Federal appropriations bill will boost construction activity in 2016

The construction industry will get a boost from Uncle Sam in 2016 after Congress passed a $1.14 trillion fiscal year 2016 Omnibus Appropriations bill.

The General Services Administration, which is responsible for constructing and managing most of the government’s non-military buildings, was allotted $1.6 billion for building construction and acquisition. That figure is triple its past funding. Of the $1.6 billion, $948 million is earmarked for new federal courthouses. 

The Department of Veterans Affairs’ construction account more than doubled to $1.2 billion. Just under $650 million of that amount, however, is contingent on the VA entering into an agreement with another federal entity to manage construction projects of $100 million or more. That stipulation was put in to address the VA’s alleged mismanagement of major projects in recent years.

The bill also extended the tax deduction for energy-efficient commercial buildings.