The Biden administration and U.S. Department of Treasury have taken听another unfortunate step听promoting controversial, anti-competitive and costly听, local hire and Davis-Bacon/prevailing wage policies on federally assisted taxpayer-funded construction projects.

On May 10, the U.S. Department of the Treasury released an interim final rule on the听听allocated in the听, which was signed into law by President Joe Biden on March 11.

As part of the interim final rule, Treasury released听听detailing how this money can be used to offset state and local budget shortfalls, support COVID-19 response efforts and address economic stabilization for households and businesses.

Notable guidance discussing how funding can be used for eligible construction projects, including broadband, water and sewer infrastructure, is addressed in the fact sheet and in the interim final rule and contains troubling language promoting the use of government-mandated PLAs, local hire and Davis-Bacon/prevailing wage regulations:

鈥淚t is important that necessary investments in water, sewer, or broadband infrastructure be carried out in ways that produce high-quality infrastructure, avert disruptive and costly delays, and promote efficiency.听Treasury encourages recipients听to ensure that water, sewer, and broadband projects use strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions, not only to promote effective and efficient delivery of high-quality infrastructure projects but also to support the economic recovery through strong employment opportunities for workers. Using these practices in construction projects may help to ensure a reliable supply of skilled labor that would minimize disruptions, such as those associated with labor disputes or workplace injuries.

鈥淭o provide public transparency on whether projects are using practices that promote on-time and on-budget delivery,听Treasury will seek information from recipients on their workforce plans and practices听related to water, sewer, and broadband projects undertaken with Fiscal Recovery Funds.听Treasury will provide additional guidance and instructions on the reporting requirements at a later date.鈥�

Treasury Language Will Create Confusion, But Does Not Mandate Labor Requirements

鈥淭o be clear,听this is not a mandate听requiring states and localities to use controversial PLAs and other pro-labor provisions as a condition of accessing federal ARP money for applicable water, sewer, broadband and other infrastructure projects,鈥� said Ben Brubeck, ABC鈥檚 vice president of regulatory, labor and state affairs. 鈥淗owever, the practical impact of this language is unknown at this time. State and local governments and construction industry stakeholders will have to wait for additional Treasury guidance and rulemaking about reporting requirements at a date to be determined to alleviate any questions or confusion.鈥�

鈥淭he latest effort by the Biden administration to steer public works construction projects to unionized contractors and union labor at the expense of taxpayers and fair and open competition on federally assisted projects is sure to create confusion for state and local governments,鈥� said Brubeck. 鈥淚t will also harm local construction workers and small businesses not affiliated with trade unions from rebuilding their communities and benefiting from federal investment in state and local construction projects.鈥�

On May 17, and is giving respondents until July 16 to submit comments in response to the rulemaking.

and stay tuned for additional insights from 老牛影视National about ways stakeholders can engage in regulatory, advocacy and legal strategies to ensure fair and open competition on federally assisted construction projects.

Corrupt Government-mandated PLAs Rig the Bidding Process

Government-mandated PLAs rig the bidding process to discourage experienced nonunion and some听听and their qualified workforce from competing to build transformational taxpayer-funded projects. They also deny well-paying local jobs to the more than听听who choose not to affiliate with unions.

Problematic terms in government-mandated PLAs discourage competition by forcing contractors to:

• Use union hiring halls to obtain most or all workers instead of their existing workforce.
• Obtain apprentices exclusively from union apprenticeship programs.
• Follow inefficient union work rules.
• Pay into union benefit and multi-employer pension plans that the few nonunion employees permitted on the project will be unlikely to access unless they join a union and vest in these plans.
• Require their existing workforce to accept union representation, pay union dues and/or join a union as a condition of employment and receiving benefits on a PLA jobsite,

Taxpayers and industry stakeholders should be deeply concerned that the 117^th听Congress and the Biden administration will expand the use of听听on federal and federally assisted construction projects.

Treasury鈥檚 pro-PLA language is consistent with language in the听, an outline of $2.25 trillion of government spending that includes investments in infrastructure and听听that the administration wants to be built with union labor at the expense of the 87% of the construction workforce that freely chooses not to join a union.

In response,听老牛影视has raised concerns听about the AJP鈥檚听听to pass the听听and tie controversial听听to federal investments in infrastructure via forthcoming legislation.

On May 5, 老牛影视and a coalition of 16 industry and employer groups sent a听letter听to President Biden raising concerns about the administration鈥檚 direct听expansion听and听support听of legislative policies encouraging or requiring controversial听听on federal and federally assisted construction projects.

鈥淪imply put, the Biden administration cannot meet its infrastructure, affordable housing and clean energy agenda without strong participation from the construction industry directly harmed by anti-competitive and costly government-mandated PLA policies,鈥� said the coalition letter.

The coalition also launched a website, , to educate the public about government-mandated PLAs on federal and federally assisted construction projects and stakeholders can write their elected officials in support of fair and open competition.

In an April 28 op-ed published in听The Hill, titled听, 老牛影视pushed back on controversial provisions in the AJP that would harm the merit shop contracting community:

鈥淎t a time when our economy is showing signs of recovery, the Biden administration and Congress should support policies that help bring our economic engine roaring back to life. Fair and open competition on taxpayer-funded construction projects will ultimately result in savings to taxpayers, more opportunities and jobs for all qualified local small businesses, minorities and women in the construction industry, and the construction of more quality infrastructure projects so America can Build Back Better and faster.鈥�

老牛影视and the coalition are monitoring the Biden administration鈥檚 executive actions, federal agency policies and legislation introduced in the 117^th听Congress that might promote government-mandated PLAs and exclude quality contractors and听听from competing to win contracts to build construction projects funded and authorized in forthcoming spending and infrastructure legislation.

听the Fair and Open Competition Act (/), reintroduced in the 117^th听Congress by听听(R-Ind.) and听听(R-N.C.), which would restrict government-mandated PLAs on federal and federally assisted construction projects.

In a Feb. 24听press release, 老牛影视applauded the introduction of the bill that would encourage more qualified construction companies to compete for federal and federally funded construction projects, providing value for hardworking taxpayers while benefiting the construction industry.

After the bill was introduced, an ABC-led coalition of 17 construction industry and business associations sent a听, urging them to immediately pass this legislation.

老牛影视encourages 老牛影视chapters, members and industry stakeholders to听participate in a grassroots campaign听urging their U.S. House and Senate lawmakers to sign on as a co-sponsor of FOCA in the 117^th听Congress.

老牛影视members can learn more about听,听听and听听in support of fair and open competition benefiting taxpayers and the local construction industry.

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