Design and Construction, Green Building, Human Resources, Maintenance and Operations, Security, Sustainability/Business Continuity

How Trump’s Second Term May Impact Facilities Management

It’s always difficult to foresee what will happen with any new administration, but experts had a little more certainty than normal when President Donald Trump returned to the White House this month.

Courtesy: White House

Following Trump’s re-election, there were mixed reactions regarding whether his new administration’s policies will benefit the facilities management industry as a whole. The administration’s rhetoric also raises questions about the future of sustainable building projects.

Halting the Inflation Reduction Act

While some experts believe that Trump is unlikely to fully repeal the Inflation Reduction Act (IRA), the aspects of the act that invest in domestic energy production—namely clean energy development—may be on the chopping block. Trump’s second-term plan emphasized a reversal of Biden-era policies that support renewable energy, electrification, and energy efficiency.

In fact, within days of taking office, Trump issued an executive order called “Unleashing American Energy,” which halted federal agencies from disbursing appropriated IRA funds to energy and climate policy implementation until the new administration conducts a review “for consistency with the law.” Executive orders are tools that presidents can use to quickly wield power without congressional action; however, the orders can potentially be blocked by Congress and the courts.

In a short memo, the White House Office of Management and Budget later attempted to clarify confusion for government entities and private-sector companies over the executive order, saying that the directive only applies to certain policy aims. Reuters interpreted the memo to say that the order would halt funds for energy production on federal lands and eliminate support for electric vehicles. However, Reuters said that funds going to other programs like bridges, transit, and highways will not be impacted. 

Environment & Sustainability

President Trump’s nomination of Chris Wright, an oil services CEO, to lead the new administration’s U.S. Department of Energy may be another sign that incentives for renewable energy development forged by the IRA are endangered, in favor of Trump’s goals to increase oil drilling on public lands and offer tax breaks to fossil fuel producers. 

Prior to Trump’s inauguration, the U.S. Green Building Council (USGBC) issued a statement to Facilities Management Advisor on the new administration and potential impacts to sustainable building projects

In the statement, Elizabeth Beardsley, senior policy counsel at the USGBC, said that the organization strongly opposes any repeal efforts to existing building-related tax breaks, which include helping building owners implement efficiency and clean energy. The group sent a letter to Congress on Jan. 15 that was organized with 355 supporting companies and organizations to highlight the positive impacts of the tax incentives to drive investments and economic activity before Trump took office. The USGBC’s policy recommendations issued in September 2024 also called for the extension of the Internal Revenue Service’s clean electricity investment tax credits to cover new and retrofitted building energy efficiency investments for projects like upgrades to HVAC and energy management systems. 

Beardsley said the USGBC “will continue to collaborate with lawmakers from both parties to promote green building solutions that reduce costs, enhance resilience, and boost economic growth.” 

Tariffs & Taxes

To boost the market for American-made products, Trump has proposed 20% tariffs on imported goods across the board and 60% tariffs on goods from China. Some experts believe such tariffs will likely inflate quotes for construction projects or slow progress. However, these announced tariffs may not go ahead, be imposed to their proposed scales, or be enforced strongly. 

President Trump’s proposed reinstatement of a version of the Domestic Production Activities Deduction is expected to effectively cut taxes for domestic manufacturing from 21% to 15%, potentially offsetting some of the tariff costs for construction companies and facilities managers. These domestic manufacturing incentives would also reduce the likelihood of supply chain disruptions, which have greatly delayed construction projects over the past few years.

Trump’s aims to further decrease the corporate tax rate to 20%—which was greatly reduced in his first term from 35% to 21% as a result of the Tax Cuts and Jobs Act of 2017—may also bring down the bottom lines of construction contractors who operate as corporations considerably, despite threats of increased tariffs. 

Construction

In construction, the number of capital projects is projected to increase with the new administration. Ahead of the 2024 election, more than half of executives said they would increase investments in capital projects if Trump won, according to a PricewaterhouseCoopers survey from September.

Additionally, as data center construction booms in the United States—McKinsey & Co. projects an average 33% annual growth rate of data centers from 2023 and 2030, coupled with Trump’s closer relationships with tech giants—there are likely signals that facilities managers will be increasingly involved in constructing and maintaining more data center facility projects during this new administration. 

For facilities that are considering energy storage investments and rely on lithium batteries, the proposed tariffs would likely be a significant financial blow to energy improvements, as battery cells are largely supplied by China. Though recently, battery material and component prices have fallen, which could soften the impact.

Impact of Immigration Rollback on the Construction Workforce

Having enough people to work on these capital projects may be a challenge with Trump’s campaign promises to deport immigrants en masse. If his promises are carried out, the construction industry could lose up to one in five of its laborers who are undocumented immigrants, according to Immigration Forum.

Regarding Trump’s focus on immigration and border security, Jake Parker, senior director of government relations at SIA, previously told Facilities Management Advisor in a statement that there is “no doubt that border security initiatives will once again become front and center, with growing demand for physical and technological solutions for ports of entry and situational awareness along the border.”

Despite President Trump’s flurry of executive orders and policy claims that impact much of the facilities management industry, how and if these directives will be carried out remains to be seen.

Ali Hickerson is a freelance journalist, content writer, and strategist based in Brooklyn, N.Y. Outside of Facilities Management Advisor, Ali’s recent bylines on health and workplace issues have crisscrossed the country and helped advocate for programs and policies that work to create a healthier, more humane, and equitable world.

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