Court Ruling Strikes Down Biden's PLA Mandate for Federal Construction

The United States Court of Federal Claims has delivered a significant blow to the Biden administration's efforts to impose project labor agreements (PLAs) on most federal construction projects. In a ruling issued on January 21, 2025, the court invalidated the administration's mandate, finding that it constituted an unauthorized set-aside. The Associated General Contractors of America (AGC) hailed the decision as a victory for fair competition and worker choice.

The ruling stems from a consolidated bid protest, MVL USA, Inc., et al. v. United States, Case No. 24-1057, which the AGC facilitated as a challenge to the Biden administration's Executive Order 14063. The order required contractors and subcontractors on federal construction projects valued at $35 million or more to enter into PLAs, effectively excluding open shop contractors from competing fairly.

AGC CEO Jeffrey Shoaf praised the ruling, stating that it "vindicates the novel approach AGC put in place to challenge the Biden administration's unlawful project labor agreement mandate." The ruling allows all construction workers and their employers to compete fairly for large federal construction projects without government-mandated coercion. Contractors can now voluntarily enter into PLAs if they and their labor partners deem it appropriate, but they are no longer required to do so to qualify for large-scale federal work.

The ruling has significant implications for the competitive landscape of federal construction projects. It levels the playing field for contractors, enabling them to compete more freely and fairly for federal construction projects. This decision ensures that the government's procurement process adheres to the law and does not discriminate against certain types of contractors or workers.



Moving forward, the AGC has expressed hope that the incoming Trump administration will officially revoke President Biden's illegal project labor agreement Executive Order and FAR Rules, especially in light of last night's ruling. By doing so, President Trump can follow the law and understand the very obvious benefits of letting all workers compete for the opportunity to build federal projects.

In conclusion, the U.S. Court of Federal Claims' ruling has struck down the Biden administration's PLA mandate for federal construction projects, paving the way for fairer competition and worker choice. The incoming Trump administration should consider revoking the illegal Executive Order and FAR Rules to ensure a level playing field for all contractors and workers.