Federal action • Business impact • North Dakota relevance

Federal Radar

▲ Moving: Federal defense contracting • tariffs/trade exposure • credit conditions • transportation grants • OSHA training funds

▬ Stable: SBA lending capacity • rural infrastructure funding • summer workplace-safety focus • federal farm-policy negotiations

▼ Under Pressure: Import-dependent businesses • contractors watching materials costs • small firms managing credit access • employers without safety documentation

Watch: July 23 federal procurement comments • July 24 tariff surcharge expiration/extension question • July 27 EPA NEPA comments • July 29 FERC/WAPA comment deadline • July 31 OSHA training-grant deadline • July 28–29 Federal Reserve meeting

Federal Signals

1. Defense Contracting / Cybersecurity: SBA says CMMC Phase II suspension could reduce costs for small defense contractors

What changed:
SBA issued a July 13 statement supporting the Department of War’s suspension of CMMC Phase II requirements for small defense contractors. SBA says Phase II would have required many small contractors to complete either self-assessments or third-party assessments, with estimated compliance costs reaching about $593,800 for small firms requiring third-party assessment and about $388,600 for firms eligible for self-assessment.

Who it affects:
North Dakota manufacturers, machine shops, IT firms, engineering firms, construction contractors, parts suppliers, cybersecurity vendors, and small businesses pursuing defense-related work.

Why it matters:
This may reduce near-term compliance pressure for some small federal vendors. It does not mean cybersecurity requirements disappear. Businesses should still keep cybersecurity documentation current, especially if they handle controlled unclassified information or want defense contracts.

Source links:
https://www.sba.gov/article/2026/07/13/sba-commends-us-department-wars-suspension-cmmc-phase-ii-small-defense-contractors

2. Trade / Tariffs: New Brazil tariffs begin July 22; broader surcharge deadline hits July 24

What changed:
Reuters and AP report that the U.S. will impose a 25% tariff on selected Brazilian imports starting July 22, including some machinery, furniture, ethanol, sugar, and other goods, with certain supply-chain-sensitive products exempted. Separately, a Federal Register proclamation shows a temporary 10% import surcharge imposed under Section 122 is set to continue through July 24, 2026, unless suspended, modified, terminated, or extended by Congress.

Who it affects:
Importers, manufacturers, retailers, contractors, furniture sellers, machinery dealers, food processors, fuel-related businesses, ag suppliers, and firms quoting work with imported inputs.

Why it matters:
Tariff movement can change landed cost, supplier pricing, bid assumptions, and inventory timing. Businesses should check purchase orders, supplier tariff clauses, quote expiration dates, and whether current prices include duties that may change again after July 24.

Source links:
https://www.reuters.com/world/americas/us-imposes-25-tariff-some-goods-brazil-2026-07-16/
https://apnews.com/article/99e8c52a44c75f31c343d7ebad41f614
https://www.federalregister.gov/documents/2026/02/25/2026-03824/modifying-the-scope-of-reciprocal-tariffs-and-establishing-procedures-for-implementing-additional

3. Federal Reserve / Credit: Beige Book shows modest growth, but cost pressure remains

What changed:
The Federal Reserve released its July Beige Book on July 15. Reuters reported that the Beige Book showed economic activity rising, inflation pressure easing somewhat, and employment improving, while input costs remained an issue in areas such as services, construction, manufacturing, energy, transport, and raw materials. The next Federal Reserve meeting is July 28–29.

Who it affects:
Businesses using operating lines, equipment loans, inventory financing, commercial real estate loans, ag debt, credit cards, and contractor financing.

Why it matters:
The credit environment is not just about whether loans are available. It is also about whether the payment works. North Dakota businesses should pressure-test expansion, equipment purchases, and inventory decisions against current rates and input costs.

Source links:
https://www.federalreserve.gov/monetarypolicy/beigebook202607.htm
https://www.federalreserve.gov/monetarypolicy/publications/beige-book-default.htm
https://www.reuters.com/business/economic-activity-rise-inflation-may-be-improving-fed-survey-shows-2026-07-15/

4. Federal Acquisition / Contracting: Procurement rule comments due July 23

What changed:
Federal procurement officials have released proposed Federal Acquisition Regulation changes as part of a broader effort to rewrite and streamline federal purchasing requirements. SBA’s Office of Advocacy lists July 23, 2026 as the comment deadline.

Who it affects:
Federal contractors, construction firms, professional-service providers, suppliers, manufacturers, IT firms, engineering companies, and small businesses considering federal work.

Why it matters:
Federal contracting rules can affect registration, contract clauses, reporting, cybersecurity expectations, and proposal preparation. Current vendors should review whether any proposed changes affect their compliance burden or bidding process.

Source links:
https://advocacy.sba.gov/2026/06/25/newly-released-federal-acquisition-regulation-proposed-rules/
https://www.acquisition.gov/

5. EPA / Permitting: NEPA procedure comments due July 27

What changed:
EPA has proposed revisions to its National Environmental Policy Act procedures. The Federal Register notice says EPA is accepting comments through Regulations.gov and identifies EPA-HQ-AO-2025-1080 as the docket. The proposal includes revisions tied to federal NEPA changes, removal of references to rescinded CEQ regulations, harmonization with other federal agencies, and clarity updates.

Who it affects:
Construction firms, utilities, energy developers, manufacturers, engineers, environmental consultants, local governments, tribal governments, and businesses tied to federally funded or federally permitted projects.

Why it matters:
Federal permitting procedure affects project timing. For North Dakota, this matters for infrastructure, energy, water, transportation, and industrial projects where federal dollars, permits, or reviews are involved.

Source links:
https://www.federalregister.gov/d/2026-12862
https://www.regulations.gov/

6. Energy / Utilities: FERC notice involving Western Area Power Administration has July 29 comment deadline

What changed:
FERC published a July 13 Federal Register notice involving the Western Area Power Administration, with comments, protests, or intervention filings due by 5:00 p.m. Eastern Time on July 29, 2026. The notice directs parties to FERC filing procedures.

Who it affects:
Utilities, electric cooperatives, large power users, energy developers, manufacturers, ag processors, data-center interests, and communities watching electric-cost and power-supply issues.

Why it matters:
WAPA and FERC proceedings can affect wholesale power arrangements, utility planning, and energy-cost discussions. Businesses do not need to file unless directly affected, but large power users should watch utility-related federal filings more closely.

Source links:
https://www.federalregister.gov/documents/2026/07/13/2026-14077/western-area-power-administration-notice-of-filing
https://www.ferc.gov/

7. OSHA / Training Grants: July 31 deadline remains active

What changed:
DOL announced nearly $13 million available through OSHA Susan Harwood Training Grants. Applications are due July 31, 2026. The grants support training on hazard awareness, avoidance, and controls, and applicant registration through Grants.gov and SAM.gov is required.

Who it affects:
Employer associations, nonprofits, labor-management groups, training providers, safety consultants, and organizations serving construction, agriculture, manufacturing, energy, transportation, and other higher-risk industries.

Why it matters:
Most individual businesses will not apply directly, but North Dakota organizations could use this funding to deliver practical safety training to small employers that do not have dedicated compliance staff.

Source links:
https://www.dol.gov/newsroom/releases/osha/osha20260701
https://www.grants.gov/
https://sam.gov/

8. OSHA / Summer Work: Heat planning remains a practical employer issue

What changed:
OSHA’s July QuickTakes and heat resources continue to point employers toward heat illness prevention practices, including planning for water, rest, shade, acclimatization, and response to symptoms.

Who it affects:
Construction, agriculture, oilfield service, road crews, delivery, landscaping, manufacturing, warehousing, food service, outdoor events, and employers with hot indoor workspaces.

Why it matters:
Heat affects safety, productivity, staffing, insurance risk, and job completion. Employers should document what they are already doing instead of relying on informal “we told the crew” practices.

Source links:
https://www.osha.gov/quicktakes/
https://www.osha.gov/heat

9. IRS / Taxes: Automatic penalty relief transition is underway

What changed:
IRS announced a new Automatic Exemption from Penalty process for eligible taxpayers. IRS says the program begins in summer 2026 and applies to eligible original returns beginning with tax year 2025 and 2026 quarterly returns. The Taxpayer Advocate Service says the IRS is phasing in AEP and expects it to replace First Time Abate for eligible returns with due dates on or after January 1, 2027.

Who it affects:
Business owners, payroll filers, self-employed taxpayers, bookkeepers, CPAs, and firms that occasionally face filing or payment penalties.

Why it matters:
This may reduce paperwork for eligible taxpayers, but it is not permission to file or pay late. Businesses should still keep payroll and tax deposits current and ask their tax adviser how the transition affects penalty notices.

Source links:
https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers
https://www.taxpayeradvocate.irs.gov/news/nta-blog/a-long-awaited-taxpayer-win-the-irs-implements-automatic-penalty-relief/2026/07/
https://www.irs.gov/payments/administrative-penalty-relief

10. SBA / Financing: $10 million combined SBA loan capacity remains a planning option

What changed:
SBA’s July 7 announcement says eligible borrowers may now combine 7(a) and 504 loans for up to $10 million in SBA-backed financing. The policy became effective July 4.

Who it affects:
North Dakota manufacturers, contractors, processors, equipment-heavy firms, commercial-property buyers, rural employers, and expansion-stage businesses.

Why it matters:
This can matter for larger small-business projects that previously exceeded SBA program limits. Owners considering expansion should talk with lenders early because SBA eligibility, collateral, cashflow, and project structure still matter.

Source links:
https://www.sba.gov/article/2026/07/07/small-businesses-now-eligible-10-million-sba-financing
https://www.sba.gov/document/policy-notice-5000-879058-coordination-7a-504-maximum-loan-limits

11. DOL / Mining Safety: MSHA training grants open through August 31

What changed:
DOL’s Mine Safety and Health Administration announced up to $250,000 available for emergency response and recovery training grants. Applications are due August 31, 2026.

Who it affects:
Mining operations, aggregate producers, sand and gravel businesses, coal-related operations, training providers, safety organizations, and rural employers tied to extractive industries.

Why it matters:
North Dakota businesses connected to mining, aggregates, coal, or heavy materials should watch safety-training funding because emergency readiness affects worker safety, insurance exposure, and operating continuity.

Source links:
https://www.dol.gov/newsroom/releases/msha/msha20260701

Risk / Opportunity

Risk:
Tariff changes, procurement-rule deadlines, EPA permitting changes, federal energy filings, heat exposure, and tax-process transitions can create paperwork or cost changes before many small businesses notice.

Opportunity:
Businesses that check supplier pricing, review federal contract requirements, document summer safety practices, watch lending options, and monitor utility/permitting proceedings can make better decisions before deadlines arrive.

Federal Watch List for North Dakota Businesses