On Monday, U.S. Rep. Lloyd Smucker (R-PA) announced he had introduced legislation to block the implementation of new prevailing wage regulations he said would lead to higher taxes for all Americans.
Smucker’s office said a new U.S. Department of Labor regulation that required prevailing wages for federal or federal-funded construction projects would increase costs. Smucker said that despite the claims from the Biden administration the Davis-Bacon Act regulations need modernizing, the new rule reverts to a definition of “prevailing wage” that hasn’t been used in 40 years.
“American families continue to struggle with higher costs caused by the Biden administration’s failed policies,” Smucker said. “If this regulation is allowed to be implemented, taxpayers can expect to be 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 deficits totaling nearly $2 trillion last fiscal year and with a mounting national debt, every effort must be taken to drive down costs, not unilaterally raise them.”
The DOL Hour and Wage Division said the Davis-Bacon and Related Acts apply to contractors and subcontractors performing on federal funded or assisted contract in excess of $2,000 for the construction, alteration or repair (including painting and decorating) of public buildings or public works. The act “drives us the federal construction costs by about 10 percent, costing taxpayers an estimated $10.9 billion per year, the Heritage Foundation said. Eliminating requirements under Davis-Bacon would save more than $24 billion over a 10-year period, the Congressional Budget Office has reported.
“The Wage and Hour Division’s Davis-Bacon rule is a complete giveaway to union bosses,” Education and the Workforce Committee Chairwoman U.S. Rep. Virginia Foxx (R-NC) said. “This rule dims America’s infrastructure outlook by increasing costs for federal construction projects and imposing a massive financial burden on taxpayers.”
Cosponsors of Rep. Smucker’s legislation include Foxx and Reps. Mary Miller (R-IL), Glenn “GT” Thompson (R-PA), Pete Sessions (R-TX), Jeff Duncan (R-SC), Beth Van Duyne (R-TX), Debbie Lesko (R-AZ), Mark Green (R-TN), Burgess Owens (R-UT), Steve Womack (R-AR), Randy Weber (R-TX), Jim Banks (R-In), Julia Letlow (R-LA), John Moolenaar (R-MI), Nancy Mace (R-SC), Jim Baird (R-IN), Scott Fitzgerald (R-WI), Tracey Mann (R-KS), Ashley Hinson (R-IA), Keith Self (R-TX), John Rose (R-TN), and Erin Houchin (R-IN).
The legislation is also supported by a number of organizations, including Americans for Tax Reform, Americans for Prosperity, Heritage Action, Taxpayers Protection Alliance, National Right to Work Committee, the Freedom Foundation, National Federation of Independent Business (NFIB), Small Business & Entrepreneurship Council and the U.S. Geospatial Executives Organization, among others.
“American families are reeling from the inflation brought on by President Biden’s reckless spending and regulation, and yet he remains committed to enriching his political allies in organized labor at taxpayers’ expense with even more of the same,” said Akash Chougule, Vice President, Americans for Prosperity. “Thankfully, Rep. Smucker is attempting to stand in the way on behalf of those beleaguered taxpayers. We applaud his effort and urge Congress to pass this CRA immediately.”