WASHINGTON – Senator Mike Lee (R-UT) reintroduced the Davis-Bacon Repeal Act, legislation to eliminate the wage subsidy law that mandates federally funded construction projects worth more than $2,000 pay workers the "prevailing wage" rate applicable in the same locality for non-federal projects. This act imposes undue burdens on the economy, disadvantages unskilled labor, and unfairly benefits organized labor at taxpayers' expense.

The bill is cosponsored by Sens. Ted Budd (R-NC), Ted Cruz (R-TX), and Rick Scott (R-FL).

"The Davis-Bacon Act is a glaring example of how excessive government regulation is detrimental to our economy, favoring special interest groups over the broader public interest and limiting opportunities for workers," said Sen. Lee. "By repealing this act, we aim to remove these artificial barriers to economic growth, alleviate the pressure on federal project costs, and ensure taxpayer dollars are utilized more efficiently."

The act's prevailing wage rates are, on average, 22% higher than market wages, leading to inflated costs for federally funded construction projects, increased administrative workload, and oversight of the varied skill levels required for different construction jobs.

The CBO estimates savings of $10.7 billion over ten years, while the Heritage Foundation suggests that repeal could have saved taxpayers $10.9 billion in 2010 alone, potentially employing 155,000 more workers in construction-related fields without additional cost to taxpayers.

 
For a one pager, click HERE.

For bill text, click HERE.