The bill reduces federal construction labor costs and administrative burden for contractors and agencies by eliminating Davis‑Bacon requirements, but does so at the cost of prevailing-wage protections, potential local wage erosion, legal uncertainty, and increased safety/quality risks.
Small-business contractors and taxpayers: federal construction contracts may cost less and small contractors can bid more competitively because Davis‑Bacon prevailing-wage requirements are removed, lowering labor-cost obligations.
Federal procurement officials and contractors: contracting and compliance administration is simplified by eliminating Davis‑Bacon compliance and cross-reference checks, reducing paperwork and oversight requirements.
Construction workers on federal projects: lose prevailing-wage protections, likely reducing pay and benefits for many workers.
Local governments and communities: removal of the federal prevailing-wage anchor could erode local wage standards over time, lowering income and weakening local labor protections.
Federal agencies, contract holders, and courts: removing statutory authority and nullifying cross-references may create legal uncertainty for existing contracts, statutes, and regulations that relied on the eliminated provisions.
Based on analysis of 3 sections of legislative text.
Eliminates the federal Davis‑Bacon statutory prevailing‑wage requirements for future covered construction contracts, voiding statutory references to them.
Official title: Repeal the wage requirements of the Davis-Bacon Act.
Introduced April 30, 2026 by Mike Lee · Last progress April 30, 2026
Repeals the Davis-Bacon Act wage provisions in federal law by removing Subchapter IV of title 40, U.S. Code and voiding any statutory references to those requirements. The repeal takes effect 30 days after enactment but does not apply to contracts already in existence on that date or to contracts awarded from bids outstanding on that date. The change ends the federal prevailing-wage requirement that applied to many federally funded or assisted construction projects, altering wage rules for federal contractors and potentially lowering labor costs on future federal construction contracts while leaving existing contracts and active solicitations unaffected.