SLC Times

Senator Mike Lee (R-UT) has reintroduced the Davis-Bacon Repeal Act, a bill aimed at eliminating the wage subsidy law that requires federally funded construction projects to pay workers the prevailing wage rate. Senator Lee, along with Senators Ted Budd, Ted Cruz, and Rick Scott, believes that the act imposes undue burdens on the economy and benefits organized labor at taxpayers' expense.

In a statement, Sen. Lee expressed his concerns about the Davis-Bacon Act, stating, "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." He emphasized the need to repeal the act to remove barriers to economic growth and ensure taxpayer dollars are used more efficiently.

According to the bill's supporters, prevailing wage rates under the Davis-Bacon Act are, on average, 22% higher than market wages, leading to inflated costs for federally funded construction projects. The Congressional Budget Office estimates potential savings of $10.7 billion over ten years by repealing the act, while the Heritage Foundation suggests that repeal could have saved taxpayers $10.9 billion in 2010 alone and created job opportunities in the construction industry.

The reintroduction of the Davis-Bacon Repeal Act has sparked discussions on the impact of prevailing wage laws on federal construction projects and the potential benefits of repealing such regulations.