FOCA Act of 2025
- Bill Number
- H.R. 2126
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-03-14: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-01-15T09:06:53Z
AI-Generated Summary
Purpose of the Legislation
The Fair and Open Competition Act of 2025 (H.R. 2126) aims to ensure fair bidding processes for federal and federally funded construction projects by preventing the federal government from favoring or disfavoring contractors based on their involvement with labor unions (also called labor organizations). It seeks to promote competition, lower costs for taxpayers, expand job opportunities (especially for small and disadvantaged businesses), and avoid discrimination related to union affiliations.
Key Provisions
- Prohibition on Requirements or Preferences Related to Labor Agreements (Section 3(a)):
- Federal executive agencies (such as departments that award contracts) must ensure that bid specifications, project agreements, or other key documents do not require or prohibit contractors or subcontractors from entering into agreements with labor organizations for the project or related work.
- Agencies cannot discriminate against or give preference to bidders based on whether they sign (or refuse to sign) such agreements.
- This applies to contracts awarded after the bill's enactment and any subcontracts under them.
- Voluntary agreements between contractors and labor organizations are still allowed.
- The Federal Acquisition Regulation (a set of rules governing federal procurement) must be updated within 60 days to enforce this.
- Application to Grants and Assistance (Section 3(b)):
- For construction projects funded by federal grants, financial assistance, or cooperative agreements awarded after enactment, agencies must ensure that recipients (like state or local governments) and their project managers do not include the prohibited requirements or preferences in their documents.
- Enforcement and Compliance (Section 3(c)):
- If an agency, grant recipient, or project manager fails to comply, the awarding agency's head must take appropriate legal action, such as withholding funds or imposing penalties.
- Exemptions (Section 3(d)):
- Agencies can exempt specific projects if needed to address immediate threats to public health, safety, or national security—but not if the issue stems from labor disputes involving non-union contractors or workers.
- An additional exemption applies to projects already underway as of enactment, if they had existing union-related requirements and contracts awarded before the law takes effect.
- Definitions (Section 3(e)):
- Construction contract: Any agreement for building, repairing, or improving real property like buildings or highways.
- Executive agency: Federal departments and agencies (excluding the Government Accountability Office).
- Labor organization: A union or similar group, as defined under civil rights law.
Significant Changes to Existing Law
- This bill would prohibit federal policies or executive orders that mandate or encourage Project Labor Agreements (PLAs)—contracts requiring union involvement on projects—which have been used in some administrations to set labor standards.
- It reverses or limits practices where federal funding conditions (like in grants) favor unionized labor, shifting toward a "neutrality" approach that treats union and non-union bidders equally.
- No changes to private sector labor laws; it only affects federal and federally assisted construction.
Potential Impacts
- On Government Agencies: Agencies will need to revise procurement processes and monitor grants to ensure compliance, potentially increasing administrative workload initially but aiming to reduce overall project costs through broader competition.
- On Citizens and Taxpayers: Could lower construction costs for public projects (e.g., infrastructure), saving taxpayer money, while expanding job access for non-union workers and small businesses.
- On International Relations: Minimal direct impact, though it may affect U.S. aid or joint projects abroad if they involve construction funded by federal dollars.
- Broader effects include more diverse bidding pools, potentially speeding up project completion but possibly leading to more labor disputes if unions feel disadvantaged.
Main Stakeholders Affected
- Federal Contractors and Subcontractors: Both union and non-union firms; non-union bidders gain equal footing, while union-affiliated ones lose any prior advantages.
- Workers: Construction employees, particularly those in non-union roles, who may see more job opportunities; union members could face reduced protections on federal projects.
- Small and Disadvantaged Businesses: Likely benefit from easier entry into bidding without union-related barriers.
- Labor Organizations (Unions): Potentially disadvantaged, as the law limits their ability to secure project-wide agreements.
- Federal Agencies and Grant Recipients: Must enforce neutrality, with accountability for non-compliance.
- Taxpayers: Indirectly affected through potential cost savings on public works.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces federal procurement laws emphasizing competition (e.g., under the Federal Acquisition Regulation) while aligning with antitrust principles against anti-competitive practices. Exemptions provide flexibility but limit abuse by excluding labor disputes as justification.
- Constitutional: Supports equal protection under the law by preventing discrimination based on union status; unlikely to raise First Amendment issues since it targets government actions, not private speech or association. Could face challenges from unions claiming it interferes with collective bargaining rights under the National Labor Relations Act.
- Political: Promotes a pro-business, free-market approach to government contracting, potentially reducing union influence on federal projects. As a bipartisan bill in introduction (though primarily Republican sponsors), it may spark debates over worker rights versus efficiency in infrastructure spending.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (107)
Rep. Meuser, Daniel [R-PA-9], Rep. Collins, Mike [R-GA-10], Rep. Ogles, Andrew [R-TN-5], Rep. Self, Keith [R-TX-3], Rep. Thompson, Glenn [R-PA-15], Rep. Gill, Brandon [R-TX-26], Rep. Aderholt, Robert B. [R-AL-4], Rep. Perry, Scott [R-PA-10], Rep. Crane, Elijah [R-AZ-2], Rep. Cline, Ben [R-VA-6], Rep. Sessions, Pete [R-TX-17], Rep. Allen, Rick W. [R-GA-12], Rep. Ezell, Mike [R-MS-4], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Webster, Daniel [R-FL-11], Rep. Mace, Nancy [R-SC-1], Rep. Nehls, Troy E. [R-TX-22], Rep. Crenshaw, Dan [R-TX-2], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3], Rep. Harris, Andy [R-MD-1], Rep. McClintock, Tom [R-CA-5], Rep. Biggs, Andy [R-AZ-5], Rep. Palmer, Gary J. [R-AL-6], Rep. De La Cruz, Monica [R-TX-15], Rep. Moolenaar, John R. [R-MI-2], Rep. Ciscomani, Juan [R-AZ-6], Rep. Bentz, Cliff [R-OR-2], Rep. Fitzgerald, Scott [R-WI-5], Rep. Burchett, Tim [R-TN-2], Rep. Johnson, Dusty [R-SD-At Large], Rep. Dunn, Neal P. [R-FL-2], Rep. Bilirakis, Gus M. [R-FL-12], Rep. Hageman, Harriet M. [R-WY-At Large], Rep. Mann, Tracey [R-KS-1], Rep. Boebert, Lauren [R-CO-4], Rep. Biggs, Sheri [R-SC-3], Rep. Calvert, Ken [R-CA-41], Rep. Norman, Ralph [R-SC-5], Rep. Wittman, Robert J. [R-VA-1], Rep. Onder, Robert [R-MO-3], Rep. Green, Mark E. [R-TN-7], Rep. Buchanan, Vern [R-FL-16], Rep. Bice, Stephanie I. [R-OK-5], Rep. Guest, Michael [R-MS-3], Rep. McGuire, John [R-VA-5], Rep. Moore, Barry [R-AL-1], Rep. Bean, Aaron [R-FL-4], Rep. Guthrie, Brett [R-KY-2], Rep. Gosar, Paul A. [R-AZ-9], Rep. Rouzer, David [R-NC-7] and 57 more
Recent Actions
- 2025-03-14: Referred to the House Committee on Oversight and Government Reform.
- 2025-03-14: Introduced in House
- 2025-03-14: Introduced in House
Bill Versions
- Fair and Open Competition Act of 2025 — issued 2025-03-14 — PDF (8 pages)