2026 Election Recap: What the Results Mean for the Engineering Industry

The November 3, 2026 wave election will hand Democrats control of both the House and Senate, and ACEC’s advocacy team says the shift brings real stakes for engineering firms.

In a special briefing days after Election Day, the team explained that divided government means progress will hinge on bipartisan deals. “It is going to be challenging to get things done over the next two years, but not impossible,” said Steve Hall, adding that a bipartisan environment is one “that ACEC thrives in.” The good news: most of the committees that oversee infrastructure, tax, and procurement will be led by seasoned lawmakers ACEC already knows well, including incoming House Transportation & Infrastructure Chair Rick Larsen (D-WA) and Senate Environment & Public Works Chair Jeff Merkley (D-OR).

Surface transportation funding is the most immediate business concern. The current extension of federal highway and transit programs expires December 11 and left out roughly $36 billion in annual supplemental program funding. ACEC is pushing to make sure the next extension includes the full amount, so projects aren’t delayed. For the long-term reauthorization in 2027, the bipartisan BUILD America 250 Act approved by the House Transportation & Infrastructure Committee will be the starting point for negotiations. The new majority is likely to push for higher investment and guaranteed rail and transit funding. ACEC will also keep fighting for language that encourages state DOTs to use lump sum contracts.

Several other measures in the lame duck session could directly affect firms’ project pipelines. Permitting reform under the Bipartisan American Affordability and Jobs Act of 2026 (BAAJA) has a real chance in the Senate, though its path in the House is less certain. The annual defense authorization bill (NDAA), which shapes contracting requirements for firms that work with the U.S. Army Corps of Engineers and other Defense agencies, is likely to pass. The Water Resources Development Act (WRDA) could also move. Lastly, while a deal on Fiscal Year 2027 funding could come together, Congress is more likely to pass another stopgap measure to keep federal agencies operating into the new year.

Data centers, AI frameworks, and the workforce will be major issues in the new Congress. The ACEC team expects hearings and possible legislation on data centers’ energy, water, and community impacts. This provides an opportunity to showcase how engineering firms are already solving those problems. “There are responsible ways of doing it, and I think America’s engineering industry can show the way,” Hall said. On workforce and immigration policy, ACEC expects continued regulatory pressure on H-1B visas and optional practical training (OPT), and it will keep pushing back through comment letters.

ACEC is also watching issues that affect how firms compete and what they pay in taxes. The Council will keep tracking the Small Business Administration proposal to raise the small business size standard from about $25 million to about $252 million in gross receipts, and the new Democratic majority may push back too. ACEC is also monitoring proposed changes to the Federal Acquisition Regulation (FAR) affecting qualifications-based selection and the Defense Department’s use of progressive design-build.

On tax, ACEC will protect the business tax wins it secured in 2025 while seeking to restore incentives for renewable energy and green buildings.

With so much at stake, ACEC needs robust member engagement with new and returning lawmakers and strong turnout at its Annual Convention & Legislative Summit in Washington this April 18-21, 2027 to put these priorities in front of the new Congress.

Want access to the full briefing? If you are an ACEC Member you can request access by emailing comms@acec.org. View the slide deck from the briefing.