ABC Resources on Government-Registered Apprenticeship Policies of Concern

ABC’s all-of-the-above approach to upskilling the construction industry workforce has produced a network of more than 800 apprenticeship, craft, health and safety and management education programs—including more than 450 government-registered apprenticeship programs across 20 different occupations—in order to develop a safe, skilled and productive workforce. ABC chapters also have more than 1,100 entry-point programs in place nationally to welcome all to begin a career in construction.

In 2025, the construction industry faces a skilled labor shortage of 439,000 workers. Unfortunately, recent analysis of U.S. Department of Labor data by ABC found that it would take more than a decade for all federal and state construction industry government-registered apprenticeship programs to meet industry labor needs in 2025. ABC estimates that the construction industry’s federal and state government-registered apprenticeship system yielded just 40,000 completers of four-to-five-year apprenticeship programs, and just 290,000 apprentices were enrolled in all construction industry registered apprenticeship programs.

Regrettably, new federal government policy enacted during the Biden administration is likely to exacerbate the construction industry’s skilled labor shortage and undermine taxpayer investments in infrastructure needed to ensure a strong American economy.

ABC will continue to advocate for an all-of-the-above workforce development strategy, including industry-driven and government-registered apprenticeship programs, so workers and employers have freedom to choose the best way to provide value and help rebuild America.

Apprenticeship Executive Order (Rescinded)

President Joe Biden’s March 6, 2024, Executive Order 14119 on Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums directs federal agencies to identify where they can implement new requirements or incentives for federal contractors and recipients of federal financial assistance to employ workers who are active participants or graduates of a GRAP.

On Friday, March 14, President Donald Trump signed an executive order that rescinded EO 14119, among other orders. ABC applauded the move, stating in part:

“President Trump’s elimination of Biden’s problematic EO is good news for taxpayers, the construction industry and the principles of free enterprise,” said Associated Builders and Contractors Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “The Biden policy would have increased costs on federal and federally assisted taxpayer-funded construction projects by reducing competition from some of the best contractors who do not participate in the voluntary government-registered apprenticeship system for a variety of valid reasons.”

Resources:

Clean Energy Apprenticeship Mandates

ABC has expressed concerns with controversial Biden administration policies requiring the use of apprentices enrolled in government-registered apprenticeship programs on federally assisted clean energy construction projects procured by private developers.

The Inflation Reduction Act provides $270 billion in tax credits to private developers of clean energy construction projects, but in order to unlock the full 30% value of tax credits, they are required to ensure that 15% of all construction labor hours on an eligible project are performed by government-registered apprentices.

Clean energy stakeholders and builders are concerned these requirements will be difficult to meet because of a lack of GRAPs in certain marketplaces and difficulties getting new GRAPs approved in certain states to expand capacity and increase apprenticeship enrollment. A lack of apprentices and GRAPs will ultimately increase costs and delay the construction of new projects, undermining the construction of clean energy infrastructure.

Unfortunately, the Biden administration’s failure to provide clear regulations and guidance for stakeholders related to IRA apprenticeship requirements has led to delayed construction projects.

Electric Vehicle Charging Station Apprenticeship Mandates

ABC has also opposed the imposition of GRAP mandates on federally assisted construction of electric vehicle charging stations.

The National Electric Vehicle Infrastructure Formula Program implements provisions of the Infrastructure Investment and Jobs Act, signed into law in 2021, that include $7.5 billion for electric vehicle charging stations (including $5 billion over five years to install EV chargers mostly along interstate highways). The intent of the program is to support the installation of 500,000 electric vehicle chargers across the country by 2030 as part of a domestic push to shift away from gas-powered vehicles.

Unfortunately, in a February 2023 DOT final rule, the Biden administration implemented a number of concerning labor provisions. The rule requires that all electricians working on electric vehicle supply equipment either be certified by the International Brotherhood of Electrical Workers’ Electric Vehicle Industry Training Program or be a graduate or recipient of a continuing education certificate from a government-registered apprenticeship program with a focus on EVSE installation approved by the DOT in consultation with the DOT.

Additionally, the rule requires all NEVI-funded projects that require more than one electrician to use at least one GRAP-enrolled apprentice. Finally, other on-site, nonelectrical workers directly involved in the installation, operation and maintenance of chargers must have graduated from a registered apprenticeship program or have appropriate licenses, certifications and training as required by the state.

ABC previously submitted comments in response to the proposed rule and a request for information urging the DOT to avoid union labor requirements and to instead welcome all qualified contractors to build EV chargers. Unfortunately, the agency disregarded these recommendations in the final rule.

U.S. DOL’s National Apprenticeship System Enhancements Proposed Rule (Withdrawn)

On Jan. 17, 2024, the Federal Register published a controversial U.S. Department of Labor proposed rule that would make significant revisions to the National Apprenticeship System, which will affect ABC members, chapters, apprentices and other industry stakeholders participating in government-registered apprenticeship programs. ABC submitted 45 pages of comments expressing concerns about the proposal on March 18, 2024.

On Dec. 2, 2024, the Office of Information and Regulatory Affairs announced that the final rule had been withdrawn. As described in ABC’s press release, this is a major victory for the construction industry and workforce development stakeholders, which will not be subjected to the proposed rule’s costly new requirements and elimination of flexible approaches to workforce development. This follows ABC’s continued advocacy efforts including 45 pages of comments opposing the proposal.

ABC was concerned that this proposal would have discouraged employer participation in the GRAP system by adding more costly bureaucracy and paperwork requirements, eliminating flexible competency-based approaches to workforce development that benefit apprentices and employers and increasing overall uncertainty for the regulatory community.

While the final rule will no longer be released, ABC has compiled the below resources for stakeholders seeking information on the changes the NPRM had proposed to the GRAP system.

ABC Resources:

News Updates:

Federal Government Resources: