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Biden to issue directive encouraging federal grant prioritization for projects with better worker compensation

President Joe Biden is set to sign an executive order on Friday that will prioritize projects with labor agreements, wage standards, and benefits including access to child care and apprenticeship programs for federal grants. This move by the Biden administration aims to emphasize the importance of better worker conditions in driving economic growth. Acting Labor Secretary Julie Su highlighted that a good job should provide security, benefits, the right to join a union, advocate for improved working conditions, ensure safety, health, and enable a dignified retirement.

Biden will make the announcement at a union training center in Ann Arbor, Michigan, underlining the significant role organized labor is expected to play for Democrats in the upcoming November election. Vice President Kamala Harris, in her campaign against Republican Donald Trump, is relying on support from groups like the AFL-CIO and other unions to mobilize voters in key states. Trump, on the other hand, has been trying to garner support from organized labor, having Teamsters President Sean O’Brien speak at the Republican National Convention. Although the Teamsters have not formally endorsed any candidate, Harris is scheduled to meet with them.

The executive order will establish a task force to streamline policy development with the aim of securing more benefits for workers. The administration’s focus on funding infrastructure, computer chip manufacturing, and renewable energy sources has resulted in numerous projects. According to the administration, its initiatives have attracted $900 billion in private-sector investments in renewable energy and manufacturing. However, the impact of these commitments has not yet resonated strongly with voters who are currently more concerned about the effects of inflation experienced in 2022. Nevertheless, many of these projects will require a few years to fully materialize.

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