Washington, D.C.—U.S. Congressman Steve King (R-IA) offered an amendment to H.R. 720 today with the Ranking Member of the Water Subcommittee, U.S. Congressman Richard Baker.  The Baker-King amendment would stop federal Davis-Bacon language from being expanded to cover the Water Quality Financing Act of 2007, H.R. 720.  Their amendment specifically struck the Davis-Bacon section from H.R. 720.

Davis-Bacon disproportionately impacts small companies and rural businesses.   It requires that all contractors pay a federally mandated wage for federal projects.  One hundred forty Members of Congress went on record supporting the elimination of Davis-Bacon from the legislation. The amendment failed by a vote of 140-280.

"It is wrong for the federal government to impose a union wage scale on small communities and small contractors.  A recent government study showed that 'prevailing wages', as determined by the federal government, were in error 100% of the time," said King.

The Davis-Bacon Act, a Depression-era wage subsidy law, requires that each public works contract over $2,000 contain a clause that mandates “prevailing” wages be paid.  Contractors and subcontractors are forced to pay a “prevailing wage” set by the federal government.

King stated, "Some communities decide to forgo federal dollars because a Davis-Bacon project would inflate the cost of their project by 8-35%-- often more than the federal dollars involved.  Davis-Bacon means fewer projects will be built and fewer jobs created."