President Donald Trump has rescinded a controversial Biden administration executive order that attempted to prioritize the award of federal government grants to private developers and state and local governments seeking federal assistance to build infrastructure, manufacturing and clean energy projects if they adopt project labor agreement requirements and other union-friendly policies.

“President Trump’s elimination of President Joe Biden’s politically motivated EO is a win for America’s construction workers and taxpayers,” said Associated Builders and Contractors Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “President Biden’s EO was an election-season commemoration of four years of harmful policies that strongly incentivized inflationary and anti-competitive project labor agreements on federally assisted construction projects, which increase construction costs by 12% to 20%, reduce worker wages and effectively eliminate 90% of America’s construction industry workforce from building these projects because they are not members of a labor union.”

ABC identified more than $271 billion in federal funding  subject to language and policies promoting PLA mandates and preferences that have resulted in reduced competition, delays and increased costs on federally assisted construction projects since former President Biden took office.

Analysis in a September 2024 ABC news release and ABC Newsline article highlighted how pro-PLA policy schemes undermine the efficient and economical delivery of taxpayer funded infrastructure, manufacturing and energy projects by steering work to unionized contractors and labor at the expense free enterprise, taxpayers and the broader construction industry.

President Trump’s March 14 executive order revoked 19 Biden administration EOs and actions, including Executive Order 14126, Investing in America and Investing in American Workers, signed Sept. 6, 2024.

It is unclear if the Trump EO will revoke all of the Biden administration’s pro-PLA policies buried in federal agency regulations and subregulatory actions.

“President Trump has delivered an incredible victory for all Americans and ABC will continue to advocate for a fair and open competition EO and legislation that would eliminate all of President Biden’s pro-PLA policies and proactively prevent PLAs mandated by recipients of federal funding,” said Brubeck. “It appears this Trump EO does not eliminate Biden’s pro-PLA EO 14063 and related FAR rule mandating PLAs on direct federal construction projects of $35 million or more that is subject to ongoing litigation.”

On Jan. 9, ABC and 24 other construction and business groups in the Build America Local coalition sent a letter to President Trump requesting an executive order that would eliminate PLA mandates and preferences and restore fair and open competition on federal and federally assisted construction projects that would save taxpayers an estimated $10 billion annually.

More than a dozen blue state governments controlled by Democrat trifectas require or encourage the use of PLAs on taxpayer-funded construction projects, in the face of declining construction union membership across America. Recently, governors of Massachusetts, Oregon, Pennsylvania, Hawaii and Maryland have come under fire for issuing EOs pushing PLAs on state and state-assisted construction projects that are similar to Biden’s pro-PLA policies.

ABC celebrated a Jan. 19 decision by the U.S. Court of Federal Claims that ruled in favor of experienced ABC members and other federal contractors who filed 12 bid protests against three federal agencies that mandated PLAs in solicitations for construction services as a result of Biden’s EO 14063 and related final rule.

Since the ruling, Biden’s pro-PLA policy has been eliminated from solicitations for federal contracts to build the U.S. General Services Administration’s land port of entry projects and all U.S. Department of Defense projects. However, the U.S. Department of Veterans Affairs reinstated the Biden pro-PLA policy less than two weeks after they rescinded it.

ABC voiced strong support for the Fair and Open Competition Act (S.1064/H.R. 2126), reintroduced in the 119th Congress on March 14 by Sen. Todd Young, R-Ind., and Rep. Clay Higgins, R-La. This bill would eliminate government-mandated PLAs on federal and federally assisted construction projects and restore merit-based competition that encourages all qualified contractors to compete on a level playing field based on merit, experience, quality and safety in order to deliver the best projects at the best cost. Via this grassroots campaign, voters can urge their elected officials to join a record-high 91 House and 17 Senate original co-sponsors of this legislation to restore fair and open competition in government contracting.

Last summer, ABC testified before Congress in support of FOCA and highlighted harmful effects of the Biden administration’s pro PLA policies.

ABC will continue to provide ABC, the construction industry and taxpayer advocate stakeholders with insights on ABC’s fight against government-mandated PLAs.