Subcontractors, Washington, and What Comes Next: Policy Moves That Matter

In this episode of The Cost Code Show, Ryan Gilmore sits down with Mike Oscar, Director of Government Relations for the American Subcontractors Association (ASA), to unpack what is really at stake for subcontractors in 2025 and 2026. Mike breaks down how ASA is fighting on Capitol Hill to protect subs on issues like prompt payment, change order reform, tax policy, and workforce development, translating dense legislation into real-world impacts on cash flow, margins, and hiring.

They dig into how new federal rules, the National Defense Authorization Act, and major tax changes all tie back to day-to-day subcontracting work, plus where ASA is pushing for practical reforms that actually get money into subs’ hands faster and support the next generation of tradespeople.

Key Points:

• Why timely payment and change order reform remain ASA’s top legislative priority, and how the Small Business Payment Performance Act and related efforts aim to get subs paid 50% on approved change orders before the job is finished.

• How updates to federal acquisition regulations (FAR) and the National Defense Authorization Act affect subcontractors working on federal and military projects, and how wins there can trickle down to state and local work.

• The real impact of recent tax legislation ("one big, beautiful bill") on subcontractors, including preservation of the 20% 199A deduction, bonus depreciation, Section 179 expensing, and key credits for equipment, vehicles, and clean energy work.

• How changes to 529 plans now support students choosing the trades, covering apprenticeship costs, tools, uniforms, and even childcare for those training while raising a family.

• ASA’s multi-angle approach to workforce development: supporting apprenticeship programs, engaging schools, exploring immigration-to-apprenticeship pathways, and staying at the table on safety and OSHA rulemaking (including heat standards).

• How subcontractors can plug into ASA’s advocacy work to make sure their voices shape the laws and regulations that govern how they get paid and how they grow.