Status
On May 20, 2024, Sens. Tom Carper, D-Del., Shelly Moore Capito, R-W.Va., Mark Kelly, D-Ariz., and Kevin Cramer, R-N.D., introduced S.4367, the Water Resources Development Act of 2024. This legislation, known as WRDA, authorizes the U.S. Army Corps of Engineers to implement projects and studies nationwide to address challenges relating to water infrastructure. The legislation passed the U.S. Senate Committee on Environment and Public Works by a unanimous vote on May 22, 2024, and now awaits floor consideration. According to the EPW Committee press release, “WRDA 2024 authorizes 81 feasibility studies and 8 new or modified construction projects across the country.”
On May 16, President Joe Biden signed H.R.3935, the Securing Growth and Robust Leadership in American Aviation Act, into law. This bill reauthorizes funding for the Federal Aviation Administration between 2024 and 2028. Importantly, the bipartisan, bicameral legislation does not appear to contain any red flags for ABC and instead focuses on labor provisions relating to air traffic controllers, pilots and other airport workers unrelated to infrastructure.
While the abovementioned legislation did not include government-mandated project labor agreements, President Joe Biden’s Executive Order 14063 and corresponding Use of Project Labor Agreements for Federal Construction Projects final rule require federal construction contracts of $35 million or more to be subjected to controversial project labor agreements, with limited and rare exceptions. ABC and its Florida First Coast chapter filed suit in federal court on March 28 to stop the Biden administration’s unlawful scheme to mandate PLAs on construction contracts procured by federal agencies. ABC’s complaint asserts that President Biden lacks the legal and constitutional authority to impose a new federal regulation injuring economy and efficiency in federal contracting and illegally steering construction contracts to certain unionized contractors, which employ roughly 10% of the U.S. construction workforce.
Prior to the issuance of the final rule, President Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act into law on Nov. 15, 2021, providing $550 billion in new funding to invest in America’s roads, bridges, utilities and other needs on top of baseline government infrastructure spending via existing programs and annual appropriations. Much of the IIJA funding will be distributed to states and localities and other stakeholders through discretionary grant programs. As the bill made its way through Congress, ABC advocated for merit shop priorities in the legislation, ultimately remaining neutral on the passage of the IIJA. Although the IIJA does not include PLA mandates or PLA preferences, the bill does include an expansion of Davis-Bacon requirements and other provisions of concern to ABC.
ABC continues to monitor the implementation of IIJA via funding allocations and notices of grant opportunities. A number of federal agency programs valued at more than $250 billion in infrastructure dollars have included pro-PLA language in their application criteria, which ABC will seek every opportunity to oppose.
On Nov. 10 2022, the U.S. Department of Transportation announced the expiration of a general waiver to Buy America requirements imposed by the IIJA. With this expiration, the IIJA’s expanded Buy America requirements are now in effect for most federally funded infrastructure projects.
ABC submitted comments advocating for the waivers, saying that, while ABC supports strategies to expand domestic jobs and manufacturing to avoid global supply chain disruptions and capture economic benefits within the United States, Buy America requirements must be balanced with safeguards against delays of infrastructure projects funded by taxpayers and increased construction materials costs. Construction materials costs have ballooned by almost 40% since February 2020.
Desired Outcome
The infrastructure projects authorized by the abovementioned legislation create an opportunity to effectively modernize our nation’s most critical infrastructure. It also provides opportunities for contractors nationwide to participate. However, ABC opposes the Biden administration’s exclusionary rulemakings and statements, which restrict the eligibility of America’s workers to compete for and participate in these construction projects.
As the Biden administration implements the IIJA and Congress considers other infrastructure bills, ABC and industry stakeholders will continue to support the Fair and Open Competition Act (H.R.1209/S.537), which would prevent government-mandated PLAs on federal or federally assisted construction contracts. It is in the best interest of taxpayers that the federal government provide fair and open competition on these projects to ensure completion on time and on budget.
ABC members are encouraged to visit the ABC Action Center and urge their members of Congress to support FOCA.
ABC urges Congress to oppose the inclusion of government-mandated project labor agreements on federally funded and federally assisted construction projects. ABC stands ready to do the important work to bring America’s infrastructure into the 21st century.