Nearly 100 days into the new presidency, all eyes are on which of his campaign promises President Trump will implement next. One such promise put into motion is the President’s estimated $1 trillion infrastructure plan. Touted during his campaign as a means to stimulate job growth, the President’s plan may come with more federal deregulation than the construction and government contracting industries anticipated, including possible repeal or suspension of the Davis Bacon Act (DBA).
Introduced in the midst of the Great Depression, Congress enacted the DBA as a means to prevent failing wages. Eighty years later, the DBA has become synonymous with federal contracting. Also known as the federal prevailing wage statue, the DBA requires payment of prevailing wages on federally funded or assisted construction projects for contracts in excess of $2,000. Critics of the DBA argue that the prevailing rates artificially and unreasonably increase project costs, and that the U.S. Department of Labor is unable to develop an efficient process for determining market-rate wages. Proponents – particularly labor unions – argue the DBA prevents a “race to the bottom,” increasing productivity and improving local economies. Continue Reading President Trump’s Comments Stir Rumors of Possible Repeal or Suspension of the Davis Bacon Act