Smucker Reintroduces Legislation to Repeal Costly Biden-Era Regulation
WASHINGTON—Rep. Lloyd Smucker (PA-11) has reintroduced legislation to repeal a costly Biden-era mandate that artificially drives up construction costs on federal projects. The Biden administration’s rule reverts to a definition of “prevailing wage” that has not been used in forty years, causing a dramatic increase in the cost of federally funded construction projects.
“This regulation puts taxpayers on the hook for artificially inflated federal construction costs. This misguided regulation is yet another giveaway to Democrat political allies at the expense of the American taxpayers. With a mounting national debt, every effort must be taken to drive down costs, not unilaterally raise them. The free market should determine wages, not a nearly century-old formula. This regulation is wrong for American taxpayers and must be stopped,” said Rep. Smucker.
Cosponsors of Rep. Smucker’s legislation are Representatives Virginia Foxx (NC-05), Beth Van Duyne (TX-24), G.T. Thompson (PA-15), Richard Hudson (NC-09), John Moolenaar (MI-02), Mary Miller (IL-15), Tracey Mann (KS-01), Keith Self (TX-03), Julia Letlow (LA-05), John Rose (TN-06), Roger Williams (TX-25), Randy Weber (TX-14), Pete Sessions (TX-17), Erin Houchin (IN-09), and Jim Baird (IN-04).
What are they saying about Rep. Smucker’s legislation?
“Associated Builders and Contractors strongly supports Rep. Smucker’s legislation to overturn the Biden administration’s Davis-Bacon final rule, which exacerbates longstanding problems with the Davis-Bacon Act’s unscientific and inefficient wage survey and wage determination process and reverses key reforms introduced during the Reagan administration. By passing Rep. Smucker's legislation, Congress would alleviate additional costs and burdens forced on taxpayers and contractors by the Biden administration's onerous rule.” – Kristen Swearingen, vice president of government affairs, Associated Builders and Contractors
"Americans for Prosperity thanks Congressman Smucker for his continued leadership in ending the harmful Biden era Davis-Bacon rule. His legislation would end misguided payment schemes that needlessly increase the costs of federal infrastructure projects for American families. It would also end infrastructure processes designed specifically to advantage union leaders and labor over non-union workers. Putting more money back in the wallets of American families by having their taxes spent more efficiently is exactly the kind of reforms we need to expand opportunity."
The bill is also supported by the National Precast Concrete Association and the National Society of Professional Surveyors.
Background:
The Department of Labor Hour and Wage Division states: “The Davis-Bacon and Related Acts apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works.”
According to the Heritage Foundation, the Davis-Bacon Act “drives up federal construction costs by about 10%, costing taxpayers an estimated $10.9 billion per year.”
A December 2022 release from the Congressional Budget Office reports that eliminating the requirements under the Davis-Bacon Act would save approximately $24 billion over a ten-year period.
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