Federal construction projects lose labor-standard leverage under new 'neutrality' bill
H.R. 2126 — FOCA Act of 2025 · Filed by Clay Higgins (R-LA) · 107 cosponsors · Introduced Mar 14, 2025 · Referred to committee
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What it does
This bill prohibits federal agencies and recipients of federal construction funding from requiring or preferring union membership in their bid specifications or project agreements. It bars agencies from discriminating for or against contractors based on whether they sign union agreements, while preserving contractors' right to voluntarily unionize. The stated goal is to reduce construction costs, expand competition, and prevent labor-affiliation discrimination on federal and federally funded construction projects.
Why we flagged it
The bill's core mechanism is a prohibition on federal agencies using project specifications to require or prefer union agreements. While framed as 'neutrality,' it functionally deregulates labor conditions on federally funded construction by stripping agencies of a traditional procurement tool.
What the text implies
- Removes federal leverage to enforce prevailing-wage standards on construction projects, potentially lowering wages for construction workers on federal projects even if union membership itself remains voluntary.
- May shift bargaining power toward non-union contractors and away from organized labor, indirectly reducing union density on federal projects without formally banning unions.
The full analysis lists 4 implications of this text.
Who stands to gain
non-union construction contractors; construction companies seeking to avoid prevailing-wage requirements; general contractors and subcontractors operating in non-union markets