high growth, and high demand occupations in each of the career clusters.

(d) Support the development of talent marketplaces (including credential registries, skills-based job description generators, and learning and employment records) that connect employers, students, and jobseekers by converting job descriptions and learning assertions into discrete, industry-recognized competencies.

Environmental Protection Agency:
EPA Announces Permitting Reform to Provide Clarity, Expedite Construction of Essential Power Generation, Reshore Manufacturing:

Environmental Protection Agency (EPA) announced new guidance on  New Source Review (NSR) preconstruction permitting requirements to provide much needed clarity for the buildout of essential power generation and reshoring of manufacturing. This action provides flexibility to begin certain building activities that are not related to air emissions, such as installing cement pads, before obtaining a Clean Air Act (CAA) construction permit.

EPA intends to initiate a rulemaking to revise the definition of “Begin Actual Construction” in EPA’s NSR regulations and codify how permitting authorities may distinguish between emissions units and other parts of a stationary source facility that are not an emissions unit or part of an emissions unit. By doing so it will be easy to understand what parts of construction need an NSR permit and what construction activities can proceed without an NSR permit. This will also allow cut down on construction deadlines.

Department of Treasury:
IRS Releases Guidance on Qualified Opportunity Zone Investments in Rural Areas:

The Internal Revenue Service (IRS) released Notice 2025-50 to provide guidance on Qualified Opportunity Zone (QOZ) Investments in rural areas under two provisions of the One Big Beautiful Bill Act (OBBBA). Taxpayers who invest in QOZs receive certain tax benefits as an incentive to improve economic growth and job creation in underserved communities. A full list of designated QOZs is available in IRS Notice 2018-48.

Federal Trade Commission:
FTC Vacates Biden-Era Non-Compete Rule:

The Federal Trade Commission (FTC) announced that it is vacating the Biden-era non-compete clause final rule and said that it took steps to dismiss its appeal defending the rule in court. FTC Commissioners voted 3-1 to dismiss the appeal and vacate the noncompete rule. The FTC is still expected to prioritize case-by-case enforcement against unreasonable non-compete clauses.