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POTUS to Sign Executive Order Requiring PLAs on Federal Construction Projects Above $35M

This afternoon, President Joe Biden is traveling to Maryland to sign an executive order to require the use of project labor agreements (PLAs) on federal construction projects above $35 million. The scope of the executive order is limited, however, insofar as the executive order will only apply to provisions in the Bipartisan Infrastructure Law that are direct federal procurement, which excludes construction projects financed through grant dollars to states and other non-federal entities.

Nonetheless, the White House estimates that the executive order could affect $262 billion in federal government construction contracting and improve job quality for up to 200,000 workers on federal construction contracts. In addition, the executive order directs the departments of Defense and Labor, along with the Office of Management and Budget, to lead a training strategy for the federal contracting workforce on the implementation of this policy.

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