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The bill increases access and competition for federal construction contracts and may lower costs for taxpayers, but it risks weakening union bargaining power, reducing worker pay/standards, and creating administrative and legal challenges for agencies.
Small businesses, disadvantaged firms, and nonunion construction firms can bid on more federal construction projects, increasing contract opportunities and market access.
Taxpayers and the federal government may see lower federal construction costs if increased competition and open bidding lead to lower bids and more efficient procurement.
Increased competition on federally funded projects may improve value for money and project quality by encouraging more bidders and innovation in proposals.
Unionized construction workers and unions may lose leverage and negotiated protections (wages, benefits, safety protocols) as project labor agreements are discouraged or removed, potentially lowering pay and workplace protections.
Removing or restricting project labor agreements and mandating labor neutrality could weaken unions' bargaining power and long-standing union-employer arrangements, provoking disputes and reducing collective bargaining outcomes.
Federal agencies and grant recipients face administrative burden, tight timelines, and legal risk to revise FAR clauses and contracting documents quickly and to enforce the new prohibitions.
Introduced March 14, 2025 by Clay Higgins · Last progress March 14, 2025
Prohibits federal agencies, construction managers acting for the federal government, and recipients of federal construction grants or cooperative agreements from requiring bidders, contractors, or subcontractors to enter into or adhere to agreements with labor organizations on federal or federally funded construction projects awarded after enactment. Agencies must revise the Federal Acquisition Regulation (FAR) within 60 days to implement the change, and limited exemptions exist only for imminent threats to public health or safety or national security; ongoing projects already under controlling documents are grandfathered.