Notice of Proposed Rulemaking regarding project labor agreements
On Aug. 19, the Department of Defense, General Services Administration and National Aeronautics and Space Administration issued a Notice of Proposed Rulemaking to implement President Biden’s Executive Order issued in February regarding the use of project labor agreements for large federal construction projects.
The proposed regulations amend the Federal Acquisition Regulation to require PLAs on “large-scale construction contracts,” which are defined as projects estimated to cost $35 million or more (an increase from the current threshold of $25 million or more) unless certain exceptions apply. Federal agencies also will have the discretion to require PLAs for federal construction projects that do not meet the $35 million threshold. If the proposed regulations are finalized as drafted, federal contractors may begin to see the PLA requirements in new solicitations issued in late 2022 or the first quarter of 2023. Public comment on the proposed rule will be accepted until Oct. 18.
Primary elections near completion
On Aug. 23, in New York, Democrat Pat Ryan beat Republican Marc Molinaro in a special election to replace Democrat Antonio Delgado, who left to become the state’s lieutenant governor. Ryan will have to defend the seat in November. Two long-serving incumbent Democrats ran against each other this year because of redistricting, and Chairman of the House Judiciary Committee Rep. Jerry Nadler beat Rep. Carolyn Maloney for the Manhattan district. Dan Goldman, a Levi Strauss & Co. heir, who was the lead Democratic counsel during President Trump’s first impeachment, won the primary for New York’s 10th congressional district, defeating incumbent Rep. Mondaire Jones (D-N.Y.), among others, in a crowded field in the reshaped district. Rep. Sean Patrick Maloney won his primary in the newly drawn 17th congressional district in New York, beating out state Sen. Alessandra Biaggi. He now heads to a competitive general election facing Republican state Assemblymember Mike Lawler.
In Florida, activist Maxwell Frost won the Democratic primary for the 10th district and, if elected, would become the first Gen Z member of Congress at age 25. In Oklahoma, Rep. Marywayne Mullin won the Republican primary runoff for the Senate seat of retiring Sen. James Inhofe and will face former Democratic Rep. Kendra Horn in the general election.
Massachusetts, Delaware, New Hampshire and Rhode Island will be the last states to hold primary elections ahead of the 2022 general in November.
President Biden announces federal student loan forgiveness
On Aug. 24, President Biden announced he will forgive $10,000 in federal student debt for Americans earning less than $125,000 per year and will cancel up to $20,000 for receipts of Pell Grants. Biden also announced an extension of a pause on federal student loan payments through Dec. 31. Various economic modeling has scored this action to cost between $200 billion and $1 trillion.
This announcement has kicked off much debate in Washington D.C., focused on how forgiveness may affect already high inflation, the cost of higher education overall and fairness to those who made choices to not take on student debt that would be difficult to repay. The American Action Network quickly released this viral ad showing essential workers footing the bill for college graduates.
Biden’s plan is expected to face legal hurdles, which would cause uncertainty for borrowers who stand to benefit from the new policy. Alternatively, there are challenges for those hoping to sue the administration regarding the plan because it may be hard to show standing— meaning to show they were harmed in some way—in this particular case. The administration cites the Heroes Act of 2003, which gave the Department of Education the authority to waive debt obligations amid a war or national emergency. This law was passed after 9/11 with veterans fighting in the Middle East in mind. Biden is pointing to the national emergency aspect of the Heroes Act—the COVID-19 pandemic.
