PLA Preferences in Federal Agency Grants
ABC has consistently and vigorously opposed government-mandated project labor agreements and PLA preferences on federal government and federally assisted construction projects, as well as state and local government infrastructure projects. PLAs needlessly increase costs, chill competition and steer hundreds of billions of dollars’ worth of construction projects funded by taxpayers to well-connected special interests, i.e., construction unions and contractors signatory to specific construction unions party to a PLA.
Nevertheless, ABC has identified a significant number of Biden administration federal agency grants––totaling more than $230 billion for infrastructure projects procured by state and local governments––subject to language and policies promoting PLA mandates and preferences that will increase costs and reduce competition on federally assisted construction projects.
Below, ABC has provided information on the numerous federal programs affected by these preferences. While the majority of these programs do not mandate PLAs, many include language significantly increasing an applicant’s score if they utilize PLAs or institute other pro-union provisions.
At this time, it is unclear how many infrastructure projects funded by grant programs have been subjected to local and/or state government-mandated PLAs as a result of this language.
The Biden administration is also attempting to incentivize the use of PLAs on projects funded by tax credits and grants for clean energy construction through the Inflation Reduction Act, and for semiconductor manufacturing facility projects through the CHIPS Act. Visit ABC’s IRA and CHIPS resource pages for more information.
Please reach out to Michael Altman at [email protected] with any questions or comments regarding PLA preferences in federally assisted construction.