PLA mandate to stay, with exemptions: OMB


President Donald Trump signs a series of bills during an event in the East Room of the White House o

Author: Construction Dive
Published On: 06/15/2025

The Trump administration said Thursday that it supports the use of project labor agreements on federal construction projects when they are “practicable and cost effective.”

The Trump administration has indicated it will not rescind a Biden-era rule mandating the use of project labor agreements on large publicly funded jobs.

After months of court cases and federal agencies announcing deviations from Federal Acquisition Regulation rules regarding PLA use, a Thursday Office of Management and Budget memo to federal agencies and department heads sought to unmuddy the waters.

“For clarity, the Trump Administration supports the use of PLAs when those agreements are practicable and cost effective, and blanket deviations prohibiting the use of PLAs are precluded,” read the memo signed by Russell Vought, OMB director.

The memo acknowledged concerns from federal agencies that award large-scale construction projects regarding the ability to create competition for fair and reasonable pricing on contracts.


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