On June 12, the Trump White House’s Office of Management and Budget issued a memo (M-25-29) indicating it will continue former President Joe Biden’s controversial policy mandating anti-competitive and costly project labor agreements (PLAs) on federal construction projects valued at $35 million or more, implemented by Biden’s Executive Order 14063 and a related FAR regulation.
The new Trump OMB policy affirms the Biden administration’s misguided policy that federal construction contracts are best built with PLA mandates. The policy was issued after recent litigation, led by the North America’s Building Trades Unions, froze previous Trump administration efforts to end PLA mandates and preferences on federal contracts. Of note, the Trump OMB memo contains a new but untested PLA exception process if senior federal procurement officials determine that a PLA will increase costs by more than 10%.
APCA strongly opposes the Trump administration’s decision to continue PLA mandates, which discriminate against merit shop contractors who employ almost 90% of the U.S. construction workforce—those who choose not to join a union—from fairly competing to build taxpayer-funded projects.
In a July 17, letter, APCA leadership expressed appreciation to Senators Katie Britt (R-Ala.) and Bill Cassidy (R-La.) and Representative Clay Higgins (R-La.) for spearheading letters to President Trump signed by almost 120 U.S. House and Senate lawmakers in opposition to the continuation of Biden’s pro-PLA policies.
"APCA is concerned that without strong opposition to anti-competitive and inflationary government-mandated PLAs from leaders like you and our industry stakeholders, the Trump administration and other policymakers may attempt to expand a pro-PLA posture to federally assisted projects and energy and pipeline construction projects."
APCA calls on President Trump to reverse this decision immediately and instead issue a new executive order that encourages fair and open competition, repeals government-mandated PLA requirements, and restores the ability for all qualified contractors—regardless of labor affiliation—to compete on a level playing field for federal and federally assisted construction projects. Such a measure would save taxpayers $10 billion annually.
On September 23, the Build America Local coalition sent a letter signed by APCA and 25 other construction and employer groups to the White House advocating for repeal of the Biden/Trump PLA policy.
“When mandated, PLAs also increase the cost of taxpayer-funded projects,” the coalition wrote. “That means a smaller border wall and fewer American energy, border security, manufacturing, infrastructure, affordable housing, military and school construction projects.”
APCA members are encouraged to contact President Trump today and tell him to restore pro-taxpayer principles of merit-based competition and free enterprise in government contracting. Rescinding Biden’s Executive Order 14063 and implementing a merit-based Fair and Open Competition policy will benefit APCA stakeholders, the entire construction industry, and all Americans.
