ABC supports the Highway Trust Fund Reform Act of 2019 (H.R. 3904), legislation introduced on July 24 by Rep. Virginia Foxx (R-N.C.) that would exempt federally funded or federally assisted Highway Trust Fund projects from federal Davis-Bacon requirements, known as prevailing wage. The Congressional Budget Office estimates that repealing Davis-Bacon would save the Federal Highway Administration more than $700 million a year.

Determined through an unscientific and fundamentally flawed survey process administered by the U.S. Department of Labor, prevailing wage requirements preclude a free-enterprise approach to awarding construction contracts based solely on merit and require ineffective and burdensome wage and work restrictions, which can drastically increase project costs. By eliminating Highway Trust Fund prevailing wage requirements, this legislation would ensure American taxpayers get the best possible products at the best possible price, especially when it comes to stretching tax dollars to fix our nation’s crumbling infrastructure.

“Transportation and infrastructure are key components of economic development efforts in North Carolina, and the Highway Trust Fund Reform Act would keep important road and bridge projects going in the short term while discussions continue on a long-term bill,” Rep. Foxx said. “The federal government can keep the Highway Trust Fund solvent and continue to fund important highway projects with the bill’s common-sense reforms to lower the cost of infrastructure contracts funded by the American taxpayer.”