Federal Contracts

US Election 2024

Trump Reverses Biden’s $17.75 Federal Contractor Minimum Wage

President Trump rescinded President Biden’s executive order mandating a $17.75 minimum wage for federal contractors, reverting to a pre-2022 standard of $13.30 for existing contracts and the federal minimum wage ($7.25) or applicable state minimums for new ones. This action overturned a significant pay increase impacting roughly 20% of the U.S. workforce employed by federal contractors. The repeal also eliminated Biden’s pro-union and apprenticeship program incentives for federal contracts. This decision follows court rulings upholding Biden’s order, raising the possibility of future executive action by Trump to address other policy priorities.

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John Q. Hosedrinker
Politics

DOGE Contract Cancellations: 40% Yield No Savings, Raising Concerns

Analysis of data from the Department of Government Efficiency (DOGE) reveals that nearly 40% of the Trump administration’s canceled federal contracts, totaling 794, will not result in cost savings due to pre-existing financial obligations. This “slash and burn” approach, criticized for its lack of efficiency and potential harm to government agencies, contrasts with alternative methods of identifying cost-saving measures. Despite DOGE’s claim of $65 billion in savings from various cost-cutting measures, this figure remains unverified. The cancellations include contracts for various goods and services, some already fully paid, raising concerns about the program’s effectiveness.

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John Q. Hosedrinker

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