The bill preserves open competition and may lower procurement costs by prohibiting preference for union labor in federal and DoD contracts, but it reduces unions' leverage and limits procurement as a tool to promote higher wages and labor-policy goals.
Government contractors (including small businesses) that do not use union labor face fewer procurement barriers and can compete more equally for federal and DoD contracts, which preserves open competition and may lower costs for taxpayers.
Federal and DoD procurement decisions are more likely to focus on price and technical merit rather than bidders' labor affiliation, reducing the risk that labor-affiliation criteria drive award decisions and improving procurement objectivity.
Unionized workers and unions (including federal- and defense-sector employees) lose a tool that supported wages, benefits, and bargaining leverage tied to preferential consideration in federal and DoD contracts, creating downward pressure on compensation and job security.
Contractors that voluntarily use union labor may be disadvantaged (or feel compelled to avoid unionized workforces) because agencies cannot recognize that choice in evaluations, penalizing firms that adopt union labor and reducing employer freedom to prefer union hiring.
The DoD's ability to use procurement to advance labor-policy objectives (e.g., supporting prevailing wages or project labor agreements) is limited, reducing a tool for promoting higher labor standards on defense projects.
Based on analysis of 3 sections of legislative text.
Prohibits executive agencies and the Department of Defense from requiring or preferring contractors that use union-represented workers in procurement decisions.
Official title: To amend titles 41 and 10, United States Code, to prohibit a requirement or preference for the use of union labor for Federal contracts.
Introduced September 3, 2026 by Stephanie I. Bice · Last progress September 3, 2026
Prohibits executive agencies and the Department of Defense from requiring or favoring contractors that employ workers covered by collective bargaining agreements. The bill adds parallel prohibitions to the civilian procurement law (title 41) and the Defense procurement code (title 10), forbidding any procurement preference, evaluation advantage, or requirement tied to an offeror’s use of union-represented labor. The law does not create new spending, change wage rules, or alter collective bargaining rights directly; it restricts how federal and DoD contracting officials may evaluate or structure solicitations and awards based on whether a contractor’s workforce is unionized.