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EO 14126Executive OrderBiden · D Quiet signal

Executive Order 14126

Investing in America and Investing in American Workers

This executive order directs federal agencies to prioritize high labor standards—including prevailing wages, project labor agreements, union neutrality, and workforce development—when awarding federal financial assistance under the Investing in America agenda (infrastructure, CHIPS, and clean energy laws). It establishes an interagency task force to coordinate implementation and requires agencies to embed job quality criteria into grant-making processes.

Federal Register Open PDF 89 FR 73559

Impact dates

  1. Development of application evaluation criteria and selection factors

  2. Publication of best practice guides and workforce development guidance

  3. Agency staff training and expertise development on good jobs implementation

  4. Task Force establishment and commencement of coordination activities

  5. Implementing agencies to begin considering labor standards in federal financial assistance selection

Key directives

  • Implementing agencies shall prioritize projects with project labor agreements, community benefits agreements, collective bargaining agreements, and employer neutrality toward union organizing
  • Agencies shall prioritize projects paying family-sustaining wages tied to prevailing wages, upper quartile industry pay, or union pattern scales
  • Agencies shall prioritize projects providing paid leave, health care, retirement benefits, and child/dependent/elder care
  • Agencies shall prioritize projects with workforce plans recruiting from underserved communities and formerly incarcerated individuals
  • Agencies shall prioritize projects expanding registered apprenticeships, pre-apprenticeships, and joint labor-management training partnerships
  • Agencies shall collect data through yes/no transparency questions, certified payrolls, and key metrics reporting
  • Agencies may penalize violations through financial penalties, fund recovery, withholding assistance, or debarment
  • Task Force co-chaired by Secretary of Labor and National Economic Council Director to coordinate policy and provide technical assistance

Who is ordered

Timeline

Immediate

  • Task Force established within Executive Office of the President
  • Implementing agencies directed to consider labor standards in federal financial assistance decisions

Near term (90d)

  • Agencies to develop application evaluation criteria incorporating job quality priorities
  • Publication of best practice guides for applicants expected
  • Agency staff training on good jobs implementation to commence

Long term

  • Shift in federal grant-making toward systematic preference for projects with high labor standards
  • Potential expansion of registered apprenticeships and pre-apprenticeship pipelines
  • Integration with Justice40 Initiative requirements ongoing

Risks & tensions

  • Legal challenges possible from recipients arguing conditions on federal funds exceed statutory authority or violate the National Labor Relations Act
  • Vague 'as appropriate and consistent with applicable law' qualifiers throughout may limit actual enforcement consistency across agencies
  • No mandatory requirements—only prioritization and encouragement—potentially weakening real-world impact
  • Conflict with potential change in administration could result in non-enforcement or rescission before full implementation
  • Tension between promoting unionization and maintaining neutrality requirements under federal labor law
  • Administrative burden on agencies and applicants may slow project delivery, contrary to stated efficiency goals
Executive Order 14126: Investing in America and Investing in American Workers · Executive Orders