The U.S. Department of Transportation (DOT) announced a pilot program this week that will allow state and local governments to utilize local hiring preferences on their federal-aid highway and federal transit assisted contracts. The pilot program is effective immediately. In addition, DOT issued a notice of proposed rulemaking to alter Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) regulations that will make these changes permanent. DOT has provided a 30-day comment period on these changes.
FHWA and FTA regulations have traditionally prohibited the use of local hire preferences because of their impact on competition; however, there have been efforts by some in Congress to allow the use of local preferences. A provision in last year’s transportation appropriations legislation allowed transit agencies to use local hiring requirements on FTA-funded projects for FY 2015.
ÎÚÑ»´«Ã½ has opposed local hiring preferences in the past and will continue to do so. Comments will be submitted challenging the constitutional basis for this proposal. In addition, ÎÚÑ»´«Ã½ is reaching out to Congressional allies who oppose these local preferences, asking them to weigh in with DOT opposing the changes.
For more information, please contact Brian Deery at deeryb@agc.org or (703) 837-5319.