Background
ABC members play a significant role in building America’s infrastructure. Between fiscal years 2009-2023, ABC members won 54% of federal contracts worth $35 million or more. These firms have consistently delivered award-winning public projects safely, on schedule and within budget—many valued at over $1 billion—without the use of government-mandated project labor agreements.
Congress directs federal infrastructure funding through major legislation, including the National Defense Authorization Act, the Water Resources Development Act, the Surface Transportation Act, the Water Infrastructure Finance and Innovation Act and the Federal Aviation Administration reauthorization. These programs support essential upgrades to roads, bridges, water systems, airports and military bases.
While contractors must comply with laws set by Congress to perform such work, other requirements advanced by the executive branch may lack congressional approval. For example, former President Joe Biden issued Executive Order 14063 and the Federal Acquisition Regulatory Council issued the corresponding Use of Project Labor Agreements for Federal Construction Projects final rule. This rulemaking requires federal construction contracts of $35 million or more to be subjected to project labor agreements. Notably, the U.S. House of Representatives and U.S. Senate never consented to the Biden administration’s project labor agreement mandate. Yet, the mandate continues to steer appropriations for all large federally funded construction projects, including military construction, to 10% of the construction industry, threatening the efficient completion of projects critical to U.S. national security.
The PLA mandate, which the Trump administration decided to continue, discourages nonunion construction companies and their employees from participating on federally funded construction. To comply with the Biden administration’s PLA mandate, contractors are required to agree to recognize unions as the representatives of their employees on a covered project, use the union hiring hall to obtain most or all construction labor, hire apprentices from union-affiliated apprenticeship programs, follow union work rules and pay into union benefit and multiemployer pension plans that nonunion employees cannot access. This requirement essentially forces contractors to unionize their employees in an attempt to win federally funded construction projects or sideline their existing employees to hire union workers from elsewhere.
The PLA mandate’s reduction in competition for federal projects also correlates with increased costs. In fact, the April 29, 2025, MOCA Systems report, “Quantifying the MILCON Cost Premium,” commissioned by the U.S. Army Corps of Engineers and the Naval Facilities Engineering Command, found that labor requirements were the highest contributor to the MCP, with PLAs contributing 10% to 50% of total construction cost. Further, the study noted that “labor markets for construction are already significantly constrained and various laws and regulations have compounded that issue for the MILCON process.” The report’s findings support ABC’s concerns that PLAs significantly impact construction costs.
Desired Outcome
ABC urges the Trump administration to take immediate action to reverse the Biden-era PLA mandate and ensure that all qualified contractors, regardless of labor affiliation, have the opportunity to compete for federal construction contracts. Ending this mandate would help restore open competition and improve efficiency, ultimately saving taxpayer dollars.
In addition, ABC urges Congress to advance H.R.2126/S.1064, the Fair and Open Competition Act. This legislation ensures federal and federally assisted contract awards occur through a fair and competitive bidding process that allows all qualified contractors to compete on a level playing field based on merit, experience, quality and safety to deliver the highest-quality projects at the best cost.
ABC and its Florida First Coast chapter continue to litigate the PLA mandate to stop the unlawful scheme to mandate PLAs on construction contracts procured by federal agencies.
ABC’s complaint asserts that President Biden lacks the legal and constitutional authority to impose a new federal regulation injuring economy and efficiency in federal contracting and illegally steering construction contracts to certain unionized contractors, which employ roughly 10% of the U.S. construction workforce.
ABC members are encouraged to visit the ABC Action Center and urge their members of Congress to support FOCA.
ABC urges Congress to oppose the inclusion of government-mandated project labor agreements on federally funded and federally assisted construction projects. ABC stands ready to do the important work to bring America’s infrastructure into the 21st century.