Lee Introduces Bill to Drive Down Costs of Federally Funded Infrastructure Construction Projects
July 16, 2015
WASHINGTON – Today, Senator Mike Lee introduced a bill that reduces the inflated costs of federal construction projects on our nation’s transportation infrastructure. The “Davis-Bacon Repeal Act” also reduces burdens on federal contractors who train and employ low-skilled workers, while saving the American people billions of dollars in taxpayer money.
“The Davis-Bacon Act is an 80-year-old wage subsidy law that requires all federally funded projects worth more than $2,000 to pay workers the so-called ‘prevailing wage,’” Sen. Lee said. “However, the ‘prevailing wage’ is determined not by market forces operating in reality, but by federal bureaucrats operating in Washington, DC. As a result, federal contractors are charged, on average, a 22 percent premium on their labor costs above what private companies pay for the same project, which often prevents low-skilled workers from getting a fair shot. Repealing the outdated, costly Davis-Bacon Act will give federal contractors the ability to hire more workers of all skill level, while lowering the overall costs of federal transportation construction projects.”
Senator Lee plans to offer the Davis-Bacon Repeal Act as an amendment to the highway legislation that the Senate will consider later this month. Joining Senator Lee in support of the “Davis-Bacon Repeal Act” are nine original cosponsors: Sens. Rubio (FL), McCain (AZ), Perdue (GA), Cruz (TX), Johnson (WI), Cotton (AR), Cornyn (TX), Alexander (TN), and Scott (SC).
“The Davis-Bacon Act is an 80-year-old wage subsidy law that requires all federally funded projects worth more than $2,000 to pay workers the so-called ‘prevailing wage,’” Sen. Lee said. “However, the ‘prevailing wage’ is determined not by market forces operating in reality, but by federal bureaucrats operating in Washington, DC. As a result, federal contractors are charged, on average, a 22 percent premium on their labor costs above what private companies pay for the same project, which often prevents low-skilled workers from getting a fair shot. Repealing the outdated, costly Davis-Bacon Act will give federal contractors the ability to hire more workers of all skill level, while lowering the overall costs of federal transportation construction projects.”
Senator Lee plans to offer the Davis-Bacon Repeal Act as an amendment to the highway legislation that the Senate will consider later this month. Joining Senator Lee in support of the “Davis-Bacon Repeal Act” are nine original cosponsors: Sens. Rubio (FL), McCain (AZ), Perdue (GA), Cruz (TX), Johnson (WI), Cotton (AR), Cornyn (TX), Alexander (TN), and Scott (SC).
