Sponsors (108)
The bill increases competition and labor-affiliation neutrality in federal construction contracting to expand opportunities and potentially cut costs, while trading off reduced agency flexibility to use project labor agreements and related local or wage-targeting tools—risks that could lower labor standards for workers and create new administrative burdens.
Small and disadvantaged firms and other contractors gain fairer access to federal construction work because hiring and bidding rules prohibit favoritism based on labor affiliation and promote open competition, which can improve value and quality on federally funded projects.
Construction workers and contractors retain the ability to choose whether to enter into or refuse labor organization agreements without being excluded from federal contracts, protecting worker freedom of association and preventing exclusion for union or nonunion status.
Lower construction cost pressures from increased competition could reduce federal spending on projects, potentially saving taxpayer dollars.
Construction workers may see weaker negotiated labor standards, wages, or benefits because the bill limits agency use of project labor agreements and other labor-driven requirements, and cost-pressure from competition could incentivize lower pay or benefits.
Some projects could lose coordination efficiencies that proponents attribute to project labor agreements, which in certain cases could increase costs or delays despite broader cost-reduction goals.
Local communities may lose targeted workforce benefits—like prevailing-wage protections or local-hiring preferences—if neutrality requirements limit those provisions, reducing local employment and community economic gains from federal projects.
Based on analysis of 3 sections of legislative text.
Prevents federal agencies from requiring or banning labor‑organization agreements in federal and federally funded construction contracts, grants, and subcontracts while allowing voluntary agreements.
Introduced March 14, 2025 by Clay Higgins · Last progress March 14, 2025
Prohibits federal agencies from including requirements in construction contracts, subcontracts, grants, or assistance that force or forbid bidders, contractors, or subcontractors to sign, adhere to, or refuse to sign agreements with labor organizations; agencies must ensure procurement documents remain neutral on labor‑organization agreements. Agencies must revise the Federal Acquisition Regulation within 60 days, may allow voluntary agreements, and may grant narrow exemptions for imminent threats to public health/safety or national security or for projects with preexisting labor provisions.