Government
Trump Political Chaos Continues Amid Funding Freeze and Tariffs Threat

Congressional Democrats spoke at an impromptu protest at U.S. Agency for International Development headquarters Feb. 3 against Trump administration moves to eliminate the agency and its programs, which include a sizeable construction portfolio. Democrats, including those pictured here, l to r, Rep. Johnny Olszewski, (Md.)., Sen. Chris Van Hollen, (Md.), Rep. Ilhan Omar, (Minn.), Rep. Suhas Subramanyam, (Va.), and Rep. Jamie Raskin, (Md.), urge Republican support in pushing back against the agency shutdown.
Credit: AP Photo Bill Clark/CQ Roll Call via AP Images
Top Democrats in the U.S. House and Senate are urging Republicans to join them in blocking President Donald Trump’s efforts to freeze funding for swaths of government programs and employees.
So far, GOP leaders in both chambers are praising the Trump actions, although his announced plan on Feb. 4 to shut down the U.S. Agency for International Development—which manages a multi-billion dollar construction portfolio and provides hundreds of billions in global humanitarian aid annually—has caused some Republican leaders, including Sens. Lisa Murkowski of Alaska and Susan Collins of Maine, to question the legal basis for tech adviser Elon Musk's authority to intervene in federal agency funding review, as reported by The Hill on Feb 5.
In a Feb. 3 Capitol Hill press briefing, Democratic leaders sought Republican support for newly confirmed Treasury Secretary Scott Bessent to remove Musk, an unelected civilian, from accessing private data and payroll information on federal employees and programs valued at more than $6 trillion.
The White House claims Musk and his team have “read only” privileges, but Office of Management and Budget employees who have been forcibly removed from their jobs report that the Tesla Inc. CEO and SpaceX founder and his team can access funding data and limit it, according to Democratic lawmakers at the press briefing. They included Senate Democratic Leader Chuck Schumer (D-N.Y.) and Appropriations Vice Chair Patty Murray (D-Wash.).
Democrats also asked Republicans to join them in refusing to confirm controversial nominees such as Tulsi Gabbard, Trump’s pick to lead the Office of National Intelligence who managed to win by one vote on Feb. 4 the endorsement of the Senate Intelligence Committee, despite concern over her past statements and actions; Russell Vought also was targeted by Democrats, but he has advanced in his bid to be OMB director, despite his speculated involvement in the Trump funding freeze controversy. His confirmation is likely later this week.
“It is up to Republicans who are the majority of Congress, who are passing these nominations, who are sitting silently by while Elon Musk goes into departments, into agencies and takes your information," Murray said. "It is up to them to decide if they want to get out the fire hoses or sit in the fire.”
But Republican leaders so far have not indicated they will cross Trump. In a Feb. 3 statement, House Speaker Mike Johnson (R-La.) praised Trump’s executive orders and plans. “We’re excited about everything that President Trump is accomplishing,” he said. Collins, who voted against now-confirmed Defense Secretary Pete Hegseth and is considered a more moderate Senate GOP lawmaker, signaled her support for Gabbard.
Meanwhile, clean energy groups and companies have ramped up congressional lobbying to retain project tax credits in the 2022 Inflation Reduction Act that have boosted construction and development. The Solar Energy Industries Association and other groups said numerous lawmaker meetings were set on Feb. 5. to insure that credits not be removed from tax legislation set to be considered in March, according to a letter signed by about 1,500 entities that include clean energy construction leaders such as SOLVEnergy, McCarthy Building Cos., McKinstry, Blattner Co., C&S Construction and Wood Consulting, as well as developers, utilities and state and local agencies.
“It’s critical that our elected leaders understand the impact of these policies and the jobs and investments they bring to their constituents,” said Abigail Ross Hopper, association CEO. “In the last two years, 70-80% of all federal clean energy investments have flowed to Republican districts, and 90% ... are in the manufacturing sector.”
Tariffs: Here Today, Gone Tomorrow
Adding to the level of uncertainty in Washington are Trump's proposed tariffs on Canada, Mexico and China that he announced on a Saturday, Feb. 1. He then paused two days later the planned 25% tariff on imports from Canada and Mexico until March 1, following talks with leaders of those countries—but the 10% China tariff remains, generating retaliatory levies on Feb. 4 on targeted U.S. imports.
"I think there are opportunities for conversations to enable us to actually move away from the conversation about tariffs," Canada energy minister Jonathan Wilkinson told S&P Global at a Feb. 4 global energy sector conference in Washington. "One option ... is to focus on how we can help each other through working much more closely on critical minerals and energy." He calls for a formal binational alliance related to those.
According to Wilkinson, Canada is a major global supplier of critical minerals, including germanium, zinc, nickel, copper and graphite used in "a range of American economic sectors," with Canada the only major alternate source.
Sarah Martin, associate director of forecasting for Dodge Construction Network, says that with 70% of softwood lumber and gypsum U.S. imports sourced from Canada and Mexico, home builders would be hardest hit by tariffs, if and when they are levied. But non-residential industry firms also will see negative impacts if tariffs are executed, she says, with more vulnerability to supply chain disruptions and material shortages.
“Given the fact that tariffs are still expected to be imposed—even if postponed—I think the risks remain the same," says Martin. "It may give businesses a bit of lead time to mitigate risks, but uncertainty around how long tariffs will stay at elevated levels will likely be the larger factor" in deciding their strategy.
Associated Builders and Contractors’ CEO Mike Bellaman said Trump “has been transparent" about his intent to use tariffs as a negotiating tool for "critical American priorities," including more use of U.S.-made products. He acknowledges that tariffs will push a rise in costs of construction services that could result in fewer project starts, but group members “understand the context ... and know how to plan for and deal with tariffs and other supply chain disruptions.”