Reversing Trump, Buttigieg reinstates local hiring

Transportation Secretary Pete Buttigieg on Wednesday reinstated an Obama-era pilot program that aims to aid minority and disadvantaged people by ensuring local hiring for public works construction projects, reversing a decision by the Trump administration.

Buttigieg made the announcement at an event at the Frederick Douglass Memorial Bridge, which is decades old and is being modernized.

The Transportation Department's four-year pilot initiative, originally launched by the Obama administration in 2015, will permit state and local agencies receiving federal transit or highway money to impose local hiring preferences, such as those favoring veterans, minorities and low-income workers.

The program had been scrapped by President Donald Trump in 2017, reverting to rules set during President Ronald Reagan's administration, which prohibited geographic-based hiring preferences.

But as President Joe Biden pushed a $2.3 trillion infrastructure plan geared toward creating millions of jobs, a range of advocacy groups and Democratic senators urged Buttigieg to roll out a new local hiring program, saying that the federally funded construction projects could dole out ways for local residents to access well-paying jobs and revitalize regional economies.

The department said the effort will help provide an employment opportunity for local communities "and perhaps the first step toward a construction career."

"We are going to help people across the country get good jobs in construction and turn those jobs into great careers in the building trades," Buttigieg said. "We're talking about good paying union jobs for the American people. So, under this four-year pilot, the Federal Highway Administration and the Federal Transit Administration will enable recipients of federal dollars for construction projects to include local Labor hiring preferences, including for low-income workers or underinvestment, underserved and overburdened communities."

The effort will also seek to help transit agencies implement "best practices" to hire employees for advanced technology projects, including electric buses and high-speed rail.

The Associated General Contractors of America opposes the program, arguing it would increase construction costs or reduce competition in the contract bidding process.

The Transportation Department's pilot initiative would allow cities to test the impact of local hiring preferences on prices and competition. A more permanent change in local hiring for federally funded projects would require the department to propose new regulations, something that Buttigieg has not indicated whether he will do.