Davis-Bacon Rule Drives Up Costs and Shuts Out Small Businesses

“By requiring ‘prevailing’ wage rates for federal contracts, the Davis-Bacon rule will dramatically increase the costs of federal construction projects that are already often plagued by cost overruns at taxpayers’ expense. As a result, this rule will accelerate inflation and reckless government spending that are already hurting ordinary Americans. The rule also hurts small businesses, especially minority-owned small businesses, which often cannot pay these above-market wage rates, shutting them out from federal contracts. The Biden rule tips the scales in favor of Big Labor and against small businesses. It’s just the latest front in the administration’s war on small businesses.”