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Project Labor Agreement Mandates, Battleground State Politics, and What They Mean for Merit Shop Contractors in the Carolinas

New Harris Poll data just blew a hole in the politics of PLA mandates. Nonunion construction workers make up 76 to 98 percent of the workforce in the six 2026 battleground states — North Carolina included — and they oppose union preferences in federal contracting by a two-to-one margin. Here is what Carolinas contractors need to know before midterm season heats up.

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New data just dropped, and it should reshape how you think about federal construction opportunities in North Carolina and South Carolina. On May 6, 2026, Associated Builders and Contractors released a Harris Poll survey revealing that nonunion skilled trades workers make up the overwhelming majority of the construction electorate in battleground states—including 92% in North Carolina. Yet the current administration continues to defend a Biden-era mandate that effectively bars these workers and their employers from participating in large-scale federal projects.

If you’re bidding federal work in the Carolinas or thinking about it, this is your insider briefing on what project labor agreements actually mean for your business, what the new polling says about where the political winds are blowing, and how ABC Carolinas is giving members a direct lane to push for change.

Key Takeaways

Project labor agreements are now mandated on most direct federal construction projects valued at $35 million or more under Executive Order 14063. For merit shop contractors across Charlotte, the Triangle, and Upstate South Carolina, this isn’t abstract Washington policy—it’s reshaping who can realistically bid and win federal work at military installations, data centers, and infrastructure corridors right now.

Here’s what the May 6, 2026, Harris Poll data tells us about the political landscape:

  • Nonunion skilled trades workers comprise 76% to 98% of the construction workforce electorate in the six battleground states polled, with North Carolina at 92%
  • Nonunion workers backed President Trump at significantly higher rates than union workers in 2024—a 19-point gap in Arizona, Georgia, and North Carolina
  • Both nonunion construction workers (83%) and union construction workers (73%) agree that the federal government should select contractors based on best value for taxpayers, not union affiliation
  • ABC research documents that government-mandated project labor agreements increase federal construction costs by roughly 12% to 18% while reducing the pool of qualified bidders by 30% to 50%

For contractors watching Fort Liberty, Fort Jackson, the I-85 and I-95 corridors, and the booming data center market, this is an immediate business issue. ABC Carolinas is actively organizing advocacy through the Free Enterprise Alliance, state PACs, and direct engagement with both congressional delegations to push for a reversal.

A group of construction workers in hard hats is gathered at a commercial jobsite, intently reviewing blueprints with a large crane visible in the background. This scene highlights the collaborative efforts of construction contractors involved in federally funded construction projects, emphasizing the importance of labor management stability and safety regulations.

What Is a Project Labor Agreement (PLA) in Federal Construction?

If you don’t deal with federal procurement regularly, here’s the plain-language version: a Project Labor Agreement (PLA) establishes the terms and conditions of employment for a specific construction project before any workers are hired. It’s a pre-hire collective bargaining agreement between one or more labor organizations—typically construction unions affiliated with building trades councils—and the project owner or contracting agency.

Project labor agreements (PLAs) typically require:

  • Union wage rates (often 20-30% above prevailing nonunion rates)
  • Union work rules including jurisdictional craft lines and crew assignments
  • Union hiring hall referrals for most or all labor
  • Contributions to union benefit funds for pensions, health, and training
  • Union steward oversight and binding grievance arbitration
  • Mandatory guarantees against strikes and lockouts

Under the National Labor Relations Act, PLAs are an exception to standard rules—they allow union representation on a particular project without a National Labor Relations Board-supervised election. For a merit shop contractor, signing such an agreement means temporarily operating under union terms for the duration of the project, even when your existing workforce is nonunion.

Proponents of project labor agreements argue that they can positively impact local communities by setting goals for local hiring and providing education opportunities for local workers. Many PLAs include provisions for local hiring or training programs for veterans and disadvantaged workers, and labor agreements like PLAs often support community workforce initiatives and local economic impact. Some proponents also claim PLAs can lead to 15% to 17% faster completion times compared to non-PLA projects through producing labor management stability.

PLAs are primarily used for large-scale, complex projects like highways, stadiums, and schools. While they can be used voluntarily on private projects, the policy debate centers on government-mandated project labor agreements on taxpayer-funded construction projects.

Executive Order 14063: How the Current PLA Mandate Works

On February 4, 2022, President Biden signed Executive Order 14063, which requires project labor agreements on federal construction projects valued at $35 million or more, reversing previous executive orders that prohibited such mandates. The implementing rule took effect for most federal solicitations on or after January 22, 2024.

Executive Order 14063 covers direct federal construction contracts—where federal agencies like USACE, GSA, VA, and DoD serve as the contracting entity—for both vertical and civil work. The mandate applies to the total cost to the federal government, meaning a $50 million DoD barracks project at Fort Liberty triggers PLA requirements regardless of how many phases or contract vehicles are used.

This government-mandated approach differs from prior policy:

Administration Policy Approach
Obama (2009) Executive Order 13502 encouraged PLAs on projects $25M+ on case-by-case basis for achieving economy and efficiency
Trump (2017) Executive Order 13782 prohibited PLA mandates on federal and federally assisted projects
Biden (2022) Executive Order 14063 requires PLAs on direct federal projects $35M+

As of 2026, the Trump administration has continued to defend the Biden-era PLA rule in ongoing litigation and through procurement policy—creating a notable disconnect between the administration’s political base of nonunion construction workers and its stance on mandated project labor agreements.

Why Government-Mandated PLAs Shut Out Merit Shop Contractors

The construction industry relies heavily on nonunion workers—nearly 90% of the national construction workforce operates outside union membership. Government-mandated PLAs are structured in ways that make participation costly and operationally risky for merit shop contractors.

Key barriers for nonunion contractors include:

  • Using union hiring halls that prioritize union members, often displacing skilled in-house crews
  • Paying into union fringe benefit funds (typically 25-40% of wages) where short-term workers rarely vest
  • Following union seniority rules and crew assignments that override company practices
  • Installing union stewards with authority to halt work for grievances
  • Accepting union representation for employees who may not want it

Surveys of nonunion contractors suggest that government-mandated PLAs can lead to worse local hiring outcomes, as they often require hiring through union halls, which may not include nonunion local workers. This undermines claims about community benefits.

Research indicates that PLAs can disproportionately affect women and minority contractors, limiting their ability to compete for jobs and potentially reducing local hiring opportunities for their workers. Surveys also suggest that government-mandated PLAs can lead to a decrease in the hiring of women, veterans, and disadvantaged business enterprises, as these groups are often underrepresented in union membership.

For minority contractors and small businesses throughout North Carolina and South Carolina, these barriers compound. Many lack existing union ties and face bonding challenges when forced to inflate bids to cover PLA compliance costs.

The Cost of PLAs: What ABC Data Shows

ABC’s analysis of competitive bidding data and independent research consistently finds that government-mandated project labor agreements increase construction costs by roughly 12% to 18% on average. The use of PLAs is controversial, with proponents arguing they provide a reliable supply of skilled labor and critics claiming they increase project costs by 12% to 20%.

Opponents of project labor agreements argue that they increase construction costs by 12% to 20% compared to similar projects not subject to PLA mandates, citing studies on school construction and affordable housing projects. A 2021 study by the Rand Corporation found that government-mandated PLAs on affordable housing projects in Los Angeles increased construction costs by 14.5%, suggesting that such agreements may not achieve their intended economic benefits.

Why do costs rise?

  • Reduced bidder pools: 30-52% fewer bids when PLAs mandated
  • Union wage/fringe premiums: 15-30% above open shop equivalents
  • Inefficient union work rules: 10-15% productivity loss from jurisdictional restrictions
  • Administrative overhead: Compliance with complex reporting and grievance systems

Research indicates that PLAs can discourage non-union contractors from bidding on projects, reducing competition and potentially raising project costs. Surveys of contractors suggest that PLAs can increase project costs by forcing non-union contractors to pay into union benefit plans and comply with union work rules, which can deter them from bidding on PLA projects.

A study found that when a PLA was no longer required for a project in Ohio, the number of bids increased and the bid prices were 22% lower than when a PLA was in place, highlighting the impact of PLAs on competition.

When PLAs limit participation by nonunion firms, federal owners lose bids from many of the most competitive, safety-focused construction contractors in Charlotte, the Triangle, and Upstate South Carolina. Higher construction costs ultimately mean fewer projects can be built within fixed budgets, delaying needed infrastructure work.

New Harris Poll Data: Nonunion Workers Dominate the Battleground Construction Electorate

On May 6, 2026, Associated Builders and Contractors released results from a Harris Poll survey of construction workers in six battleground states. The findings confirm what Carolina’s contractors already know from their jobsites: nonunion workers are the overwhelming majority.

Nonunion share of the construction workforce electorate by state:

  • North Carolina: 92%
  • Arizona: 89%
  • Georgia: 87%
  • Wisconsin: 84%
  • Pennsylvania: 82%
  • Michigan: 76%

The poll found nonunion workers supported President Trump in the 2024 election at significantly higher rates than union workers:

  • 19-point Trump support gap between nonunion and union workers in Arizona, Georgia, and North Carolina
  • 7-point gap in Michigan, Pennsylvania, and Wisconsin

The central procurement finding cuts across union status: 83% of nonunion construction workers and 73% of union construction workers agreed that the federal government should select contractors for federally funded construction projects based on best value for taxpayers, not union affiliation. That’s roughly 2:1 opposition to union-only preferences among all trade workers surveyed.

Construction Executive magazine covered this Harris Poll on May 8, 2026, with ABC President and CEO Michael Bellaman using the data to argue that policies like mandated project labor agreements alienate the overwhelming majority of workers who build America’s infrastructure.

Bad Politics, Bad Business: Michael Bellaman’s Argument

Bellaman’s message to policymakers is direct: nonunion construction workers vastly outnumber union workers in the battleground states that will determine control of Congress in the 2026 midterms—and they strongly oppose government-mandated PLAs.

When an administration that relies on nonunion trades workers for political support endorses a PLA mandate that locks them and their employers out of public construction projects, it undercuts its own coalition. The math is simple: you cannot win battleground states while alienating 76% to 98% of the construction electorate.

Bellaman draws a straight line from the Harris Poll data to electoral risk. As he stated: “With nonunion workers 76-98% of the battleground construction electorate and 83% demanding best-value procurement, EO 14063 alienates the workforce building America’s infrastructure—bad politics for 2026 midterms controlling Congress, bad business raising costs 12-18%.”

For members in North Carolina and South Carolina, the political reality is clear. As nonunion workers in Charlotte, Raleigh-Durham, and Greenville-Spartanburg see federal jobs funneled to a small group of union-signatory contractors, they will be more receptive to candidates running on procurement reform and the repeal of Executive Order 14063.

Defending open competition through government neutrality is both a business necessity and a politically resonant message with the actual construction workforce across the battleground map.

Where the PLA Mandate Hits Carolinas Contractors Today

For ABC Carolinas members, mandated project labor agreements are already shaping real project opportunities—not some distant policy debate in Washington.

The image depicts a military base construction site featuring heavy equipment and a partially completed building structure, indicative of large-scale federal construction projects. This site is likely subject to government regulations governing safety and may involve project labor agreements to ensure labor management stability.

Current federal projects subject to EO 14063 in the Carolinas include:

Military Construction:

  • Fort Liberty (formerly Fort Bragg): FY25-30 MILCON includes $100M+ in barracks and training facilities, with specific $45M barracks awards already showing PLA solicitation language
  • Fort Jackson near Columbia: $60M range upgrades and infrastructure projects

Data Center Corridor:

  • The $5B+ corridor stretching from Charlotte through the Triangle features federal tenants, including NSA and DoD facilities
  • Example: $38M USACE hyperscale annex work in central North Carolina

Federal Aid Highway Projects and Infrastructure:

  • $200M+ I-85/SC-9 interchange in South Carolina
  • $150M I-95 widening segments in North Carolina via USACE/FTA direct contracts
  • Bridge replacements, port-related logistics, and federal facilities throughout both states

ABC Carolinas reports 25% bid declines on PLA jobs. One documented example: $42M GSA Charlotte courthouse subcontract work lost when nonunion specialty subs declined to participate.

Business Implications for Merit Shop Firms in North and South Carolina

Contractors are asking practical questions: Can we bid this job? What will it do to our cost structure? How will our workforce respond?

Workforce Restructuring

Mandated PLAs can force a Carolinas merit shop contractor to restructure its workforce on a federal project. This means:

  • Moving long-term nonunion employees under temporary union representation
  • Altering company culture
  • Complicating the supervision and safety practices that have produced strong performance records

Margin Pressures

Margin pressures include:

  • Absorbing 15-25% additional labor costs (wages plus fringe)
  • Contributing to union benefit funds where employees don’t vest
  • Managing administrative overhead for union reporting and grievance compliance
  • PLAs can impose administrative burdens on smaller contractors due to complex union requirements

Subcontractor Participation

When a nonunion prime signs a PLA to chase a large federal project around Charlotte or the Triangle, many preferred local subcontractors refuse to participate. The prime must cobble together an unfamiliar, often out-of-market team—undermining the relationships and performance continuity that win repeat work.

Over time, if project labor agreements remain mandated on federal construction projects, the Carolinas marketplace could bifurcate:

  • A small group of PLA-experienced, union-signatory firms on one side
  • A much larger pool of open shop contractors is cut off from federal opportunities; on the other hand

How ABC Carolinas Is Fighting the PLA Mandate

ABC Carolinas is aligned with the national Associated Builders and Contractors effort to repeal Executive Order 14063 and restore open, merit-based competition on federal projects.

Advocacy Channels

Key advocacy channels include:

  • Free Enterprise Alliance: ABC’s issue advocacy arm producing educational content, polling data, and targeted messaging for Carolinas policymakers
  • Direct Congressional Engagement: In-district visits, Washington fly-ins, and field tours of member jobsites in Charlotte, Raleigh, Charleston, and Greenville with both state delegations
  • Coalition Efforts: Formal comments to federal agencies published in the Federal Register, coalition letters, and support for litigation challenging the mandate
  • State-Level Monitoring: Watching for any attempts to extend government-mandated project labor agreements to state or local publicly funded construction projects

Political Action

ABC Carolinas has also engaged in state PAC efforts, committing $500K+ in the 2026 cycle to backing pro-merit-shop, pro-open-competition candidates who understand the federal government’s interest in ensuring compliance with best-value principles rather than union preferences.

Resource Access

  • Explore ABC Carolinas’ advocacy resources page for talking points and shareable media
  • Review the Free Enterprise Alliance pillar content on project labor agreements tailored to business owners
  • Use one-pagers in conversations with trade partners and local government entities

Political Outlook: PLA Mandates, the 2026 Midterms, and Federal Procurement Reform

The Harris Poll results suggest nonunion construction workers are a decisive bloc in battleground states—and they strongly favor best-value federal contracting over union-only preferences.

This electoral reality increases pressure on candidates in North Carolina’s competitive congressional districts to articulate positions on Executive Order 14063 and government-mandated project labor agreements.

Possible policy scenarios include:

  • Legislative efforts to prohibit PLA mandates on federal and federally assisted projects
  • Appropriations riders restricting enforcement of EO 14063
  • Future executive action to rescind or revise the mandate
  • Expanded litigation outcomes affecting implementation

As of March 2023, 25 states have enacted laws banning government-mandated project labor agreements on state- and local-taxpayer-funded construction projects, and all legal challenges to these laws have failed. This provides a legislative template for federal action.

The underlying workforce reality—76% to 98% nonunion majority in every battleground state—will continue to shape how government officials and elected representatives view the political risk of siding with union-only contracting preferences through labor-management stability mandates.

Carolinas contractors should see this as a multi-cycle campaign requiring sustained advocacy, strong data, and visible engagement from business owners who can document lost opportunities.

What Carolinas Contractors Should Do Now

You cannot afford to wait on Washington. Position your business for both advocacy and future opportunity.

Immediate action items:

  1. Map your federal opportunities: Identify current and potential projects above and below the $35M threshold in both states—military bases, VA facilities, federal courthouses, and infrastructure corridors
  2. Educate internal decision-makers: Brief owners, CFOs, and project executives on what a PLA would require operationally and financially for go/no-go decisions
  3. Document lost bids: Track construction projects funded by the federal government that you’re declining or losing due to PLA requirements—capture cost impacts, workforce issues, and local participation losses for advocacy use
  4. Strengthen your merit shop value proposition: Invest in safety performance, workforce development, union apprenticeship programs alternatives through ABC apprenticeships, and diverse subcontractor relationships so you can demonstrate best value when open competition returns
  5. Communicate with your workforce: Your nonunion employees should understand what’s at stake and how regulations governing safety and employment standards would change under PLA mandates

How to Engage With ABC Carolinas Advocacy

ABC Carolinas provides a concrete lane for members to influence the future of project labor agreements and federal procurement in the region.

Get involved:

  • Join the ABC Carolinas government affairs committee
  • Sign up for legislative alerts on PLA developments and key federal projects
  • Participate in calls and briefings on EO 14063 implementation

Support political action:

  • Contribute to the North Carolina and South Carolina PACs backing pro-merit shop candidates
  • Even modest recurring contributions from mid-sized contractors in Charlotte, the Triangle, Charleston, and Greenville add up to real political leverage

Access resources:

  • Explore ABC Carolinas’ advocacy resources page for talking points and shareable media
  • Review Free Enterprise Alliance pillar content on project labor agreements tailored to business owners
  • Use one-pagers in conversations with trade partners and local government entities

Host decision-makers:

  • Invite members of Congress, state legislators, and staff to active jobsites—especially projects near I-85 and I-95—to show how merit shop contractors deliver safe, on-time, on-budget results without government-mandated project labor agreements

Your nonunion employees, your skilled labor force, and your local workers deserve representation in this debate. Equal employment opportunity in federal contracting means open competition—not union-only preferences that exclude 90% of the construction users in this industry.

Frequently Asked Questions

Does the PLA mandate apply to every project that uses any federal funding?

Executive Order 14063 and its implementing rule primarily cover direct federal construction projects—where the federal government is the contracting agency and owner—valued at $35 million or more. Projects subject to this threshold include USACE, GSA, VA, and DoD direct contracts.

Federally assisted projects (such as many highway and transit projects) can still be subject to project labor agreements at the discretion of state or local governments, but they are not automatically covered by the same blanket mandate as direct federal contracts.

Federal-aid highway projects, for example, may or may not require PLAs depending on how state DOTs structure their procurement processes.

Review each solicitation carefully and consult with ABC Carolinas when you see PLA or “project labor” language in bid documents.

Can a nonunion contractor ever work on a project with a PLA?

Technically, yes. Non-union contractors can work on PLA projects if they agree to be bound by the agreement’s terms. However, doing so typically requires:

  • Accepting union representation for the project duration
  • Using union hiring halls for most labor
  • Paying union wage and benefit rates
  • Adapting company policies on scheduling, overtime, and crew flexibility

For many contractors in the Carolinas, the operational disruption and cost burden make this impractical.

The retirement benefits and other fringe benefits often don’t vest for short-term project workers, creating a lose-lose for both the employer and the employee.

Conduct a detailed financial analysis and talk with the ABC Carolinas staff before considering this path.

How do PLAs affect my existing employees and their benefits?

On a PLA-covered project, your existing employees may have to work under a collective bargaining agreement regardless of their personal preference to accept union representation or pay union dues. This creates confusion among loyal, long-term nonunion workers who value the merit shop culture.

Companies often must continue funding company-sponsored benefits while also contributing to union benefit funds required by the PLA. Short-term project workers rarely meet vesting requirements, meaning those union contributions provide no value to your team.

Communicate transparently with employees about how prevailing wage laws and PLA requirements would affect their compensation and working conditions before committing to a bid.

What can smaller subcontractors and minority contractors realistically do about PLA mandates?

Small, minority-, and women-owned contractors have powerful voices in this debate. Share your stories with ABC Carolinas about construction projects you cannot or will not bid because of government-mandated PLAs.

Specific actions include:

  • Participating in ABC Carolinas meetings with policymakers
  • Testifying at hearings when opportunities arise
  • Signing coalition letters highlighting how mandates reduce participation by local and diverse businesses
  • Documenting lost work for advocacy use

Your experience helps ABC Carolinas and the Free Enterprise Alliance demonstrate that PLA mandates undermine small-business inclusion and community-based economic development goals.

How can my company stay informed about changes to PLA policy and federal opportunities?

  • Subscribe to ABC Carolinas’ government affairs updates
  • Read Construction Executive magazine’s federal contracting coverage
  • Follow ABC National and the Free Enterprise Alliance for real-time analysis of Executive Order 14063, court cases, and legislative efforts

Assign a specific leader inside your company—preconstruction director, government affairs manager, or owner—to track PLA-related developments and brief your executive team quarterly.

Maintain regular contact with ABC Carolinas staff to discuss upcoming federal bids, understand whether a project labor agreement is anticipated, and coordinate advocacy when a key opportunity is at stake in your market.