Washington Update:

As Congress Leaves Town, NLBMDA Recaps

First Half Wins and Discusses Road Ahead

Tomorrow, the Senate leaves Washington for its August recess, doing so a week after their colleagues in the House of Representatives left town. The break marks a familiar pause in the legislative calendar, a moment for lawmakers to regroup, connect with constituents, and prepare for the sprint that usually awaits in the fall. Fresh off passing the largest tax and spending package in nearly a decade, Congressional leadership is shifting gears as attention turns to annual appropriations battles and a narrowing window to pass legislative wins before the 2026 election season kicks into full gear.

While the totality of the bill remains divisive among public opinion, Congress’ one big, beautiful bill served as a once-in-a-decade legislative vehicle delivering on a series of legislative priorities NLBMDA along with its coalition partners have been working for years to advance.



Last week, NLBMDA hosted a webinar unpacking all of the NLBMDA-supported provisions that made it into final passage of the law, including the strengthening and permanence of business-friendly tax credits and a historic investment in affordable housing through the bolstering of the housing tax credit. Watch a recording of the webinar here. 

Click here to view the chart.

Full Expensing (100% Bonus Depreciation)

OBBBA retroactively reinstates 100% bonus depreciation for qualified property placed in service after January 19th, 2025. The Senate strengthened this provision by making it permanent tax policy, a change NLBMDA strongly advocated for.

Section 199A 

The Tax Cuts and Jobs Act (TCJA) created the Section 199A deduction to ensure pass-through businesses received tax treatment comparable to the newly lowered corporate rate. OBBBA makes this deduction permanent for pass-through entities.

State and Local Tax (SALT) Deduction: 

The SALT deduction is capped at $10,000. OBBB raises the cap to $40,000 starting in 2025, with phaseouts beginning for individuals earning more than $500,000. Additionally, OBBBA strengthens the deduction for pass-through businesses by removing a House provision that would have limited their ability to fully utilize the deduction. 



Workforce Development:

OBBB includes language from the Freedom to Invest in Tomorrow’s Workforce Act, legislation supported by NLBMDA. This provision expands the flexibility of Section 529 savings plans to cover more workforce training and credentialing opportunities in the skilled trades.

A Win Years in the Making



NLBMDA’s advocacy for these provisions did not begin this year. Rather, the passage of these growth-oriented tax policies is the culmination of years of work educating lawmakers and staff on their importance. It is also the result of NLBMDA’s strategic engagement with aligned trade associations to deliver lasting policy impact. These provisions were further advanced by the direct advocacy of NLBMDA members during our annual legislative fly-in.

What’s Next This Congress?



Government Funding: When lawmakers return to Washington on September 2nd, they will have just 14 legislative days to agree on a spending package to fund the government beyond September 30th. For Republicans, this will be the first time involving Democrats in the legislative process, having previously passed bills including a reconciliation bill and a rescissions bill on party-line votes. Rather than passing the required 12 appropriations bills, Congress may opt for yet another continuing resolution, a measure that temporarily funds the government at more or less the same levels as the prior fiscal year. Several lawmakers have already stated that another continuing resolution is a non-starter and that they would only vote for a full-year spending bill.

Infrastructure Bill: In 2021, Congress passed a historic investment in surface infrastructure through the Infrastructure Investment and Jobs Act (IIJA). The five-year bill provides funding through September 30, 2026. With funding set to expire, Congress is already at work drafting a new surface transportation bill. The bill provides an opportunity to advance a number of NLBMDA’s transportation priorities, including increasing federal gross vehicle weight limits, upgrading the nation’s highway and rail infrastructure, and supporting workforce development to address labor shortfalls in the transportation sector.

Reconciliation Bill(s): With the start of a new fiscal year this fall, Republicans will have an opportunity to pass another reconciliation package. While not expected to be nearly as large or impactful as the One Big Beautiful Bill, the process could serve as a legislative vehicle to deliver NLBMDA priorities not included in the previous bill, including a permanent repeal of the estate tax.

A Few of the Bill’s NLBMDA Is Advancing:

Credit Card Competition Act of 2025: NLBMDA continues to lead advocacy efforts in advancing much-needed swipe fee reform for small businesses and the LBM industry. Earlier this year, Senators Roger Marshall (R-KS) and Dick Durbin (D-IL), cosponsors of the Credit Card Competition Act (CCCA), attempted to advance the bill through the amendment process as Congress worked to pass the GENIUS Act, a cryptocurrency regulation bill. The bill was the first Senate banking legislation to reach the Senate floor since CCCA was originally introduced in the 117th Congress. NLBMDA remains committed to advocating for the bill once the next legislative opportunity arises. To learn more about NLBMDA efforts, watch a recording of our most recent webinar where we unpacked the latest effort and the road ahead.

ROAD to Housing Act: Prior to departing Washington, the Senate Banking Committee voted to approve the ROAD to Housing Act, NLBMDA-supported legislation that would take historic action to address the nation’s housing stock shortage. The bill expands housing supply, streamlines development processes, improves access to financing, and enhances federal housing program efficiency. Over the coming months, NLBMDA will work with lawmakers and staff to encourage swift passage of the legislation.

Jobs in the Woods Act: Introduced earlier in the year in the Senate and a week ago in the House of Representatives, the Jobs in the Woods Act (HR.4575/S.1336) establishes a grant program to support workforce training in forestry-related fields, addressing critical labor shortages across the forest products industry. By funding nonprofits, states, and colleges to develop regionally tailored training hubs, the bill aims to retain workers in rural communities, strengthen the timber industry, and prepare the next generation for careers in logging, manufacturing, and the U.S. Forest Service.

CONSTRUCTS Act: Intended to address the residential construction worker shortage, the Creating Opportunities for New Skills Training at Rural or Underserved Colleges and Trade Schools (CONSTRUCTS) Act provides direction to the Department of Labor to create a new grant program to fund education and skills training programs for residential housing construction at community colleges and technical schools. NLBMDA has met with the bill’s sponsors and is committed to achieving successful passage of the bipartisan legislation.

While lawmakers may be leaving Washington next month, NLBMDA will remain focused on advancing industry priorities and preparing for the busy legislative months ahead. With key issues like government funding, housing, and workforce development on the horizon, NLBMDA will continue meeting with congressional offices, building bipartisan support for priority bills, and ensuring the voice of the LBM industry remains front and center.

For questions, contact Matthew Delaney, NLBMDA’s Government Affairs Coordinator at mdelaney@dealer.org

Interested in learning more about how to become an NLBMDA Federal Advocacy Sponsor? Contact Jonathan Paine, NLBMDA’s President and CEO at jonathan@dealer.org.