As federal construction funding flowed into critical infrastructure in the Biden era, one policy threat looms large for meritshop contractors: Executive Order (EO) 14063, which mandates project labor agreements (PLAs) on all federal construction projects valued at $35 million or more.
Despite hopes from ABC and nonunion advocates for rollback, the Trump administration recently confirmed it will continue enforcing this Biden-era order.
What’s at stake with EO 14063
Signed on February 4, 2022, EO 14063 requires federal agencies to impose PLAs on large-scale construction projects. While proponents cite benefits like predictable labor conditions and union stability, critics argue PLAs reduce competition, drive up costs and shut out nonunion contractors, who represent nearly 90% of the U.S. construction workforce.
ABC warns that mandating PLAs inflates project costs by 12-20%, slows schedules due to restrictive labor terms and excludes highly skilled meritshop firms from bidding.
The Trump reversal: Old order, modern wounds
On June 12, 2025, the Office of Management and Budget announced that PLA enforcement will continue under a new Trump administration directive. This pivot leaves meritshop firms in limbo. Even as ABC pursues legal challenges, the policy’s persistence reshapes the competitive landscape. Consequences include:
- Reduced bidding by merit-shop firms: Faced with union-only PLA terms, many choose not to compete.
- Higher taxpayer costs: With fewer bidders, federal construction contracts may exceed budgets — burdening taxpayers.
- Talent pipeline distortion: Young, nonunion craft professionals see fewer opportunities in federal-funded work, threatening future workforce strength.
Meritshop workforce on the line
ABC Greater Houston Chapter proudly supports hundreds of merit-shop firms and thousands of skilled craft workers. These companies — and the nonunion workforce behind them — could face pressure in several areas:
- Workforce attrition: With federal opportunities restricted, meritshop firms may shrink or shift focus.
- Disrupted training pipelines: ABC Houston and our Construction Maintenance Education Foundation invest heavily in NCCER-accredited programs; limited federal work can reduce the ROI on these investments.
- Distorted labor markets: Nonunion apprentices may find more opportunities in local municipal work, further marginalizing federal contracts.
A needed reset: ABC’s call for action
ABC’s national leadership is actively:
- Challenging EO 14063 in federal courts, citing inflated costs and reduced competition.
- Urging a new executive order that restores meritshop access and counters anticompetitive mandates.
- Mobilizing grassroots campaigns, including letter-writing and coordination with federal legislators, to push for policy reversal.
Why Houston must fight back
In rapidly growing Houston, federal construction plans — spanning ports, transportation hubs and energy projects — are more than blueprints; they represent career pathways for local craft professionals. If PLAs remain mandatory, ABC Houston warns we could lose:
- Fair access: Meritshop companies may be shut out of pivotal federal builds.
- Cost efficiency: Houston taxpayers could shoulder inflated price tags.
- Workforce continuity: Apprentices and seasoned nonunion workers may see fewer opportunities, threatening long-term industry health.
Defend merit, jobs and open competition
The continued enforcement of EO 14063 under the Trump administration isn’t just outdated policy — it’s a direct threat to free enterprise, job creation and the merit shop values that drive Houston’s construction industry. It undermines fair competition and the skilled workforce that powers our region. Now is the time to act.
For more information, visit abchouston.org.
