While many economists and experts seem to agree that a recession is looming (or already here), the Biden administration continues to champion policies that will make it tougher for certain businesses to manage through the next economic downturn—after already having survived the pandemic.

Chief among these policies are the administration’s proposals to push government-mandated project labor agreements on federal and federally assisted construction contracts, impose radical changes to the Davis-Bacon Act and reassess recently revised joint-employer, independent contractor and overtime regulations from the U.S. Department of Labor. These adjustments have provided more uncertainty for employers and construction contractors throughout the country.

Further, outside of Executive Order 14063—signed by President Biden in February and mandating PLAs on federal contracts of $35 million or more—federal agencies continue to encourage and/or require PLAs for federally assisted construction projects via grant programs, undermining state and local government efforts to improve their communities via the benefits of fair and open competition for taxpayer-funded construction projects.

These policies and regulations are now expanding into new technologies in the clean energy space. Notably, the Biden administration is advancing policies requiring electric vehicle (EV) charging stations to be wired and built by union labor alone, defying market-based realities.

In June, the U.S. Department of Transportation’s Federal Highway Administration (FHWA) announced via a proposed rule that it will be implementing the “National Electric Vehicle Infrastructure Formula Program,” which requires contractors to use government-registered apprentices and the Electric Vehicle Industry Training Program (EVITP), which is promoted by the International Brotherhood of Electrical Workers and only available at specific locations.

Assuming the growth of the EV market will only happen if consumers can rely on a robust web of charging stations, it’s easy to see that funneling work to union workers—who comprise less than 13% of the construction industry—will exacerbate the existing skilled-labor shortage of construction workers needed to achieve the Biden administration’s ambitious goal to facilitate the installation of 500,000 stations by 2030. However, President Biden’s decision to use $7.5 billion in EV infrastructure funding from the Infrastructure Investment and Jobs Act of 2021 (IIJA) on special interests will hurt the growth potential for Ford, Tesla and other U.S.-based EV manufacturers, likely resulting in fewer jobs.

In response to a November 2021 request for information on the development of EV charging infrastructure, Associated Builders and Contractors submitted comments to the FHWA on behalf of member contractors that install and perform work related to charging and other alternative clean-energy fuel stations. ABC urged regulators to avoid any language or additional regulatory actions that might limit opportunities for experienced, quality contractors and skilled construction workers who already build EV charging stations and related alternative fuel infrastructure from winning contracts. ABC expressed concerns that future guidance and regulations might needlessly increase costs, reduce competition from contractors and artificially shrink the pool of qualified construction labor needed to build EV charging stations and alternative clean-energy projects, undermining the Biden administration’s clean-energy goals.

The Biden administration maintains that specialized, union-backed training is needed in order for qualified electricians to install an EV charging station for which the federal government is footing the bill. However, this justification falls short when confronted with ABC member contractors that have their own certified electrical training programs, which comprise a key segment of the construction industry’s EV contracting base.

While the Biden administration’s actions would be troubling for this industry at any given time, doing so when so much uncertainty in the economy is on the horizon—rising inflation, supply-chain delays and historically high gas prices—only serves to increase heartburn. If the administration doesn’t correct its course soon, it will have a negative impact on the success of the bipartisan IIJA and set back the modernization of United States infrastructure and clean-energy strategy for years to come.