US Federal House Bill HB2126

US Federal 2025-2026 Regular Session

• Introduced: 3/14/25
• Refer: 3/14/25

Caption

FOCA Act of 2025

Summary

HB2126, the Fair and Open Competition Act of 2025 (FOCA Act of 2025), would bar federal agencies from using construction contract terms to require or prohibit contractors and subcontractors from entering into agreements with labor organizations, including project labor agreements, or from favoring or penalizing bidders based on whether they are union signatories. The bill applies to federal construction contracts and to federally funded or assisted construction projects, and it also reaches subcontracts under covered contracts. The measure directs agencies to revise the Federal Acquisition Regulation within 60 days of enactment and extends the same neutrality requirements to grants, financial assistance, and cooperative agreements for construction projects. It allows voluntary labor agreements, but prohibits government-imposed labor-affiliation conditions in bid specifications, project agreements, or other controlling documents. The bill also creates limited exemptions for special circumstances involving imminent threats to public health or safety, national security, and certain already-initiated projects that had labor-related requirements in place before enactment.

Impact

If enacted, the bill would restrict federal procurement and grant conditions that currently may be used to encourage or require project labor agreements or other union-related commitments on construction projects. It would affect executive agencies, recipients of federal construction grants or assistance, parties to cooperative agreements, and construction managers acting on their behalf, while leaving voluntary agreements between private parties intact. The bill would likely influence federal contracting policy, the Federal Acquisition Regulation, and the competitive landscape for contractors, including small and nonunion firms, on federally funded construction work.

Sentiment

The bill’s stated purpose and sponsor list suggest strong support among House Republicans and proponents of open competition, lower costs, and neutrality in labor relations. Because there are no committee transcripts or recorded votes provided, there is no documented floor or committee debate in the supplied materials. Based on the text alone, the bill is framed as a pro-competition, anti-discrimination procurement measure rather than a labor-relations mandate.

Contention

The main point of contention is whether federal and federally funded construction projects should be allowed to require or prefer project labor agreements or other union-affiliated arrangements. Supporters argue such requirements can limit competition, raise costs, and disadvantage contractors that are not union signatories, while opponents are likely to view the bill as limiting a tool used to manage labor stability, project delivery, and workforce standards. The bill’s narrow exemptions for health, safety, national security, and certain preexisting projects indicate an attempt to address concerns about flexibility, but the core dispute remains over federal neutrality versus the use of labor-related contracting preferences.