Page 604

argue that the next Administration should end Project Labor Agreement requirements and repeal the Davis—Bacon Act. And while some conservatives have chosen not to address massive federal subsidies for unionized labor, others believe that current laws and regulations that pick winners and losers to the detriment of the majority of construction workers and to all taxpayers should not be ignored.

Project Labor Agreements (PLAs) are short-term collective bargaining agreements that apply to construction projects. There are a few reasons that construction projects may benefit from a PLA, and there are many reasons that even when actively encouraged to do so public construction projects have declined to use PLAs. Among the consequences: The majority of construction firms and construction workers are not unionized and their temporary forced unionization results in large-scale wage theft; construction companies are significantly less likely to bid on projects with PLAs; and PLAs consistently drive up construction costs by 10 percent to 30 percent.

The Davis—Bacon Act” requires federally financed construction projects to pay

“prevailing wages.” In theory, these wages should reflect going market rates for

construction labor in the relevant area. However, both the Government Accountability Office and the Department of Labor’s Inspector General have repeatedly criticized the Labor Department for using self-selected, statistically unrepresentative samples to calculate the prevailing-wage rates that drive up the cost of federal construction by about 10 percent. The Davis—Bacon Act redistributes wealth from hardworking Americans to those that benefit from government-funded construction projects. Repealing the Davis—Bacon Act would increase worker freedom and end a longstanding effective tax on American families.

• End PLA requirements. Agencies should end all mandatory Project Labor Agreement requirements and base federal procurement decisions on the contractors that can deliver the best product at the lowest cost.

• Repeal Davis-Bacon. Congress should enact the Davis—Bacon Repeal Act and allow markets to determine market wages.

THE STATES

Worker-led Benefits Experimentation. Workers depend on unemployment benefits to navigate inevitable market frictions and seek new employment opportunities. But existing unemployment insurance (UI) is bureaucratic, ineffective, and unaccountable. The outdated system’s myriad failures during the COVID-19 pandemic highlighted the need for innovations that respond to recipients’ needs.

The most promising avenue for innovation is to involve workers and private-sector organizations more directly, freed from unnecessary bureaucratic strictures. Americans take for granted that unemployment benefits must be administered by