    [House Hearing, 117 Congress]
    [From the U.S. Government Publishing Office]

         EXAMINING WORKFORCE DEVELOPMENT AND JOB CREATION IN SURFACE
                          TRANSPORTATION CONSTRUCTION

    =======================================================================

                                    (117-48)

                                 REMOTE HEARING

                                   BEFORE THE

                                SUBCOMMITTEE ON
                              HIGHWAYS AND TRANSIT

                                     OF THE

                                  COMMITTEE ON
                       TRANSPORTATION AND INFRASTRUCTURE
                            HOUSE OF REPRESENTATIVES

                        ONE HUNDRED SEVENTEENTH CONGRESS

                                 SECOND SESSION

                                   __________

                                 APRIL 27, 2022

                                   __________

                           Printed for the use of the
                 Committee on Transportation and Infrastructure

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

         Available online at: https://www.govinfo.gov/committee/house-
         transportation?path=/browsecommittee/chamber/house/committee/
                                 transportation
                                 _________

                     U.S. GOVERNMENT PUBLISHING OFFICE

    48-155 PDF               WASHINGTON : 2022

                  PETER A. DeFAZIO, Oregon, Chair
    SAM GRAVES, Missouri                 ELEANOR HOLMES NORTON,
    ERIC A. ``RICK'' CRAWFORD, Arkansas    District of Columbia
    BOB GIBBS, Ohio                      EDDIE BERNICE JOHNSON, Texas
    DANIEL WEBSTER, Florida              RICK LARSEN, Washington
    THOMAS MASSIE, Kentucky              GRACE F. NAPOLITANO, California
    SCOTT PERRY, Pennsylvania            STEVE COHEN, Tennessee
    RODNEY DAVIS, Illinois               ALBIO SIRES, New Jersey
    JOHN KATKO, New York                 JOHN GARAMENDI, California
    BRIAN BABIN, Texas                   HENRY C. ``HANK'' JOHNSON, Jr.,
    GARRET GRAVES, Louisiana             Georgia
    DAVID ROUZER, North Carolina         ANDRE CARSON, Indiana
    MIKE BOST, Illinois                  DINA TITUS, Nevada
    RANDY K. WEBER, Sr., Texas           SEAN PATRICK MALONEY, New York
    DOUG LaMALFA, California             JARED HUFFMAN, California
    BRUCE WESTERMAN, Arkansas            JULIA BROWNLEY, California
    BRIAN J. MAST, Florida               FREDERICA S. WILSON, Florida
    MIKE GALLAGHER, Wisconsin            DONALD M. PAYNE, Jr., New Jersey
    BRIAN K. FITZPATRICK, Pennsylvania   ALAN S. LOWENTHAL, California
    JENNIFFER GONZALEZ-COLON,            MARK DeSAULNIER, California
      Puerto Rico                        STEPHEN F. LYNCH, Massachusetts
    TROY BALDERSON, Ohio                 SALUD O. CARBAJAL, California
    PETE STAUBER, Minnesota              ANTHONY G. BROWN, Maryland
    TIM BURCHETT, Tennessee              TOM MALINOWSKI, New Jersey
    DUSTY JOHNSON, South Dakota          GREG STANTON, Arizona
    JEFFERSON VAN DREW, New Jersey       COLIN Z. ALLRED, Texas
    MICHAEL GUEST, Mississippi           SHARICE DAVIDS, Kansas, Vice Chair
    TROY E. NEHLS, Texas                 JESUS G. ``CHUY'' GARCIA, Illinois
    NANCY MACE, South Carolina           ANTONIO DELGADO, New York
    NICOLE MALLIOTAKIS, New York         CHRIS PAPPAS, New Hampshire
    BETH VAN DUYNE, Texas                CONOR LAMB, Pennsylvania
    CARLOS A. GIMENEZ, Florida           SETH MOULTON, Massachusetts
    MICHELLE STEEL, California           JAKE AUCHINCLOSS, Massachusetts
    Vacancy                              CAROLYN BOURDEAUX, Georgia
                                         KAIALI`I KAHELE, Hawaii
                                         MARILYN STRICKLAND, Washington
                                         NIKEMA WILLIAMS, Georgia
                                         MARIE NEWMAN, Illinois
                                         TROY A. CARTER, Louisiana

                      Subcommittee on Highways and Transit

    ELEANOR HOLMES NORTON, District of
              Columbia, Chair
    RODNEY DAVIS, Illinois               EDDIE BERNICE JOHNSON, Texas
    ERIC A. ``RICK'' CRAWFORD, Arkansas  ALBIO SIRES, New Jersey
    BOB GIBBS, Ohio                      JOHN GARAMENDI, California
    THOMAS MASSIE, Kentucky              HENRY C. ``HANK'' JOHNSON, Jr.,
    SCOTT PERRY, Pennsylvania            Georgia
    JOHN KATKO, New York                 SEAN PATRICK MALONEY, New York
    BRIAN BABIN, Texas                   JULIA BROWNLEY, California
    DAVID ROUZER, North Carolina         FREDERICA S. WILSON, Florida
    MIKE BOST, Illinois                  ALAN S. LOWENTHAL, California
    DOUG LaMALFA, California             MARK DeSAULNIER, California
    BRUCE WESTERMAN, Arkansas            STEPHEN F. LYNCH, Massachusetts
    MIKE GALLAGHER, Wisconsin            ANTHONY G. BROWN, Maryland
    BRIAN K. FITZPATRICK, Pennsylvania   GREG STANTON, Arizona, Vice Chair
    JENNIFFER GONZALEZ-COLON,            COLIN Z. ALLRED, Texas
      Puerto Rico                        JESUS G. ``CHUY'' GARCIA, Illinois
    TROY BALDERSON, Ohio                 ANTONIO DELGADO, New York
    PETE STAUBER, Minnesota              CHRIS PAPPAS, New Hampshire
    TIM BURCHETT, Tennessee              CONOR LAMB, Pennsylvania
    DUSTY JOHNSON, South Dakota          JAKE AUCHINCLOSS, Massachusetts
    MICHAEL GUEST, Mississippi           CAROLYN BOURDEAUX, Georgia
    TROY E. NEHLS, Texas                 MARILYN STRICKLAND, Washington
    NANCY MACE, South Carolina           GRACE F. NAPOLITANO, California
    NICOLE MALLIOTAKIS, New York         JARED HUFFMAN, California
    BETH VAN DUYNE, Texas                SALUD O. CARBAJAL, California
    CARLOS A. GIMENEZ, Florida           SHARICE DAVIDS, Kansas
    MICHELLE STEEL, California           SETH MOULTON, Massachusetts
    Vacancy                              KAIALI`I KAHELE, Hawaii
    SAM GRAVES, Missouri (Ex Officio)    NIKEMA WILLIAMS, Georgia
                                         MARIE NEWMAN, Illinois
                                         STEVE COHEN, Tennessee
                                         PETER A. DeFAZIO, Oregon (Ex
                                         Officio)

                                    CONTENTS

                                                                       Page

    Summary of Subject Matter........................................   vii

                     STATEMENTS OF MEMBERS OF THE COMMITTEE

    Hon. Eleanor Holmes Norton, a Delegate in Congress from the
      District of Columbia, and Chair, Subcommittee on Highways and
      Transit, opening statement.....................................     1
        Prepared statement...........................................     2
    Hon. Rodney Davis, a Representative in Congress from the State of
      Illinois, and Ranking Member, Subcommittee on Highways and
      Transit, opening statement.....................................     3
        Prepared statement...........................................     4
    Hon. Peter A. DeFazio, a Representative in Congress from the
      State of Oregon, and Chair, Committee on Transportation and
      Infrastructure, opening statement..............................     5
        Prepared statement...........................................     7
    Hon. Sam Graves, a Representative in Congress from the State of
      Missouri, and Ranking Member, Committee on Transportation and
      Infrastructure, prepared statement.............................    67

                                   WITNESSES

    Shoshana M. Lew, Executive Director, Colorado Department of
      Transportation, oral statement.................................     8
        Prepared statement...........................................    10
    Tunya Smith, Director, Office of Civil Rights, North Carolina
      Department of Transportation, oral statement...................    14
        Prepared statement...........................................    15
    Brent Booker, Secretary-Treasurer, North America's Building
      Trades Unions, oral statement..................................    20
        Prepared statement...........................................    22
    Kari J. Karst, President and Chief Executive Officer, BX Civil &
      Construction, on behalf of the Associated General Contractors
      of America, oral statement.....................................    24
        Prepared statement...........................................    26
    Kelly Kupcak, Executive Director, Oregon Tradeswomen, on behalf
      of the National Taskforce on Tradeswomen's Issues, oral
      statement......................................................    31
        Prepared statement...........................................    32
    April Rai, President and Chief Executive Officer, Conference of
      Minority Transportation Officials, oral statement..............    36
        Prepared statement...........................................    38

                           SUBMISSIONS FOR THE RECORD

    Submissions for the Record by Hon. Brian Babin:
        Letter of April 6, 2022, to President Biden and Vice
          President Harris from Associated Builders and Contractors
          et al......................................................    52
        Letter of February 15, 2022, to President Biden from American
          Fire Sprinkler Association et al...........................    53
        Letter of April 26, 2022, to Hon. Eleanor Holmes Norton and
          Hon. Rodney Davis from Kristen Swearingen, Vice President,
          Legislative and Political Affairs, Associated Builders and
          Contractors................................................    69
        Letter of April 26, 2022, to President Biden from 16
          Governors..................................................    71
    Statement of the American Association of State Highway and
      Transportation Officials, Submitted for the Record by Hon.
      Eleanor Holmes Norton..........................................    67

                                    APPENDIX

    Questions from Hon. Eddie Bernice Johnson to Shoshana M. Lew,
      Executive Director, Colorado Department of Transportation......    73
    Questions to Tunya Smith, Director, Office of Civil Rights, North
      Carolina Department of Transportation, from:
        Hon. Eleanor Holmes Norton...................................    73
        Hon. Henry C. ``Hank'' Johnson, Jr...........................    77
        Hon. Eddie Bernice Johnson...................................    79
          Attachment from North Carolina Department of Transportation    81
    Questions to Brent Booker, Secretary-Treasurer, North America's
      Building Trades Unions, from:
        Hon. Peter A. DeFazio........................................    93
        Hon. Henry C. ``Hank'' Johnson, Jr...........................    94
        Hon. Eddie Bernice Johnson...................................    94
        Hon. Mark DeSaulnier.........................................    95
        Hon. Jake Auchincloss........................................    96
    Questions to Kari J. Karst, President and Chief Executive
      Officer, BX Civil & Construction, on behalf of the Associated
      General Contractors of America, from:
        Hon. Peter A. DeFazio........................................    96
        Hon. Henry C. ``Hank'' Johnson, Jr...........................    97
        Hon. Eddie Bernice Johnson...................................    98
    Questions to Kelly Kupcak, Executive Director, Oregon
      Tradeswomen, on behalf of the National Taskforce on
      Tradeswomen's Issues, from:
        Hon. Peter A. DeFazio........................................    98
        Hon. Henry C. ``Hank'' Johnson, Jr...........................   100
        Hon. Eddie Bernice Johnson...................................   102
    Questions to April Rai, President and Chief Executive Officer,
      Conference of Minority Transportation Officials, from:
        Hon. Eddie Bernice Johnson...................................   104
        Hon. Jake Auchincloss........................................   106

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                 April 22, 2022

        SUMMARY OF SUBJECT MATTER

        TO:       Members, Subcommittee on Highways and Transit
        FROM:   Staff, Subcommittee on Highways and Transit
        RE:       Subcommittee Hearing on ``Examining Workforce
    Development and Job Creation in Surface Transportation
    Construction''

                                    PURPOSE

        The Subcommittee on Highways and Transit will meet on
    Wednesday, April 27, 2022, at 2:00 p.m. in 2167 Rayburn House
    Office Building and virtually via Zoom to receive testimony
    related to the hearing titled ``Examining Workforce Development
    and Job Creation in Surface Transportation Construction.'' The
    purpose of this hearing is for Members of the subcommittee to
    learn about the current state of the surface transportation
    construction workforce, how recent investments in American
    infrastructure will increase the need for a skilled
    construction workforce, and how current programs and
    initiatives can provide pathways into the construction sector.
    The subcommittee will hear from representatives of the Colorado
    Department of Transportation, the North Carolina Department of
    Transportation, North America's Building Trades Unions, the
    Associated General Contractors of America, the National
    Taskforce on Tradeswomen's Issues, and the Conference of
    Minority Transportation Officials.

                                   BACKGROUND

        Last year, Congress enacted H.R. 3684, the Infrastructure
    Investment and Jobs Act (IIJA, P.L. 117-58), which provides
    historic levels of investment in modernizing our nation's
    roads, bridges, transit, and other transportation
    infrastructure. The IIJA authorizes more than $660 billion for
    the U.S. Department of Transportation (DOT) to invest in our
    nation's infrastructure over the next five years.\1\ Carrying
    out projects with this investment is anticipated to require
    thousands of new positions for skilled craft workers in
    construction.
    ---------------------------------------------------------------------------
        \1\ https://www.transportation.gov/mission/budget/bipartisan-
    infrastructure-law-dashboard.
    ---------------------------------------------------------------------------
        Much of the funding provided by the IIJA is federal funding
    assistance to state and local transportation agencies to invest
    in state and local transportation projects, subject to federal
    requirements.\2\ The recipient of funds is responsible for
    administering the project and the funding, ensuring compliance
    with all applicable federal requirements, and overseeing the
    project to completion.\3\ The contracting agency solicits bids
    and awards the construction contract, pays contractors for
    their work, and then seeks reimbursement from DOT for approved
    project costs.\4\ A surface transportation construction project
    funded and administered in this manner will be referred to as a
    ``federally-assisted construction project.''
    ---------------------------------------------------------------------------
        \2\ See id. For a description of the federally assisted, state
    administered Federal-aid Highway Program, see 23 U.S.C. 145 and Funding
    Federal Aid Highways, FHWA, https://www.fhwa.dot.gov/policy/olsp/
    fundingfederalaid/.
        \3\ Funding Federal Aid Highways, FHWA, https://www.fhwa.dot.gov/
    policy/olsp/fundingfederalaid/.
        \4\ Id.
    ---------------------------------------------------------------------------
        Federally-assisted construction projects are subject to
    certain federal requirements under titles 23 and 49, United
    States Code (U.S.C.). Examples of such requirements include
    statewide and metropolitan planning, environmental reviews,
    payment of prevailing wages, compliance with federal or state
    construction design standards, and competitive bidding.
        Pursuant to 23 U.S.C. 113 and 49 U.S.C. 5333, laborers and
    mechanics employed for construction work on federally-assisted
    construction projects are to be paid wages at rates not less
    than those prevailing wages as determined by the Secretary of
    Labor under the Davis-Bacon Act. The 1931 Davis-Bacon Act
    (Davis-Bacon Act, P.L. 71-798) requires payment of prevailing
    wage rates to all laborers and mechanics on federal or
    federally-assisted construction projects. Overall program
    responsibilities are administered by the U.S. Department of
    Labor.\5\ Project specific responsibilities are administered by
    the contracting agency for the project.\6\
    ---------------------------------------------------------------------------
        \5\ https://www.fhwa.dot.gov/construction/cqit/dbacon.cfm
        \6\ Id.
    ---------------------------------------------------------------------------

    SURFACE TRANSPORTATION CONSTRUCTION WORKFORCE

    WORKFORCE ENTRY

        The surface transportation construction workforce
    encompasses various skilled positions such as heavy equipment
    operators, flaggers, and pavers. Workers can learn their trade
    through on-the-job training by performing tasks under the
    guidance of experienced workers or by participating in an
    apprenticeship program which combines on-the-job training with
    classroom learning.\7\ The length of training provided depends
    on the training pathway and the specialization.\8\ Through
    additional experience and training, construction workers can
    advance into high-paying, skilled positions that involve more
    complex tasks.\9\
    ---------------------------------------------------------------------------
        \7\ https://www.bls.gov/ooh/construction-and-extraction/
    construction-laborers-and-helpers.htm#tab-4
        \8\ Id.
        \9\ Id.
    ---------------------------------------------------------------------------

    DEMOGRAPHICS

        According to the U.S. Bureau of Labor Statistics (BLS)
    Current Population Survey, there were approximately 11.3
    million workers employed in the construction industry in
    2021.\10\ Of that total, 87.9 percent identified as white, 32.6
    percent identified as Hispanic or Latino, 6.3 percent
    identified as Black, and 2.1 identified as Asian.\11\
    Additionally, while women make up 47 percent of the total
    workforce in the U.S., they account for only 11 percent of the
    construction workforce.\12\ According to BLS data, from 2011 to
    2021 the percentage of women working in construction increased
    by 1.8 percent.\13\
    ---------------------------------------------------------------------------
        \10\ https://www.bls.gov/cps/cpsaat18.htm.
        \11\ Id.
        \12\ Id.
        \13\ See https://www.bls.gov/cps/aa2011/cpsaat18.pdf; https://
    www.bls.gov/cps/cpsaat18.htm.
    ---------------------------------------------------------------------------

    WORKFORCE DEVELOPMENT PROGRAMS AT DOT

    ON-THE-JOB TRAINING AND SUPPORTIVE SERVICES PROGRAM

        Federal efforts to address historically underrepresented
    groups in surface transportation construction began following
    the enactment of the Federal Aid Highway Act of 1968 (P.L. 90-
    495), which required State Departments of Transportation (State
    DOTs) to ensure equal employment opportunities on federally-
    assisted construction projects as a condition of receiving
    federal funds. Federal regulations require State DOTs to
    establish apprenticeship and training programs targeted at
    moving women, minorities, and disadvantaged persons into
    journey-level positions on federally-assisted construction
    contracts.\14\ Under the Federal Aid Highway Act of 1970 (P.L.
    91-605), Congress authorized the Secretary of Transportation
    (Secretary) to establish the On-the-Job Training and Supportive
    Services (OJT/SS) program, which supports state training
    programs aimed at increasing participation of historically
    underrepresented individuals in the construction workforce. The
    OJT/SS program is administered by the Federal Highway
    Administration (FHWA).\15\
    ---------------------------------------------------------------------------
        \14\ 23 CFR 230.111.
        \15\ 23 CFR 230.113.
    ---------------------------------------------------------------------------
        The objective of the OJT/SS program is to increase the
    overall effectiveness of state training programs and to support
    further efforts to increase the participation of women,
    minorities, and disadvantaged individuals in the skilled and
    semi-skilled construction crafts.\16\ Each year, FHWA requests
    a Statement of Work from participating State DOTs that
    demonstrates the state's construction workforce needs and how
    their proposed program will help provide a career path to
    journey-level status for underrepresented groups. Examples of
    program activities include recruitment, skills training, job
    placement, childcare, career counseling, transportation to
    work-sites, post-graduation follow-up, and jobsite mentoring,
    among others.\17\ FHWA and State DOTs work together to
    determine the state's annual training goals, including the
    total number of training slots or hours, and which
    transportation projects will include such requirements. State
    DOTs are also required to submit regular progress reports to
    FHWA.\18\
    ---------------------------------------------------------------------------
        \16\ https://www.fhwa.dot.gov/civilrights/programs/ojt.cfm.
        \17\ Id.
        \18\ 86 Fed. Reg. 8827.
    ---------------------------------------------------------------------------
        Funding for the OJT/SS program is authorized by section
    140(b) of title 23, United States Code, as a set-aside of
    FHWA's administrative budget. The program was initially
    authorized at up to $5,000,000 per year for fiscal year (FY)
    1972 and FY 1973 and was increased to up to $10,000,000 per
    year starting in FY 1974.\19\ Since then, authorized funding
    has remained stagnant at no more than $10,000,000 annually.\20\
    Section 140(b) also authorizes states to develop and administer
    summer transportation institutes aimed at increasing
    transportation career awareness among secondary-school
    students. Of the $10,000,000 authorization, approximately
    $6,000,000 is allocated to states via formula for the OJT/SS
    programs, while the remainder supports summer transportation
    institutes and internship programs at DOT.\21\
    ---------------------------------------------------------------------------
        \19\ P.L. 93-87.
        \20\ 23 U.S.C. 140(b).
        \21\ This information was provided to Committee Majority staff by
    FHWA on March 16, 2022, via email.
    ---------------------------------------------------------------------------
        To build on the success of the OJT/SS program, FHWA
    recently developed the Highway Construction Workforce
    Partnership (HCWP) guide aimed at bringing together industry
    and workforce representatives to identify, recruit, train, and
    place workers into highway construction jobs. To date, FHWA has
    awarded $4 million in grants to 11 recipients to establish and
    expand HCWP programs.\22\ For more information about HWCP,
    please visit FHWA's HWCP website.\23\
    ---------------------------------------------------------------------------
        \22\ This information was provided to Committee Majority staff by
    FHWA on March 18, 2022, verbally.
        \23\ https://www.fhwa.dot.gov/innovativeprograms/centers/
    workforce_dev/hcwp/.
    ---------------------------------------------------------------------------

    SECTION 504(E)--SURFACE TRANSPORTATION WORKFORCE DEVELOPMENT,
                        EDUCATION, AND TRAINING

        Section 504(e) of title 23, United States Code, authorizes
    States to use a portion of their core Federal-aid Highway
    Program formula funds from the National Highway Performance
    Program (NHPP), the Surface Transportation Block Grant Program
    (STBG), the Highway Safety Improvement Program (HSIP), and the
    Congestion Mitigation and Air Quality Improvement (CMAQ)
    Program to support transportation workforce development,
    training, and education activities.
        Examples of common activities carried out under 504(e)
    include training programs, academic course study, and support
    for short-term work details or ``rotational'' assignments for
    employee development.\24\ States may also use these funds for
    employee training and professional development necessary to
    support a specific surface transportation capital project, such
    as a major roadway or bridge construction project.\25\ These
    funds may not be used to pay any portion of employee
    salaries.\26\
    ---------------------------------------------------------------------------
        \24\ https://www.fhwa.dot.gov/innovativeprograms/centers/
    workforce_dev/504e_state_core_
    programs_guidance_0318.aspx.
        \25\ Id.
        \26\ Id.
    ---------------------------------------------------------------------------
        Section 13007 of the IIJA expanded the list of eligible
    activities under 504(e) to include pre-apprenticeships,
    apprenticeships, career opportunities for on-the-job training,
    and activities that address current workforce gaps, such as
    work on construction projects of state and local transportation
    agencies. It also allows activities associated with workforce
    training and employment services, such as targeted outreach and
    partnerships with industry representatives, economic
    development organizations, workforce development boards, and
    labor organizations.

    SECTION 504(F)--TRANSPORTATION EDUCATION AND TRAINING DEVELOPMENT AND
                        DEPLOYMENT PROGRAM

        Section 504(f) of title 23, United States Code, as amended
    by section 13007 of the IIJA, authorizes the Secretary to
    establish a program to make grants to education institutions or
    State DOTs to develop and implement new curricula and education
    programs to train individuals at all levels of the
    transportation workforce, including in the construction sector.

    CONTRACTING INITIATIVES

    LOCAL HIRE

        Prior to enactment of the IIJA, DOT grant recipients were
    generally prohibited from utilizing geographic, economic, or
    other hiring preferences--commonly referred to as ``local
    hire''--on federally-assisted construction projects due to
    concerns about the adverse impact on competitive bidding.\27\
    In 2013, DOT received an opinion from the Department of
    Justice's Office of Legal Counsel clarifying that the Secretary
    has the discretion to permit grant recipients to utilize local
    hire requirements as long as they did not unduly limit
    competition.\28\ In 2015, DOT launched a pilot program to allow
    FHWA and Federal Transit Administration (FTA) grantees to
    utilize local hire contracting requirements on an experimental
    basis.\29\ On January 18, 2017, the pilot program was extended
    for a period of five years ending on March 6, 2022,\30\ but the
    extension was subsequently withdrawn later that year.\31\ In
    May 2021, DOT re-launched local hire pilot programs for both
    FHWA and FTA grant recipients.\32\
    ---------------------------------------------------------------------------
        \27\ 87 Fed. Reg. 8081.
        \28\ 80 Fed. Reg. 12257.
        \29\ Id.
        \30\ 82 Fed. Reg. 5645.
        \31\ 82 Fed. Reg. 46716.
        \32\ See 86 Fed. Reg. 27667; 86 Fed. Reg. 27672.
    ---------------------------------------------------------------------------
        Additionally, beginning in 2016 and each year thereafter,
    the annual appropriations bill funding transportation programs
    has included a provision authorizing the Secretary to permit
    grant recipients the ability to utilize local hire requirements
    on federally-assisted construction projects, subject to certain
    mandatory certifications.\33\
    ---------------------------------------------------------------------------
        \33\ PL 114-113, Sec. 192.
    ---------------------------------------------------------------------------
        Section 25019 of the IIJA provided permanent statutory
    authority for recipients or subrecipients of a DOT grant
    provided under title 23 or title 49, United States Code, to
    implement a local or other geographical or economic hiring
    preference relating to the use of labor for construction of a
    project funded by the grant. Based on this statutory
    authorization, both FHWA and FTA announced the rescission of
    their pilot programs stating they were no longer needed.\34\
    ---------------------------------------------------------------------------
        \34\ See 87 Fed. Reg. 8081; 87 Fed. Reg. 7897.
    ---------------------------------------------------------------------------

                                  WITNESS LIST

          Ms. Shoshana Lew, Executive Director, Colorado
    Department of Transportation
          Ms. Tunya Smith, Director of the Office of Civil
    Rights, North Carolina Department of Transportation
          Mr. Brent Booker, Secretary-Treasurer, North
    America's Building Trades Unions
          Ms. Kari J. Karst, President, BX Civil &
    Construction, on behalf of the Associated General Contractors
    of America
          Ms. Kelly Kupcak, Executive Director, Oregon
    Tradeswomen, on behalf of the National Taskforce on
    Tradeswomen's Issues
          Ms. April Rai, President and Chief Executive
    Officer, The Conference of Minority Transportation Officials

          EXAMINING WORKFORCE DEVELOPMENT AND JOB CREATION IN SURFACE
                          TRANSPORTATION CONSTRUCTION

                                  ----------

                           WEDNESDAY, APRIL 27, 2022

                      House of Representatives,
                  Subcommittee on Highways and Transit,
                Committee on Transportation and Infrastructure,
                                                        Washington, DC.
        The subcommittee met, pursuant to notice, at 2:02 p.m. in
    room 2167 Rayburn House Office Building and via Zoom, Hon.
    Eleanor Holmes Norton (Chair of the subcommittee) presiding.
        Members present in person: Ms. Norton, Mr. DeFazio, Mr.
    Lynch, Ms. Williams of Georgia, Mr. Rodney Davis of Illinois,
    Mr. Crawford, Mr. Massie, Mr. Perry, Dr. Babin, Mr. LaMalfa,
    Mr. Stauber, and Mr. Johnson of South Dakota.
        Members present remotely: Ms. Johnson of Texas, Ms.
    Brownley, Mr. DeSaulnier, Mr. Stanton, Mr. Garcia of Illinois,
    Mr. Delgado, Ms. Bourdeaux, Ms. Strickland, Mrs. Napolitano,
    Mr. Huffman, Mr. Carbajal, Mr. Fitzpatrick, and Mrs. Steel.
        Ms. Norton. The subcommittee will come to order.
        I ask unanimous consent that the chair be authorized to
    declare a recess at any time during today's hearing.
        Without objection, so ordered.
        I also ask unanimous consent that Members not on the
    subcommittee be permitted to sit with the subcommittee at
    today's hearing and ask questions.
        Without objection, so ordered.
        As a reminder, please keep your microphone muted unless
    speaking. Should I hear any inadvertent background noise, I
    will request that the Member please mute their microphone.
        To insert a document into the record, please have your
    staff email it to DocumentsT&I@mail.house.gov.
        Welcome to today's hearing on examining workforce
    development and job creation in surface transportation
    construction.
        I want to thank the panel for being with us today and for
    your flexibility as we rescheduled this hearing from its
    original date so that Members could attend the memorial service
    for our long-time committee colleague, and my friend, Don
    Young.
        Don devoted his life to serving his fellow Alaskans,
    serving 49 years in the House, including several as chair of
    this committee. His passion and breadth of experience will be
    greatly missed by all of us here on this committee.
        The Infrastructure Investment and Jobs Act, which was
    enacted last year, authorized more than $660 billion for the
    Nation's roads, bridges, transit, railroads, airports, ports,
    and other transportation infrastructure. A historic investment
    of this size will require a diverse, qualified construction
    workforce to ensure these projects are carried out on time and
    will be built to last.
        The construction trades offer fulfilling and high-paying
    careers, supporting thousands of workers and their families.
    Yet too often, barriers such as transportation costs and lack
    of access to training and other support hinder the ability of
    women, minorities, and disadvantaged individuals to access jobs
    in the construction sector. According to the latest industry
    data from the Bureau of Labor Statistics, women account for
    just 11 percent of the construction workforce, and African
    Americans account for only 6.3 percent.
        As we will hear today, a key effort in breaking down these
    barriers has been through the U.S. Department of
    Transportation's On-the-Job Training and Supportive Services
    Program. This program supports State training programs that
    offer recruitment skills, training, job placement, career
    counseling, and other services to help women, people of color,
    and others obtain quality careers in the construction industry.
        I am especially interested in hearing from Ms. Tunya Smith,
    director of North Carolina Department of Transportation's
    Office of Civil Rights, about her department's experience
    working with the OJT/SS program and what outcomes they have
    been able to achieve.
        In addition to increasing workforce diversity, we must also
    ensure that Federal dollars for construction projects flow
    straight through to the community. Last May, I was proud to
    stand with Secretary Buttigieg in front of DC's own Frederick
    Douglass Memorial Bridge to announce the reinstatement of DOT's
    local hiring initiative pilot program, now permitted by the
    Infrastructure Investment and Jobs Act. Through local hire, we
    can revitalize local communities and provide meaningful, good-
    paying jobs in construction to individuals living in low-income
    areas or areas with high unemployment.
        These initiatives are a good start, but Congress must
    continue to be vigilant to ensure that the historic investments
    in the Infrastructure Investment and Jobs Act support a diverse
    workforce that is qualified to meet the demands of 21st-century
    infrastructure.
        Thank you to each of the witnesses for being here today. I
    look forward to hearing how each of your organizations supports
    these goals and how Congress can continue to support good jobs
    in the surface transportation construction industry.
        [Ms. Norton's prepared statement follows:]

        Prepared Statement of Hon. Eleanor Holmes Norton, a Delegate in
      Congress from the District of Columbia, and Chair, Subcommittee on
                              Highways and Transit
        Welcome to today's hearing on examining workforce development and
    job creation in surface transportation construction. I want to thank
    the panel for being with us today and for your flexibility as we
    rescheduled this hearing from its original date, so that Members could
    attend the memorial service for our longtime committee colleague and my
    friend Don Young. Don devoted his life to serving his fellow Alaskans,
    serving 49 years in the House, including several as Chair of this
    committee. His passion and breadth of experience will be greatly missed
    by all of us here on the committee.
        The Infrastructure Investment and Jobs Act, which was enacted last
    year, authorized more than $660 billion for our nation's roads,
    bridges, transit, railroads, airports, ports and other transportation
    infrastructure. A historic investment of this size will require a
    diverse, qualified construction workforce to ensure these projects are
    carried out on time and will be built to last.
        The construction trades offer fulfilling and high-paying careers,
    supporting thousands of workers and their families. Yet too often
    barriers, such as transportation costs, childcare, or lack of access to
    training and other support, hinder the ability of women, minorities and
    disadvantaged individuals to access jobs in the construction sector.
    According to the latest industry data from the Bureau of Labor
    Statistics, women account for just 11 percent of the construction
    workforce, and African Americans account for only 6.3 percent.
        As we will hear today, a key effort in breaking down these barriers
    has been through the U.S. Department of Transportation's On-the-Job
    Training and Supportive Services program. This program supports state
    training programs that offer recruitment, skills training, job
    placement, career counseling and other services to help women, people
    of color, and others obtain quality careers in the construction
    industry. I am especially interested in hearing from Ms. Tunya Smith,
    Director of the North Carolina Department of Transportation's Office of
    Civil Rights, about her department's experience working with the OJT-SS
    program and what outcomes they have been able to achieve.
        In addition to increasing workforce diversity, we must also ensure
    that federal dollars for infrastructure projects flow through to the
    community. Last May, I was proud to stand with Secretary Buttigieg in
    front of D.C.'s own Frederick Douglass Memorial Bridge to announce the
    reinstatement of DOT's local hiring initiative pilot program, now
    permitted by the Infrastructure Investment and Jobs Act. Through local
    hire, we can revitalize local communities and provide meaningful, good-
    paying jobs in construction to individuals living in low-income areas
    or areas with high unemployment.
        These initiatives are a good start. But Congress must continue to
    be vigilant to ensure that the historic investments in the
    Infrastructure Investment and Jobs Act support a diverse workforce that
    is qualified to meet the demands of building 21st-century
    infrastructure.
        Thank you to each of our witnesses for being here today. I look
    forward to hearing how each of your organizations supports these goals,
    and how Congress can continue to support good jobs in the surface
    transportation construction.

        Ms. Norton. I now call on my good friend, the ranking
    member of the subcommittee, Mr. Davis, for an opening
    statement.
        Mr. Rodney Davis of Illinois. Thank you, Madam Chair. I
    appreciate the opportunity to be here. I want to welcome all of
    our witnesses.
        And Ms. Smith, I hear that we may--all of us up here may
    have a mutual friend in your father.
        Ms. Smith. Yes.
        Mr. Rodney Davis of Illinois. Is that the case?
        Ms. Smith. Yes.
        Mr. Rodney Davis of Illinois. Yes? OK. Oh, you are online?
        I do want to say, and I do want to recognize you as
    somebody who has got a chance to grow up and see a lot more of
    our friend G.K. Butterfield than the rest of us have. And I
    would love some good stories, so I can harass him a little bit.
    He shares an office right by mine. And G.K. is somebody that I
    have gotten to know on the House Administration Committee, and
    just being able to serve with him has been a friendship that I
    cherish. And I want you to know how proud we are of him. And we
    are proud of you for being here, too. We are going to miss him
    in this House. He is true. He is a true statesman. And please
    take care of him when we can't anymore, when he leaves.
        But I do want to say I am glad we are talking about
    workforce issues. I am glad we are talking to our witnesses
    about recently approved transportation funding.
        When it begins to go out, I am expecting there to be a need
    for more skilled craftspeople. While many challenges exist for
    constructing our Nation's core infrastructure, ensuring a
    readily available, skilled-craft workforce is our initial
    challenge. But it is not the only challenge that we face.
        And it is important to remember the context of this hearing
    and what we are discussing today. Earlier this month, we once
    again saw sky-high inflation numbers, 8.5 percent. Inflation in
    March was the highest level in 40 years. The Biden
    administration's response to the COVID-19 pandemic has
    exacerbated the Nation's supply chain crisis. Paying people to
    stay home has only made it harder to find skilled, trained
    workers. Add that to the soaring gas and diesel prices and
    construction costs having the largest year-over-year spike
    since 1970, and a project simply costs more today than it did 5
    months ago.
        So, as this infrastructure money gets awarded, it is very
    important that this administration provides recipients with the
    flexibility needed to ensure that they can be built in the most
    cost-effective way. One cost-effective way is to fully
    implement One Federal Decision.
        Since its enactment, this administration has dragged its
    feet in implementing this industry-changing legislation. For
    too long, worthy infrastructure projects have been needlessly
    delayed by our permitting system. Time is money, and in a world
    of skyrocketing inflation, further delay in implementing this
    law limits the total number of jobs, infrastructure jobs, that
    the infrastructure money creates.
        As the Federal Government begins to allocate funds for
    infrastructure projects, we must ensure our workforce is
    available and ready from the start, so that the dollars can
    stretch further. Building trades and contractors are essential
    to our Nation's economic growth, and I have long supported
    policies to support the construction workforce.
        I look forward to hearing from all of our witnesses about
    some of the challenges that exist in matching our workforce to
    our critical infrastructure needs.
        [Mr. Davis' prepared statement follows:]

     Prepared Statement of Hon. Rodney Davis, a Representative in Congress
        from the State of Illinois, and Ranking Member, Subcommittee on
                              Highways and Transit
        Thank you, Chair Norton. I want to welcome everyone to today's
    hearing about the workforce challenges faced by those who build our
    nation's roads and bridges. I want to thank our witnesses for being
    here today, and I appreciate the Committee's flexibility to allow for
    this hybrid hearing.
        As recently-approved transportation funding begins to go out, I am
    expecting there to be a need for more skilled craftspeople. While many
    challenges exist for constructing our nation's core infrastructure,
    ensuring a readily available, skilled craft workforce is an initial
    challenge. But it's not the only challenge, and it's important to
    remember the context of this hearing and what we are discussing today.
        Earlier this month, we once again saw sky-high inflation numbers--
    8.5 percent. Inflation in March was the highest level in 40 years. The
    Biden Administration's response to the COVID-19 pandemic has
    exacerbated the nation's supply chain crisis. Paying people to stay
    home has only made it harder to find skilled, trained workers. Add that
    to soaring gas and diesel prices and construction costs having the
    largest year-over-year spike since 1970, and a project simply costs
    more today than it did five months ago.
        So as this infrastructure money gets awarded, it's important that
    this Administration provides recipients with the flexibility needed to
    ensure that they can be built in the most cost-effective way.
        One cost-effective way is to fully implement One Federal Decision.
    Since its enactment, this Administration has dragged its feet in
    implementing this industry changing legislation. For too long, worthy
    infrastructure projects have been needlessly delayed by our permitting
    system. Time is money, and in a world of skyrocketing inflation,
    further delay in implementing this law limits the total number of jobs
    infrastructure money creates.
        As the federal government begins to allocate funds for
    infrastructure projects, we must ensure our workforce is available and
    ready from the start so that dollars can stretch further. Building
    trades and contractors are essential to our nation's economic growth,
    and I've long supported policies to support the construction workforce.
        I look forward to hearing from our witnesses about some of the
    challenges that exist in matching our workforce to our critical
    infrastructure needs.

        Mr. Rodney Davis of Illinois. And again, Madam Chair and
    all our witnesses, thanks for being here today.
        And please, Ms. Smith, I look forward to hearing the
    stories about your dad that we can use before he leaves at the
    end of this year.
        Thank you, and I yield back.
        Ms. Norton. Thank you very much, Ranking Member Davis. I
    now recognize the chair of the full committee, Mr. DeFazio.
        Mr. DeFazio. Thank you, Madam Chair. Thanks again for this
    hearing. Thanks to the witnesses for being here today,
    physically and virtually.
        We have tremendous opportunities with the bipartisan
    infrastructure bill, or the IIJA, or whatever you want to label
    it. You know, $400 billion for highway and major projects,
    bridges, $107 billion for transit, and $102 billion for rail.
    As was noted, this will require tremendous investment in a
    workforce, a new workforce, and reaching communities that
    haven't been reached before for all these new positions in the
    construction trades.
        A lot of young people aren't aware of the tremendous
    opportunities that are out there, and we have got to reach out
    to them and recruit them into this. It is not people with picks
    and shovels anymore. Much construction work is very
    sophisticated, computer-driven equipment, et cetera.
        We also need to continue to protect Davis-Bacon prevailing
    wage. We want people to get a fair wage for their work, and be
    able to have a good, middle-class lifestyle, which is becoming
    more and more difficult in this Nation. So, that is really key.
        I am pleased to welcome the executive director of Oregon
    Tradeswomen, Kelly Kupcak, who is testifying on behalf of the
    National Taskforce on Tradeswomen's Issues.
        Oregon, my home State, has been on the forefront of
    addressing historical underrepresentation of women, minorities,
    and disadvantaged individuals in the construction trades. Just
    recently, Metro, the metropolitan planning organization in
    Portland, and its regional partners adopted the Construction
    Career Pathways Regional Framework and signed the first-of-its-
    kind Regional Workforce Equity Agreement. These coordinated
    efforts will help ensure delivery of infrastructure projects in
    Portland and provide career opportunities for women and
    minorities. And I look forward to hearing how Congress can
    better support these efforts and the administration as we move
    forward.
        And then local transportation agencies will now be able to
    require that a percentage of the workforce hired to build
    federally funded transportation projects comes from the local
    community. This authority, commonly referred to as ``local
    hire,'' was previously only authorized through DOT pilot
    programs. It is now an established, permanent authority.
        And I am eager to hear from Director Lew of the Colorado
    Department of Transportation about their experience working
    with developers, community colleges, AND local organizations to
    set and meet local hiring goals on their Central 70 Project.
    Colorado is just one place where this has been done, reaching
    out into the surrounding communities, and I look forward with
    the passage of this bill to others.
        Just to comment on a couple of issues raised by the ranking
    member, we are seeing astronomical gasoline prices. Guess what?
    We are also seeing astronomical price gouging and profiteering
    by the oil and gas industry. I would invite the gentleman and
    others to join me on my windfall profits tax bill. The industry
    is going to use $22 billion of, as they call it, excess
    profits, excess extra profits, to buy back stock, enriching
    only stockholders and boards of directors and CEOs and
    executives, while the American people are paying the bill. And
    oddly enough, that happens to be the amount of money we will
    collect over the rest of the year from the Federal gas tax,
    which some are proposing to suspend.
        It used to be illegal to buy back your own stock until
    Ronald Reagan. It is self-enrichment. And they can have record
    profits on top of the record stock buybacks. Oh, and by the
    way, they are going to pay record dividends. But oh, yes, that
    is all the problem of Joe Biden. Joe Biden created this--the
    oil cartels.
        We held a hearing earlier today about shipping, and what is
    going on there with price gouging, which is driving up the cost
    of every good that comes to the United States--dramatically.
    The three largest shipping companies in the world made more
    money last year than over the last decade, and they are
    justifying that with COVID, emergencies, and all this. A lot of
    this is price gouging driven by the largest corporations in the
    world, who are all enjoying record profits at the expense of
    the American people.
        And I would invite my Republican colleagues and other
    Democrats to join me. At least let's take on the oil industry
    with a windfall profits tax, and go after their price gouging.
    That would provide tremendous relief to the American people.
        [Mr. DeFazio's prepared statement follows:]

       Prepared Statement of Hon. Peter A. DeFazio, a Representative in
          Congress from the State of Oregon, and Chair, Committee on
                       Transportation and Infrastructure
        Thank you, Madam Chair, for holding this important hearing to
    examine workforce needs and opportunities in the surface transportation
    construction sector. Thanks to the hard work of this committee,
    Congress recently enacted the Infrastructure Investment and Jobs Act, a
    five-year surface transportation reauthorization bill that provides
    historic levels of funding--$660 billion over five years--to rebuild
    and modernize our nation's transportation infrastructure. This includes
    over $400 billion in highway and major projects funding, $107 billion
    in transit funding, and $102 billion for rail.
        This significant investment will generate demand for thousands of
    new positions in the construction trades. As development of
    transportation projects gets underway, we need to make sure there's a
    qualified workforce available to meet construction hiring needs.
        The construction sector has long provided high-paying careers to
    individuals looking for an alternative to a traditional four-year
    college degree.
        Worker protections, such as Davis-Bacon prevailing wage
    requirements, have been and continue to be critical to prevent wage
    degradation and ensure laborers are paid fair market value for their
    work. But the structure needed to ensure workers can succeed in the
    industry goes beyond baseline protections--it's essential that new
    workers entering the industry have access to and receive adequate
    training and support to gain the experience and skills necessary to
    move into journey-level positions. And it's essential that these
    opportunities are available equitably to all who want to enter the
    industry.
        I'm pleased to welcome the Executive Director of the Oregon
    Tradeswomen, Kelly Kupcak, who is testifying on behalf of the National
    Taskforce on Tradeswomen's Issues. My home state of Oregon has been on
    the forefront of addressing the historical underrepresentation of
    women, minorities, and disadvantaged individuals in the construction
    trades. Just recently METRO, the metropolitan planning organization in
    Portland, and its regional partners adopted the Construction Career
    Pathways Regional Framework and signed the first-of-its-kind Regional
    Workforce Equity Agreement. These coordinated efforts will help ensure
    delivery of infrastructure projects in the Portland metropolitan region
    and provide career opportunities for women and minorities in
    construction. I look forward to hearing how Congress can support these
    and other efforts to increase diversity in the construction workforce
    and ensure that employment opportunities are distributed equitably.
        We also have work to do to ensure that workers in the communities
    where projects are built reap the benefits. Thanks to the IIJA, state
    and local transportation agencies are now able to require that a
    percentage of the workforce hired to build federally-funded
    transportation projects comes from the local community. This authority,
    commonly referred to as ``local hire,'' was previously only authorized
    through the U.S. Department of Transportation's pilot programs.
        I'm eager to hear from Director Lew of the Colorado Department of
    Transportation today about their experience working with developers,
    community colleges, and local organizations to successfully set and
    meet local hiring goals on their Central 70 project. Colorado is just
    one example where projects have been successfully delivered while also
    providing employment opportunities for the surrounding communities. I
    look forward to hearing from the rest of our panelists about other ways
    of leveraging federal investments to generate economic opportunities in
    the communities where these infrastructure projects are being built.
        I thank each of the witnesses assembled here today, and I look
    forward to this important discussion.

        Mr. DeFazio. With that I yield back the balance of my time.
        Ms. Norton. Thank you, Chair DeFazio. I would now like to
    welcome the witnesses on our panel: Ms. Shoshana Lew, executive
    director, Colorado Department of Transportation; Ms. Tunya
    Smith, director of the Office of Civil Rights, North Carolina
    Department of Transportation; Mr. Brent Booker, secretary-
    treasurer, North America's Building Trades Unions; Ms. Kari J.
    Karst, president, BX Civil & Construction, on behalf of the
    Associated General Contractors of America; Ms. Kelly Kupcak,
    executive director, Oregon Tradeswomen, on behalf of the
    National Taskforce on Tradeswomen's Issues; and Ms. April Rai,
    president and chief executive officer, the Conference of
    Minority Transportation Officials.
        Thank you for being here today. I look forward to your
    testimony.
        Without objection, witnesses' full statements will be
    included in the record.
        Since your written statement has been made a part of the
    record, the subcommittee requests that you limit your oral
    testimony to 5 minutes.
        Ms. Lew, you may proceed.

      TESTIMONY OF SHOSHANA M. LEW, EXECUTIVE DIRECTOR, COLORADO
    DEPARTMENT OF TRANSPORTATION; TUNYA SMITH, DIRECTOR, OFFICE OF
      CIVIL RIGHTS, NORTH CAROLINA DEPARTMENT OF TRANSPORTATION;
      BRENT BOOKER, SECRETARY-TREASURER, NORTH AMERICA'S BUILDING
      TRADES UNIONS; KARI J. KARST, PRESIDENT AND CHIEF EXECUTIVE
     OFFICER, BX CIVIL & CONSTRUCTION, ON BEHALF OF THE ASSOCIATED
        GENERAL CONTRACTORS OF AMERICA; KELLY KUPCAK, EXECUTIVE
        DIRECTOR, OREGON TRADESWOMEN, ON BEHALF OF THE NATIONAL
    TASKFORCE ON TRADESWOMEN'S ISSUES; AND APRIL RAI, PRESIDENT AND
    CHIEF EXECUTIVE OFFICER, CONFERENCE OF MINORITY TRANSPORTATION
                               OFFICIALS

        Ms. Lew. Good afternoon and thank you, Madam Chair, members
    of the subcommittee, and everyone in attendance today. My name
    is Shoshana Lew, and I am the executive director of the
    Colorado Department of Transportation. Thank you for inviting
    me here to testify and discuss CDOT's successful workforce
    development program as part of the Central 70 Project in
    Denver.
        The Central 70 Project that broke ground in 2018 is
    Colorado's largest infrastructure project ever undertaken by
    the State and comes in at a cost of about $1.2 billion.
        When we first started studying the I-70 corridor through
    the heart of Denver, it was essential that we understood the
    demographics of the community that we would be working in, so
    that we could meet their needs, and keep them informed, and
    make sure that they were part of the project. The Globeville
    and Elyria/Swansea communities, located adjacent to our most
    impactful construction activities, are comprised of mostly
    lower income families, many of whom identify as Hispanic. We
    also learned that the unemployment rate was 10 times higher in
    this area than in other parts of the metropolitan area.
        While the project made dozens of commitments to meet the
    various needs of environmental justice communities, one
    solution we were able to come up with to address the issue of
    unemployment specifically was our workforce development
    program.
        The economic benefits of the Central 70 Project are both
    significant and long-lasting, and the project was anticipated
    to require about 4,000 positions, from skilled-craft workers to
    administrative support.
        In February 2016, CDOT received approval from the Federal
    Highway Administration to implement a local hiring preference
    for the Central 70 Project. This approval was granted under a
    1-year program called the SEP-14 Program for those familiar
    with the Federal Highway Administration statutes. CDOT is one
    of nine State transportation agencies across the U.S.
    participating in this program, which allows requirements for
    contractors to hire a certain percentage of workforce from
    within specific geographic boundaries.
        In the case of Central 70, CDOT focused hiring targets on
    neighborhoods adjacent to the project corridor. As part of
    CDOT's contract with the project developer, Kiewit Meridiam
    Partners, known as KMP, during the estimated 4\1/2\-year
    project, KMP is required to hire 20 percent of its employees
    full-time from the local community. This program allowed us to
    hire residents from 13 zip codes that are touched by the
    project in one way or another.
        CDOT is also participating in the U.S. Department of
    Transportation's official On-the-Job Training Program, or OJT,
    targeted to move women, minorities, and disadvantaged
    individuals into journey-level positions to help meet highway
    construction hiring needs, and address the historical
    underrepresentation of these groups in highway construction
    skilled crafts. CDOT's contract with KMP requires 200,000
    training-hours to be provided to employees in the skilled
    crafts.
        In June of 2015, the Federal Highway Administration awarded
    CDOT $400,000 from its Ladders of Opportunity Initiative OJT
    pilot program to grant support to these efforts. These funds
    have now been used to establish a collective impact workforce
    program called Work Now.
        As of February 1st, 2021, only 2\1/2\ years into
    construction, the Central 70 Project exceeded its workforce
    goal, and had 600 local workers contribute 760,000 hours to the
    project. As of October 2020, the Central 70 Project's OJT goal
    of 200,000 hours was surpassed.
        The combined partnerships also met a goal to have at least
    50 percent of local hires be new to the industry. And the
    project exceeded that goal, with 75 percent of the hires being
    new to construction.
        Kiewit Meridiam Partners continues to be a strong advocate
    for OJT and local workforce requirements on the project, as it
    helps to build more skilled workers that can continue to
    support and be a part of the construction industry. Indeed,
    this is extremely helpful, as the construction industry writ
    large is suffering from a lack of workers as many industries in
    this discipline are. So, it has helped us not only on this
    project, but to build out the field.
        Overall, the Central 70 Project has been setting a
    wonderful example for our transportation projects on what it
    means to make sure all voices could be heard from, all
    community members could be sitting at the table during
    decisionmaking, and that the job opportunities that come from
    major infrastructure investments can truly accrue to the
    neighborhoods that face the biggest impacts from projects.
        I thank you all for the opportunity to share the success of
    our program. Based on everything we have learned and witnessed
    through this program and this project, we are confident that
    OJT and workforce development will continue to strengthen the
    construction industry and help deliver more successful projects
    in the future.
        Thank you.
        [Ms. Lew's prepared statement follows:]

      Prepared Statement of Shoshana M. Lew, Executive Director, Colorado
                          Department of Transportation
        Good morning, Chairwoman Holmes Norton, Ranking Member Davis,
    Chairman DeFazio, Ranking Member Graves and to all the members on the
    committee.
        My name is Shoshana Lew, and I am the Executive Director of the
    Colorado Department of Transportation.
        Thank you for inviting me here to address the State of Colorado's
    CDOT's Central 70 Workforce Development Program.
        The interstate system, originally introduced by President
    Eisenhower in 1956, was designed to provide a high-speed, high-capacity
    network of highways without stoplights and with exits spread apart. As
    much as the System has helped the United States economy boom and
    allowed more opportunity for movement for all, many interstates across
    the nation were built in the middle of lower-income and, oftentimes,
    minority neighborhoods. The first segment of Interstate 70 in Denver,
    built in 1961, was no exception as it was a 2.6-mile stretch that
    followed the route of 46th Avenue between Jackson Street and the
    junction of Interstate 25 and cut the Elyria and Swansea neighborhoods
    in half and disrupted connections in the Globeville neighborhood. The
    six-lane I-70 viaduct followed quickly thereafter and was completed in
    1964, at a cost of $12.5 million, without public input and no
    evaluations of the environmental, social and economic impacts that
    would later be required by National Environmental Policy Act, which
    passed in 1969.
        From the late 1800s, immigrants have called the neighborhoods of
    Globeville, Elyria and Swansea home. Globeville was originally settled
    independently around the Globe Smelting and Refining Company,
    eventually becoming part of Denver in 1902. Elyria and Swansea were
    likewise founded and annexed separately. Over the years, the
    neighborhood has evolved and seen Central and Eastern European settlers
    move on, replaced by new residents with Latin American roots. Sitting
    at the literal crossroads of Interstates 25 and 70, the nearly 100,000
    residents of Globeville, Elyria and Swansea today face the evolving
    impacts of massive nearby infrastructure projects in Denver, including
    the Central 70 Project which focuses on reconstructing a 10-mile
    stretch of I-70 through the heart of Denver. While these projects have
    started to bring the attention, funding and infrastructure the
    Globeville, Elyria and Swansea neighborhood has been lacking for years,
    they also bring new and very real concerns about gentrification, rising
    taxes and rent, and displaced residents.
        The Elyria and Swansea neighborhoods have one of the largest
    Hispanic populations in Denver. Nearly 84 percent of the residents in
    Elyria and Swansea and 68 percent in Globeville identify as Hispanic.
    These neighborhoods also experience unemployment rates that are ten
    times higher than that of the rest of Denver. Many do not have adequate
    transportation or childcare that is needed to get to work or go to
    doctors appointments. As such, the Globeville, Elyria and Swansea
    neighborhoods are classified as Environmental Justice communities.
        When I-70 was built in the early 1960s, the bridge and drainage
    structures were designed to last 30 years. In preparation for the
    inevitable upgrades needed, the Colorado Department of Transportation
    (CDOT) began planning for the Central 70 Project in 2003 with the I-70
    East environmental process. By 2008, nine structures on the corridor
    were classified as either structurally deficient or functionally
    obsolete and in critical need of repair, rehabilitation or replacement.
    That same year, CDOT completed the Environmental Impact Statement
    between I-25 and Tower Road.
        The Globeville, Elyria and Swansea community did not agree with the
    preferred alternative CDOT originally presented for this stretch of
    roadway and requested that CDOT continue to evaluate a variety of
    solutions, keeping the community top of mind. In response, CDOT
    conducted five additional years of neighborhood outreach during which
    the community and CDOT came to an agreement to lower the highway
    between Brighton and Colorado boulevards and add a cover park adjacent
    to Swansea Elementary School.
        This `preferred alternative' was presented in the supplemental
    Environmental Impact Statement in 2014 and the final Environmental
    Impact Statement in 2016. Ultimately, federal approval was given to the
    Project in January 2017, and in August 2018, construction began on
    CDOT's largest-ever infrastructure project. The $1.2 billion project
    includes the total reconstruction of I-70 between I-25 and Chambers
    Road, including adding one new Express Lane in each direction, removing
    the 57-year-old viaduct, removing and replacing several structurally
    deficient bridges and constructing a 4-acre cover park in the Elyria
    and Swansea neighborhoods.
        Simultaneous construction projects in the Globeville, Elyria and
    Swansea neighborhoods have a cumulative effect on the community that
    CDOT takes seriously. In conjunction with data and information received
    from over 300 public meetings held prior to construction, CDOT made
    nearly 150 community commitments to be completed over the Project's
    lifespan.
        These commitments include major renovations to and expansion of
    Swansea Elementary School (located just 100-feet away from I-70),
    contributions to local affordable housing efforts, and continuous air
    monitoring for dust during construction. In addition, the Project
    offered home improvements to nearly 300 homes within a one-block radius
    of I-70, providing these residences with air conditioning units, attic
    insulation, interior storm windows and better weatherization.
        Taking into consideration the high unemployment rate in the
    Globeville, Elyria and Swansea neighborhoods and the community stating
    fears of being forced out of the neighborhood due to higher costs of
    living, the Central 70 Project also set a goal of hiring 20 percent of
    the workforce from the 13 zip codes adjacent to the Project.
        The economic benefits of the Central 70 Project are both
    significant and long lasting. The Project anticipated requiring an
    estimated 4,000 positions--from skilled craft workers to administrative
    support. In February 2016, CDOT received approval from the Federal
    Highway Administration to implement a local labor hiring preference for
    the Central 70 Project. This approval was granted under a one-year
    program (Special Experimental Project No. 14--Local Labor Hiring Pilot
    Program) created to encourage state transportation departments to pilot
    local hiring provisions on projects receiving Federal funding.
        CDOT is one of nine state transportation agencies across the United
    States participating in this program that allows requirements for
    contractors to hire a certain percentage of workforce from within
    specific geographic boundaries. In the case of the Central 70 Project,
    CDOT focused hiring targets on neighborhoods adjacent to the Project
    corridor. As part of CDOT's contract with the Project Developer, Kiewit
    Meridiam Partner, during the estimated four and a half-year Project,
    Kiewit Meridiam Partners is required to hire 20 percent of its
    employees, full-time, from the local community.
        To support successful design, implementation and evaluation of
    local hiring preferences for Central 70, CDOT solicited proposals in
    2015 for a partner to help develop and implement the Central 70
    Workforce Development Program. CDOT contracted with the Community
    College of Denver's Center for Workforce Initiatives in 2016 to advise
    the Department on an appropriate goal and to prioritize programmatic
    recommendations. Community College of Denver was able to collect data
    and insights through:
          20 targeted neighborhood statistical profiles;
          15 focus groups with 147 participants;
          528 unique resident surveys;
          69 stakeholder interviews; and
          Four employer focus groups and/or interviews with
    regional contractor organizations.

        The insights shared by neighborhood residents, community
    organizations, education and training partners, civic leaders, and
    local employers supported the identification of goal recommendations
    and program action strategies related to the outreach, training and
    skills development, and supportive resources needed to help residents
    attain and retain employment on Central 70. Some of the programmatic
    recommendations identified in the study included:
          Identify and recruit for positions that would attract a
    broad candidate pool and provide transferable career pathways, such as
    laborers, equipment operators, commercial drivers, on-the-job trainees,
    administrative assistants, and accounting clerks.
          Establish a sole workforce convener that would coordinate
    community intake hubs, standardize assessment and referrals, and track
    training and placement outcomes.
          Align multiple training programs to create a pipeline
    system capable of preparing a wide range of students, job seekers, and
    workers, and ensuring existing or new training is included on the
    Colorado's Eligible Training Provider List.
          Continue partnering with experienced construction
    workforce partners, trade associations, and the Colorado Building
    Trades, to inform and educate community organizations, local residents,
    and training partners on industry practice and expectations.
          Commit to public and transparent reporting on the local
    hiring program with periodic collaborative forums that engage all
    stakeholders in identifying and resolving potential issuers.

        A 2012 report issued by the National Skills Coalition cautioned
    that federal investments that create jobs and federal investments that
    prepare people for jobs are not always aligned. [1] This can lead to a
    disconnection between economic development initiatives such as
    infrastructure expansion and workforce development priorities that
    build the skills and increase the earning potential of community
    residents. Through thoughtful collaboration, the approved Local Labor
    Hiring pilot helped CDOT and its partners bridge workforce and economic
    community development efforts. The alignment of training and job
    opportunities that help local residents in low-income neighborhoods to
    access training, high-quality jobs with connected career pathways,
    increases not only individual economic mobility but also the number of
    skilled workers to fulfill future project needs.
        CDOT is also participating in the USDOT's official on-the-job
    training program targeted to move women, minorities, and disadvantaged
    individuals into journey-level positions to help meet highway
    construction hiring needs and address the historical
    underrepresentation of these groups in highway construction skilled
    crafts. CDOT's contract with Kiewit Meridiam Partners requires 200,000
    training hours be provided to employees in the skilled crafts. In June
    of 2015, Federal Highway Administration awarded CDOT $400,000 from its
    Ladders of Opportunity Initiative On-the-Job Training/Supportive
    Services Pilot Program grant to support these efforts. These funds have
    been used to establish a collective impact workforce program, WORKNOW.
        Through various outreach events and partnerships, CDOT and
    Community College of Denver were able to catch the attention of a local
    private foundation, Gary Community Investments. The foundation invested
    $1.06 million into the Program, which provided assistance to mitigate
    barriers to employment, such as affordability of personal protective
    equipment, transportation and childcare.
        To encourage the local community to attend on-the-job training
    courses, CDOT opened a Neighborhood Training Center on CDOT's right of
    way in a walkable area in the Elyria and Swansea neighborhoods.
    Construction Careers Now, a 48-hour basic skills boot camp, started
    offering courses at the Neighborhood Training Center. The first cohort
    to graduate at this location were all from the local hire area,
    indicating that the new location helped with retention among local
    participants. A Community College of Denver Career Coach also began
    holding regular office hours at the Neighborhood Training Center, which
    coincided with the Construction Careers Now boot camp, providing
    program participants with direct access to coaching services in the
    late afternoon and evening. Kiewit Infrastructure Co., the Central 70
    Project's prime contractor, also assisted in developing two additional
    entry-level courses designed to connect more job seekers to highly
    needed industry positions. Additional classes included English as a
    second language and math skills.
        Prior to the groundbreaking of the Central 70 Project in 2018,
    Kiewit Meridiam Partners hired a Workforce Development Coordinator
    whose responsibilities include coordinating workforce recruitment,
    outreach, and hiring, as well as monitoring and reporting on Central 70
    workforce efforts. Kiewit Meridiam Partners and WORKNOW have co-hosted
    several Contractor Meet and Greet sessions at the Neighborhood Training
    Center to support informal community connections with job seekers
    interested in working on the Project. Sessions featured project
    contractors, local unions and registered apprenticeship programs for
    carpenters, laborers, operating engineers, and electricians.
        Kiewit Infrastructure Co. is a signatory to the Union, so the
    Project's workforce is pipelined via the Carpenters, Operators and
    Laborers Union. One of Kiewit's main electrical subcontractors is also
    a signatory to the Unions and works with the electrical Union for their
    workforce. Kiewit Meridiam Partners continually cites its partnerships
    with Unions as being one of the key factors to the success of the
    Workforce Development Program. It was through Kiewit's close
    partnership with the Unions that they were able to make residents aware
    of open positions and the Workforce Development Program. Kiewit
    Meridiam Partners also held a number of hiring fairs that included
    coaching and personal protective equipment at the event itself as a way
    to bring in more employees. These hiring fairs were held at the
    Neighborhood Training Center or other convenient locations within the
    local communities. In 2019, Kiewit Meridiam Partners began co-hosting
    ``Building an Inclusive Workforce Series'' with WORKNOW and developed a
    ``Women in Construction'' hands-on workshop in partnership with Kiewit
    Meridiam Partners' signatory unions.
        ``Workforce Development is very important to Kiewit, as a
    contractor,'' said Jason Proskovec, Kiewit's Central 70 project
    director. ``We're a local contractor, we've been in Denver and in the
    community for over 70 years and know that wherever we go it's important
    to not only help train and develop our construction workforce [since]
    it's widely known that it's an aging workforce and that we need to
    develop people to help, not only on this Project, but when we take on
    more work as well. We need to develop skilled craftsmen and women to
    build projects such as this one.''
        Day-long workshops were offered at the Carpenters and Operators
    training facilities to provide exposure for women and people of color
    to know which trades they would like to pursue as a career. Other
    outreach tools such as live streaming on Facebook and YouTube were done
    to help teach the local community about hiring opportunities from four
    contractors and three unions. These videos were done through a
    partnership between WORKNOW and Black Business Initiative and had
    nearly 200 people tune in.
        ``To Kiewit Meridiam Partners the benefits are many, a stronger and
    larger construction workforce base, a more economically sustainable
    community, and strong partnerships for future projects,'' said Cathi
    Buckley, Kiewit Meridiam Partners chief financial officer.
        As of February 1, 2021, only two and a half years into
    construction, the Central 70 Project exceeded its workforce goal and
    had 600 local workers contribute 760,000 hours to the Project. As of
    October 2020, the Central 70 Project's on-the-job training goal of
    200,000 hours was surpassed. The combined partnerships also had a goal
    to have at least 50 percent of the local hires be new to the industry
    and the Project exceeded that goal with 75 percent of the hires being
    new to construction.
        ``Even though we have met our on-the-job training goal of 200,000
    hours in October 2020, it's still very important to us to continue that
    momentum to help train these apprentices and make these apprentices be
    more skilled workers to benefit not only them, but us in the future,''
    said Proskovec. ``Being able to take that skill that they learned here
    and take that to the next job and the next job, even if it isn't for
    us, it's just more beneficial for the construction industry in
    general.''
        The Workforce Program has been a life changing experience for those
    living adjacent to the Central 70 Project corridor. It has opened up
    opportunities for advancement, a secure job and a higher paying salary
    to help residents stay in the Globeville, Elyria and Swansea community.
    Che Derrera, a Groundsman and Traffic Signal Technician Apprentice for
    Sturgeon, which is a subcontractor to Kiewit on the Central 70 Project,
    found a second chance through the WORKNOW program, funded by CDOT and
    Federal Highway Administration. After enduring several tough years,
    including serving eight years in prison, and not being able to land a
    secure job, he found work on the Central 70 Project by attending one of
    the Workforce Program's hiring fairs where he learned that he can
    enhance his skills through trainings and have an opportunity to work on
    a construction project in his community.
        In a quote provided to WORKNOW for an article, Derrera stated ``I
    enjoy improving the roadways and landscape along Central 70. This is a
    positive change for future generations and I'm proud to contribute to
    that. What I love most about working in construction is the
    opportunity. There's so much I can learn that can open doors for me
    anywhere, even within the same company.''
        Governor Jared Polis was one of the first governors in the country
    to endorse the bi-partisan infrastructure bill. In 2021 he said, ``This
    important action means jobs and better roads along with a strong
    initial package to improve air quality and make progress on climate
    issues.'' There is significant potential in the Infrastructure
    Investment and Jobs Act to build a strong transportation workforce and
    programs like those implemented on CDOT's Central 70 project that can
    help achieve that goal.
        The state of Colorado is committed to building a skilled workforce
    and continuing to grow a world class economy. Colorado consistently has
    one of the strongest economies in the country and high employment
    rates. In January of 2022, the state had one of the lowest unemployment
    rates at 4.1%, which is the lowest it has been since the pandemic
    began. Colorado's private sector has fully recovered jobs lost in early
    2020. Colorado's job recovery rate is 103.1% which is significantly
    higher than the national rate of 89.8%. Construction had the strongest
    job gain of any sector adding around 2,000 jobs in January of 2022.
        CDOT's Central 70 Workforce Development Program is an example of
    how successful hiring locally can be. It not only fuels the local
    economy, but it gives back to the community in a way that
    transportation projects have not done in the past. When the Central 70
    Project finishes at the end of 2022, the residents hired as a part of
    the program will continue to reap the benefits of this commitment and
    have a secure career, should they choose to stay in the construction
    industry and even if they do not, they can take the skills they have
    learned through training and coaching and apply that elsewhere. To make
    this program even more successful, it would be beneficial for
    transportation agencies to work out issues on the administrative side,
    which includes building out a better reporting system to track
    workforce job positions created as there are many lower-tier
    subcontractors who have craft workers working on the Central 70 Project
    that CDOT is unable to track. Hiring locally and providing funds for
    on-the-job training are commitments that CDOT will continue to pursue
    for other disproportionately impacted communities in future
    infrastructure projects.

        Ms. Norton. Thank you very much, Ms. Lew. I recognize Ms.
    Smith for 5 minutes.
        Ms. Smith. Chair Norton, Chairman DeFazio, Ranking Member
    Davis, Ranking Member Graves, and members of the subcommittee,
    thank you for the opportunity to appear today and speak about
    the importance of the Federal Highway Administration's and the
    NC Department of Transportation's On-the-Job Training and
    Supportive Services Programs. Today I will share our
    recommendations to protect and strengthen the critical
    workforce development components during this time where we are
    experiencing a shortage of skilled laborers.
        I am Tunya Smith, director of the Office of Civil Rights
    for the North Carolina Department of Transportation. Thank you
    for inviting me to testify today on behalf of the State of
    North Carolina.
        According to title 23 of the U.S. Code of Federal
    Regulations, the Federal Highway Administration mandates that
    State transportation agencies create and operate on-the-job
    training programs with our contractors on Federal-aid highway
    projects.
        The NC DOT's workforce development initiative has two major
    objectives: to provide equal opportunity and access to all
    people, and to produce a professional highway industry
    workforce that fulfills employer demands.
        We have several projects that cover almost every aspect of
    workforce development in the highway industry. In addition to
    targeting women and minorities, disadvantaged populations for
    OJT program participation in North Carolina include those with
    disabilities, justice-involved, veterans, and anyone who lives
    in one of the State's most economically distressed tier 1
    counties, including all eight North Carolina Native American
    Tribes.
        Women are underrepresented in the private contractor labor
    force and all occupations surveyed, according to our most
    recent ``Federal-aid Highway Construction Contractors Annual
    EEO Workforce Report.''
        The OJT program continues to be a vital public-private
    relationship that benefits all parties. The following are some
    of the OJT programs in North Carolina: highway construction
    trade academies for adults 18 and older; advanced skills
    training in a variety of high-demand areas, including training
    for a commercial driver's license for academy participants and
    graduates; and career outreach and recruitment programs for
    middle school all the way through high school.
        However, there is still work to be done. The Highway
    Construction Workforce Partnership through the Federal Highway
    Administration is one example of a program that requires
    greater financing. This opportunity will allow us to work even
    closer with critical stakeholders and partners.
        Due to a lack of financing, North Carolina was one of a
    dozen States that were not awarded Highway Construction
    Workforce Partnership grant funds when the previous round of
    grantees were named. We were also disappointed that the
    Infrastructure Investment and Jobs Act did not contain new nor
    direct financing for workforce development. Only four program
    funds approved by the Fixing America's Surface Transportation,
    FAST, Act are allowed to be used for workforce development by
    States under the new IIJA.
        The IIJA was enacted with the support of this committee and
    will go a long way toward ensuring a safe and efficient highway
    system. However, if we are to maximize the potential of the
    IIJA commitment, we must invest more in workforce development.
    We recommend a review of the Workforce Innovation and
    Opportunity Act and consideration of the reauthorization to
    determine if there are opportunities for amendments more
    focused on funding for highway construction and other
    transportation workforce and training programs.
        It is also important that OJT Supportive Services money be
    made available to train prerelease and incarcerated
    individuals. Unfortunately, without additional funding and
    flexibility of our programs, these and other workforce
    development programs will remain stagnant.
        Finally, on behalf of NC DOT Secretary J. Eric Boyette,
    Deputy Secretary Ebony J. Pittman, the Board of Transportation,
    and the dedicated employees of the North Carolina Department of
    Transportation and our many partner organizations, I would like
    to express my gratitude to the members of the House
    Transportation and Infrastructure subcommittee for this honor
    and opportunity to share our experiences and ideas regarding
    OJT Supportive Services, workforce development, and job
    creation in the highway construction industry.
        Thank you once more. I will gladly answer any inquiries you
    may have.
        [Ms. Smith's prepared statement follows:]

     Prepared Statement of Tunya Smith, Director, Office of Civil Rights,
                  North Carolina Department of Transportation
                                  Introduction
        Chair Norton, Chairman DeFazio, Ranking Member Davis, Ranking
    Member Graves, and Members of the Subcommittee, thank you for the
    opportunity to appear today and speak on the important topic of FHWA's
    and NCDOT's On-the-Job Training (OJT) Program and OJT/Supportive
    Services programs, and our recommendations to both protect and
    strengthen these critical workforce development components.
        I am Tunya Smith, director of the Office of Civil Rights for the
    North Carolina Department of Transportation. Thank you for inviting me
    to testify today on behalf of the State of North Carolina I'm honored
    to be given this opportunity today.
        NCDOT has evolved into a multimodal agency committed to supporting
    the travelers, economy and overall well-being of North Carolina by
    providing a comprehensive statewide transportation system that
    encompasses all forms of travel. The agency's vision, mission and goals
    guide its daily operations to ensure its wide range of projects and
    services meet the state's growing transportation needs.
        The reason I'm here speaking to you today is to advocate for
    Congress to place greater emphasis and funding on workforce development
    for the highway and bridge construction and maintenance industry. I see
    from some of your recent agendas that ferries have been a major topic;
    you may be happy to know that through special federal-aid highway
    funding via FHWA, the programs I am about to discuss can work with the
    training and labor needs for ferry transportation too.
        North Carolina (NC) faces a highway construction workforce and
    skills gap issue. Nationally, there is a growing demand for highway
    construction, maintenance and administrative workers with a need for
    higher-level skill sets. As the 9th most populated state and one that
    is growing rapidly, North Carolina must consider both new build and
    legacy maintenance needs related to highway, tunnel and bridge
    construction.
        A recent report from the North Carolina Chamber of Commerce and a
    national transportation research nonprofit known as TRIP revealed North
    Carolina motorists pay about $10.3 billion annually in transportation-
    related expenses as a result of driving on poorly maintained and
    deteriorating statewide roads and bridges. The report findings show
    that a strong transportation network supports a strong statewide
    economy. Nearly 2 million jobs in North Carolina depend directly on the
    strength of our transportation infrastructure. As North Carolina
    focuses on ramping up the transportation infrastructure, there is a
    pending workforce shortage that shows the average age of North Carolina
    construction trades workers is approximately 50 years old. The impact
    of the expected labor shortage is amplified by the fact that many
    potential workers find construction trades unattractive and challenging
    to enter. Now more than ever, programs that target and prepare non-
    traditional populations and laborers are needed.
    Program Goals and Partnerships
        The Federal-aid Highway Act of 1968, Section 22 (a), 23 USC 140
    (a), ensures nondiscrimination in Equal Employment Opportunity and On-
    the-Job on federally funded highway projects.
        The NCDOT's workforce development initiatives have two major
    objectives: provide equal opportunity and access for all people; and
    produce a professional highway industry workforce that fulfills
    employer demands. We have a number of projects that cover almost every
    aspect of workforce development in the highway business. At NCDOT, the
    On-the-Job Training (OJT) Programs are implemented and administered by
    a unit within the Office of Civil Rights. The Carolinas Associated
    General Contractors (CAGC), the American Road Transportation and
    Builders Association (ARTBA), NC community colleges (including
    ApprenticeshipNC), Local Education Agencies (LEA) that manage public
    school systems, and the state workforce development system, NCWorks,
    which is authorized and funded through the Workforce Investment Act
    (WIA), are excellent at supporting highway industry workforce
    development.
    On-the-Job Training Program--OJT
        State highway agencies are required by the Federal Highway
    Administration (FHWA) to design and administer ``surface transportation
    and technology training, including skill improvement programs,'' as
    specified by the US Code of Federal Regulations Title 23, section
    140(b) and Title 23 Section 230. The Federal Highway Administration
    (FHWA) and the North Carolina Department of Transportation (NCDOT)
    accomplish this through an On-the-Job Training Program (OJT).
    Apprenticeships and other `earn while you learn' training programs are
    included in the OJT program, which focuses on disadvantaged
    communities. The primary goals of the OJT Program are to:
          Ensure equal opportunity and access to training and job
    placement in the highway construction field for minorities, women and
    disadvantaged individuals; provide a diverse pool of skilled workers
    for the highway construction sector; and ensure equal opportunity and
    access to training and job placement in the highway construction field.

        Disadvantaged populations in North Carolina are defined as those
    with disabilities, people who have been engaged in the prison system,
    veterans, and anyone who lives in one of the state's most economically
    distressed Tier 1 counties. We're also making a concentrated effort to
    attract more Native Americans to all of our programs by collaborating
    with the N.C. Commission of Indian Affairs and the eight (8) NC tribes,
    all of which are situated in Tier 1 counties.
        The North Carolina OJT unit monitors contractor compliance, goal
    objectives, and trainee completion of approved job classifications for
    project contracts. Good faith efforts are part of this important
    contractor-DOT partnership and provide for greater training continuity
    and trainee and worker job retention. Federally funded contract
    provisions require contractors to include a specific number of OJT jobs
    to be included in a workforce based on a contract dollar formula and
    methodology.
        The NC Alternate OJT (A-OJT) Program's flexibility allows
    contractors to educate personnel on a variety of projects. These
    initiatives can be supported by the federal government, state
    government, or the private sector. However, the projects must be in
    North Carolina, and the training must meet the NCDOT On-the-Job
    Training Manual's requirements. All contractors are advised of their
    annual training target at the start of each calendar year, and they
    agree with the department to conduct an On-the-Job Training program
    throughout the year. This contract specifies a set number of annual
    training slots for each contractor. Last year, nearly 150 people
    enrolled in the NCDOT's version of the OJT program. The average trainee
    was 32 years old. Sixty-six percent (n=109) of those surveyed
    identified as male, while the remaining twenty-four percent (n=35)
    identified as female. Non-white self-identification was reported by 61
    percent of participants. We're working hard with our contractors to
    boost the numbers, notably among Hispanic females, who make up only 14%
    of all female trainees. The average age of a trainee in 2021 was 32.
        This year, more than 300 new trainees will be enrolled in the
    contractor OJT programs, with another 150 individuals continuing to
    work from the previous two years. Nearly 500 OJT participants will be
    working with prime and other contractors in 75 various task types
    across North Carolina, in almost every county. One key issue, according
    to our latest 1392--or Federal-Aid Highway Construction Contractors
    Annual Equal Employment Opportunity (EEO) Workforce Report--is the
    shortage of women in the private contractor labor force in all
    occupations surveyed (except for clerical). In the ranks of `officials'
    and `supervisors,' there is a dearth of women and minorities. The OJT
    Program continues to be a vital public-private cooperation that is a
    huge victory.
    OJT Supportive Services (OJT/SS) Programs
        Additional funding is available for OJT Supportive Services, or
    OJT/SS, which enhance, complement, and assist the OJT workforce
    pipeline initiative. OJT/SS is also used to enhance involvement in
    skilled and semi-skilled crafts by women, minorities, and disadvantaged
    people. The following are some of the NC OJT/SS initiatives:
                Highway Construction Trade Academies
        To further enhance the highway industry's workforce development,
    the NCDOT supports Highway Construction Trades Academies (HCTA) for
    adult and older youth learners. The academies are great opportunities
    for those interested in good jobs with good pay and with the desire to
    be trained in highway/bridge construction/maintenance that could result
    in a rewarding career in the highway industry. The HCTAs are offered in
    partnership with community-based non-profits, and community colleges,
    and provide a mix of classroom instruction and hands-on learning
    experiences.
        Participants can receive OSHA-10, CPR, first aid, and flagger
    certificates, as well as Commercial Driver Licenses (CDLs), as well as
    take the Introduction to Earthmoving/Heavy Equipment Operation course.
    Individual case management assistance, access to employment fairs, and
    the option to be hired by contractors are also provided to
    participants. Participants in the academy program are not charged
    anything. Despite the hurdles posed by the COVID pandemic, a few
    academies trained nearly 100 people for positions in the highway
    business last year. By the end of the year, we hope to have a dozen
    such academies up and operating in critical highway/bridge project
    areas, with community colleges and community-based non-profits serving
    as hosts. Meanwhile, in partnership with our Workforce Innovation and
    Opportunity Act (WIOA)-funded NCWorks and Division of Highways
    colleagues, we have developed a proactive and innovative strategy to
    quickly provide qualified entry-level labor by conducting accelerated
    `pop-up' academy boot camps.
                Advanced Training
        Participants who have completed an HCTA or are OJT trainees can
    obtain further skills training in a variety of high-demand sectors. As
    a supplement to their more general training, Advanced Training allows
    learners to earn a variety of certificates. Those include
    certifications in commercial and truck driver license operation; heavy
    equipment operation; demolition/hauling, guardrail installation,
    paving, landscaping and erosion control, installing trenches and
    piping; traffic maintenance; bridgework; and disaster recovery. The
    tuition and other costs connected with obtaining these certifications
    will be covered by OJT/SS funding. Each year, an increasing number of
    program participants take advantage of this opportunity. However, the
    COVID pandemic created challenges and required significant outreach and
    marketing efforts.
                Outreach and Career Awareness
        Through Construction Career Exposure, Engagement, Education
    Development, or CEEED events, the North Carolina Department of
    Transportation is also committed to career outreach and recruitment.
    These activities help young people better understand transportation and
    transportation construction jobs. These activities provide people with
    the skills they need to identify and start a career that meets their
    qualifications and desires. The outreach begins as early as middle
    school and provides a pathway to Highway Academy graduation, as well as
    advanced training in an OJT program and possible employment in a
    rewarding career. It is encouraging that some may go on to be
    entrepreneurs and operators themselves, perhaps as disadvantaged,
    women, or small business owners. Examples of specific activities
    include:
          Highway Construction Career Days (CCD)/Career Expos:
    NCDOT partners are encouraged to exhibit how technology and equipment
    are employed in the highway construction business. A trade show with
    vendor exhibits is included in each event to provide extra learning
    opportunities and to explore potential highway construction job
    possibilities with middle and high school students. Every year, CCDs
    are hosted throughout the state, with each event attracting hundreds of
    students.
          Construction Career Engagement: The Program promotes
    opportunities and professional development programs in the highway
    construction industry through outreach, informational sessions, and job
    fairs. These activities are used to recruit participants for the HCTAs
    and educate people about jobs in highway building.

        With Federal Highway Administration support under CFR 23 Section
    140, NCDOT also operates several National Summer Transportation
    Institute (NSTI) programs. NSTI programs are week-long summer camps for
    high school students that combine classroom and experiential learning
    to help students better understand transportation and related careers.
    The NCDOT program hosted more than 150 kids at several locations across
    the state last year to introduce minorities and girls in middle and
    high school to careers in transportation. Historically Black Colleges
    and Universities and Minority Serving Institutions make an important
    contribution to industry workforce development by providing
    transportation student internships and scholarships.
    Supportive Services
        We recognize there are obstacles to pursuing a career in highway
    construction that are beyond an individual's control. We can provide
    job placement, childcare support, outreach, case management,
    transportation to training and job locations, post-graduation follow-
    up, and job-site mentoring through our OJT and Support Services
    program. To enable people to start a job, NCDOT also will supply
    participants with basic personal protective equipment, such as steel-
    toed boots, safety vests, protective eyewear, work gloves, and hard
    hats.
    Program Review and Continuous Improvement
        FHWA reporting requires that we develop OJT/SS work statements and
    submit to FHWA for approval for funding. Quarterly and annual reports
    are provided to ensure the OJT/SS contractors/providers achieve
    performance goals and objectives. Support services providers are
    monitored by our OJT unit and the FHWA division offices.
        We are proud of our training and job placement programs and know
    these workforce development and employment programs directly impact
    economic development and community development. We are committed to
    continuous improvement and are currently assessing the economic impact
    of our programs.
        For example, HCTA and Advanced Training operations and money
    directed to various suppliers, such as payroll, supplies/materials, and
    equipment purchases and rentals, as well as wages and benefits of
    program participants/graduates employed/promoted (multiplier effect),
    are being evaluated. Additionally, peoples' lives and livelihoods are
    transformed and improved.
    Highway Construction Workforce Partnership
        We are not alone, as I mentioned previously. A number of partner
    organizations from the transportation, education and workforce areas
    collaborate to provide a qualified and technically skilled highway
    construction workforce. The Highway Construction Workforce Partnership
    is an excellent example (HCWP).
        The HCWP's goal is to bring organizations and others together in
    state and local working groups to discover, train and place people in
    highway construction employment. One of the most valuable aspects of
    the HCWP is the potential to pool existing resources and interests to
    solve industry labor needs as partners. The Center for Transportation
    Workforce Development and Technology Deployment of the Federal Highway
    Administration (FHWA) awarded $4 million in HCWP grants late last year.
    However, only 11 of the 21 bids submitted by state DOTs were funded.
    The challenges and processes of delivering outreach programs for
    prospective employees, training and job placement necessitate the
    commitment and active participation of transportation, education and
    workforce system partners. However, the HCWP's full potential will not
    be fulfilled without additional funding.
        Over the last two years, the FHWA's Every Day Counts (EDC) Program
    has chosen Strategic Workforce Development (SWD) as a key initiative.
    Thirty-two states, including North Carolina, have committed to the SWD
    in Every Day Counts, but their efforts will be significantly hampered
    without money. If funds were available, I believe that more states
    would support the EDC and HCWP.
    Resource Limitations
        We are doing what we can to improve highway industry workforce
    development in North Carolina, but frankly we can and need to do more.
    We were disappointed that more funding for workforce development was
    not included in the Infrastructure Investment and Jobs Act (IIJA). It
    appears that any new or existing direct workforce development funds in
    the IIJA are limited.
        The IIJA only allows states to obligate funds from four workforce
    programs authorized by the earlier Fixing America's Surface
    Transportation Act (FAST Act). Amendments now include support for pre-
    apprenticeship and apprenticeship programs as well as career
    opportunities for on-the-job training. They also expand how these funds
    can be used. The amendments allow for engagement with workforce
    development boards provided for under the Workforce Innovation and
    Opportunity Act (WIOA). They also allow for activities around
    addressing workforce gaps and developing the surface transportation
    workforce.
        With approval by the FHWA, NCDOT OJT has used Title 23, Section
    504(e), for support of workforce development with 100% federal-aid
    state highway core funds. Under this section, the Secretary shall
    operate in the Federal Highway Administration a National Highway
    Institute (in this subsection referred to as the ``Institute''). The
    secretary shall administer the authority to develop and conduct
    education and training programs relating to highways. However, any such
    investment in such workforce development is made at the expense of
    capital investment in road and bridge projects, highway safety, or
    other programs. We are also increasingly pursuing program/project
    funding strategies that encourage the leveraging of outside committed
    resources. Those resources can be in-kind or cash contributions
    including from other grantors or in co-funding or cost-sharing to help
    supplement program activities and goals.
        The Transportation and Infrastructure Committee provided the
    leadership needed to enact the IIJA, and it will go a long way in
    helping state transportation agencies and their partners to provide for
    a safe and efficient highway system. But a greater investment in
    workforce development is necessary if we are to realize the full
    potential of the IIJA investment.
        To achieve the best outcomes, we also recommend a review of WIOA in
    consideration of its reauthorization to determine if there are
    opportunities for amendments that are focused on funding for highway
    construction, and other transportation workforce and training programs.
    This could perhaps be accomplished through funds leveraging with OJT/SS
    programs.
        It is also important for the OJT/SS funds to be allowed for pre-
    release incarcerated individuals, who are in re-entry mode. The type of
    workforce development and employment services state DOTs can provide
    under OJT/SS funding before incarcerated individuals are released will
    help them be better prepared for full-time jobs soon after release. In
    North Carolina, some of our Highway Construction Trade Academies have
    worked closely with local re-entry councils and the graduates have been
    quickly hired by contractors. It would be an even greater advantage to
    start working with incarcerated individuals prior to their release from
    prison.
        Unified data collection and sharing amongst state transportation
    agencies and partner agencies is also a critical missing component of
    successful OJT program development. The federal government assists
    states in developing a unified OJT data warehouse, a national
    performance management dashboard. The federal government also helps
    build a repository toolkit listing economic impact key performance
    indicators and key statistics for states and local partners to measure
    outcomes and economic impacts of training programs.
        Perhaps above all, we would ask the committee to continue its work
    and that funding be increased to support the basic, comprehensive and
    critical OJT/SS workforce initiatives I have described. Most states
    operate workforce programs similar to North Carolina's. I can assure
    you everyone will benefit from additional workforce funding. More
    importantly, we can take greater advantage of the partnerships and
    programs already in place. OJT/SS is one of those best-kept secrets,
    but NCDOT is working hard to get the word about these very beneficial
    and mutually-rewarding programs.
                                   Conclusion
        We whole-heartedly agree with Ken Simonson, the Associated General
    Contractors of America's (AGC) chief economist, that labor shortages in
    the construction industry remain significant and widespread, and to
    quote Mr. Simonson, ``The best way to encourage continued economic
    growth, make it easier to rebuild aging infrastructure, and place more
    young adults into high-paying careers is to address construction
    workforce shortages.''
        I appreciate Mr. Simonson's comment. If this initiative is not able
    to continue and does not receive additional funding, many of the
    benefits will not be fully realized.
        In closing, I'd like to thank the members of the House
    Transportation and Infrastructure Committee on behalf of NCDOT
    Secretary J. Eric Boyette, Deputy Secretary Ebony J. Pittman, and the
    dedicated employees of the North Carolina Department of Transportation
    and our many partner organizations for this honor and opportunity to
    share our experiences and ideas concerning OJT/SS, workforce
    development, and job creation in the highway construction industry.
        We are one example and model of how OJT and its accompanying
    supports services can and should operate and function, as well as the
    outcomes and returns on investment they can deliver. OJT is undoubtedly
    a path to our future goals.
        Thank you once more. I will gladly answer any inquiries you may
    have.

        Ms. Norton. Thank you very much for your testimony, Ms.
    Smith. I now recognize Mr. Booker for 5 minutes.
        Mr. Booker. Good afternoon, Chair Norton, Ranking Member
    Davis, Chairman DeFazio, and distinguished members of the
    subcommittee. My name is Brent Booker, secretary-treasurer of
    North America's Building Trades Unions. On behalf of the 3
    million skilled-craft construction professionals and 14
    affiliated national and international unions that we represent
    across the United States and Canada, thank you for the
    opportunity to testify before this subcommittee.
        Building America's infrastructure is literally what our
    members do every day. Whether it is roads, bridges, transit,
    airports, water systems, energy infrastructure, public
    buildings, schools, or skyscrapers, our dedicated, highly
    skilled members build critical infrastructure in every corner
    of our great Nation.
        The strength of the construction industry and individual
    job opportunities are directly tied to the strength of public
    policy advancing the building of public infrastructure. For
    years, we advocated for robust infrastructure investment to
    solidify and expand economic opportunities for workers and
    business, and tackle tough public infrastructure challenges.
    The bipartisan Infrastructure Investment and Jobs Act will do
    just that.
        This bill will increase new job opportunities for
    construction workers, economic development opportunities for
    communities, new business opportunities for both large
    corporations and small business, and new training opportunities
    for those that seek a career in construction.
        The construction industry is among the most dangerous
    industries in the country. Workers perform difficult physical
    labor, often working around heavy machinery, and are regularly
    exposed to extreme temperatures, toxic substances, and
    difficult conditions. To guard against these inherent dangers,
    uphold public safety, and promote first-rate work, workers must
    receive the highest quality education and training.
        For generations, NABTU-affiliated unions, with our industry
    partners, have trained the world's safest and most productive
    construction workforce through our gold standard registered
    apprenticeship system. These earn-as-you-learn joint labor-
    management programs provide apprentices with on-the-job
    training from highly skilled, journey-level workers and state-
    of-the-art classroom training. Each year, NABTU and partner
    contractors invest almost $2 billion in the NABTU training
    system, comprised of over 20,000 instructors at 1,600 training
    centers in almost every U.S. congressional district.
        Seventy-five percent of all construction registered
    apprentices are trained in our system. Since 2017, an average
    of 75,000 new apprentices have been registered annually. In
    fact, if our system were a 4-year, degree-granting institution,
    it would be the largest in the country. But unlike a college
    degree or even a community college, our programs offer a debt-
    free path to a fulfilling, lifelong, middle-class career.
        A worker who has completed a NABTU-registered
    apprenticeship program earns an average annual wage of $60,000,
    and $300,000 more over the life of their career, compared to
    non-registered apprenticeship participants. Workers are
    guaranteed good wages, healthcare, and retirement benefits
    during and after their apprenticeship.
        NABTU programs also provide upskill training for tens of
    thousands of journey-level workers each year, so they can
    continually improve their skill, allowing workers and
    contractors to remain competitive in a constantly evolving
    industry and marketplace.
        For our contractor partners, the benefits are substantial,
    as well. By employing a highly skilled apprentice, our
    contractors see a return of up to $3 for every dollar invested
    in worker training.
        To allow for direct input, and to consistently meet the
    current demands of the construction market, each program and
    training center is jointly administered with an equal number of
    labor and contractor representatives.
        With infrastructure implementation, demand is going to
    increase. To help meet that demand, NABTU continues expanding
    our apprenticeship readiness programs, or ARPs, oftentimes
    called pre-apprenticeship programs. From 15 ARPs a decade ago
    to nearly 200 ARPs today, NABTU has partnered with community
    organizations, construction contractors, and project owners to
    grow the pipeline of talented individuals who seek a
    construction career, particularly among communities
    underrepresented in the construction workforce.
        We have specifically utilized ARPs to increase retention
    and recruit more women, communities of color, Native Americans,
    veterans, and the justice-involved. Since 2016, roughly 80
    percent of the ARP graduates were people of color, and 20
    percent were women.
        With written articulation agreements with registered
    apprenticeship programs, ARP graduates are placed directly into
    apprenticeship in the middle class, but we also want to keep
    them there throughout the duration of their apprenticeship
    training. With local-hire provisions in the infrastructure law,
    there is a real opportunity to expand these programs across the
    country.
        So, to continue offering ladders of opportunity for those
    who wish to climb them, our programs need steady job
    opportunities where apprentices can learn their skills in the
    field. Our programs only bring individuals in if there is a job
    for an apprentice. Continuity of employment is critical, as an
    apprentice cannot complete their apprenticeship without
    employment opportunities over the 3 to 5 years required to
    complete their program. And it is why the infrastructure bill
    and public projected funds are essential to training the next
    generation of construction workers. The magnitude and breadth
    of this investment will ensure that anyone from any background
    and any community can access a middle-class construction
    career.
        Thank you for this opportunity to testify, and I look
    forward to any questions.
        [Mr. Booker's prepared statement follows:]

        Prepared Statement of Brent Booker, Secretary-Treasurer, North
                        America's Building Trades Unions
        Good morning. Chairwoman Norton, Ranking Member Davis, and
    distinguished members of this subcommittee.
        My name is Brent Booker, Secretary-Treasurer of North America's
    Building Trades Unions (NABTU). On behalf of the three million skilled
    craft construction professionals and 14 affiliated national and
    international unions that I am proud to represent across the United
    States and Canada, I would like to thank you for granting me this
    opportunity to testify before this subcommittee.
        Building America's infrastructure is literally what our members do
    every day. Whether it is roads and bridges, transit, airports,
    waterways, power plants and other energy infrastructure, municipal
    water systems, public buildings, schools or skyscrapers, our dedicated
    members apply their unique skill sets to building infrastructure in
    every corner of our great nation.
        For many of our members, the strength of both the construction
    industry and their individual job opportunities are directly tied to
    the strength of public policy that advances the building of public
    infrastructure. And NABTU has for years advocated for a big, broad, and
    bold infrastructure bill that solidifies and expands economic
    opportunities for workers and business, tackles the tough challenges
    our public infrastructure faces, and lays out a vision for a brighter
    future. We strongly believe that the bipartisan Infrastructure
    Investment and Jobs Act will do that just.
        I cannot stress enough the importance of this bill, which is the
    single greatest investment in our nation's infrastructure in my
    lifetime. It is truly historic. This investment, along with the strong
    labor standards in the bill, will allow us as a nation to meet our
    pressing infrastructure needs and will lay the foundation for sustained
    economic growth in communities large and small with jobs that pay
    family sustaining wages and benefits.
        And this bill will increase opportunity across the board: for new
    job opportunities for construction workers; for new economic
    development opportunities for our communities; for new business
    opportunities for both large corporations and small business; and for
    new training opportunities for those that seek a career in
    construction.
        The construction industry is, by its very nature and ranking from
    the Bureau of Labor Statistics, among the most dangerous industries in
    the country. Workers perform difficult physical labor, often working on
    or around heavy machinery, and are regularly exposed to extreme
    temperatures, toxic substances, and difficult conditions. To guard
    against these inherent dangers, promote first-rate work and uphold
    public safety, workers must receive the highest quality education and
    training. Public infrastructure projects are critical to not only
    rebuilding and strengthening our communities, but they are critical to
    ensuring a reliable pipeline of highly skilled workers.
        For generations, NABTU affiliated unions, in conjunction with our
    industry partners, have trained the safest and most productive
    construction workforce in the world through our registered
    apprenticeship system. It is the gold standard for construction
    training, and for workforce training overall. These world class, state-
    of-the-art ``earn as you learn'' joint labor-management programs
    provide apprentices with on-the-job training from highly skilled
    journey-level workers, as well a state-of-the-art classroom training.
    The NABTU affiliate training system is comprised of 1,600 training
    centers and over 20,000 instructors, in almost every Congressional
    district in the United States, which we and our industry partners
    privately fund at nearly $2 billion annually. Seventy-five percent of
    all construction registered apprentices are trained in NABTU registered
    apprenticeship programs. Since 2017, an average of 75,000 new
    apprentices have been registered annually. Before the pandemic began,
    in 2019 alone, over 80,000 new apprentices began their careers in NABTU
    programs. In fact, if NABTU's joint labor-management training system
    were a four-year degree granting institution, it would be the largest
    in the country. But unlike a four-year degree granting institution, or
    even a community college, our programs offer a debt-free path to a
    fulfilling, life-long career.
        The noble goal of the National Apprenticeship Act of 1937, commonly
    referred to as the Fitzgerald Act, is as important now as it was then--
    to safeguard the welfare of the apprentice. NABTU programs have never
    wavered from achieving this goal. To achieve this, there are specific
    standards of a registered apprenticeship program that are critical in
    worker training. First, there is a standard of hours for related
    technical instruction, which is the classroom component of
    apprenticeship training. Second, there is the written agreement between
    the apprentice and apprenticeship program, which sets forth the
    parameters of apprenticeship training, as well as items such as
    graduated wages and benefits that an apprentice will earn while he or
    she progresses through the program. Third, our programs and written
    agreements have approval by a third party, namely the U.S. Department
    of Labor or a state apprenticeship agency. This ``three-legged stool''
    of apprenticeship training provides the necessary security to the
    individual apprentice who is put on a path to becoming a highly
    skilled, safe and effective worker in one of fifteen construction
    trades.
        The benefits of NABTU Registered Apprenticeship Programs are
    substantial. A worker who has completed a NABTU registered
    apprenticeship program earns an average annual wage of $60,000, and
    $300,000 more over the life of their career compared to non-registered
    apprenticeship participants. Workers are guaranteed good wages, health
    care and retirement benefits during and after their apprenticeship.
    NABTU's registered apprenticeship programs also provide up-skill
    training for tens of thousands of journey-level workers each year with
    the goal of continually improving their skills, which allows them, and
    our contractors, to remain competitive in a constantly evolving
    industry and marketplace.
        For our contractor partners, the benefits are substantial as well.
    By employing a highly skilled apprentice, our contractors see a return
    of $1.30 to $3.00 for every dollar invested in worker training. A safer
    workforce means decreased workplace injuries and accidents. And our
    contractors have direct input into our programs because each program
    and training center is jointly administered with an equal number of
    representatives from labor and a specific trade's contractors. This
    allows our programs to consistently meet the current demands of the
    construction market.
        And with the enactment of the infrastructure bill, demand is going
    to increase, both in the number of workers needed to rebuild our
    infrastructure and in having a workforce trained in the latest
    technologies that are being deployed because of this investment.
        To help meet that demand, NABTU has undertaken over the last
    several years the expansion of our apprenticeship readiness programs
    (ARPs), which on Capitol Hill are oftentimes called pre-apprenticeship
    programs. These workforce training programs prepare participants to
    enter and successfully complete a building trades registered
    apprenticeship program. From 15 ARPs a decade ago to nearly 200 ARPs
    today, NABTU has partnered with community organizations, construction
    contractors, and project owners to grow the pipeline of talented
    individuals who seek a construction career, particularly among
    communities historically underrepresented in the construction
    workforce. We have specifically utilized these programs to recruit more
    women, communities of color, Native Americans, veterans and the justice
    involved. This initiative has a dual purpose of both helping diversify
    our workforce and increasing retention. As our apprenticeship readiness
    programs have written articulation agreements with one or more of our
    registered apprenticeship programs, we are able to place ARP graduates
    directly into apprenticeship and onto the pathway to the middle class.
    Investing in ARPs is both good for underserved communities, and good
    for business. With the inclusion of local hire provisions in the
    infrastructure bill, we have a real opportunity to expand these types
    of programs to more communities across the country.
        But for our system to remain successful, and for NABTU to continue
    to offer ladders of opportunity for those who wish to climb them, we
    need job opportunities where apprentices can learn their skills in the
    field. Our programs simply do not bring individuals in if there is not
    a job opportunity for an apprentice. In construction, one job leads to
    another. This continuity of employment is critical as an apprentice
    cannot complete their apprenticeship without employment opportunities
    over the three to five years required to complete their program. And
    this is why the infrastructure bill will be so critical to training
    opportunities for the next generation of construction workers. The
    magnitude and breadth of this investment will ensure that anyone, from
    any background, and any community, who wishes to have a construction
    career can find an opportunity to begin it.
        Thank you again for this opportunity to testify, and I look forward
    to your questions.

        Ms. Norton. Thank you, Mr. Booker, for your testimony.
        Before our next witness provides testimony, I would like to
    recognize Representative Johnson to say a few introductory
    words about Ms. Karst.
        Mr. Johnson of South Dakota. Thank you, Madam Chair. And
    yes, this is a real pleasure for me, and Ms. Karst is a fellow
    South Dakotan; she is a friend. And I've got to be honest with
    you, everybody, she is a force of nature. She has done a heck
    of a job. This BX Civil & Construction company, it has been
    around 60 years. It has been under her leadership for 30. And
    she has tremendously expanded its reach, a whole new suite of
    services that they provide. It has been really impressive
    growth.
        Her leadership has also been impressive, both in South
    Dakota and at the Federal level. I am not going to read your
    resume, but she is a former national outstanding chair of a
    small AGC chapter. She is a former past president of South
    Dakota AGC.
        And I would just note this by way of closing, Madam Chair.
    We talk a lot about rural development, about keeping rural
    America strong in this room and throughout Congress. And Dell
    Rapids is a town of about 4,000. And at the peak of the
    construction season, Ms. Karst and her team employ about 150
    people. And they are doing projects, some really big projects
    across the region. And to me, if we want to look at how do we
    grow rural America, how do we grow the workforce in this
    incredibly important construction industry, we are going to
    need innovators, we are going to need leadership. And boy, do I
    have one for you.
        Thanks for being here.
        Ms. Norton. Thank you very much, Mr. Johnson. Now I
    recognize Ms. Karst for 5 minutes.
        Ms. Karst. Thank you, Congressman Johnson.
        Thank you, Chair Norton, Ranking Member Davis, and members
    of the subcommittee. Thank you for allowing me to testify on
    this vitally important topic.
        My name, as Dusty said, is Kari Karst. I am the president
    of BX Civil & Construction in South Dakota, and an active
    member of the AGC of America.
        AGC is the leading association in the construction
    industry, representing 27,000 firms, union and open-shop
    contractors, many of which are small businesses. BX Civil &
    Construction began its history as a subcontractor on the
    Interstate Highway System performing seeding, fencing,
    guardrail, and permanent signing for highway projects. I
    purchased the company in 1992, and became certified as a woman-
    owned, Disadvantaged Business Enterprise.
        We have successfully grown and added capabilities like
    concrete paving and bridge repair. We now perform as a prime
    contractor or general contractor, as well as a subcontractor on
    highway construction and infrastructure projects. Because of
    our growth, I graduated from the Disadvantaged Business
    Enterprise program last fall.
        In my testimony today, I will discuss current issues facing
    the construction industry, particularly as it relates to the
    workforce.
        The Infrastructure Investment and Jobs Act provides market
    opportunities for construction companies like mine and assures
    sustainable, good-paying jobs for our employees. As
    unemployment once again hits record lows in my State and other
    States around me, contractors are having an exceedingly hard
    time finding workers that we need.
        In South Dakota, we collaborate with our South Dakota DOT
    to utilize grant funding to develop a CDL training program that
    allows us to use joint marketing to recruit new drivers to our
    industry and to upskill our existing workforce. We provide the
    required classroom training and train our members to document
    and provide skills training for our employees.
        The AGC of South Dakota, while small, has three federally
    registered apprenticeship programs that allow our workers to
    achieve journey-level certification in carpentry, concrete
    finishing, and heavy equipment operation. Our South Dakota
    chapters also focus heavily on attracting the next generation
    of construction workers through construction career camps,
    which focus on exposing students to the opportunities in our
    industry during their middle and high school years.
        I am pleased to let you know that South Dakota is not an
    anomaly. AGC chapters across the country are providing
    innovative workforce programs to their local members.
        Unfortunately, the administration's efforts as it relates
    to workforce will neither attract nor prepare workers for a
    long-term career in construction. They attempt to treat
    symptoms, not causes, of workforce shortages. I ask that
    Congress and the administration provide flexibility as they
    implement this law, to help ensure that projects can be
    completed efficiently and in a timely manner.
        Construction companies are reporting shortages and
    increased prices on manufactured steel, steel and plastic
    piping, paint, concrete materials, and many other items. Cost
    increases ranged from 15 percent to doubling or tripling on
    some items. Construction firms are forced to pass along the
    rising materials prices in order to remain viable as companies.
    Lead times for these materials have dramatically increased. As
    a result, crucial infrastructure projects across the country
    run the risk of delay.
        The inability to predict the availability of and price of
    materials, and to foresee things like the Russian invasion,
    spiking oil prices, and soaring inflation are devastating to
    many contractors. Many contracts do not have price adjustment
    clauses. These impacts are especially devastating to small DBE
    construction firms that lack the resources to absorb these
    unexpected costs.
        A recent FHWA guidance memo highlighting that States should
    focus exclusively on maintenance and repair work on existing
    roadways is confusing and concerning. In the States where I
    work, there are a broad range of needs that our DOTs work hard
    to meet. Maintenance of existing roads and new roads may be a
    rural community's only opportunity to attract business, and
    thereby assure its future. More developed cities like Sioux
    Falls certainly have the need for repair and maintenance, but
    also have the need for additional expansion space to
    accommodate the residential and commercial growth.
        Making blanket guidance in favor of repair and maintenance
    over expansion is restricting our opportunity for growth, and
    this restriction will directly affect the ability of a
    disadvantaged firm to grow. Our Nation's interstate system was
    built and designed over 50 years ago. It is past time that
    States modernize them to meet the current needs of the
    populations they serve. And to do so, they need the flexibility
    to add new capacity.
        I want to express our deep concern regarding recent efforts
    to suspend the Federal gas tax in the name of economic relief.
    We believe this effort is misguided and could act to undermine
    the recently enacted infrastructure law.
        I thank the subcommittee for the opportunity to testify
    today. I appreciate your continued efforts to improve our
    Nation's infrastructure and policies that create good-paying
    jobs in America.
        I look forward to answering your questions.
        [Ms. Karst's prepared statement follows:]

      Prepared Statement of Kari J. Karst, President and Chief Executive
     Officer, BX Civil & Construction, on behalf of the Associated General
                             Contractors of America
                                I. Introduction
        Chair Norton, Ranking Member Davis, and members of the Subcommittee
    on Highways and Transit (Subcommittee) thank you for inviting me to
    testify on this vitally important topic. My name is Kari Karst. I am
    the President and CEO of BX Civil & Construction in South Dakota and an
    active member of the Associated General Contractors of America (AGC).
        AGC is the leading association in the construction industry
    representing more than 27,000 firms, including America's leading
    general contractors and specialty-contracting firms, many of which are
    small businesses. Many of the nation's service providers and suppliers
    are also associated with AGC through a nationwide network of chapters.
    AGC contractors are both union and open shop and are engaged in the
    construction of the nation's commercial buildings, shopping centers,
    factories, warehouses, highways, bridges, tunnels, airports, waterworks
    facilities, waste treatment facilities, levees, locks, dams, water
    conservation projects, defense facilities, multi-family housing
    projects, and more.
        My company, BX Civil & Construction, has been around for 60 years.
    I will have owned the company for 30 years in April. We began our
    history as a subcontractor on the interstate highway system performing
    seeding, fencing, guardrail and permanent signing for highway projects.
    After I purchased the company in 1992, we became certified as a Woman-
    Owned Disadvantaged Business Enterprise. Along with my team, we grew
    the business organically for about 15 years. Since then, our growth has
    come through expanding our business lines and through acquisition. Our
    work is now split 50/50 between general contracting (Prime) and
    subcontracting. Our work-lines have expanded to include light grading,
    bridge rehabilitation, box culverts, and concrete paving for roads and
    runways. In the fall of 2021, I graduated from the Disadvantaged
    Business Enterprise (DBE) program because of our twenty-fold growth.
    Because of my experiences, I am well-qualified to testify on the
    benefits and impacts of the Infrastructure Investment and Jobs Act
    (IIJA).
        In my testimony today, I will discuss current issues facing the
    construction industry, particularly as it relates to the workforce. The
    IIJA represents the most significant infusion of investment in our
    infrastructure since the enactment of the Interstate Highway System in
    the mid-1950's.
                              II. Workforce Issues
        The IIJA provides market opportunities for transportation
    contractors, heavy contractors, building contractors and utility
    contractors. And most importantly, it demonstrates to our existing and
    future workforce that there is sustainable work in the years to come.
    This historic level of funding in our infrastructure when combined with
    recovering from a global pandemic, addressing a supply chain crisis,
    and implementing new federal requirements that were a part of the IIJA
    will create challenges for those of us tasked with rebuilding our
    infrastructure.
        The construction industry continues to face workforce shortages due
    to expected craft worker retirements, growth in other sectors, and
    challenges to recruiting and training new workers into the industry.
    Meanwhile, construction demand and activity continue to grow.
        There will be challenges to finding enough skilled workers to
    rebuild our nation's infrastructure. The administration's recent
    attempts to prioritize the selection of projects based on labor
    preferences and the mandate on project labor agreements through
    executive order paper over the real problems facing the construction
    workforce and miss the mark. These policies will neither attract nor
    prepare workers for a long-term career in construction. They attempt to
    treat the symptoms--not the root causes--of workforce shortages.
    The Current State of Construction Employment
        According to federal employment data analyzed by AGC, construction
    employment remains below pre-pandemic levels in 21 states and D.C.
    while 29 states now employ more construction workers than in February
    2020.\1\ Employment has risen in most of the nation over the past year,
    but contractors are having an increasingly hard time finding all the
    workers they need as unemployment hits record lows in more states.
    ---------------------------------------------------------------------------
        \1\ Associated General Contractors of America, www.agc.org, from
    Bureau of Labor Statistics (BLS), U.S. Department of Labor,
    www.bls.gov/sae, 3/14/2022
    ---------------------------------------------------------------------------
    Effectively Meeting Local Workforce Needs Through Opportunity
        Today, few school districts offer what is known as career and
    technical education (CTE) programs or provide instruction in
    construction skills. Construction jobs pay well. In South Dakota, 4 out
    of the 5 most numerous construction occupations had higher median pay
    than the median for all employees in the state in 2020 \2\.
    ---------------------------------------------------------------------------
        \2\ Bureau of Labor Statistics (BLS)
    ---------------------------------------------------------------------------
        In fact, decades of education policy have shifted school districts
    from operating robust vocational educational programs, with many school
    systems not teaching craft skills at all, and instead shifting towards
    college preparatory skills. The country continues to face a higher
    education bias evidenced by inequities in federal workforce and
    education funding with only 1 in 5 dollars estimated going towards
    workforce education programs compared to academic college programs \3\.
    ---------------------------------------------------------------------------
        \3\ Opportunity America https://opportunityamericaonline.org/
    ---------------------------------------------------------------------------
        Our nation's higher education programs have neither collaborated
    with industry to identify occupations with openings, nor to prepare
    students for in-demand jobs. The construction industry and the greater
    economy have an interest in ensuring that higher education investments
    are productive and have a responsibility to hold schools accountable
    for preparing students for career opportunities while spurring
    innovation.
        Making reforms to higher education policy by making high-quality,
    shorter-term education and training programs eligible for federal Pell
    Grants would help reverse the skills gap, correct education funding
    inequities, and provide job training and credentialing opportunities
    that are in high demand. The bipartisan JOBS Act, or H.R. 2037, is one
    legislative initiative that could help make a tangible impact on this
    problem.
        Congress must also increase Perkins CTE funding. The Perkins
    program is the biggest federal funding source to high schools and post-
    secondary vocational training programs in the country. Despite modest
    funding increases in recent years, the level and need of funding still
    has not kept up with inflation and rising demand.
    South Dakota Training Program
        AGC through its local chapters focus on Workforce Training Programs
    that impact our local communities. In South Dakota, we have
    collaborated with our Department of Transportation to utilize grant
    funding to develop a Commercial Drivers License (CDL) Training Program
    that allows us to recruit new drivers to our industry and upskill our
    existing workforce. Through this program we help our members to train
    and provide the required classroom training for CDL candidates and
    provide marketing resources to attract candidates to our industry.
        The AGC of South Dakota has three Federally Registered
    Apprenticeship programs that allow our workers to achieve journey level
    certification in Carpentry, Concrete Finishing & Heavy Equipment
    Operation.
        In addition to dealing with our immediate workforce training needs,
    our South Dakota Chapters focus heavily on attracting the next
    generation of construction workers through Construction Career Camps
    which focus on exposing students to the opportunities in our industry
    during their middle and high school years. In the last year, we will
    have exposed over 600 students through our traditional camps all across
    the state of South Dakota. We also have a special camp called Pizza,
    Pop & Power Tools that focuses on 8th grade girls. These girls are
    given a hands-on experience in equipment operation, carpentry, welding,
    finishing concrete and using power tools. When we complete our Pizza,
    Pop & Power Tools camps by the middle of April, we will have impacted
    close to 300 8th grade girls in South Dakota.
        Our innovative Construction Career Academy allows 16- to 18-year-
    old students to earn and learn during the summer months. The students
    are matched with one of our member employers who pay them to attend
    classes and work under supervision on our jobsites. These students can
    apply their experience to our Youth Apprenticeship Program and
    eventually move on to one of our Federally Registered Apprenticeship
    programs.
        I am proud of what we do in South Dakota and even more pleased to
    let you know that this is not an anomaly. AGC chapters across the
    country understand the importance of our work force and are providing
    innovative work force programs to their local members.
    New Regulatory Challenges to Workforce Development:
                A. Government-Mandated Project Labor Agreements
        On February 4, 2022, President Biden signed a new Executive Order
    on Use of Project Labor Agreements (PLA) For Federal Construction
    Projects. When in effect, this Executive Order (E.O.) will require
    every prime contractor and subcontractor--with limited exceptions--to
    engage in negotiation or agree to PLAs on federal construction projects
    valued at $35 million or more. As it stands, this executive order does
    not require PLAs on federal aid transportation projects. However, it
    does permit U.S. DOT to do so. AGC neither supports nor opposes
    contractors' voluntary use of PLAs on government projects or elsewhere
    but strongly opposes any government mandate for contractors' use of
    PLAs.
        The use of government-mandated PLAs hurts both union and open-shop
    contractors. As an open-shop highway contractor, government-mandated
    PLAs would:
          Likely include union security clauses that require all
    craft workers to pay either union dues or an equivalent amount of union
    agency fees, whether or not the workers have any interest in union
    representation. This may deter workers from applying for, or accepting
    an assignment on, a PLA project, exacerbating already-challenging labor
    supply conditions.
          Normally require contractors to make contributions to
    union-sponsored fringe benefit funds. But an open-shop contractor's
    regular employees probably won't receive any benefits from those funds
    because of the plans' time-based vesting and qualification
    requirements. To continue providing benefits for such employees, the
    contractor must contribute to both the union benefit funds and the
    contractor's regular benefit funds. The cost of such double payments
    can make the contractor's bids uncompetitive.
          Act as a barrier for the hiring of small businesses,
    including minority- and woman-owned businesses, and the fulfillment of
    small-business utilization goals. Such businesses are largely open-shop
    and are among those least able to make the above-described changes that
    a PLA requires.

        For these reasons, among others, government-mandated PLAs would
    likely exacerbate workforce challenges, not improve them.
                B. Local Hire
        The IIJA includes a local hire provision that allows geographic or
    economic preferences for construction labor workforces. Recently, the
    U.S. Department of Transportation has signaled a desire to impose
    preferences for projects that include local hire requirements. While
    the construction industry is committed to recruiting more individuals,
    particularly from disadvantaged areas and communities, into
    construction careers, there is evidence that these policies have not
    had the intended effect in areas where they have been imposed.
        In South Dakota, a state with near historic low unemployment
    numbers, there is even less of a need for these measures.
    Unfortunately, it is the industry's experience that local hire policies
    rarely result in long-term construction careers. They fail to attract
    people to the industry and instead allow local school systems,
    education policies, and elected officials off the hook for failing to
    better match curricula to in-demand vocational skills.
        Rather than offering across-the-board requirements that do not
    adequately help attract, educate, and retain a skilled, diverse, and
    safe construction workforce, Congress and the administration should
    instead:
          Focus on increasing CTE funding and track the
    effectiveness of existing workforce programs, especially those with
    federal funding sources; and
          Support industry-led programs like AGC's Culture of CARE
    \4\. The Culture of CARE program is focused on making construction
    workplaces more inclusive and welcoming for all workers.
    ---------------------------------------------------------------------------
        \4\ https://buildculture.org/
    ---------------------------------------------------------------------------
                  III. Other Challenges Impacting Construction
        Now that Congress has passed an FY 2022 omnibus spending bill, and
    the full benefits of IIJA can be realized, we ask that Congress and the
    administration provide flexibility as they implement this law to help
    ensure that projects can be completed efficiently and in a timely
    manner. The following policy concerns have an indirect impact on the
    workforce as they will have an impact on the project's ability to break
    ground.
    Supply Chain
        A recent survey of AGC members, as well as by the American
    Association of State Highway and Transportation Officials of the state
    departments of transportation, found that companies and government
    agencies are reporting both shortages of and increased prices on
    manufactured steel, steel and plastic piping, paint, concrete
    materials, and many other items. Cost increases ranged from 15 percent
    to a doubling or tripling on some items like manufactured steel.
        Lead times for procurement and delivery of many of these materials
    has dramatically increased as well, and prospects for the rest of the
    year are worse. As a result, crucial infrastructure projects across the
    country run the risk of delay. Construction firms, in situations where
    they are able to, will pass along the rising materials prices in order
    to remain successful. Unfortunately, the lead time in bidding these
    projects is so long that they are unable to predict the availability
    and price of some of these materials. In addition, companies are unable
    to foresee things like a Russian invasion, spiking oil prices, and
    soaring inflation and therefore, in some instances, are forced to
    absorb these increases because there is no price escalation clause
    available to them.
        The impacts of this have been especially devastating to small and
    DBE construction firms that lack the resources to absorb these
    unexpected costs. While contractors are in the business of managing
    risk, the events and circumstances of the last two years have led to
    such unprecedented unpredictability in the supply chain and market that
    contracting firms of all sizes are at greater risk now than in recent
    history of business failure.
        Consequently, AGC led a coalition letter to the Treasury Department
    asking that they clarify the use of Coronavirus State and Local Fiscal
    Recovery Funds from the American Rescue Plan Act (ARPA) by state and
    local governments to mitigate the effects of the supply chain. Allowing
    the use of these funds would allow them to mitigate the effects of
    supply chain delays and shortages and the effects they are having on
    project costs. These unprecedented supply chain shortages and material
    price increases are clearly initiated as a direct result of the
    pandemic and we believe that this request falls well within the
    Congressional intent of this funding.
    Maintain Flexibility--Including for New Highway Capacity
        AGC greatly appreciates the Subcommittee's work on the surface
    transportation reauthorization process that led to IIJA becoming the
    law of the land. As provided by the final bill, flexibility while
    implementing this law is critical. Historically, the federal-aid
    highway program has been federally funded and state administered.
        AGC believes that the Federal Highway Administration (FHWA) must
    continue to provide state and local governments with the flexibility to
    address and prioritize their unique transportation needs as Congress
    intends. As each area of our country is diverse and unique, so are the
    transportation needs of each community. When standardized
    transportation solutions do not work in a community, too often the
    contractor gets blamed despite often not being involved in the
    selection or design of a project.
        Recently, FHWA released a guidance memo highlighting, among other
    things, that states should focus exclusively on maintenance and repair
    work on existing roadways before building more or new roads. This memo
    has caused confusion with state DOTs due to the mismatch between this
    guidance and the lack of corresponding requirements for such measures
    by the IIJA. This policy, which was rejected by Congress in IIJA
    negotiations, paints a false narrative based upon FHWA's own data \5\,
    which states that 80% of roadway construction projects already repair
    existing roads and bridges. Our nation's interstate system was built
    and designed over 50 years ago, and it is past time that states
    modernize them to meet the current needs of the cities and populations
    they serve. Flexibility to add new capacity to meet these changed needs
    is crucial.
    ---------------------------------------------------------------------------
        \5\ https://www.fhwa.dot.gov/policyinformation/statistics/2019/
    sf12.cfm
    ---------------------------------------------------------------------------
        From a construction standpoint, our biggest concern with policy
    that attempts to limit a state's ability to add highway capacity is the
    negative economic effect on the roadway construction industry--
    particularly small and DBE construction firms like mine. Some of these
    small businesses only construct new roads and bridges, as opposed to
    performing maintenance and repair contracting. It is imperative that
    increased federal investment in the nation's infrastructure create jobs
    and allow businesses of all sizes to flourish.
    Facilitate Efficient Project Delivery
        AGC believes a great way to maximize the investment in IIJA would
    be to implement the environmental review and permitting reforms that
    were mandated in the bill. The complicated operations of these current
    laws and the intersection of their requirements can delay projects that
    would improve the overall safety and efficiency of the surface
    transportation system. By implementing these provisions, we believe the
    costs associated with delivering projects will be reduced without
    jeopardizing environmental protections.
        Specifically, we ask that the administration implement the
    provisions that would:
          Codify the One Federal Decision policy;
          Allow for utility relocation in the right of way prior to
    the National Environmental Policy Act (NEPA) review being completed;
    and
          Extend the time period for a state to assume the
    responsibility for small projects, that have little or no environmental
    impact, from a term of not more than 3 years, to a term of 5 years.
    Unspent COVID Relief Funds
        We would also ask that Congress clarify that several categories of
    infrastructure investments--including transportation projects--and
    disaster relief are eligible for unspent COVID-19 relief dollars,
    eliminating ambiguity as to whether such projects could receive these
    funds. The COVID-19 pandemic ripped a gaping hole in the budgets of
    many state and local governments, making this assistance crucial as the
    nation's economic recovery continues. Legislation to clarify this
    eligibility has already passed the U.S. Senate and the House version,
    which my home state Congressman Dusty Johnson is the lead sponsor of,
    has yet to be considered for a vote.
    Federal Gas Tax Holiday
        I would be remiss if I did not express our deep concern regarding
    recent efforts to ``provide economic relief'' by suspending the federal
    gas tax. We believe this effort is extremely misguided and could act to
    undermine the recently enacted infrastructure law that was negotiated
    and passed on a bipartisan basis.
        While there is no way to know whether suspending the gas tax would
    lower gas prices or simply provide a tax break to oil companies who
    determine how that tax is passed on to consumers, it is abundantly
    clear that when there is a lack of real investment in funding
    infrastructure improvement projects by states and the federal
    government, consumers end up pay for it other ways, demonstrated by the
    70% increase in toll prices over the last ten years \6\.
    ---------------------------------------------------------------------------
        \6\ https://truckingresearch.org/wp-content/uploads/2020/01/ATRI-
    Toll-Exec-Summary.pdf
    ---------------------------------------------------------------------------
        When it comes to concerns about being able to sustain my workforce,
    suspending or reducing the primary funding source for the projects I
    have built a successful business constructing ranks near the very top
    of my list of worries.
                                 IV. Conclusion
        I thank the Subcommittee for the opportunity to testify today. I
    appreciate its continued efforts to help improve our nation's
    infrastructure and enact policies that create good paying jobs in
    America. I look forward to answering any questions you may have.

        Ms. Norton. Thank you, Ms. Karst. I now recognize Ms.
    Kupcak for 5 minutes.
        Ms. Kupcak. Thank you, Madam Chair, Ranking Member Davis,
    Ranking Member Graves, and esteemed subcommittee members for
    providing me, on behalf of Oregon Tradeswomen and the National
    Taskforce on Tradeswomen's Issues, with this opportunity to
    speak to workforce development and job creation in surface
    transportation construction.
        I would also like to give special thanks to Chairman
    DeFazio, Oregon's own, for his leadership and commitment not
    only to Oregonians, but to all Americans in having access to
    good careers, while rebuilding our Nation, and inviting me here
    today.
        And thank you to the committee members for investing in
    America's infrastructure and our workforce. We believe that the
    bipartisan Infrastructure Investment and Jobs Act will not only
    improve our Nation's infrastructure, but, in doing so, change
    lives for so many.
        Here in Oregon, I have the privilege to serve as the
    executive director of Oregon Tradeswomen, a non-profit
    headquartered in Portland, Oregon. Since 1989, we have been
    working to increase the number of women entering and succeeding
    in the skilled trades in construction, transportation, and
    other blue-collar professions. We provide pre-apprenticeship
    training, support services, and work in partnership with
    industry to ensure that their workforce needs are met with
    skilled, qualified workers, and we promote the retention and
    leadership of tradeswomen. Oregon Tradeswomen is a founding
    member of the National Taskforce on Tradeswomen's Issues, a
    national coalition working to advance economic opportunities in
    blue-collar careers for women.
        Through this historic investment into our Nation's
    infrastructure, we have the opportunity not only to expand our
    Nation's workforce through these career opportunities, but to
    ensure that our Nation's job seekers, who have long been
    underrepresented in the skilled trades, could benefit from
    these investments. Women have been underrepresented not because
    of lack of interest or lack of talent or ability, but because
    of outdated myths, misunderstandings, and, sadly still,
    discrimination, which continue to create occupational
    segregation, resulting in women largely clustered into low-wage
    occupations.
        Having access to dynamic and good-paying jobs in our
    infrastructure economy can not only shift what our labor force
    looks like, but it can impact economic security for women and
    their families. But without intentional efforts in strong
    public policy and investment to improve and support access to
    such publicly funded jobs, women, particularly women of color,
    are unlikely to benefit from these historic levels of
    investment.
        Poverty rates for women in the United States remain at
    historically elevated levels. In fact, in our Nation, one in
    seven households is headed by a woman who is living in poverty.
    Access to high-wage careers, such as those in the highway
    construction and transportation sectors, are critical for
    women's economic advancement, while meeting our Nation's labor
    shortages.
        Public policy, especially the design and delivery of
    infrastructure investments, impacts tradeswomen and the work we
    do every day, from the local level to the State and Federal
    rules. Such policies can and do enhance women's economic
    security, support our employers, and enhance economic growth.
        Through investing in and providing quality training to
    women through pre-apprenticeship and registered apprenticeship
    in these fields--fields that provide good wages, benefits--are
    also an opportunity for a lifelong career that can and do
    change people's lives--real people like Lori, a woman who came
    to our free apprenticeship readiness program at Oregon
    Tradeswomen, using her last few dollars to take the bus to our
    training facility to get help and to getting into a skilled-
    trades career after recently becoming sober. That was over a
    decade ago, where she has worked hard in the field as a union
    laborer, and worked her way through a tough job, turning it
    into a career. She now owns a home, is active in volunteering
    in her community, is a leader in the industry and her union,
    and serves as a mentor to other tradeswomen.
        Or Leslie, who, after being raised by a single father,
    struggled to make ends meet with the minimum wages in her small
    rural town while she was working to provide for her sick dad
    and disabled brother. She heard about our program, and now she
    is making a living wage as a union trades worker, and she now
    can believe in a future that has economic security.
        Both of these women and many others benefited directly from
    the Federal OJT Supportive Services Program. We know that when
    women have access to high-wage, high-skilled careers, that our
    Nation will benefit from these returns on investment, removing
    women and their families out of poverty, into the middle class,
    where they have economic security for themselves and their
    families, and can contribute to the local economy.
        The Federal Highway Administration's OJT Supportive
    Services Program provides a mechanism to ensure that quality
    training is available, support services that will help job
    seekers get the skills they need to have a lifelong career.
        Infrastructure and transportation----
        Ms. Norton [interrupting]. Thank you very much, Ms. Kupcak.
    Can you summarize? You are past your 5 minutes.
        Ms. Kupcak. Thank you, Madam, and my apologies for going
    over.
        Thank you for allowing us to submit our written
    recommendations, and thank this committee for creating a bold
    and broad infrastructure bill that will help our Nation's
    workers.
        [Ms. Kupcak's prepared statement follows:]

        Prepared Statement of Kelly Kupcak, Executive Director, Oregon
       Tradeswomen, on behalf of the National Taskforce on Tradeswomen's
                                     Issues
        Thank you, Chairman DeFazio, Ranking Member Graves, and esteemed
    Subcommittee Members for providing Oregon Tradeswomen and the National
    Taskforce on Tradeswomen's Issues for this opportunity to present our
    views on workforce development and job creation in surface
    transportation construction.
        Oregon Tradeswomen is a nonprofit headquartered in Portland,
    Oregon, and since 1989 we have been working to increase the number of
    women entering and succeeding in the skilled trades in construction,
    transportation, and other blue-collar professions. We provide pre-
    apprenticeship training, support services, and work in partnership with
    industry to ensure retention and leadership of tradeswomen. Oregon
    Tradeswomen is a founding member of the National Taskforce on
    Tradeswomen's Issues, a national coalition uniting the expertise of
    local, regional, and national organizations, advocates, allies, and
    individual tradeswomen to support women in achieving access,
    opportunity, and equity in the skilled construction, transportation,
    manufacturing, and clean energy industries and other nontraditional
    occupations. The Taskforce promotes sound public policies and advocacy
    initiatives at the national, state, and local levels to improve,
    enforce, fund, and promote best practices towards equity in registered
    apprenticeship and training, workforce development, career and
    technical education, nontraditional employment, retention, and
    respectful jobsite culture.
        There is a critical need at this time of historic and significant
    investment through the Infrastructure Investments Jobs Act of 2021
    (IIJA) into our nation's infrastructure, and through that in expanding
    workforce opportunities and job creation in surface transportation
    construction. As many Subcommittee members may know, women remain
    severely underrepresented in the construction and transportation
    sectors--fields that provide good wages, benefits, and opportunities
    for a life-long career. Without intentional efforts to improve and
    support access to such publicly funded jobs, women, particularly women
    of color, are unlikely to benefit from these historic levels of
    investment.
        Public policy--especially the design and delivery of infrastructure
    investments--impacts tradeswomen and the work we do every day--from the
    local level to state and federal rules, regulations, and laws. Such
    policies will enhance women's economic security, support employers, and
    enhance economic growth. When tradeswomen have access to high-wage,
    high-skilled careers, such as those in the skilled trades, the
    industry, our local communities, and our nation benefit from the
    investments in an inclusive and skilled workforce.
        Infrastructure and transportation represent more than one out of
    every ten American jobs. This historic investment of infrastructure
    spending and the potential to help our nation's jobseekers--including
    those most in need--to secure good paying, quality careers--not just
    jobs--in the transportation and construction industries is here. With
    continued labor shortage challenges identified by industry employers,
    the time to reach untapped jobseekers to become part of a skilled,
    qualified, and highly trained workforce is upon us. According to the
    2020 report, ``New Plan to Address Growing Construction Workforce
    Shortages'', the Associated General Contractors of America (AGC) and
    Autodesk nationwide survey of industry employers indicated that eighty
    percent (80%) of construction firms reported they were having a hard
    time finding workers.\1\
    ---------------------------------------------------------------------------
        \1\ Associated General Contractors of America and Autodesk, ``The
    Workforce Development Plan 2.0: AGC of America's New Plan to Address
    Growing Construction Workforce Shortages,'' 2019
    ---------------------------------------------------------------------------
        With the industry's current workforce aging, and retiring, at a
    rapid pace and a lack of young workers interested in entering the
    skilled trades, the impact of construction workforce shortages,
    according to the survey, is that it takes longer and costs more to
    build many types of projects. Workforce shortages run the risk of
    undermining broader economic growth by making private- and public-
    sector development projects--including infrastructure--more expensive
    and time-consuming. While the AGC/Autodesk report provides several
    excellent strategies for addressing a workforce shortage, it neglects
    to include a key strategy in recruiting women. Between February 2020
    and July 2021 more women entered the construction workforce than ever
    before with an increase of 3.2 percent--the largest increase of any
    industry during that time.\2\ During this same time, men's
    participation in the construction industry decreased by 4 percent.
    ---------------------------------------------------------------------------
        \2\ Center for American Progress, ``Infrastructure Bill Must Create
    Pathways for Women to Enter Construction Trades,'' 2021
    ---------------------------------------------------------------------------
        A quarter of a million women work in the construction trades and
    earn wages and benefits offering economic security. Over the course of
    her lifetime, a woman working in the skilled trades (for example, as an
    electrician) can make more than $1 million more than her counterpart
    working in a traditionally female-dominated job, such as a childcare
    worker or service worker.\3\ Poverty rates for women remain at
    historically high levels, one in seven, substantially higher than
    poverty rates for men. Access to high-wage careers is critical for
    women's economic advancement. Women who obtain high-wage, construction
    and other skilled trades occupations through quality pre-apprenticeship
    training, information, and support services, flourish in these careers.
    However, registered apprenticeship, a primary pathway into high-skilled
    blue-collar careers, is not serving women.
    ---------------------------------------------------------------------------
        \3\ Mathematica study on apprenticeship effectiveness and cost/
    benefit analysis, ``An Effectiveness and Cost-Benefit Analysis of
    Registered Apprenticeship in 10 States.''
    ---------------------------------------------------------------------------
        Nationally, women represent only 4 percent of construction
    apprentices. Infrastructure jobs also remain highly segregated for
    Black, Indigenous, and people of color (BIPOC) as well. BIPOC are
    underrepresented and concentrated in lower paying, less safe, jobs in
    the sector. Several programs and localities around the country have
    proven that these low numbers are not inevitable when policy and
    programmatic approaches, as outlined herein, are applied. Research has
    shown that women, and particularly women of color, face discrimination
    in hiring and long-term employment and experience high rates of sexual
    and racial/ethnic harassment and gender bias on the job. As a result,
    they are less likely to be retained on core crews, promoted to field
    leadership positions or to receive the same on-the-job technical
    training as men, and they do not complete their apprenticeships at the
    same rates as their male counterparts.\4\
    ---------------------------------------------------------------------------
        \4\ Sarah Burd-Sharps, Kristen Lewis, and Maura Kelly, ``Building a
    More Diverse Skilled Workforce in the Highway Trades: Are Oregon's
    Current Efforts Working?'' 2021
    ---------------------------------------------------------------------------
        Oregon Tradeswomen and the National Taskforce on Tradeswomen's
    Issues strongly support the strategic priorities and equity framework
    outlined in the recent Memorandum of Understanding between the U.S.
    Departments of Transportation (DOT) and Labor (DOL). Moreover, we have
    been very pleased that DOT's recent Notices of Funding Opportunity
    (NOFOs) have embedded priority considerations around strong labor
    standards, workforce training programs that bring more underrepresented
    populations into infrastructure jobs, and changes in hiring policies to
    hire and retain more underrepresented populations. The Multimodal
    Project Discretionary Grant Opportunity NOFO \5\ issued March 25, 2022,
    in particular, calls out the requirements that federally-assisted
    contractors not discriminate in employment on the bases of sex, race,
    and ethnicity (among other bases) and take affirmative action to meet
    the goals of 6.9% of construction-project hours being performed by
    women and geographic-based goals for hours performed by people of
    color; \6\ the NOFO requires all winning applicants with projects over
    $35 million to work with DOL to promote compliance with non-
    discrimination and affirmative action obligations.
    ---------------------------------------------------------------------------
        \5\ 87 Fed. Reg. 17108 (March 25, 2022), https://
    www.federalregister.gov/documents/2022/03/25/2022-06350/notice-of-
    funding-opportunity-for-the-department-of-transportations-multimodal-
    project-discretionary. This NOFO is a combined solicitation for
    applications under DOT's National Infrastructure Project Assistance,
    Nationally Significant Multimodal Freight and Highways Projects, and
    Rural Surface Transportation grants programs.
        \6\ See 41 CFR 60-4.2(d) and the ``NOTICE OF REQUIREMENT FOR
    AFFIRMATIVE ACTION TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY (EXECUTIVE
    ORDER 11246)'' reproduced at Appendix G of OFCCP's Construction
    Contractors Technical Assistance Guide (TAG), https://www.dol.gov/
    sites/dolgov/files/ofccp/Construction/files/ConstructionTAG.pdf.
    Federally assisted construction contractors are also required to take
    16 minimum steps to promote equity; see ``STANDARD FEDERAL EQUAL
    EMPLOYMENT OPPORTUNITY CONSTRUCTION CONTRACT SPECIFICATIONS (EXECUTIVE
    ORDER 11246),'' set out at 41 CFR 60-4.3(a) (and also reproduced at
    Appendix G of the TAG.
    ---------------------------------------------------------------------------
        Through our work at Oregon Tradeswomen, and through the National
    Taskforce on Tradeswomen's Issues, we have seen firsthand the
    challenges of tackling the intersectional nature of barriers to
    economic security, particularly for women of color. Improving gender
    diversity in such fields has two main components: improving the supply
    of women by providing quality job training without the burden of debt,
    gender-equitable workforce development programs, such as registered
    apprenticeships and pre-apprenticeship training programs, and programs
    that help expand pathways for women to enter or re-enter non-
    traditional occupations and skilled trades careers. Such job-training
    efforts must be coupled with public policy that includes such
    strategies as creating the demand for women by setting ambitious
    workforce goals, monitoring progress, and enforcing compliance, and
    providing technical advice and building capacity among contractors,
    employers, and other industry stakeholders.
        The experience of the state of Oregon and other regions where real
    progress has been made in increasing gender and racial diversity in
    nontraditional occupations teaches that generating change requires
    resources, technical advice, clearly stated goals and expectations, and
    regular monitoring and enforcement \7\. We recommend that
    infrastructure and related funds disbursed to states include clear set-
    asides for workforce development, including for support services such
    as childcare and transportation stipends, as well as for enforcement
    and oversight as have seen such investments result in retention of
    workers, and economic mobility for themselves and their families.
    ---------------------------------------------------------------------------
        \7\ See Report on the Use of Federal Funds to Increase Diversity
    and Prepare those Entering the Highway Construction Workforce (ORS
    184.866), Oregon Department of Transportation (2020). https://
    www.oregon.gov/odot/About/GR/
    Highway%20Construction%20Workforce%20Development
    %20Report.pdf ; and Untapped Resources, Untapped Labor Pool: Using
    Federal Highway Funds to Prepare Women for Careers in Construction by
    Ariane Hegewisch, Jane Henrici, Elyse Shaw; Thomas Hooper (2014).
    Boston, MA: Jobs For the Future https://www.jff.org/resources/untapped-
    resources-untapped-labor-pool-using-federal-highway-funds-prepare-women
    ---------------------------------------------------------------------------
        We recommend a number of specific measures like those described in
    the March 25, 2022, Multimodal Project NOFO that state DOTs should
    require of construction contractors for projects funded by IIJA where
    the total project cost exceeds $10 million state DOTs should adopt to
    prioritize equity for women and people of color in the surface-
    transportation workforce:
        1.  Nondiscrimination and affirmative action. First and foremost,
    state DOTs should make sure that contractors implement the affirmative
    action requirements, including the specific numeric goals for minority
    and female participation and the 16 minimum steps, which apply to
    federally assisted construction contracts.
        2.  Supportive services. State DOTs should require each project's
    General Contractor to spend at least one-half of one percent (0.5%) of
    the overall project budget on supportive services for project workers
    to maximize opportunities for women and people of color. The supportive
    services eligible for funding under this requirement should be pre-
    apprenticeship; childcare; tools; workwear; retention services
    (including support groups, mentoring, and peer networking); and
    application fees and other costs of entering registered apprenticeship
    programs and required pre-employment training.
        3.  Respectful worksites. State DOTs should require each project's
    General Contractor to adopt workplace anti-harassment policies and to
    provide effective, on-going respectful-workplace training accompanied
    by a social campaign designed to create inclusive and diverse work
    sites for all the employees working on the project.
        4.  Transparency. State DOTS should require each project's General
    Contractor to report the participation rates for women, minorities, and
    apprentices working on the project, alongside the applicable goals, to
    the public on an accessible online site, to Office of Federal Contract
    Compliance Programs (OFCCP) in DOL, and to the state DOT; and to update
    those reports twice per month.
        5.  Community engagement.
          a.  State DOTs should convene a meeting of representatives of
    community-based organizations and the labor unions that will represent
    workers on each project as the bid solicitation conditions are being
    developed.
          b.  Once the contract is awarded, state DOTs should require each
    project's General Contractor to convene meetings with a committee that
    includes the state DOT, community-based organizations, relevant labor
    unions, relevant government officials, and the subcontractors on the
    project at least monthly, beginning at least 90 days before any hiring
    for the project begins, and to require subcontractors' participation in
    these meetings in their contracts. The purpose of these community
    meetings is to review the General Contractor's and subcontractors'
    implementation of the equity requirements, to provide the committee
    members with necessary records, and to brainstorm solutions to
    challenges encountered in implementing the equity requirements. The
    General Contractor should also be required to provide an OFCCP
    representative, a representative of the state DOT, and an ombudsperson
    from the community committee with open access to the work site to
    monitor conditions, provide support and assistance, and mediate issues.
        6.  Robust oversight. State DOTs should require the General
    Contractor and subcontractors to consent to twice-monthly compliance
    reviews by OFCCP and to participate in OFCCP's ``Mega Construction
    Project'' program.
        7.  Sanctions. State DOTs should require the General Contractor and
    subcontractors to agree to the sanctions in addition to those already
    available under law if the state DOT or OFCCP finds that the General
    Contractor or subcontractor is not in compliance with these
    requirements. These additional sanctions include mandatory suspension
    of progress payments until such time as the contractor comes into
    compliance; a discretionary civil penalty of up to $14,502 per
    violation and $145,027 per day for failure to comply after the
    effective date of an administrative order or OFCCP compliance
    agreement; and compensatory and where warranted under current legal
    standards, punitive damages if such noncompliance results in monetary
    harm to an individual or class of individuals because of unlawful
    discrimination.
        8.  Flow-down applicability. State DOTs should require the General
    Contractor and the subcontractors working on the project to include
    these requirements in all their subcontracts.
        9.  Administrative expenses. State DOTS should require that the
    General Contractor dedicate at least one-half of one percent (.5%) of
    the overall project budget to the administrative expenses of
    implementing these requirements.
        10.  Apprentice utilization minima. State DOTs should require that
    the General Contractor and subcontractors together employ registered
    apprentices for a minimum of twenty percent (20%) of hours worked on
    the project, by trade.

        To ensure that all parties are aware of these requirements in
    advance of bidding, the federal Funding Opportunity Notices and state
    bid solicitations should be required to contain these provisions, and
    submitters of proposals and bids should be required to state their
    plans for meeting these requirements.
        Because of its oversight role, this Subcommittee has a critical
    role to play to ensure that workforce development and job creation not
    only meet industry demand for a skilled workforce but invest in an
    equity framework for all Americans. To that end, Oregon Tradeswomen and
    the National Taskforce on Tradeswomen's Issues respectfully ask that
    this Subcommittee conduct robust oversight of the design and delivery
    of the infrastructure investments by both the federal and the state
    DOTs to ensure that they not only meet industry demand for a skilled
    workforce, but invest in an equity framework for all Americans.
        Finally, Oregon Tradeswomen and the National Taskforce on
    Tradeswomen's Issues encourage this Subcommittee to consider the
    following, more general strategies for creating equitable job creation:
          Assist State and local government partners as well as
    private-sector industry to identify, train, employ, reskill, and retain
    the diverse workforce needed to rebuild and operate American
    infrastructure.
          Integrate job quality, labor standards and equal
    employment opportunity standards across all grants related to
    transportation infrastructure.
          Leverage Federal spending to create better-paying jobs in
    fair and safe workplaces that include health, retirement, and other
    essential benefits.
          Create a more diverse infrastructure workforce.
          Engage stakeholders and develop strategic partnerships
    with organizations that can draw on all of America's strength, talent,
    and skill, including coalitions that represent women, BIPOC, and other
    populations facing systemic barriers to employment, to support the
    design and implementation of proven workforce development strategies
    that train and support the workers needed for the successful delivery
    of infrastructure investments.
          Expand Registered Apprenticeship in high growth areas
    such as electrification, zero-emission transportation systems
    maintenance, bus, rail, truck operators as well as cyber-security and
    intelligent transportation systems technology.

        When tradeswomen have access to sustainable careers, which includes
    equitable work hours, workplace policies that support work/family
    balance, comprehensive on-the-job training and freedom from sexual and
    racial harassment, the broader industry benefits from this
    underutilized portion of demographic in the skilled trades workforce.
    Oregon Tradeswomen and the National Taskforce on Tradeswomen's Issues
    respectfully urge you to support the recommendations outlined herein to
    implement strategies to attract, retain, and empower diverse qualified
    workers to build and maintain our transportation system. By
    implementing these strategies, we can collectively address industry
    demands and tap into the talent of our nation's women who can help
    build our nation's road and bridges while building a more secure
    economic future for themselves and their families.

        Ms. Norton. Thank you, Ms. Kupcak. Finally, Ms. Rai, you
    are recognized for 5 minutes.
        Ms. Rai. Good afternoon, Chair Norton and members of the
    subcommittee. Thank you for the invitation to speak to you
    today. My name is April Rai, and I am the national president
    and CEO of the Conference of Minority Transportation Officials,
    also known as COMTO.
        COMTO was established in 1971. We just marked our 50-year
    anniversary of our founding last year and reaffirmed our
    mission to ensure opportunities and maximum participation in
    the transportation industry for minorities, veterans, persons
    with disabilities, and certified minority, women, and
    Disadvantaged Business Enterprises. We have 35 chapters across
    North America, 34 in the U.S., and 1 representing Toronto and
    the surrounding region. Our 3,000 members include individual
    transportation professionals, transportation agencies, private-
    sector companies, and educational institutions, including
    Historically Black Colleges and Universities. This translates
    into tens of thousands of COMTO constituents.
        We serve as the voice for equity in transportation,
    providing support to transportation agencies in achieving their
    ED&I goals, supporting the leadership development of
    transportation professionals through leadership training, and
    also, very relevant to today's topic, COMTO provides
    scholarship and paid internship opportunities across the Nation
    to attract the next generation of transportation professionals
    and leadership to this great industry.
        Two key initiatives that COMTO has to support the
    strengthening of a transportation workforce pipeline include
    our CITY internship program. Through this program, paid
    internship opportunities are provided to minority students
    around the country, connecting them to real-world professional
    and practical experience in the transportation industry. We are
    currently working to secure funding to expand this program to
    focus on recruiting for apprenticeship programs and skilled-
    labor jobs in transportation.
        In addition, we have a national scholarship program. We
    annually award multiple academic scholarships to minority
    graduate and undergraduate students from across the country.
    Coupled with the efforts of our 35 chapters, millions of
    dollars have been awarded to deserving students pursuing
    careers in STEM and transportation professions.
        At COMTO we believe the leadership of a massive industry
    like transportation, who has the responsibility of being the
    great connector, should reflect the complex mosaic of those
    they serve. To that end, we must be intentional about
    attracting professionals from diverse backgrounds to this
    industry.
        In a recent visit to Morgan State University, one of two
    HBCU-led universities in the U.S. Department of
    Transportation's University Transportation Centers, Secretary
    Buttigieg made a comment that I truly agree with. He said, ``As
    a country, we cannot afford to leave any talent on the table.
    We have to ensure that transportation is an engine of equity.''
        To that end, COMTO supports and recommends expansion of
    local and communities of need hiring preferences that
    strengthen our communities by helping to create good local
    jobs, increasing opportunities and greater equity for people of
    color, women, veterans, and others facing barriers to
    employment.
        We also recommend public and private partnerships that
    focus on workforce development programs and attracting youth to
    the transportation industry with paid internships and
    apprenticeship opportunities.
        As Chair Norton stated, the Bipartisan Infrastructure Law
    will generate historic investments into construction and
    maintenance of U.S. roads, bridges, waterways, airports, et
    cetera. But without enough workers, efforts to strengthen roads
    and public transportation will be set back, and service
    delivery to communities will be delayed, which we all know will
    disproportionately impact communities of color.
        We believe ``jobs'' is the operative word in IIJA. Both
    Congress and the administration will have to be innovative and
    take aggressive action in the coming months to support programs
    and initiatives around workforce development, recruitment, and
    training.
        We are hopeful that this will include programs for emerging
    transportation professionals, STEM and construction curricula,
    especially in trade high schools, vocational schools, and
    HBCUs. These programs will include the opportunity, hopefully,
    for public and private partnerships to advance overall goals
    and outreach.
        Research has shown the many benefits of a diverse and
    inclusive workforce, including innovation, new perspectives,
    higher profits, and, ironically, the domino effect of increased
    abilities to recruiting a diverse talent pool.
        I want to conclude by offering the Conference of Minority
    Transportation Officials as a resource to this subcommittee and
    its members as you move forward to consider legislative
    activity to address the needs of the workforce of the future.
        Thank you again for the opportunity.
        [Ms. Rai's prepared statement follows:]

    Prepared Statement of April Rai, President and Chief Executive Officer,
                Conference of Minority Transportation Officials
        Good afternoon, Chairwoman Norton and Members of the Transportation
    and Infrastructure Subcommittee on Transit and Highways. My name is
    April Rai, and I am National President and CEO of the Conference of
    Minority Transportation Officials, also known as COMTO.
        COMTO is most appreciative of this opportunity to provide testimony
    before the Subcommittee on the topic of ``Examining Workforce
    Development and Job Creation in Surface Transportation Construction''.
        This issue is of vital importance to COMTO, which includes 34 US
    Chapters and one international chapter, totaling over 3000 members.
    Members include Individuals, Transportation Agencies, Private Sector
    Companies, Historically Underutilized Businesses (Small, Minority,
    Women, Veteran Owned, Disadvantaged), Educational Institutions and Non-
    Profit organizations. This translates into many tens of thousands of
    COMTO constituents. We thank Chairwoman Norton for her leadership in
    conducting this hearing, and if I may, I would like to make you aware
    of COMTO's own initiatives to affect changes in the face of
    transportation and to increase minority presence in the industry:
    CITY Internship Program
          COMTO's Careers in Transportation for Youth (CITY)
    Internship Program provides paid internship opportunities for minority
    students around the country, connecting them to real-world professional
    and practical experience in the transportation industry. An expanded
    version of the program will also focus on recruiting for apprenticeship
    programs.
    National Scholarship Program
          COMTO annually awards multiple national academic
    scholarships, to minority graduate and undergraduate students from
    across the country. Coupled with the efforts of our 35 chapters,
    millions of dollars have been awarded to deserving students.

        As further information, COMTO was established in 1971--we marked
    the 50th anniversary of our founding this past year--and reaffirmed our
    mission to ensure opportunities and maximum participation in the
    transportation industry for minority individuals, veterans, people with
    disabilities and certified M/W/DBE businesses through leadership
    training, professional development, scholarship and internship funding,
    political advocacy, partnership building and networking opportunities.
        COMTO appreciates that Rep. Norton clearly shares our mission and
    vision for the industry. We believe that the leadership of a massive
    industry that has the responsibility of being the great connector,
    transporting all people and goods all the time should reflect the
    complex mosaic of those they serve. We believe that commitment to
    inclusion across race, gender, age, religion, identity, and experience
    moves us forward every day. To that end, we must be intentional about
    attracting professionals from diverse backgrounds to this industry.
                Quick Overview of COMTO's Legislative Priorities
          Local Hiring Initiatives/Workforce Development--Local
    hiring preferences strengthen communities by helping to create good
    local jobs, increasing opportunities and greater equity for people of
    color, women, veterans, and others facing barriers to employment. COMTO
    is pleased to know that rebuilding America through racial and economic
    equity and incentivizing job creation through local hiring and
    workforce development/business development initiatives, particularly
    through infrastructure, is a priority for the Biden Administration.
          DBE Program Improvements and Efficiencies--COMTO would
    like to see closer oversight by DBE officers to avoid fraudulent front
    companies, through more vigorous training programs for certification
    and compliance officers, and a stronger, clearer definition of ``good
    faith efforts'' with fewer waivers from DBE goals granted to majority-
    owned firms.
          Small Disadvantaged Business Size Standards--COMTO
    supports action that would conform the U.S. Department of
    Transportation's (USDOT) DBE Size Standard with the Small Business
    Administration Standards (SBA). This is a simple fix to a big problem:
    in the interest of fairness and consistency and the survival of small
    minority owned businesses, the USDOT should use the Federal Aviation
    Administration's model and use SBA's size standards when making
    determinations with regard to small business status.
          Increase DBE Personal Net Worth (PNW) Ceiling--Like the
    DBE/SBE revenue ceiling, current PNW levels discourage DBE growth,
    wealth building, quash successful graduation rates and limit bonding
    and insurance opportunities. It is just common sense to set a PNW
    grounded in reality and adjusted for inflation, in recognition of the
    challenges small and minority businesses face in the bonding and
    sureties market.
          Federal Railroad Administration (FRA) DBE Program--COMTO
    supports implementing a DBE program using the FHWA/FTA/FAA model. We
    advocate for consistency within the USDOT and the establishment of DBE
    participation goals on projects funded through the FRA and on monies
    funneled by FRA to state rail agencies--including High Speed Rail
    projects. An FRA DBE program would provide opportunities for new DBE
    start-ups, would mean millions of dollars for minority businesses and
    thousands of jobs for minority communities.

        As President/CEO of COMTO, one of my top priorities is workforce
    development and strengthening the transportation workforce pipeline.
        The Bi-Partisan Infrastructure Law (BIL) also known as the
    Infrastructure Investment and Jobs Act (IIJA)--will generate $1.2
    trillion of investment--including $550 billion in new spending--into
    construction, rehabilitation and maintenance of U.S. roads, bridges,
    waterways, airports, rail and transit systems, and other
    infrastructure, and will reauthorize surface transportation programs
    for the next five years. But without enough workers, efforts to
    strengthen roads and public transportation will be set back and service
    delivery to communities will be delayed, which, as we all know, will
    disproportionately impact communities of color.
        In a recent New York Times article, entitled ``Skilled Workers Are
    Scarce, Posing a Challenge for Biden's Infrastructure Plan'', COMTO
    member Dr. Beverly Scott, Vice Chair of the President's National
    Infrastructure Advisory Council, is quoted, in response to the issue,
    ``Do we have the work force ready right now to take care of this?
    Absolutely not!''
        We believe that JOBS is the operative word in the IIJA. But
    workforce recruitment and retention have been issues that plagued the
    transportation construction industry even before the pandemic. The
    pandemic only made those problems more acute and now threaten the
    industry's ability to carry out the goals of the bill. The
    transportation construction industry has historically not well
    reflected groups to get the most out of the legislation. Both Congress
    and the Administration will need to be innovative and take aggressive
    action in the next few months to make these programs a reality, to give
    them the teeth to be effective and to establish accountability to
    measure results.
        SEC. 13007 of the BIL does address WORKFORCE DEVELOPMENT, TRAINING,
    AND EDUCATION as it relates to SURFACE TRANSPORTATION WORKFORCE
    DEVELOPMENT, TRAINING, AND EDUCATION.
        In this section, we understand that Secretary Buttigieg has been
    tasked with establishing a transportation workforce outreach program
    for targeted outreach to increase awareness of transportation career
    opportunities especially for diverse populations. In addition, it
    authorizes activities to ``develop a robust surface transportation
    workforce with new skills resulting from emerging transportation
    technologies; and activities to attract new sources of job-creating
    investment'' under a TRANSPORTATION EDUCATION AND TRAINING DEVELOPMENT
    AND DEPLOYMENT PROGRAM. This section also directs the Secretary to
    establish a program to make grants to educational institutions or State
    departments of transportation, in partnership with industry and
    relevant Federal departments and agencies to develop, test, and review
    new curricula and education programs to train individuals at all levels
    of the transportation workforce; or to implement the new curricula and
    education programs to provide for hands-on career opportunities to meet
    current and future needs. SMART grants applicants that promote a
    skilled workforce that is inclusive of minority or disadvantaged groups
    would be given priority. We are hopeful that this will include programs
    for emerging transportation professionals, STEM and construction
    curricula, especially in trade high schools, vocational schools and at
    Historically Black Colleges and Universities (HBCUs). We are also
    hopeful that these programs will include the opportunity for public and
    private partnerships to advance program goals.
        However, from what we can tell from the language, the program to
    implement this ambitious training deployment program is woefully
    underfunded compared to the multitude of tasks and goals assigned to
    the Secretary.
        Importantly, the Biden Administration has made a commitment to
    smashing the agency silos, and we believe this will be a key factor. We
    agree that Secretary Buttigieg should continue his efforts to negotiate
    MOUs and to establish a working group made up of the Secretary of
    Commerce, the Secretary of Energy, Secretary of Labor, and other
    federal agency heads. The combined efforts and resources of each of
    these agencies are necessary to create the workforce needed to fulfill
    the goals and timelines of transportation infrastructure projects.
        The Build Back Better Act (BBBA) would have included $20 billion to
    help build that national workforce. The programs included expanding
    apprenticeships, fostering mentor/protege relationships and investing
    in increased enforcement of labor law and civil rights violations to
    help diversify the workforce: these same concepts should be applied to
    funds dispersed through the IIJA.
        The obstacles that minorities and women have faced persist.
    Needless to say, despite the change in racial and gender demographics
    and the expected growth of women and minorities in the workforce, these
    groups are still underrepresented and underutilized in the
    transportation construction industry at large. According to career
    experts Zippia, currently, there are over 808,891 construction workers
    employed in the United States. However, only 6.2% of all construction
    workers are women, while 93.8% are men. According to that same source,
    the most common ethnicity of construction workers is White (58.7%),
    followed by Hispanic or Latino (24.5%) and Black or African American
    (10.7%). The United States Bureau of Labor, which also keeps official
    records specifically on highway construction, the numbers are similar:
    of this total, 2.6 percent were women, 6.2 percent were Black or
    African-American, 1.6 percent Asian and 31 percent Hispanic or Latino/
    Latina.
        According to information provided by the Transportation Research
    Board (TRB), `` . . . research suggests women may not feel welcomed or
    attracted to the transportation industry. A 2015 Center for
    Transportation Research and Education project noted that, although
    women are an asset to transportation operation roles, fewer than 2% of
    the U.S. railroad workforce was comprised of females and fewer than 5%
    of drivers in the motor carrier industry were women. The industry can
    find itself mired in old patterns and cultural norms that can result in
    a lack of inclusivity, making it unable to attract uniquely talented
    workers from a diverse population that includes women applicants.''
        There is a cost associated with efforts to diversify the
    construction workforce. However, aggressive recruitment, training, and
    other best practices targeted toward minorities and women have been
    shown to have significant value and return on investment. Research has
    shown many benefits of a diverse and inclusive workplace, including
    innovation, new perspectives, higher profits and ironically, the domino
    effects of both increased abilities to continue to recruit a diverse
    talent pool and higher employee retention.
        But we realize this takes public and private sectors' EMPLOYER
    education, to make the industry understand and embrace the benefits of
    workforce diversity and development and to education programs that
    stimulate interest in transportation construction careers. And beyond
    that, we support incentivizing private sector efforts by giving credit
    or weight to majority prime contractors who implement local hiring
    efforts and allocation of resources to the best practices I mentioned
    above to increase minority and women in the construction trades, and to
    strengthen a pipeline of workers to better reflect the demographics of
    the country.
        I would like to conclude by offering the Conference of Minority
    Transportation Officials as a resource to this subcommittee and its
    Members as you move forward to consider legislative activity to address
    the needs of the workforce of the future.
        With your indulgence, I would like to encourage our membership to
    submit statements to our National office on this topic, which I will in
    turn submit to your staff as part of the hearing record. Thank you
    again for this opportunity and for your time and consideration of these
    important issues.

        Ms. Norton. Thank you very much, Ms. Rai.
        I recognize Chair DeFazio for his 5 minutes.
        Mr. DeFazio. Thank you, Madam Chair.
        Ms. Rai, we are talking about new entrants into the
    workforce. And in particular, we want to be looking at youth.
    What is sort of--I mean, I know it varies by region, but your
    average unemployment rate among young high school, post-high
    school-age people of color, I think it is quite high, is it
    not?
        Ms. Rai. It is. And I don't have the exact number in front
    of me, but it is disproportionately high.
        Mr. DeFazio. Right.
        Ms. Rai. So, we need to let them know what is available,
    and give them opportunities to be exposed to careers in this
    industry, and make those opportunities paid opportunities
    through internships and apprenticeship programs, so they can
    know what the possibilities are.
        Mr. DeFazio. Right. I was visiting, just anecdotally, LAX
    with a major new construction project, and they engaged in this
    sort of effort, given the area around the airport is generally
    low-income, a lot of minority. And they had tremendous success
    in recruitment and getting a young workforce who will now
    probably stay in the workforce. So, I congratulate you on your
    efforts.
        To Ms. Karst, you say here that price increases on
    manufactured steel, plastic piping, paint, and concrete range
    from 15 percent to a doubling or tripling on some items like
    manufactured steel. What accounts for that?
        [Pause.]
        Mr. DeFazio. Your mic, your mic, your mic, your mic.
        Ms. Karst. I don't know if I can answer why those materials
    prices have gone up. I think a lot of it really has to do with
    what is going on in the world today, the supply chain issues
    associated with the pandemic. I think my reason for talking
    about it is that contractors are dealing with this as part of
    their stress.
        Mr. DeFazio. Right. And you have a group, I guess, through
    AGC, that has petitioned the Biden administration to make clear
    that American Rescue Plan money by State and local governments
    could be used to help mitigate the cost of supply chain delays
    and the effect it is having on project costs.
        Ms. Karst. Yes. I think what we are asking for is we are
    asking for you to give us flexibility at the State level to
    make decisions that make sense for our State.
        Mr. DeFazio. OK.
        Ms. Karst. So, if that happens to do with some of the
    supply chain issues, absolutely give our States the
    flexibility. We have good relationships with our State DOTs,
    and we want to be able to use those relationships to do what is
    right for the constituency there.
        Mr. DeFazio. Right. I think the ranking member, though,
    pointed to that bill as a major cause of inflation. And, of
    course, you just pointed out that the inflation and the cost of
    construction materials has nothing to do with the passage of
    the Rescue Plan. But now we want to apply Rescue Plan money to
    help mitigate those impacts. So, I just find some things here a
    little bit contradictory.
        And just one more question for you. You said that--you made
    a point. It was my position--it still is--that some States are
    doing a miserable job in maintaining their infrastructure. Once
    the President visited the day after a bridge collapse in
    Pittsburgh. Pennsylvania has huge bridge problems, as do many,
    many States--42,000 bridges on the National Highway System need
    substantial repair or total replacement.
        Some States, perhaps yours, are doing very well on that.
    But the idea of Fix it First was: Look at that, and deal with
    it, maintain and rebuild in a resilient way our existing
    infrastructure--not exactly the way it stands now, could be
    increased capacity. It certainly would be more resilient to
    severe weather events and other things that are happening.
        And also in major urban areas--you don't have any of those,
    but to look at innovative solutions to deal with congestion.
    You aren't going to be building a hell of a lot more highway-
    miles through our major cities, just--there is no place to put
    them. And that is what Fix it First was. It was and it is only
    guidance on the part of the administration.
        So, I am a bit puzzled at the objection to this sort of
    guidance from the administration. You can briefly answer that,
    because I have to ask another question to the other witnesses.
        Ms. Karst. So, you want me to answer that, or----
        Mr. DeFazio. Well, very quickly.
        Ms. Karst. Yes. I mean, I will--again, we are focusing on
    flexibility. We don't want to have edicts that come down that
    tell us exactly how to do things, that each community should
    know exactly what their situation is and whether or not that
    makes sense for their community.
        Really, we believe that our States are actually already
    fixing it first. Eighty percent of the work is in repair and
    maintenance of existing infrastructure.
        Mr. DeFazio. Well, I am about to run out of time,
    unfortunately, because I did want to ask further questions. But
    with that, Madam Chair, I would yield back my last 1 second.
        Ms. Norton. Thank you, Chair DeFazio. I now recognize
    Ranking Member Davis for 5 minutes.
        Mr. Rodney Davis of Illinois. Thank you, Madam Chair. And
    thank you again to the witnesses.
        Ms. Karst, let me start with you. I really appreciate you
    raising the importance of One Federal Decision. It is an idea
    that I have been proud to champion, and I remain frustrated, as
    I said in my opening statement, that this administration is
    dragging its feet in implementing the commonsense changes to
    our regulatory process. Can you tell the committee how this
    policy will help build more roads and more bridges?
        Ms. Karst. In my opinion, as you look at different States,
    the way the States administer money is, many times, to other
    entities, whether it is the counties or townships and that kind
    of thing. These counties and townships don't understand the
    redtape that they have to go through, get very frustrated when
    they have a farm-to-road bridge structure that is obsolete and
    can't be used anymore. And when it takes them 6 years to get
    that approved, they look to that as the State's problem, when,
    in reality, it is really decisions that could be corrected
    through One Federal Decision.
        Mr. Rodney Davis of Illinois. Do you think it should be
    expanded to other areas?
        Ms. Karst. Absolutely, yes. I believe that the efficiencies
    of One Federal Decision could be used in many places in our
    infrastructure funding.
        Mr. Rodney Davis of Illinois. Yes. I mean, we are not here
    saying, you know, build a road to destroy the environment,
    right? I mean, we just want the regulatory process to have an
    end date. And I remember sitting in this room a few years ago
    when we passed a water bill when we figured out that the
    average Corps of Engineers project took about 15 years to get
    through the regulatory process. I mean, I think it is wrong.
    How about you?
        Ms. Karst. I absolutely think it is wrong. People are
    hearing about these needed projects, and they are seeing that
    it takes too long to get them done.
        Mr. Rodney Davis of Illinois. Well, it does. It certainly
    does. And that means it keeps our men and women in the building
    trades from being able to be employed on a jobsite, right?
        Ms. Karst. Absolutely.
        Mr. Rodney Davis of Illinois. Well, that leads me to you,
    Mr. Booker. I appreciated the building trades' past support for
    the One Federal Decision bill. Would you like to add anything
    else regarding One Federal Decision, and how its delays in
    implementation may impact your members' ability to be on the
    worksite?
        Mr. Booker. Yes, I mean, as you just mentioned, we have
    been on the past--on the record supporting your legislation,
    and thank you for your leadership on that. And we feel, as you
    feel, that you need predictability. You need predictability
    throughout the construction process, at the beginning of the
    permitting process.
        We are all for regulation. We are all for doing it the
    right way. But let's streamline it, do it the way that your
    legislation has put forward.
        And it is not a matter of is it going to adversely affect
    building trades members versus non-building trades members. If
    a project is not permitted, it is going to affect anybody who
    is going to work on that. So, that is why we have advocated
    with you on behalf of trying to streamline these processes, and
    we are in support of that, and think that that is the right way
    to go.
        Mr. Rodney Davis of Illinois. Well, thank you very much. I
    appreciate the support of that particular provision.
        And now we just hope that the administration is able to
    implement this provision in a way that we had intended it when
    this was debated numerous times here in this committee.
        Ms. Karst, if I could come back to you, your company has,
    what you said, grown out of the women and disadvantaged
    business program. Can you speak to AGC's efforts to help
    companies navigate this transition?
        Ms. Karst. To AGC's efforts, really, I have been involved
    in AGC, really, my entire career in the construction industry.
    It is really the association that has given me the opportunity
    to learn how to run a really good business, and how to grow my
    business through having mentor relationships with other people
    in the industry.
        AGC does a ton to train its members and our workforce. It
    is the experiences in AGC that have allowed me to figure out
    the best way to grow the business and make decisions based on
    where I was headed, and the way the company was growing, and
    how it fit within the disadvantaged business program.
        I think, as I said at the beginning, I have transitioned
    from being less of a subcontractor and more of a prime
    contractor, and it is through the resources and education that
    AGC gives its members, advocates for on behalf of its members,
    that has allowed me to grow.
        Mr. Rodney Davis of Illinois. Well, I appreciate hearing
    that. I had the chance to visit our local Illinois AGC chapter
    when I was back in Illinois over the last 1\1/2\ weeks. So,
    with that, I really appreciate your responses.
        And Madam Chair, I know you are surprised, but I am
    actually going to yield you back some time.
        Ms. Norton. Thank you. We will see what we can do with it.
    I recognize myself for 5 minutes.
        Ms. Rai, I want to first offer my congratulations on the
    50th anniversary of COMTO's founding. That is really an
    important milestone.
        Your testimony notes that, despite changes in the racial
    and gender demographics of the overall workforce, women and
    minorities are still underrepresented and underutilized in the
    transportation construction industry.
        Now, Congress has just enacted a landmark infrastructure
    legislation, a bipartisan legislation, that includes
    provisions, as noted in your testimony, to invest in the
    transportation workforce. What can Congress do to prioritize
    increasing participation of women and minorities in the
    transportation construction workforce, both in overseeing the
    implementation of infrastructure law and beyond?
        Ms. Rai. Thank you, Chair Norton. I do believe that, with
    regard to the moneys that are available at the DOT for this
    work, it is extremely competitive, the moneys that are
    specifically allocated towards workforce development and
    capacity building. So, we need to look at appropriating more
    dollars to this work.
        We look to work with State DOTs and also private
    transportation organizations and construction firms in this
    work. But to assist in the capacity and the outreach efforts to
    let folks know what is available, we have to have public and
    private partnerships.
        We are also looking to work with the HBCUs that are part of
    the UTC program to utilize that as a pipeline to attract the
    next generation to the transportation industry.
        We are also looking to see if we can do better with
    definitions around what are historically underutilized
    businesses, hubs, those that are minority-owned, women-owned,
    and disadvantaged businesses at the Federal level, so that
    funding can be appropriated in a way that truly benefits the
    communities that need it the most.
        Ms. Norton. What benefits and impacts are employers seeing
    when they invest in efforts to diversify their workforce?
        Ms. Rai. I think we can all agree that, when we support
    individuals as professionals, we support families, and families
    make better communities, better regions, and a stronger Nation.
    So, it helps us all when we invest money in these professionals
    and make sure that they have a pathway to leadership and
    support their professional development within the organization
    so that leadership can truly reflect those that are served by
    the transportation industry.
        Ms. Norton. Thank you.
        Ms. Smith, I was really excited to read your testimony,
    which showed that more than 300 new trainees will be enrolled
    in North Carolina's on-the-job training programs this year.
    From your perspective, what makes North Carolina's on-the-job
    training program so successful?
        [No response.]
        Ms. Norton. Ms. Smith?
        Voice. Question.
        Ms. Smith. OK. Thank you for that question, Chair Norton.
        I believe that North Carolina is very successful in our OJT
    program and increasing our trainees, because we have the full
    support of leadership from our Governor to our secretary, and
    also our highway administration here in North Carolina at our
    regional offices.
        We really put a lot of effort into building collaborations,
    coalitions, and partnerships, not only with our local
    stakeholders in our region, our trade associations, but also
    with our universities, our HBCUs, and our workforce development
    councils here locally.
        We have also revamped our programs to include the building
    apprenticeship programs that we have not seen before.
        One of the newest initiatives that we have is a revamped
    program. We call it our Reboot Pop-Up Academy. So, looking at
    individuals that have been historically underemployed or
    unemployed, and going back to the market to bring them back to
    a boot camp to do a skills refresh on soft skills, and also
    offer them supportive services.
        We have also tapped into our incarcerated individuals, our
    women's prisons, and also our Native American Tribes.
        So, typically, communities that have not been used as a
    resource for recruitment, we have really put a lot of effort
    into looking at all communities to see how we can grow
    communities. It impacts us for our workforce, and also the
    economy of North Carolina.
        Ms. Norton. Thank you very much for your testimony, Ms.
    Smith. It has been very helpful.
        I now recognize Mr. Crawford for 5 minutes.
        Mr. Crawford. Thank you, Madam Chair. Thank you all for
    being here today.
        Ms. Karst, I want to direct a comment and a question to
    you. We are all familiar with the runaway inflation that we are
    experiencing today. Extreme gas prices is one example, food
    prices are on the rise, and continued supply chain issues.
    Everything just seems to require more time and money. Can you
    talk about how this is affecting the construction industry, and
    how you expect it to impact the ability to implement the
    projects funded by IIJA?
        Ms. Karst. Yes. I am glad you actually said it is time and
    money, because, really, we are seeing a lot of flexibility on
    time as we work with our DOTs, but the reality is that we, in
    order to be able to do the work that we do, we have to follow a
    schedule, and we have to have a schedule of multiple projects,
    especially for a small contractor. I probably run about 50
    projects a year, varying in sizes from, say, $20,000 to $20
    million. So, those types of projects, you need to be able to
    schedule those out.
        And so, when we are seeing--not only are we seeing the cost
    increases on there, we are also seeing delays on projects
    because we can't get concrete pipe in time to do the
    underground work, which has to be done before we can do the
    final grading work before we can pave a project. So, really,
    these are just continuous delays. Those delays not only cost us
    money in terms of the material itself, but they are costing us
    money in terms of being able to get those projects out.
        And then it really just moves that snowball down the road.
    So, in reality, we end up moving projects from this season into
    next season, and it ends up impacting our ability to get this
    work done.
        Mr. Crawford. I am going to stay with you on this topic
    here. Federally assisted construction projects like those
    funded by IIJA have to meet Federal requirements like Davis-
    Bacon, for example, and Service Contract Act. And while those
    regulations may have made sense historically, they were never
    indexed to inflation, and they are severely outdated today, and
    they create incredible time lags and financial burdens on
    federally funded projects.
        Just this week, for example, I heard from the Corps of
    Engineers that a simple tire repair on all-terrain cranes that
    should cost about $3,000 to repair was more than double that
    expense, nearly $7,000, due to Federal regulations.
        In your experience, what kinds of additional costs has the
    industry experienced due to outdated regulations like these?
        Ms. Karst. Really, it is a lot of administrative costs and
    project costs, additional project costs added to the top that
    really add no value to the project itself. That is really where
    we see those types of costs happening. It is extra
    implementation in terms of office staff to make sure we are
    meeting all of those requirements. It is extra project
    management out in the field to make sure that we are doing
    everything according to the regulations.
        Now, don't get me wrong, we want to do things according to
    the regulations, and we pride ourselves on doing that. We want
    to provide a quality product to our end customer in a timely
    manner, and provide good jobs for our employees. And we do
    that.
        Mr. Crawford. In the alternative, what suggestions would
    you have for something like this to be able to streamline and
    expedite projects?
        Ms. Karst. To be able to streamline and expedite projects,
    I would provide as much flexibility as you can to State and
    local governments to be able to know what needs to be done in
    their particular areas and not have it be handed down to them
    in rules and regulations that may not make sense in their
    particular jurisdiction.
        Mr. Crawford. Got you. I appreciate you being here today.
        I am going to yield back the balance of my time.
        Ms. Karst. Thank you.
        Ms. Norton. I thank the gentleman for yielding back. I now
    recognize Ms. Johnson for 5 minutes.
        Ms. Johnson of Texas. Thank you very much, Madam Chairman
    and Ranking Member Davis, for holding this hearing today.
        I would also like to thank our outstanding witnesses for
    testifying before us today.
        And before I proceed, I would like to associate myself to
    your remarks in reference to Mr. Young, a former chair of the
    committee, and someone that I have worked with on this
    committee for almost 30 years.
        Ms. Norton. So ordered.
        Ms. Johnson of Texas. Thank you.
        I had constituents in my district asking me about the
    contracts and when will they be available for infrastructure
    projects before the bill was even signed into law. And so, like
    many people, I fully expected this legislation would create
    thousands of good-paying and long-term jobs.
        The Democrats on this committee passed the largest
    transportation bill in history, with $550 billion in critical
    infrastructure funding. This is a huge financial windfall for
    the construction industry, and it is only fair to ask our
    contractors, who benefit the most from this funding, to simply
    hire people in the community, pay a living wage, and offer
    training to those employees.
        I am pleased to hear the testimony from some of the many
    people who are benefiting from the Infrastructure Investment
    and Jobs Act and look forward to hearing from our witnesses
    even more.
        I am from a large State with lots of projects needed and a
    lot of people with jobs. I am sorry that I don't see someone
    from Texas talking about our progress and what we are doing to
    enable more people to have opportunities. So, what I would like
    to do is ask first Ms. Tunya Smith, director of the Office of
    Civil Rights in North Carolina.
        You understand how hard it is for small and minority
    businesses to succeed, so, it is unfortunate that many States
    don't make any effort to institute or enforce DBE goals. Do you
    think that States' DOTs and people in your position have enough
    strong enforcement mechanisms to ensure businesses are meeting
    DBE requirements on projects?
        And can you discuss your experience with that and what
    additional tools Congress can provide?
        Ms. Smith. Thank you for asking that question,
    Representative Johnson, and I am glad to be able to respond to
    you accordingly.
        That is a critical question that we discuss a lot in all
    civil rights programs in State DOTs, is how to really enforce
    and enhance our goal-setting programs. One of the major
    obstacles that we see, State to State, is a lack of DBE goals
    on professional services contracts. It is something that is
    done on a State level. The Federal regulations allow us to do
    it. However, many States just do not have the goals based on
    State statutes on those professional services contracts. That
    is one of the strongest things I believe you can do today, is
    to have that goal-setting program.
        But to answer your question, we could use and benefit from
    greater enforcement at the Federal level to ensure that all of
    our procurement obstacles are mitigated as best as possible.
        Another major thing that could really assist the State DOTs
    is having a more enhanced and robust data collection system,
    one that pulls all the information from State DOTs that we can
    pull from. Oftentimes I am asked, ``What are other States
    doing, and how could we do it better? Have they been
    successful?'' That is a story that we continue to ask. We do
    peer-to-peer exchanges, but there really is no central
    repository that is collecting all of this information.
        Furthermore, I believe that we could enhance our research
    and development efforts with the HBCUs to really target the
    economic impact and also the obstacles that we face with firms
    being utilized on contracts. It is a much greater issue we
    cannot always understand as times change. We have different
    financial struggles and financial capacity issues that we have
    to help businesses mitigate.
        These are just a few things that the Congress can do to
    help us to reach our goals, to help these small minority
    businesses.
        Ms. Johnson of Texas. Well, thank you very much. My time is
    about out.
        But Madam Chair, I would like to submit two questions to
    the committee for persons to answer later, to Ms. Kari Karst
    and Ms. Kelly Kupcak.
        Thank you, and I yield back.
        Ms. Norton. Thank you. And we will be glad to receive them.
        Mr. Perry, you are recognized for 5 minutes.
        Mr. Perry. Thank you, Madam Chair.
        Ms. Karst, good afternoon. It is good to see you, good to
    see another contractor put people to work and doing great
    things in America. And your testimony highlighted AGC's
    opposition to Government-mandated project labor agreements and
    concerns that they would likely exacerbate workforce
    challenges.
        And specifically, I think they raised the concerns that
    mandated PLAs act as a barrier for hiring small businesses,
    including WBE and MBE, in the fulfillment of small business
    utilization goals. Can you expand on your thoughts on PLA, and
    how it creates barriers to hiring of small businesses and DBEs?
        Ms. Karst. So, I am from a small State, work on small
    projects. project labor agreements are completely foreign to
    anything that we would do in the State of South Dakota or the
    State of Nebraska, where I work. We essentially have no union,
    no effective union presence in our State. We take care of our
    employees. We do a good job of taking care of our employees.
    And so, the opportunities for me would change dramatically.
        And although I am a small contractor in the whole realm of
    things, in terms of AGC members, our member's average size, I
    believe, is about nine employees. I have 150 employees. So, for
    firms of that size to be able to participate effectively in
    projects that have those types of agreements is very
    detrimental, or very difficult for them to do. DOT projects
    have enough regulations on them as they go that it becomes
    difficult for smaller contractors to participate on that. But
    we figured that out on how to do that. Moving this--PLAs, in my
    opinion, move a whole other level of complexity to the process
    that, again, excludes smaller contractors for large
    contractors.
        Mr. Perry. Having been a small contractor myself, I would
    agree with you.
        In your testimony, you also state recently the FHWA
    released a guidance memo highlighting that States should focus
    exclusively on maintenance and repair work on existing roadways
    before building new capacity. You are correctly pointing out
    that this policy was rejected by Congress in IIJA negotiations
    and paints a false narrative based on FHWA's own data, which
    states that 80 percent of roadway construction projects already
    repair existing roads and bridges.
        Unfortunately, the FHWA is trying to impose the chairman's
    failed priorities by executive fiat--almost word for word, if
    you want to know. This is a completely unacceptable subversion
    of congressional intent and the law that must be rejected.
        Congress rejected the policy because it misallocates
    resources and restricts localities and States from making
    planning decisions to meet their own needs. Can you expand at
    all upon the negative economic effect on the roadway
    construction industry, particularly small businesses like
    yourself and DBE construction firms that will occur if FHWA
    continues to pursue what I consider a perversion of the
    congressional intent?
        Ms. Karst. Really, it comes down to opportunity and really,
    again, providing States flexibility to do what is right for
    them.
        As you have said, 80 percent of the work is already in
    repair and maintenance. In my State I believe the number is
    more like 91 percent of the work is already repair and
    maintenance. So, it becomes unnecessary to even have the
    guidance, and a little bit confusing in the sense that there
    are projects in small communities and larger communities that I
    work in that are necessary for expansion, because we do have
    growth going on. And when we have growth going on--we have the
    land and the area to expand--being restricted to do those
    things by even a guidance makes projects more difficult.
        Mr. Perry. I am glad Washington is here to help you.
        Finally, PLAs are not the only labor provision that tilt
    contracts in favor of closed-shop entities at the expense of
    open-shop minority and women-owned businesses and small
    businesses. Unfortunately, the DBE prevailing wages also stand
    in the way of greater small business and DBE participation. Do
    you think that some reforms are necessary, I guess, to ensure
    Federal funding is spent efficiently, and the DOT needs are
    met? Do you think some reforms are necessary?
        Ms. Karst. Yes, I think that the Davis-Bacon needs to be
    updated. It needs to be broadened to include open-shop and
    union opportunities to give States the opportunity to update
    their particular wage scales more frequently, and as needed.
        To be honest with you, Davis-Bacon in South Dakota is way
    below what anybody pays. But the rates that are in Davis-Bacon,
    we can't get them to come up. We can't get them to come up
    because there is not effective ways for an essentially non-
    union State to be able to affect those scales. So, it needs
    updating, and we need to have the flexibility to do what we
    need to do in our State.
        Mr. Perry. Thank you, Madam Chair. I yield the balance.
        Ms. Norton. Thank you. I now recognize Ms. Brownley for 5
    minutes.
        Ms. Brownley. Thank you, Madam Chair.
        Ms. Kupkac--I hope I am pronouncing your name correctly, I
    have a feeling I am probably not--first I want to thank you
    very, very much for your advocacy for women. You are passionate
    about it, and I appreciate it very much.
        I was interested in your testimony, where you stated
    between February of 2020 and July 2021, more women entered the
    construction workforce than ever before, with an increase of
    3.2 percent. Actually, you say the largest increase of any
    industry during that time. And during the same timeframe, men's
    participation in the construction industry actually decreased
    by 4 percent.
        So, the time period that you are referencing is certainly
    around the height of COVID. I am just very curious to know what
    drove more women into the workforce during this timeframe.
        Ms. Kupcak. Thank you, Representative Brownley, for your
    comments and your kind words. Yes, that was actually an AGC/
    Autodesk report that we referenced in our comments and written
    testimony.
        And what we have found--and also looking at a report from
    the Institute for Women's Policy Research--certainly many, many
    women were disproportionately impacted by the pandemic for
    reasons to need to stay home, to leave the workforce to care
    for family members who were either sick or children who were
    not able to be in school, or have childcare.
        But we also saw many, many women reaching out to us and
    other tradeswomen organizations and pre-apprenticeship programs
    across the country saying, ``I have had this opportunity to
    reflect, and I need to do something different to care for
    myself and my family, to have an economic security for my
    future and for my family.''
        And I believe that also, one of the challenges that we had
    during the pandemic of providing training, especially at the
    beginning, in shifting to offering a hybrid model of remote
    training and in-person training, we reached more women. We
    reached more women in rural communities and other areas, where
    they didn't necessarily have a vocational school nearby, or a
    community college, or community-based program such as ours. So,
    we saw more women coming in, and we want to continue that
    trend, and we want to make sure that the women that come in
    stay in.
        I hope that answers your question.
        Ms. Brownley. Yes, it does. Thank you very much. You also,
    in your testimony, noted that women, and particularly women of
    color, face discrimination in hiring and long-term employment.
    And amongst your recommendations was a requirement for
    contractors to do more to ensure respectful workplaces,
    worksites.
        Do you have kind of a ballpark estimate on how many
    contractors currently require employees to receive workplace
    training on diversity and inclusiveness, including education
    related to ending sexual harassment on the job?
        Ms. Kupcak. Thank you so much for that question. And
    certainly, there are already Federal guidelines in place around
    affirmative action and equal employment opportunity and anti-
    harassment.
        I wish I had a number for you, and I wish I could say it is
    more than a handful that we have here in Portland who have
    committed to not just stating on paper that they have policies
    about harassment, but actually are implementing a strong and
    rigorous and engaging and proactive program such as Green Dot
    or RISE Up, or other programs that are intentional for our
    construction sector to mitigate harassment, hazing, and
    bullying, which are a huge cost to employers, right?
        And so, we are lucky here, in the Pacific Northwest. Oregon
    Tradeswomen runs a program called RISE Up--Respect, Inclusion,
    Safety, and Equity--that was developed by our sister
    organization, ANEW, in Seattle, in partnership with the
    building trades and other industry partners. And we are seeing
    that that is making a difference in the workforce being
    retained, and in particular women, women of color, and people
    of color. But we have so much more work to do in this space.
        But I thank you for your question. It is a very important--
    --
        Ms. Brownley [interrupting]. I have one last very quick
    question. So, I have spent a lot of my time in Congress
    advocating for our Nation's veterans, particularly our women
    veterans. And I am just wondering if you have a way in which to
    reach out to women veterans in your community.
        Ms. Kupcak. We absolutely do. We work with our State
    veterans' affairs department. We have a lot of advocacy
    underway here in Oregon with our State Apprenticeship and
    Training Council. In fact, our executive administrator formerly
    worked for Helmets to Hardhats, Director Lisa Ransom. So, there
    is a lot of intentionality, and it is an incredible opportunity
    for returning vets to get into these careers, and particularly
    for women who have had those similar skills while serving our
    Nation.
        Ms. Brownley. Thank you so much, Madam Chair. I yield back.
        Ms. Norton. Thank you. I recognize Mr. Babin for 5 minutes.
        Dr. Babin. Thank you very much. I appreciate----
        [Audio malfunction.]
        Dr. Babin. Testing. Better? OK, sorry. I hope they don't
    penalize me for that lost time.
        Thank you very much. And I thank the witnesses for being
    here. And I would like to direct this question and statement to
    Ms. Karst.
        Thank you so much for your expertise. As noted in your
    testimony, a historic level of funding was injected into the
    transportation and infrastructure sector with the passage of
    the Infrastructure Investment and Jobs Act, or IIJA.
        However, we all know that simply throwing money at a
    problem doesn't always actually solve that problem. Throwing
    billions of taxpayer dollars at this industry without solving
    the supply chain crisis, pandemic recovery issues like fraud
    and abuse, major workforce shortages, overly burdensome,
    bureaucratic redtape, and other underlying issues will not
    actually allow us to see long-term sustainable improvement and
    investment in our Nation's infrastructure.
        I represent a district in southeast Texas near the Houston
    area, nine counties, with more oil refineries in it than
    anywhere else in the country. I understand how dire the need
    for a skilled workforce is.
        However, as you mentioned in your testimony--and I thank
    you for that testimony--when the Biden administration decided
    to prioritize projects based on labor preferences, they missed
    the mark. Although who is surprised that they put politics over
    people? The administration knew full well that they were
    risking companies' abilities to recruit and maintain a talented
    and capable workforce with their union-dictated Executive
    orders.
        But like you said, they took something that really needed
    to be addressed at the very root of that problem, and put a
    liberal Band-Aid over it, and waited for the applause from
    people who have no idea what they are talking about.
        At a conference last month, Senator Chuck Schumer, majority
    leader of the Senate, stated in his role as majority leader of
    the Senate he will fight to ensure that, quote, ``every
    blanking [expletive substitution] Federal dollar only pays for
    union labor,'' further emphasizing his support for PLAs
    everywhere. Mind you, there was explicit language in his
    original quote that I won't be repeating. I try not to talk
    like that down where I am from.
        But for everyone's awareness, IIJA says nothing about
    project labor agreements and definitely nothing about every
    dollar only paying for union labor. These comments are pretty
    concerning, especially to the 87.4 percent of non-union workers
    in that construction arena.
        I have a letter here from more than 1,000 construction
    companies and another letter from nearly 20 business groups
    that all oppose Biden's PLA mandate. They say that PLAs
    discriminate against firms and workers based on whether or not
    their workers are union. So, if we could enter those into the
    record, I would appreciate it.
        [The information follows:]

     Letter of April 6, 2022, to President Biden and Vice President Harris
      from Associated Builders and Contractors et al., Submitted for the
                           Record by Hon. Brian Babin
                                                         April 6, 2022.
    The Honorable Joe Biden,
    President of the United States,
    The White House, 1600 Pennsylvania Ave. NW, Washington DC 20500.
    The Honorable Kamala Harris,
    Vice President of the United States,
    The White House, 1600 Pennsylvania Ave. NW, Washington DC 20500.
        Dear Mr. President and Madam Vice President:
        ABC and our undersigned state chapters and member companies
    strongly oppose your administration's efforts to encourage and require
    controversial government-mandated project labor agreements on federal
    and federally assisted construction contracts funded by taxpayers.
        Associated Builders and Contractors and our members are committed
    to building taxpayer-funded construction projects with the highest
    standards of safety and quality and stand ready for the chance to build
    and maintain America's infrastructure. Federally funded construction is
    also critical to address the nation's infrastructure needs and has the
    potential to provide significant opportunities, particularly to small
    construction businesses, as they continue to recover from the effects
    of the COVID-19 pandemic.
        While Congress worked to enact a significant bipartisan
    infrastructure package and begin the process of modernizing our
    nation's infrastructure, your administration is taking a dangerously
    partisan approach that would defy congressional intent and effect the
    allocation of a significant portion of these funds. ABC and our members
    are concerned this EO could limit the ultimate success of the
    bipartisan bill and the communities it is meant to benefit.
        PLA mandates unfairly discourage competition from quality,
    qualified nonunion contractors and their employees, who comprise 87.4%
    of the private U.S. construction industry workforce. PLA mandates also
    effectively prevent many small,
    women-, veteran- and minority-owned construction businesses and their
    workforce from participating in federally funded construction projects.
    Importantly, we believe that any federal investment in construction,
    including our nation's infrastructure, must ensure opportunity to all
    Americans, regardless of labor affiliation.
        Executive Order 14063 would direct all federal agencies to require
    PLAs on federal construction projects exceeding $35 million in total
    value to ``promote the economy and efficiency in Federal procurement.''
    However, multiple studies of hundreds of taxpayer-funded school
    construction projects found that PLA mandates increase the cost of
    construction by 12% to 20% compared to similar non-PLA projects.
        In addition, recent government-mandated PLAs on federal and
    federally assisted projects have resulted in litigation, reduced
    competition, increased costs, needless delays and poor local hiring
    outcomes. Simply put, hardworking taxpayers are getting less and paying
    more when PLAs are encouraged or mandated during the procurement of
    federal and federally assisted construction projects.
        The administration has a unique opportunity to uphold the
    bipartisan work included in the Infrastructure Investment and Jobs Act
    (Public Law 117-58) and other legislation that funds critical
    construction projects throughout the country.
        ABC members, along with many other construction employers, provide
    well-paying jobs and benefits for their employees. ABC and our
    undersigned state chapters and members support fair and open
    competition and oppose government-mandated PLAs on federal and
    federally assisted projects because hardworking taxpayers deserve more
    efficient and effective policies that will encourage all qualified
    contractors and their skilled workforce to compete to build long-
    lasting, quality projects at the best price.
            Sincerely,
                           Associated Builders and Contractors.

    [Editor's note: The 17-page list of ABC State chapter and member
    company signatories is retained in committee files and available online
    at https://www.abc.org/
    Portals/1/2021%20Files/Government%20Affairs/Legislative/ABC%20and%20
    Members%20White%20House%20PLA%20EO%20Letter.pdf?ver=2022-04-06-122001-
    997×tamp=1649262007681]

      Letter of February 15, 2022, to President Biden from American Fire
     Sprinkler Association et al., Submitted for the Record by Hon. Brian
                                     Babin
                                                     February 15, 2022.
    The Honorable Joseph R. Biden Jr.,
    The White House,
    1600 Pennsylvania Ave., Washington DC 20500.
        Dear President Biden:
        The diverse coalition of undersigned associations and organizations
    representing the interests of tens of thousands of companies and
    millions of skilled employees in the U.S. construction industry--
    building the foundation of America's economy--strongly opposes your
    administration's efforts to encourage and require controversial
    government-mandated project labor agreements on federal and federally
    assisted construction contracts funded by taxpayers.
        We applaud the administration's leadership to improve and build new
    roads, bridges, schools, affordable housing and communications, water,
    energy and transportation systems in urgent need of public and private
    investment in order to keep America competitive in a global economy.
    However, Executive Order 14063,\1\ which requires PLAs on federal
    construction contracts exceeding $35 million, and other policies
    encouraging PLAs on federally assisted projects via grant programs
    administered by federal agencies for state and local governments,\2\
    will undermine taxpayer investment in public works projects financed by
    the Infrastructure Investments and Jobs Act of 2021 and additional
    bipartisan legislation passed by Congress and signed into law free from
    language requiring or encouraging the use of PLAs.
    ---------------------------------------------------------------------------
        \1\ Executive Order 14063, Executive Order Executive Order on Use
    of Project Labor Agreements For Federal Construction Projects, Signed
    Feb. 4, 2022.
        \2\ Federal dollars distributed to state and local governments via
    multiple grant programs administered by the departments of Treasury,
    Transportation, Agriculture and Interior encourage state and local
    applicants to mandate PLAs on water, sewer, broadband, offshore wind,
    energy and infrastructure projects.
    ---------------------------------------------------------------------------
        The administration's flawed rationale justifying pro-PLA policies
    \3\ ignores marketplace realities and broad opposition to government-
    mandated PLAs within the construction industry. The truth is
    government-mandated PLAs needlessly increase costs for taxpayers. These
    jobsite-specific collective bargaining agreements unique to the
    construction industry unfairly limit competition by some of America's
    best contractors. Ultimately, they exclude almost 9 out of 10 of the
    construction industry's workforce from the middle-class jobs and
    benefits created by government investment in infrastructure, affordable
    housing and clean energy projects.
    ---------------------------------------------------------------------------
        \3\ White House Fact Sheet: President Biden Signs Executive Order
    to Boost Quality of Federal Construction Projects, Feb. 3, 2022,
    https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/
    03/fact-sheet-president-biden-signs-executive-order-to-boost-quality-
    of-federal-construction-projects/.
    ---------------------------------------------------------------------------
        When mandated by government agencies, PLAs can supersede and
    interfere with existing collective bargaining agreements contractors
    have already negotiated with various unions and prevent firms from
    using labor from certain unions, which is why some union organizations
    and contracting groups oppose government-mandated PLAs.\4\
    ---------------------------------------------------------------------------
        \4\ Union Leaders and Contractors Oppose Government-Mandated
    Project Labor Agreements Too, March 1, 2021, https://tinyurl.com/
    yc727s58.
    ---------------------------------------------------------------------------
        In addition, typical terms within PLAs unfairly discourage
    competition from quality nonunion contractors and their employees, who
    comprise 87.4% of the private U.S. construction industry workforce,
    according to the most recent U.S. Bureau of Labor Statistics data.\5\
    ---------------------------------------------------------------------------
        \5\ See bls.gov Union Members Summary. Jan. 20, 2022, https://
    www.bls.gov/news.release/union2.nr0.htm.
    ---------------------------------------------------------------------------
        For example, a PLA typically requires companies to agree to
    recognize unions as the representatives of their employees on that job,
    use the union hiring hall to obtain most or all construction labor,
    exclusively hire apprentices from union programs, follow union work
    rules and pay into union benefit and multiemployer pension plans. This
    forces employers whose workers have freely made the choice not to join
    a union to pay ``double benefits'' into their existing employee benefit
    plans and union plans and places these qualified firms at a significant
    competitive disadvantage. In addition, research suggests that the few
    nonunion employees permitted to work on a PLA jobsite lose 34% of wages
    and benefits unless they pay union dues and/or join a union and meet
    benefits plan vesting schedules.\6\ In short, these anti-competitive
    provisions in typical PLAs promote wage theft, eliminate employee
    choice and make it extremely difficult for many nonunion, and typically
    small, minority- or women-owned firms to win public works contracts
    subject to anti-competitive PLAs.
    ---------------------------------------------------------------------------
        \6\ McGowan, John R., PHD, CPA, Government-Mandated Project Labor
    Agreements Result in Lost and Stolen Wages for Employees and Excessive
    Costs and Liability Exposure for Employers, October 2021.
    ---------------------------------------------------------------------------
        The administration's broad assertion that businesses not affiliated
    with unions are unable to deliver safe, on-time, on-budget government
    construction projects while obeying federal labor laws and paying high
    wages to employees is unfounded. For example, federal government data
    indicates that, of the approximately 2,000 large-scale federal
    construction contracts procured from FY 2009 to FY 2021 subject to
    President Obama's Executive Order 13502 pro-PLA policy,\7\ at least 50%
    of contracts were awarded to prime contractors not signatory to
    unions.\8\ In addition, federal agency contracting officers chose to
    require PLAs on just 12 large-scale federal construction contracts out
    of more than 2,000 opportunities. There were no reports of widespread
    cost overruns, delays, labor unrest or poor-quality construction on
    non-PLA projects, indicating that PLA mandates are not needed to ensure
    economy and efficiency in government contracting.\9\
    ---------------------------------------------------------------------------
        \7\ President Obama's Executive Order 13502 encourages federal
    agencies, on a case-by-case basis, to require PLAs on federal
    construction projects exceeding $25 million in total value and permits
    states and localities to mandate PLAs on federally assisted projects in
    order to ``promote the economy and efficiency in federal procurement.''
    See FAR Case 2009-005, Use of Project Labor Agreements for Federal
    Construction Projects, published April 13, 2020, effective May 13,
    2010, and Executive Order 13502, Use of Project Labor Agreements for
    Federal Construction Projects, signed Feb. 6, 2009, (https://
    www.govinfo.gov/content/pkg/FR-2009-02-11/pdf/E9-3113.pdf).
        \8\ Federal contract award data downloaded from usaspending.gov
    compared to list of nonunion general contractors, December 2021.
        \9\ With or without a PLA, all federal projects are subject to
    federal Davis-Bacon prevailing wage regulations, which typically
    require union-scale wages for building, heavy and highway projects
    where PLAs are typically considered.
    ---------------------------------------------------------------------------
        However, government-mandated PLAs on federal and federally assisted
    projects \10\ during this time period have resulted in reduced
    competition, increased costs, delays, poor local hiring outcomes and
    litigation. In addition, multiple studies of hundreds of taxpayer-
    funded affordable housing \11\ and school construction projects found
    that government PLA mandates increase the cost of construction by 12%
    to 20% compared to similar non-PLA projects already subjected to state
    prevailing wage regulations.\12\
    ---------------------------------------------------------------------------
        \10\ https://thetruthaboutplas.com/2021/03/10/government-mandated-
    project-labor-agreement-failures-on-federal-and-federally-assisted-
    construction-projects/.
        \11\ Ward, Jason M., The Effects of Project Labor Agreements on the
    Production of Affordable Housing: Evidence from Proposition HHH. Santa
    Monica, CA: RAND Corporation, 2021. https://www.rand.org/pubs/
    research_reports/RRA1362-1.html.
        \12\ See multiple studies measuring the impact of PLA mandates on
    public school construction already subject to state prevailing wage
    laws in Connecticut, Massachusetts, New Jersey, New York and Ohio by
    the Beacon Hill Institute (http://beaconhill.org/labor-economics/); an
    October 2010 report by the New Jersey Department of Labor and Workforce
    Development, Annual Report to the Governor and Legislature: Use of
    Project Labor Agreements in Public Works Building Projects in Fiscal
    Year 2008 (https://www.nj.gov/labor/forms_pdfs/legal/2010/
    PLAReportOct2010.pdf); and a 2011 study by the National University
    System Institute for Policy Research, Measuring the Cost of Project
    Labor Agreements on School Construction in California (http://
    www.nusinstitute.org/assets/resources/pageResources/Measuring-the-Cost-
    of-Project-Labor-Agreements-on-School-Construction-in-California.pdf).
    ---------------------------------------------------------------------------
        In short, hardworking taxpayers are getting less and paying more
    when PLAs are encouraged or mandated by the government on federal and
    federally assisted construction projects. In addition, PLA requirements
    will exacerbate the construction industry's skilled labor shortage of
    nearly 500,000 workers, reduce competition from experienced contractors
    and undermine the Biden administration's ability to meet its
    infrastructure, affordable housing and clean energy agenda without
    strong participation from businesses and construction workers directly
    harmed by anti-competitive and costly pro-PLA policies.
        Our coalition asks you to promote inclusive, win-win policies that
    welcome all of America's construction industry to compete to rebuild
    our nation's infrastructure, increase accountability and reduce waste
    and favoritism in the procurement of federal and federally assisted
    construction projects. Ensuring fair and open competition on taxpayer-
    funded construction projects will ultimately result in savings to
    taxpayers, more opportunities for all qualified small, minority- and
    women-owned businesses in the construction industry and the completion
    of more quality infrastructure projects on time and on budget.
            Sincerely,
                           American Fire Sprinkler Association.
                     American Pipeline Contractors Association.
           American Road & Transportation Builders Association.
                           Associated Builders and Contractors.
                       Business Coalition for Fair Competition.
                             Construction Industry Round Table.
                               Electronic Security Association.
                            Independent Electrical Contractors.
                         National Association of Home Builders.
                            National Black Chamber of Commerce.
                     National Ready Mixed Concrete Association.
                     National Stone, Sand & Gravel Association.
                      National Utility Contractors Association.
                                       Plastics Pipe Institute.
               Power and Communication Contractors Association.
                   Small Business and Entrepreneurship Council.

        Dr. Babin. Can you please explain, Ms. Karst, how
    Government-mandated PLAs are hurting your industry?
        Ms. Karst. Again, as I said before, I have no experience on
    a PLA. I have read about PLAs, I can rely on the knowledge of
    my fellow contractors in AGC. And the reality is that what I do
    as a contractor, and what the 87 percent that you just talked
    about do, is we provide good jobs for our employees. We pay our
    employees well, we pay our employees great benefits--in some
    cases, better benefits than are in the unions.
        If our employees were forced to go on a project labor
    agreement, one of the things that could happen in our area,
    where there really is no union representation, is they would be
    forced to pay union dues for union benefits that they would
    never be able to take part of.
        So, as far as--we are--I have a saying in our company--the
    people come first. And I really believe that, in order to have
    a good business, I have to treat my people well. I can't
    survive without treating my people well, and I don't need the
    Government to tell me how to do that. I know instinctively how
    to take care of my employees. And if I didn't, I would not have
    the 150 employees that Congressman Johnson talked to me about.
        And so, what I am advocating for is letting us run our
    businesses the way it is best for the area that we live in.
        Dr. Babin. Absolutely, I could not agree more. And I don't
    have any further followup questions, so, I will yield that
    back.
        Thank you, Ms. Karst, I appreciate it.
        Ms. Williams of Georgia [presiding]. Mr. Garcia is
    recognized for 5 minutes.
        Mr. Garcia of Illinois. Thank you, Madam Chair and Chair
    DeFazio, for holding this hearing on workforce development and
    job creation in the surface transportation industry. This issue
    is very close to my heart and very important to my district,
    which is a heavily Latino district in Chicago that has a lot of
    transportation, construction, and contracting businesses.
        The Infrastructure Investment and Jobs Act authorizes $1.2
    trillion to invest in our infrastructure, including $660
    billion for the U.S. Department of Transportation. This level
    of investment is historic, but we ensure the benefits of this
    funding flow from States, transit agencies, and prime
    contractors to Black and Latino businesses and workers.
        For too long, minority businesses, especially Black and
    Latino businesses, have not received an adequate portion of
    contracts in the transportation, construction, and contracting
    industries. That discrimination not only shatters the hopes and
    dreams of many business owners and workers, but ends up leading
    to disinvestment in these same Latino and Black communities.
        There are some really important programs in the IIJA that
    will help make meaningful progress in giving current and future
    Black and Latino transportation businesses and workers
    opportunities for success, including the U.S. Department of
    Transportation's Disadvantaged Business Enterprise, or DBE,
    program.
        But we have got to do more. Next week, I will introduce
    comprehensive legislation to improve and strengthen the U.S.
    Department of Transportation's Disadvantaged Business
    Enterprise program and the Small Business Administration's 8(a)
    Business Development program. This legislation will strengthen
    these programs by increasing the personal net worth caps to
    account for inflation, conforming to the U.S. Department of
    Transportation's DBE size standard with the Small Business
    Administration standards, and create universal recognition of
    DBE certifications. That means that DBE certifications will now
    be recognized across the States, instead of the current
    patchwork system.
        I look forward to working with members of this committee
    and stakeholders on my legislation addressing these issues.
        A question for Ms. Rai.
        In your testimony, you highlight some of these issues you
    would like to see addressed in the DBE program, like the
    personal net worth cap, or the DOT size standards that my
    legislation would propose addressing. In your opinion, do you
    believe this committee should advance and mark up legislation
    that would accomplish those goals?
        Ms. Rai. Thank you so much, Representative Garcia, and for
    your leadership in this effort.
        Yes, COMTO would like to see closer oversight by DBE
    officers to avoid fraudulent front companies through more
    vigorous training programs for certification and compliance
    officers, and a stronger and clear definition of ``good faith
    efforts'' with fewer waivers from DBE goals granted to
    majority-owned firms.
        In addition, you spoke about DBE size standards. We do
    support action that would conform the U.S. DOT's DBE size
    standard with the Small Business Administration standards. We
    believe it is a simple fix to a big problem.
        In the interest of fairness and consistency, and the
    survival of small, minority-owned businesses, we believe that
    the U.S. DOT should use the Federal Aviation Administration's
    model, and use SBA size standards when making determinations
    with regard to small business status.
        Mr. Garcia of Illinois. Thank you very much.
        Ms. Kupcak, do you agree that this committee and the U.S.
    Department of Transportation should work on legislative and
    regulatory fixes to these issues, including the ones you raised
    in your testimony?
        Ms. Kupcak. Representative Garcia, thank you so much for
    your question and for your comments.
        Yes, I do believe that the committee and Congress have an
    opportunity to--without burdening or adding significant
    administrative burdens to employers--enact policy and
    strategies that we have seen that have demonstrated, in the
    real world, outcomes that are not just good for business, but
    are good for workers.
        And I would like to commend Ms. Karst, as president of BX
    Civil & Construction, that she is committed to the workers that
    she employs. But I would also say that not every employer
    believes in or does the right thing. And so, making sure that
    public investments are high road for workers and for
    businesses, including DBEs, it is--that is a critical moment
    for us to shift historic marginalization of those entities, and
    ensure that all Americans working on publicly funded projects
    have access to economic security and dignity in their work.
        I hope that----
        Mr. Garcia of Illinois [interrupting]. Thank you so much.
        Ms. Kupcak [continuing]. Answers your question. Thank you.
        Mr. Garcia of Illinois. Thank you.
        And I yield back, Madam Chair.
        Ms. Williams of Georgia. Mr. LaMalfa is recognized for 5
    minutes.
        Mr. LaMalfa. Thank you. I appreciate the opportunity here.
    Let me ask Ms. Karst about--with the--I don't know how much has
    been covered today, but the local hire issue, OK, means a great
    deal to people in the districts, especially--we have disaster
    issues that happen on certain jobs that post-disaster would be
    very helpful to have local input and local work on that, and
    construction projects, all manner of things. And Government
    sometimes claims, hey, it is going to make an effort to
    strengthen and utilize local hire.
        But what is your take on these preferences, this emphasis
    on local hire? What does that really mean as far as the work of
    getting the contracting done, the contractors being able to do
    their job, and using their own corps versus, as much as
    possible, of a local hire?
        Ms. Karst. Again, I am going to fall back to the same word,
    ``flexibility.'' The reality is that my employees are local
    employees that have jobs with me.
        My jobs aren't always local. And so, I may have to displace
    my workers if I am on a job that is somewhere else.
        And in reality--I will just give you a quick, real example.
    The unemployment in South Dakota in my area is about 2.6
    percent. My biggest project is 3 hours away, in Norfolk,
    Nebraska. The unemployment is about 2.1 percent. There are no
    workers for me to hire locally there. We are trying to, because
    we need workers, so, we would hire locally. We have a huge
    advertising campaign to go there. But I think what we need to
    do is provide the flexibility to do what makes a construction
    project----
        Mr. LaMalfa [interrupting]. What is your experience with
    the flexibility on saying, hey, there is low unemployment in
    these areas. Is there some kind of factor that kicks in, some
    kind of trigger or what have you, that would say local goals
    are being met, we don't need to do that, and still fulfill the
    spirit of it? Do you find that is being written into any of
    these?
        Ms. Karst. At least we need that flexibility.
        Mr. LaMalfa. You need it. But do you find that that occurs
    currently, whether it might be----
        Ms. Karst. I----
        Mr. LaMalfa [continuing]. Provisions?
        Ms. Karst. So, this is--the example that I have of local
    hire is I work also--we have quite a few reservations in South
    Dakota, and so, there are local hire-type arrangements with the
    Tribes. And we do hire people locally, and those are usually
    based on quotas. And what we find, it works fine as long as it
    is a percentage of my crew that I can keep my crew safe while
    they are out there working.
        So, for example, if I am going to bring a crew of 20 people
    out there, I can't have 20 new people out there, because I
    can't assure the safety and the safeness of the work that needs
    to happen out there. So, as long as I have the flexibility to
    supplement my existing forces, who I know is trained on how to
    do the work, I can deal with the local hire.
        But the other thing that I will tell you, that there is--a
    little bit of a fallacy about the local hire, from my
    experience, is will they stay with us? Will they stay in the
    industry? And that is what we have found in 30 years of working
    on the reservations. We go out there, we provide good jobs, we
    find good employees, we find some good employees, and we want
    them to stay with us, and to find careers in our industry, and
    we haven't had very much luck with that.
        Mr. LaMalfa. OK. So, do you find it might make certain
    contractors avoid bidding on certain projects if they find that
    those constraints seem too narrow?
        Ms. Karst. Absolutely. There are people that won't bid on
    jobs because of that.
        Mr. LaMalfa. OK. What do you find--a lot of discussion in
    committee here today about supply, not just to local hires, but
    we are hearing a lot about minority hire, and gender hire, or
    even, in some cases, disability hire, disabled veterans and
    such. And so, each certain--depending on the project, they have
    to have a percentage of all those things on a project.
        And what I hear about anecdotally at home is that, like,
    well, they have to go out and find somebody and, even in some
    cases, make up a shell corporation fitting one of these--a
    shell company, a shell contractor, subcontractor, to get this
    done. How much problem do you find it is trying to fulfill some
    of these numbers in some cases?
        Ms. Karst. I can't tell you that I have a lot of experience
    working on contracts that have given me certain numbers.
        I can tell you that what we do is we need every employee we
    can get. As a female in the industry who started 30 years ago,
    the cause of trying to find female trades workers is huge. I
    mean, the numbers that the chairman talked about being 10
    percent of women in the industry really become much less when
    you start getting to the trades. When you start getting to
    skilled trades in the construction industry, the numbers that I
    see are more like 3 or 4 percent.
        Mr. LaMalfa. So, where is the fault in that? Is it the
    contractor? Is it somewhere in the education process?
        I mean, if you are trying to force feed in there, and you
    don't have the people that are up for it, where is the fix?
        Ms. Karst. I think what AGC would advocate for is more
    funding to CTE programs, and forcing those types of programs
    to----
        Ms. Williams of Georgia [interrupting]. The gentleman's
    time has expired.
        Ms. Karst [continuing]. Emails, that kind of thing.
        Mr. LaMalfa. Thank you.
        I yield back.
        Ms. Williams of Georgia. I recognize myself for 5 minutes.
        Ms. Smith, your testimony highlights a key issue. Not only
    are women and minorities underrepresented in the construction
    workforce at large, but when you consider industry positions
    ranked ``official'' and ``supervisor,'' there is an even
    greater disparity. How can Congress support State efforts to
    move women and minorities into higher ranking positions within
    the industry?
        Ms. Smith. Thank you for that question, Representative, and
    I would like to address that.
        One of the challenges first I want to mention is how women
    and minorities, especially women who are minorities, are
    identified at the Federal level. I think that needs addressing.
    Usually you have non-minority versus minority, and then gender.
    So, I do think that supporting programs designated for women of
    color in particular would be very, very beneficial to the
    entire industry.
        How do we get women and minorities to a higher level?
    Because they are underrepresented. One of the things that our
    agency is doing is looking at creating partnership and
    collaborations with non-traditional partners, working with
    collaboration agreements with our community colleges, with our
    university systems, our HBCUs, but also creating incubator-type
    programs to really enhance the transportation industry, working
    with our local companies who need these skilled laborers to
    help train the workforce.
        Something that is innovative that North Carolina did was
    actually our internal State agency began to work with our OJT
    program itself to train individuals for recruitment back to the
    agency, and also back into the industry. Those are just one of
    many things that we can do to support the upskilling of these
    workers.
        Ms. Williams of Georgia. Thank you, Ms. Smith.
        Ms. Kupcak, how have barriers to career advancement in the
    construction industry impacted tradeswomen and other
    underrepresented groups?
        Ms. Kupcak. Thank you, Representative, for your question.
    It is an important one.
        Certainly, getting into the construction trades is
    important, and I believe that does begin with career education
    early on, even into middle school and high school. And myself
    and my colleagues across the country who run community
    organizations such as Oregon Tradeswomen, we do a lot of that
    work.
        But another barrier is the industry's continued sort of
    macho attitude and toxic jobsite culture that drives good
    tradeswomen and people of color to leave the industry when
    those kinds of behaviors are allowed to become part of our
    workplace. And the efforts underway and referenced in the
    memorandum of agreement between the U.S. Department of
    Transportation and Department of Labor earlier this year
    referencing the need for additional equity measures and anti-
    harassment measures is certainly key in retaining qualified,
    skilled, and diverse workers.
        I hope that answers your question.
        Ms. Williams of Georgia. Thank you. Under the competitive
    bidding laws, federally assisted construction contracts are
    generally required to be awarded to the lowest cost bidder.
    Prevailing wage requirements ensure that federally assisted
    projects are not awarded to unscrupulous contractors who
    underbid the competition with low wages or poor benefits for
    workers.
        Mr. Booker, can you discuss the impact to construction
    workers if prevailing wage requirements are not in place?
        And do prevailing wage requirements only benefit union
    members?
        Mr. Booker. Prevailing wage requirements benefit all
    workers. And in the communities where the wages are higher, it
    lifts the wages for--whether or not you are a union worker or
    not a union worker. That is what the Government--what the mark
    is.
        And like Kari testified earlier, the wage rates, the
    prevailing wage in her home State, are far below of what is
    going on out there, and what people are being paid. So, the
    prevailing wage boosts the economy. It boosts the worker. We
    are talking--how do you fight inflation? How do you do that?
        Cutting wages is not the way to do that. Making sure that
    people have a job, a job with dignity, a job with a healthcare
    benefit, a job with a pension, that is how you counter these
    things. And making sure that you value and you treasure the
    people who are applying their skills day in and day out, that
    is who we represent, and that is what we do day in and day out.
        Ms. Williams of Georgia. Thank you.
        Director Lew, as you know, the IIJA provided new authority
    for States and cities to implement contracting requirements
    that address local needs on federally assisted infrastructure
    projects. Why is it necessary for States and cities to have
    these types of flexibilities in setting the terms of their
    construction contracts?
        Ms. Lew. Thanks for the question, and I think, looking at
    the issue I addressed in my testimony, it is really important
    that, when we think about building infrastructure projects, we
    think about those as fitting into a context that is part of a
    community, right?
        We all talk about infrastructure spending in terms of big
    numbers and big job numbers. What that means is that every
    dollar we put in supports somebody's employment. And if we are
    trying to make sure that there is equity in the way that that
    is distributed, having these mechanisms to sort of put the jobs
    in the places that are also bearing the impact of the projects
    is really important.
        I think there is also----
        Ms. Williams of Georgia [interrupting]. Unfortunately,
    Director Lew, my time has expired, but I would love to get this
    full answer so that we can have it on the record.
        Ms. Lew. Absolutely, happy to submit a longer answer for
    the record.
        Ms. Williams of Georgia. Thank you so much.
        Mr. Fitzpatrick is now recognized for 5 minutes.
        Mr. Fitzpatrick. Thank you, Madam Chairwoman.
        Mr. Booker, good to see you, sir. Thanks for joining us
    today. In your opening statement you had mentioned registered
    apprenticeship programs. I, along with many of our huge
    supporters of building trades, I am a big believer in these
    programs, and I believe they can help us have that skilled
    workforce that we need to be competitive in the future. And it
    is critical that the next generation of workers be as
    specialized as the current ones.
        You had mentioned that your registered apprenticeship
    programs offer a debt-free career path. So, I have, really, a
    three-part question.
        First, could you tell us what costs are covered, and which
    costs aren't?
        Second, are apprentices themselves responsible for any
    costs associated with the program?
        And then lastly, do you receive any Federal money for your
    registered programs?
        Mr. Booker. Thank you for the question, Congressman
    Fitzpatrick, and thank you for your support on these previous
    issues.
        So, to answer your question, if I get them right, on debt-
    free I did testify earlier that registered apprenticeship is
    debt-free. Our system allows for an apprentice to go to school
    while he works. It is an earn-as-you-learn program. So, as you
    enter the program, you are getting classroom training nights
    and on weekends. You are getting your hours to graduate through
    the apprenticeship program. That is no out-of-pocket costs for
    you. You are actually getting paid at a scaled rate based on
    what the prevailing wage is, what the collectively bargained
    rate is, and you are not paying any money out of pocket.
        As far as the individual cost to the apprentice, there is
    no schooling cost. You may have to pay transportation costs,
    you may have to pay, if there are requirements for the job you
    are at for a particular type of clothing or PPE that isn't
    covered by the employer, there is potential for out-of-pocket
    costs there. But as far as the schooling and the education,
    there is no cost for that.
        And when it comes to Federal assistance, we don't have any.
    We have negotiated through our collective bargaining agreements
    for decades a system in which our members partnered with our
    contractors. And rather than put those wages on their check,
    they have deferred those moneys, or they put those moneys into
    these training contributions. And those training contributions
    have added up, as I testified, to over $2 billion annually that
    we spend on training.
        So, the individual apprentice doesn't spend any money, the
    Federal Government doesn't spend any money. That is a
    relationship, a collective bargaining relationship that we, as
    the unions, worked with collectively with our contractor
    partners to put training as a priority to make sure that we
    have the world's best, safest, and skilled workforce.
        Mr. Fitzpatrick. Thank you, Mr. Booker, for answering that
    on the record, because we want that on the record as we are
    pushing hard to advance apprenticeship programs. It is critical
    to rebuilding the nuts and bolts of America, particularly
    following on the heels of the bipartisan infrastructure bill.
    And there is no better way to deal with our labor and workforce
    shortages than invest heavily in these apprenticeship programs.
        Madam Chair, I yield back.
        Ms. Williams of Georgia. Mrs. Steel is now recognized for 5
    minutes.
        [No response.]
        Ms. Williams of Georgia. Mr. Stauber is now recognized for
    5 minutes.
        Mr. Stauber. Thank you, Madam Chair. Thank you all for
    being here today.
        Whenever we talk about investments in our infrastructure,
    we should be talking about the real infrastructure that
    ordinary Americans rely on: roads, bridges, broadband, ports,
    airports, and the like. These same infrastructure investments
    are the very ones that employ my neighbors and our hard-working
    union men and women.
        Almost every day I hear from employers and unions back home
    about their desperate need for a skilled workforce. Without a
    properly trained and prepared workforce pipeline, our trades
    industry will continue to see a reduction of qualified talent
    for decades to come.
        This is why I am very proud of the fact that I was able to
    join several colleagues and introduce and pass through the
    House the National Apprenticeship Act on a bipartisan basis. I
    am eager to see that bill pass the Senate and get signed into
    law, so that we can keep staffing up our halls and get labor
    organized on our projects.
        I was also proud to have introduced an amendment in the
    Natural Resources Committee to strengthen and support PLAs,
    which enjoyed unanimous support from Republicans.
        Mr. Booker, can you please speak a little bit about the
    importance of registered apprenticeships to the workforce
    pipeline and future infrastructure projects and investments?
        Mr. Booker. Yes, thank you for the question. Registered
    apprenticeship is the foundation of our unions, and it is,
    quite frankly, the foundation of our country. When you talk
    about the investment that we are going to have in the next 10
    years, and the acts of this Congress to put real money behind
    this, you have got to have that workforce. You have got to have
    that workforce in order to do that.
        We believe, and we know that our system is like no other.
    And the training that we do, whether it is a 3-, 4-, or 5-year
    program, to give the people the skill sets, to apply those
    skill sets as they are building the Nation's infrastructure so
    that upon completion of their apprenticeship, 3, 4, 5 years of
    completion, they are a journeyman, they are a journey person.
    They are able to apply those skills for the rest of their life
    and be firmly entrenched in the middle class.
        Mr. Stauber. And the apprenticeship program--we talked
    about cost, which is little to none, but the experience you get
    is second to none.
        Can you also please speak about how permitting delays and
    frivolous lawsuits kill skilled jobs and prevent good union men
    and women from getting the job done on time and on budget?
        Mr. Booker. Yes. And the permitting in this country has
    gotten to the point where we have lost predictability. And
    anybody, whether you are a contractor, an owner, a developer, a
    craftsworker, you want to know what happens on Monday. You want
    to know you are going to be able to go to work, you are going
    to be able to perform your craft, you are going to be able to
    get paid.
        If you don't have the permits in place, and if you are
    going through this arduous process, it is lengthening the
    process to get the actual project built. And, as we have talked
    about, materials and cost of how--that they have increased over
    the years. If you were expecting to build a project starting in
    2018, and 4 years later you still haven't built that project,
    the material costs alone have increased. So, it is creating a
    backlog of problems, and it is creating a problem.
        And again, it is not just a union versus non-union problem.
    Any project that is not permitted is preventing people from
    going to work.
        Mr. Stauber. Right. Can we talk briefly about the NEPA
    process?
        Are you encouraging a change in the NEPA process? And I
    will give you an example. We have a mine in northern Minnesota
    that has been in its 19th year of permitting that had a PLA or
    what have you, and through frivolous lawsuits, et cetera. Are
    you working to support a change in the NEPA regulations and
    laws to reduce the redundancy and the frivolous lawsuits?
        Mr. Booker. We have supported previous legislation in this
    body and at the Senate where you are looking to streamline the
    process. I believe in a permitting process. I believe that you
    have to go through the process to make sure. But you shouldn't
    have to go through the same process six times to get the same
    project the permit that it needs.
        So, if we have the ability to have Federal agencies, State
    agencies, local agencies look at the same time for what is
    needed, so then once you have--that decision is made, you have
    a window, lawsuits are done, cleared, and out of the way, then
    we are able to go to work. So, we are supportive of that.
        Mr. Stauber. The certainty is really important.
        And I will say you brought up timely projects. In northern
    Minnesota, we don't have a 12-month season. We have 8, 9, and
    sometimes we are lucky and get 10 months in. And so, the NEPA
    changes and these policies need to be changed to allow those
    folks in the Northern States to be able to get these projects
    done, because sometimes just a frivolous lawsuit or a delay
    will take a whole other year, a whole other construction year,
    which is going to delay the project even more so.
        I appreciate all the comments here, and I just appreciate
    having you answer these questions.
        Thank you and, Madam Chair, I yield back.
        Ms. Williams of Georgia. Mrs. Steel is recognized for 5
    minutes.
        [No response.]
        Ms. Williams of Georgia. That concludes our hearing.
        I would like to thank each of the witnesses for your
    testimony today. Your comments have been informative and very
    helpful, especially for me.
        I ask unanimous consent that the record of today's hearing
    remain open until such time as our witnesses have provided
    answers to any questions that may be submitted to them in
    writing.
        I also ask unanimous consent that the record remain open
    for 15 days for any additional comments and information
    submitted by Members or witnesses to be included in the record
    of today's hearing.
        Without objection----
        Mr. Rodney Davis of Illinois [interrupting]. I object. Just
    kidding.
        [Laughter.]
        Ms. Williams of Georgia [continuing]. So ordered.
        This subcommittee stands adjourned.
        [Whereupon, at 3:58 p.m., the subcommittee was adjourned.]

                          Submissions for the Record

                                  ----------

      Prepared Statement of Hon. Sam Graves, a Representative in Congress
         from the State of Missouri, and Ranking Member, Committee on
                       Transportation and Infrastructure
        Thank you, Chair Norton, and thank you to our witnesses for being
    here today.
        I appreciate the flexibility the Committee provided all members by
    postponing this hearing and allowing everyone to observe the passing of
    our former Chairman, Don Young.
        And I appreciate the flexibility shown by the Committee to allow
    witnesses to testify in person or via Zoom.
        And while I appreciate the flexibility the Committee continues to
    show members and witnesses, it would be nice if this Administration
    also showed a little flexibility to the communities we all represent.
        Their one-size-fits-all workforce polices simply will not fit the
    local needs of every community throughout the country.
        I anticipate a robust discussion today about efforts to ensure that
    our country has a readily available, professional, skilled-craft
    workforce--in sufficient numbers--that can deliver transportation
    projects across the country on time and on budget.
        Communities must have the flexibility to make choices and decisions
    based on their local needs.
        But the Biden Administration isn't providing flexibility, and
    continues to push policies that favors certain workers over others
    without regard to state, local, and other market conditions.
        We're already anticipating the need for more construction workers,
    yet this Administration is adding more onerous requirements that will
    only further delay investments and erode the value of this
    infrastructure investment, on top of increased costs from runaway
    inflation.
        Government policies must remain flexible, ensuring that all
    communities have the ability to locate skilled craftsmen and
    craftswomen that can meet their local project needs.
        Thank you, Chair Norton. I yield back.

          Statement of the American Association of State Highway and
      Transportation Officials, Submitted for the Record by Hon. Eleanor
                                 Holmes Norton
                                  Introduction
        The American Association of State Highway and Transportation
    Officials (AASHTO) appreciates the opportunity to submit this Statement
    for the Record to the Subcommittee on Highways and Transit. As the
    association that represents the transportation departments of all 50
    States, Washington, DC, and Puerto Rico, AASHTO provides the
    perspective of the nation's state departments of transportation (state
    DOTs) on a wide range of transportation policy matters. AASHTO is
    pleased to provide our perspectives as part of the hearing titled
    ``Examining Workforce Development and Job Creation in Surface
    Transportation Construction''.
        AASHTO is grateful for the work of this Subcommittee and the full
    Committee on Transportation and Infrastructure for your work to pass
    the Infrastructure Investment and Jobs Act (IIJA) last year. The IIJA
    was a truly monumental piece of legislation that will address many of
    this nation's transportation infrastructure investment needs. AASHTO
    appreciates the increased federal funding in the IIJA for all modes of
    surface transportation and are working with the U.S. Department of
    Transportation on the implementation of this important legislation.
        However, this increase in federal funding, and the commensurate
    increase in state funding for transportation infrastructure, brings
    with it an increased challenge related to workforce development and
    workforce retention.
        State DOTs are increasingly utilizing strategic workforce
    management to predict, prepare for and manage workforce needs. Congress
    is a key partner in addressing these challenges and AASHTO appreciates
    the ongoing work in this area by this Subcommittee and Congress.
                      State DOTs and Workforce Development
        State DOTs need proven and effective workforce development and
    workforce retention strategies to manage complex workforce management
    issues. State DOTs strive to have the capacity to respond to a changing
    work environment due to the COVID-19 pandemic and the increased use of
    technology to plan, implement and deliver the transportation system
    this country relies upon today and into the future. This means State
    DOTs need to remain innovative and nimble to respond to a myriad of
    workforce and workplace challenges.
        Strategic workforce management, the systematic approach used to
    predict, prepare for, and manage workforce needs, is an urgent and
    critical issue for state DOTs. DOTs across the nation have increasingly
    expressed concerns about aligning the needs and priorities of the DOT
    with those of its workforce to place the agency in the best position
    for ongoing success. As technology and innovation advance, and public
    expectations and demands for more service delivery rise, agencies will
    need to reimagine their workforce. DOT constituents are increasingly
    demanding transparency, accountability, increased personalized
    communication, and on-demand service delivery.
        The new technologies associated with this work require different
    skillsets and competencies than those of traditional DOT employees.
    Also, as the new generation entering the workforce seeks agility and
    innovation, and brings a service-delivery mindset, state DOTs need to
    adjust to the culture of the new workforce to recruit and retain these
    employees. Restructuring, increased diversity and inclusion, greater
    employee buy-in and collaboration, and organizational culture change
    may be required for DOTs to succeed in the future.
        Workforce talent management is experiencing increased workforce
    movement as well as talent shortages. As a large portion of the DOT
    workforce is comprised of baby boomers, their impending retirement
    could result in significant knowledge loss. These retirements will also
    result in employees being promoting more quickly and, therefore,
    entering new positions with less experience and skills. In addition,
    fewer people are entering the transportation industry as a career, and
    the new skillsets needed increase recruitment and retention challenges.
        State DOTs are using innovative approaches to address workforce
    management issues. For example, seven state DOTs are currently
    partnering with the Center for Employment Opportunities (CEO) to
    provide employment to formerly incarcerated individuals. CEO crews
    support the state DOTs with litter abatement, vegetation management and
    landscaping, bridge and structure maintenance, and snow removal.
        CEO's partnership with the California Department of Transportation
    (Caltrans) began in 2011 and CEO now has nearly 30 crews across the
    state. CEO provides reliable, high-quality service throughout
    California, managing litter abatement along highways in 8 counties.
    These crews provide immediate employment to over 2,000 of California's
    returning citizens.
        CEO's partnership with the Colorado Department of Transportation
    (CDOT) began in May 2017 to help address a labor shortage that
    prevented CDOT from keeping up with necessary bridge maintenance. CEO
    and CDOT now operate 4 crews around the Denver and Colorado Springs
    metro areas.
                             AASHTO Strategic Plan
        AASHTO's recently developed Strategic Plan (Plan) includes a goal
    and objective to ``Build Transportation Workforce Capabilities''. To
    implement this goal and objective, the Plan includes a strategy to
    proactively shape the future of the transportation workforce, provide
    the resources to fill skill gaps, build capacity and plan for the
    future. This strategy includes several elements, including:
          Develop the next generation of leaders and workforce
          Provide the resources to meet evolving business needs
          Create a workplace culture of innovation and continuous
    improvement
          Support attracting and retaining talent
          Expand capacity-building products and services
          Provide Knowledge Management resources
          Pursue funding for workforce development efforts
          Increase diversity, equity and inclusion
           AASHTO Subcommittee on Transportation Workforce Management
        To assist the state DOTs with workforce management challenges,
    AASHTO is also developing the new Subcommittee on Transportation
    Workforce Management within our Committee on Knowledge Management. This
    Subcommittee will provide proven, effective strategies to navigate
    workforce management issues and become a community of practice for
    state DOTs on strategic workforce management. The Subcommittee will
    address activities that enable comprehensive and intentional strategic
    workforce management, such assessing workforce and workplace diversity,
    equity, and inclusion, and assessing the capabilities and effectiveness
    of current the workforce and identifying competency gaps.
                                   Conclusion
        State DOTs face many unique and complex workforce issues and
    challenges. The different workforce and workplace demands inherent in
    DOTs requires strategies and approaches specific to the nature of their
    work. But through collaboration with one another and industry partners,
    along with the sharing of ideas, best practices resources and
    knowledge, state DOTs can lead the way in finding innovative solutions
    to the problems of today and creating the opportunities of tomorrow.

    Letter of April 26, 2022, to Hon. Eleanor Holmes Norton and Hon. Rodney
        Davis from Kristen Swearingen, Vice President, Legislative and
     Political Affairs, Associated Builders and Contractors, Submitted for
                         the Record by Hon. Brian Babin
                                                        April 26, 2022.
    The Honorable Eleanor Holmes Norton,
    Chair,
    House Committee on Transportation and Infrastructure, Subcommittee on
            Highways and Transit.
    The Honorable Rodney Davis,
    Ranking Member,
    House Committee on Transportation Infrastructure, Subcommittee on
            Highways and Transit.
        Dear Chair Norton and Ranking Member Davis:
        On behalf of Associated Builders and Contractors, a national
    construction industry trade association with 69 chapters representing
    more than 21,000 members, I write to comment on the U.S. House
    Committee on Transportation and Infrastructure Subcommittee on Highways
    and Transit hearing titled, ``Examining Workforce Development and Job
    Creation in Surface Transportation Construction.''
        According to the subcommittee's description, ``The purpose of this
    hearing is for Members of the subcommittee to learn about the current
    state of the surface transportation construction workforce, how recent
    investments in American infrastructure will increase the need for a
    skilled construction workforce, and how current programs and
    initiatives can provide pathways into the construction sector.'' ABC is
    happy to offer feedback to the subcommittee on how members can ensure
    that jobs and opportunities from the recently passed Infrastructure
    Investments and Jobs Act can provide pathways into the construction
    sector for all Americans.
              Snapshot of the Construction Industry Labor Market:
        Construction is poised to power America's recovery and economic
    engine, as the industry offers competitive wages and many opportunities
    to both begin and advance in an industry that builds the places where
    we live, work, play, worship, learn and heal.
        The construction industry added 19,000 jobs on net in March,
    according to ABC analysis of data released by the U.S. Bureau of Labor
    Statistics. After 23 months of recovery, construction employment has at
    last exceeded pre-pandemic levels. On a year-over-year basis, industry
    employment has expanded by 220,000 jobs, an increase of 3.0%. However,
    the construction industry continues to face many workforce development
    challenges going forward, particularly the need for qualified, skilled
    craft professionals, as the industry faces a shortage of 650,000
    workers in 2022, according to ABC's workforce shortage model.
        With the implementation of the Infrastructure Investment and Jobs
    Act and the American Rescue Plan, the federal government will pump
    hundreds of billions in new spending into our nation's most critical
    infrastructure, and qualified craft professionals are essential to
    efficiently modernize roads, bridges, energy production and other
    projects across the country. However, to fully take advantage of the
    investments in infrastructure, Congress should note that more
    regulations and less worker freedom will make it harder to fill any
    potential job created.
        To help meet this demand, ABC member contractors use flexible,
    competency-based and market-driven education methodologies to build a
    construction workforce that is safe, skilled and productive. This all-
    of-the-above approach to workforce development has produced a network
    of ABC chapters and affiliates across the country that offer more than
    800 apprenticeship, craft, safety and management education programs--
    including more than 300 government-registered apprenticeship programs
    across 20 different occupations--to build the people who build America.
        ABC urges the subcommittee to consider ways in which they can
    promote an all-of-the-above workforce development strategy--and not
    limit the benefits of federal legislation from reaching the vast
    majority of construction workers due to their labor affiliation.
                           Project Labor Agreements:
        Of interest to the subcommittee, ABC believes that several
    discriminatory policies being pursued by the Biden administration will
    prevent many opportunities for the entire construction industry,
    particularly small businesses, to benefit from infrastructure
    investments.
        On Feb. 4, President Joe Biden signed Executive Order 14063
    requiring federal construction contracts greater than $35 million to be
    subjected to project labor agreements. This executive order will
    exacerbate the construction industry's skilled workforce shortage and
    needlessly increase construction costs and reduce opportunities for
    local contractors and skilled tradespeople.
        Government-mandated PLAs increase the cost of construction by 12%
    to 20%, reduce competition by excluding 87.4% of the construction
    industry workforce and steal up to 34% of wages from the few nonunion
    workers allowed to work on a PLA jobsite.
        By tying federal infrastructure investments to government-mandated
    project labor agreements, the Biden administration will discriminate
    against the majority of our nation's small, women-, veteran- and
    minority-owned businesses and workers that choose to operate on a merit
    shop basis. In an industry of more than 7 million, a way to ensure that
    does not happen is through the subcommittee's intention of helping
    small businesses.
        ABC urges the committee to consider ways to ensure that
    construction firms of all labor affiliation can compete for taxpayer-
    funded construction projects to rebuild their own communities. All
    contracts funded by the federal government should be awarded through a
    fair and competitive bidding process that allows all qualified
    contractors to compete on a level playing field based on merit,
    experience, quality and safety. To deliver the highest quality projects
    at the best cost to taxpayers, it is critical that any federal
    investment in infrastructure includes the entire construction industry.
        In a pair of recent letters sent to the White House by House and
    Senate lawmakers, many in Congress wrote that they believe the most
    cost-effective way to rebuild infrastructure is to promote open
    competition. On April 26, 16 Republican governors sent a letter
    President Biden opposing policies promoting government-mandated project
    labor agreements on taxpayer-funded construction projects. On April 6,
    more than 1,200 ABC member and chapter signatures voiced strong
    opposition in a letter to President Biden's PLA EO.
        These letters also lay out concerns with other federal agency
    policies promoting PLAs on federally assisted construction projects,
    which would affect the allocation of funds under the $1.2 trillion
    bipartisan infrastructure package, as well as other laws providing
    funds for state and local governments to improve its infrastructure.
        Further, ABC urges members of the subcommittee to support the Fair
    and Open Competition Act, H.R. 1284, which would prevent federal
    agencies and recipients of federal assistance from requiring
    contractors to sign controversial project labor agreements as a
    condition of winning a federal or federally assisted construction
    contract. This bill would ensure that taxpayer-funded construction
    contracts are awarded through fair and open competition--guaranteeing
    the best value for hardworking taxpayers while prohibiting a rigged
    federal procurement process.
                                  Conclusion:
        ABC encourages the subcommittee to promote inclusive, win-win
    policies that welcome all of America's construction industry to compete
    to rebuild our nation's crumbling infrastructure, increase
    accountability and competition and reduce waste and favoritism in the
    procurement of public works projects.
        ABC and its members are committed to building taxpayer-funded
    projects with the highest standards of safety and quality. ABC members
    stand ready for the opportunity to build and maintain America's
    infrastructure to the benefit of the communities that it will serve.
    ABC appreciates the opportunity to comment on the committee's important
    work to improve our nation's infrastructure.
            Sincerely,
                                            Kristen Swearingen,
                     Vice President, Legislative and Political Affairs,
                                   Associated Builders and Contractors.

        Letter of April 26, 2022, to President Biden from 16 Governors,
                  Submitted for the Record by Hon. Brian Babin
                                                        April 26, 2022.
    President Joseph R. Biden Jr.,
    The White House,
    1600 Pennsylvania Ave NW, Washington, DC 20500.
        Dear Mr. President,
        As governors, we support policies that ensure robust competition
    for taxpayer-funded construction projects that welcome all of America's
    construction industry to compete to rebuild our nation's infrastructure
    on an even playing field. We aim to provide value to taxpayers as we
    partner with the federal government to deliver roads, bridges,
    communications, water, energy, and transportation systems safely, on
    time, and on budget, but we cannot deliver the best results with
    onerous and unnecessary constraints.
        We oppose Executive Order 14063 requiring controversial government-
    mandated project labor agreements (PLAs) on federal and federally
    assisted construction contracts funded by taxpayers exceeding $35
    million. In addition, we oppose other federal policies promoting PLAs
    on federally assisted projects via federal agency guidance and grant
    programs that state and local governments can utilize to help fund
    critical infrastructure projects.
        When mandated by government agencies, PLAs can interfere with
    existing union collective bargaining agreements and needlessly
    discourage competition from quality nonunion contractors and their
    employees who comprise 87.4% of the private U.S. construction industry
    workforce according to the U.S. Bureau of Labor Statistics. Reducing
    competition from some of the best union and nonunion construction firms
    and workers will exacerbate the construction industry's skilled labor
    shortage, delay projects, and increase construction costs by estimates
    of 12% to 20% per project, which will result in fewer infrastructure
    improvements, less construction industry job creation, and higher
    taxes.
        We call on you to be equitable in your treatment of America's
    construction workers whether union or nonunion. In short, the
    aforementioned policies will undermine taxpayer investment in billions
    of dollars of forthcoming public works projects financed by the
    Infrastructure Investments and Jobs Act of 2021 and additional
    bipartisan legislation passed by Congress, all of which was signed into
    law free from language requiring or encouraging the use of PLAs.
        Three months ago, sixteen governors wrote to you seeking a flexible
    partnership in implementing public works projects. The federal
    government cannot do this job itself and requires the states to lead on
    the execution of infrastructure initiatives. As a partner in this
    endeavor, we ask again: please pull back from introducing partisan
    policies into infrastructure. Taxpayers cannot afford such wasteful and
    exclusionary policies.
        We ask that the Office of Management and Budget--along with
    respective federal agencies charged with implementation, grant
    programs, draft regulations, and guidance related to legislation
    funding infrastructure projects--afford states and localities maximum
    regulatory flexibility free from anti-competitive and costly pro-PLA
    policies. Doing so will deliver more value to taxpayers and create
    opportunities for all--including small, minority-owned, and women-
    owned--businesses and workers in the construction industry to compete
    to build America.
            Sincerely,
                    Governor Asa Hutchinson, State of Arkansas.
                         Governor Bill Lee, State of Tennessee.
                       Governor Ron DeSantis, State of Florida.
                         Governor Brian Kemp, State of Georgia.
                          Governor Kim Reynolds, State of Iowa.
                    Governor Tate Reeves, State of Mississippi.
                       Governor Mike Parson, State of Missouri.
                     Governor Pete Ricketts, State of Nebraska.
                 Governor Chris Sununu, State of New Hampshire.
                   Governor Doug Burgum, State of North Dakota.
                       Governor Kevin Stitt, State of Oklahoma.
              Governor Henry McMaster, State of South Carolina.
                   Governor Kristi Noem, State of South Dakota.
                          Governor Greg Abbott, State of Texas.
                           Governor Spencer Cox, State of Utah.
                        Governor Mark Gordon, State of Wyoming.

    cc:  Mitch Landrieu, Senior Advisor and Infrastructure Implementation
    Coordinator, The White House, 1600 Pennsylvania Ave NW, Washington, DC
    20500.

        Shalanda Young, Director, Office of Management and Budget,
    Executive Office of the President, 725 17th St NW, Washington, DC
    20503.

                                    Appendix

                                  ----------

    Questions from Hon. Eddie Bernice Johnson to Shoshana M. Lew, Executive
                Director, Colorado Department of Transportation

        Question 1. Director Lew, you have developed an exciting and
    comprehensive approach to local hiring and training that greatly
    benefits both the community and project contractor.
        1.a.  Do you think other states could accomplish this same goal?
        Answer. It is possible for other states to accomplish this same
    goal by developing strategic partnerships and clear and realistic
    goals. Part of what made CDOT's Workforce Development Program
    successful was enlisting the help of the Community College of Denver to
    conduct thorough research to better understand the demographics of the
    community and what their needs and barriers to opportunities are. There
    were various organizations in the Denver metro area who were working on
    bringing on-the-job training opportunities to local hires and instead
    of creating our own program and potentially taking away from their
    services, we partnered with these agencies who, in turn, provided
    significant investments and resources to help make the Workforce
    Development Program successful. It will be imperative for states to
    find other agencies who are working on similar goals and join forces to
    further help with recruiting and training opportunities.
        States will also need to create their own goals to meet the needs
    of their community. It is important for State Department of
    Transportations to host focus groups with local contractors to
    establish a realistic goal that project contractors can accomplish.
    Creating too lofty of a goal will set a project up for pushback from
    the contractor and could ultimately set them up for failure. Taking
    information from the focus groups as well as community research is
    critical in establishing goals that will best meet the needs of the
    state and the communities they are working in.

        1.b.  What are some of the impediments to expanding a program like
    this to other states?
        Answer. Impediments could include the lack of buy-in from the
    private sector. Not all contractors are on board with the amount of
    effort it takes to establish a high functioning on-the-job training and
    local hiring program and associated reporting that goes with trying to
    ensure they are hitting their goals. If there is a lack of funding or
    other forms of investments from local agencies, it may be difficult for
    states to set up similar programs. CDOT greatly benefitted not only
    from the Federal Highway Administration's Ladders of Opportunities
    grant to help get the program up and running, but also from other
    organizations working toward similar goals who invested upwards of a
    million dollars to help make this program successful. It also takes
    significant staff support and expertise in partnering with other
    agencies to ensure this program meets its goal and remains successful.

      Question from Hon. Eleanor Holmes Norton to Tunya Smith, Director,
      Office of Civil Rights, North Carolina Department of Transportation

        Question 1. In your testimony you noted that a greater investment
    in workforce development is needed to realize the full potential of the
    bipartisan infrastructure law.
        Can you elaborate on the current funding levels your state receives
    through the On-the-Job Training program and what you would be able to
    accomplish if more funding was provided?
        Answer. As I mentioned in my written and oral testimony, there is a
    need for greater funding and flexibility in some program areas. COVID
    posed challenges to the economy and many of our North Carolina training
    initiatives. The On-the-Job Training (OJT) and OJT/Supportive Services
    (SS) programs are more important than ever to our efforts at workforce
    development. This was true even before the Infrastructure Investment
    and Jobs Act (IIJA) funded projects began. Developing human capital
    infrastructure is more complex and almost as expensive as building
    physical infrastructure, and the two are linked in this area. OJT/SS
    programs' `high impact' labor training is distinct from technical and
    engineering operations.
        The Federal Highway Administration (FHWA) only receives about $10
    million and uses the funding from its administrative budget to fund OJT
    and Supportive Services, National Summer Transportation Institute
    (NSTI), and the summer internship program for diverse students
    (STIPDG). This leaves approximately $6 million to be spread across
    workforce development programs for more than 50 state DOTs OJT/SS
    programs. Another $2.5 million is available for the National Summer
    Transportation Institute (NSTI) but must be spread out over about 48
    university and college programs nationwide. To help support our needed
    programs in North Carolina, we have long been using 504(e) funds--the
    usage of which for `workforce development' (mostly apprenticeships) has
    recently been expanded to all states under Infrastructure Investment
    and Jobs Act (IIJA). However, as presented in our written testimony,
    any investment in education or training is made at the expense of
    capital investment in road and bridge projects, highway safety or the
    Congestion Mitigation and Air Quality (CMAQ) programs. Many states
    cannot afford to do this, and all states could use additional funding.
        It's important to understand the funding for OJT programs has not
    increased since 1974, as The Honorable Eddie Bernice Johnson pointed
    out in her testimony. Meanwhile, inflation and the rapid growth of
    North Carolina and many other states have raised the price of not only
    construction but also workforce development.
        The most recent North Carolina OJT/SS financing offers all of the
    supportive services in an effort for our (and other DOT agencies) to
    supplement and support OJT labor pipeline initiatives with private
    contractors and our own Division of Highways. Despite our limited OJT
    funds, NCDOT and other DOTs across the country seek to make highway
    construction workforce development a priority in transportation.
    However, FHWA can divide the OJT/SS and NSTI funding granted to a state
    DOT between the two programs at the discretion of the DOT, thus
    reducing the OJT/SS pot of money.
        As part of the yearly OJT Statement of Work (SOW), the FHWA is
    asked for funds for Supportive Services. The annual statement of work
    is a detailed plan that includes supportive services activities,
    activity budgets, and annual program goals, as well as an expected
    budget allocation for each.
        All OJT funds are used to help women, minorities and disadvantaged
    individuals engaged in NCDOT OJT-sponsored training activities, and
    participants in the Alternate OJT Program with private contractors.
    Many of these folks have significant, sometimes multiple, obstacles
    that require significant resources to overcome.
        The following activities and resources are eligible for supportive
    service funds:
        1.  Activities in Education and Training
        2.  Workplace or training-related supplies
        3.  Workplace or training-related transportation
        4.  Workplace or training-related childcare
        5.  Allowances/stipends connected to employment or training (as
    approved by FHWA).

        One additional supportive service expense that should be considered
    as allowable is the provision of temporary or emergency accommodation
    for OJT program participants.
                 NC DOT OJT/SS Training and Education Programs:
    Highway Construction Trade Academies (HCTA)
        Academies are established by the NCDOT OJT unit at host sites
    throughout the state. The curriculum for each academy follows the FHWA
    approved base curriculum; additional specific detailed curriculum is
    added by NCDOT based on contractor inputs. These currently include
    exposure to heavy equipment operation and asphalt paving. To conduct a
    quality and comprehensive regular HCTA for 4-6 weeks, at 4 cohorts a
    year, the average cost is about $100,000 a year per site. This does not
    even include the need to have the option to include training allowances
    or work-based learning stipends for participants (and/or new graduates)
    in this budget. We will need many more academies to develop our
    transportation workforce, given the significant labor shortages in
    North Carolina and the United States. There are approximately 100,000
    job openings in North Carolina alone. This could impact our road crews
    who would not be able to respond to storm damage, such as clearing and
    brining roads, as well as repair and building of highways.
        The current academy model is a Community-Based Highway Construction
    Trades Academy (CBHCTA). We will be adding some targeted North Carolina
    community colleges to this mix by the end of this year. NCDOT also
    plans to add both Specialized Highway Construction Trades Academy
    (PHCTA), and Advanced Highway Skill Training versions in the coming
    months.
        Each is described below:
        Community-Based Highway Construction Trades Academy (CBHCTA): The
    Community-Based Highway Construction Academy (CBHCTA) is for adult
    students who are at least 18 years old, belong to a minority ethnic
    group, are a woman, and/or are economically disadvantaged. The HCTA
    provides an overview of the industry, as well as hands-on experience
    with heavy machinery. Case management, hiring fairs, and guided
    pathways to employment with prime contractors are provided to
    participants. Advanced Highway Construction Training and supportive
    services are also available to completers.
        Specialized Highway Construction Academies (SHCTA): Specialized
    Highway Construction Academies (SHCTA) are for adult students who are
    18 years old who are a part of the target recruitment population.
    Examples include minority college students, women and veterans
    interested in professional service careers related to highway
    construction.
        We also again ask that consideration be given to allowing the use
    of these Federal-aid highway construction OJT funds with currently
    incarcerated individuals. This pre-release concept trades academy would
    potentially be in partnership with the North Carolina Department of
    Public Safety and Corrections and with individuals who are in re-entry
    mode. This academy may also attempt to provide inmates eligible for
    work release an opportunity to be trained and employed with a
    partnering contractor during the 12 months before release. The purpose
    is to decrease recidivism through skills development and steady
    employment before release. As a Specialized Academy, these might cost
    upwards of $150,000 a year due to the need for additional services and
    activities.
        Another version of our Academy-model would be at the public high
    school level through a coordinated series of activities from 9th thru
    12th grade. We need additional funds to be able to work with the Local
    Education Agencies (LEAs) and their Career and Technical Education
    (CTE) programs across the state in adding such courses and pathway
    programs. This `grow your own' approach would be especially helpful in
    more economically impoverished rural and urban communities. It could
    also help dampen the `brain drain' of youth and talent from these areas
    as they will be less likely to move somewhere else for good and steady
    employment and career opportunities.
    Advanced Highway Skill Training (AdT)
        Advanced highway skill training focuses on advanced and more
    technical skills, often leading to some kind of credential.
    Participants who have attended an HCTA--or are OJT trainees--can
    receive additional skill training in one of our critical need areas. As
    with the academy models, these training budgets need to have the option
    to include training allowances or work-based learning stipends when
    needed as well. Advanced Highway Skill Training will not be in an
    academy (except perhaps for CDL training with its huge labor demand),
    but a partnership with contractors and certified training providers to
    assist with upskilling OJT trainees and other workers.
        Areas of training focus are:
          Commercial Driver's License (CDL)
          Demolition/Hauling
          Guardrail
          Asphalt/Paving
          Landscaping/Erosion
          Trenches/Piping, Traffic Maintenance, Bridgework
          Disaster Recovery

        We plan to add electric vehicle charging stations and bridge work
    including re-bar to this mix in the near future. This will be another
    additional development and provision expense.
        It is important to note that a CDL training program leading to that
    credential can cost upwards of $4000 for each student. There is a
    serious nationwide shortage of truck drivers (both Class A and B)
    needed for the highway industry.
        Lastly, OJT program serves as a placement service for DBEs as there
    exists a strong nexus between the OJT and DBE program.
    Construction Career Days (CCD)
        These events create a critical link between classroom and workplace
    by giving middle and high school students the opportunity to explore
    careers in highway construction and various careers in the
    transportation industry. NCDOT needs to be able to spend more funds on
    solely holding or sponsoring these events, plus on the marketing and
    outreach and materials required for them. It is also important as
    evidenced by this continued epidemic to be able to afford a virtual and
    artificial intelligence-based platform through which to conduct needs
    assessments and, career fairs and actual hiring events for both older
    youth and adults. NC utilizes albeit older transportation-based
    simulators to showcase construction Heavy Equipment Operation trades
    and we find the use of simulators a great tool to excite, bring
    awareness and recruit and train talent. These simulators are costly,
    and states like ours could benefit from the purchase of simulator which
    can range from $25,000-$30,000 each, not including maintenance.
    Highway Construction Workforce Partnership Grant Funding
        The amount that NCDOT receives from the FHWA On-the-Job Training
    Support Services Program (OJT/SS) is helpful, but the OJT/SS funding is
    not enough to address North Carolina transportation workforce needs.
    The question of what NC would do if more funding were provided is
    perhaps best answered in our proposal to FHWA for a Highway
    Construction Workforce Partnership (HCWP) grant. Our experience with
    the FHWA HCWP grant program also provides important insight into the
    need for additional funding for highway workforce development
    nationwide.
        The FHWA HCWP is identical in its goals as the agency's OJT/SS
    program, although an important emphasis for HCWP is the broad based
    private/public partnership for workforce development. In fact, the HCWP
    Notice of Funding Opportunity required a letter of commitment from a
    State Chapter contractor organization (generally an affiliate of the
    Associated General Contractors of America AGC) and/or the American Road
    and Transportation Builders Association (ARTBA). [The NC application
    included this letter plus similar from six other partners such as the
    NC Community College System and WIOA entity.]
        Over a year and a half ago, FHWA's Center for Transportation
    Workforce Development and Technology Deployment managed a 2nd funding
    cycle with a $4 million Highway Construction Workforce Partnership
    (HCWP) grant program, but the funding could only support 11 of the 21
    proposals. NC was not one of those funded; we had requested $200,000
    for a comprehensive 2-year project. This program supports collaborative
    efforts among key highway industry, state DOTs, and public workforce
    system organizations, notably, State, and local Workforce Development
    Boards. The challenges and processes of providing outreach programs for
    prospective workers, training, and job placement requires the
    commitment and active engagement of all these organizations and other
    sector partners, but without funding, the potential of the HCWP concept
    will not be realized.
        With the $200,000 FHWA HCWP grant, North Carolina would have
    trained and placed an additional 225 individuals into highway
    construction jobs with strong representation of women, minorities, and
    disadvantaged individuals. That's less than $1,000 per person of
    Federal investment to train and place individuals into rewarding
    careers that will help highway contractors have the workforce they need
    to deliver highway projects in a more timely and efficient manner.
    Workforce funding is good for the workers, employers, and as a return
    on investment for all highway and bridge/tunnel users.
        In support of this response to Chair Norton's question, about what
    the N.C. Department of Transportation and its partners (as well as
    other states and their partners) could do with additional financing, we
    have attached our agency's grant proposal to FHWA. Pages 4-10, explains
    the scope of work in more detail.
        Additionally, the FHWA Every Day Counts Program (EDC) designated
    HCWP as a focus program under Strategic Workforce Development. Thirty-
    two states have committed to pilot an HCWP in Every Day Counts, but
    without funding ($20K-$100K each--including here in NC), those capacity
    building efforts are and will be severely compromised as well.
    Recording and Reporting
        Finally, there is a real need for advanced technology solutions for
    OJT data collection and reporting. This includes participant,
    programmatic, and fiscal tracking information such as conducting/
    providing post-graduation tracking of participants for retention (180
    days), advancement, Federal reporting, and administrative purposes.
    FHWA is increasingly and correctly asking for more analytics to assess
    OJT/SS program performance, and state DOTs such as NCDOT are needing to
    invest much more in MIS databases and reporting systems.
        Congress has made a significant investment in highway
    infrastructure with the IIJA, but without a workforce sufficient to
    deliver on that promise that investment will be inefficient and less
    effective. There needs to be a commitment to improving the workforce
    necessary to deliver highway projects through a skilled workforce as
    well.
        I want to again thank the Subcommittee for the opportunity to
    testify at its April 27 hearing and to provide answers to the chair's
    question here.
        The North Carolina Department of Transportation is committed to
    working with industry and other key partners to provide our citizens
    with access to good jobs in the highway industry. We appreciate the
    subcommittee's interest in that goal as well. If you have additional
    questions or we can provide additional information, please let us know.

      Questions from Hon. Henry C. ``Hank'' Johnson, Jr. to Tunya Smith,
        Director, Office of Civil Rights, North Carolina Department of
                                 Transportation

        Question 1. Government contracts through the Department of
    Transportation's (DOT) Disadvantaged Business Enterprise (DBE) program
    is essential to the growth of women and minority-owned businesses in
    the transportation sector. Unfortunately, both covert and overt
    discrimination have created systemic barriers that prevent many of
    these vital businesses from participating in federal highway and
    transit programs. That is why I am working to introduce a bill that
    removes some of those barriers for the purpose of determining a DBE's
    eligibility.
        1.a.  Can you explain the Disadvantaged Business Enterprise (DBE)
    program and how they are generally effective?
        Answer. Thank you for asking these key follow-up questions. The
    Disadvantaged Business Enterprise Program (DBE) is a legislatively
    mandated USDOT program that applies to federal-aid highway dollars
    expended on federally assisted contracts issued by USDOT recipients
    such as state transportation agencies.
        Congress established the DBE program in 1982 to:
          Ensure nondiscrimination in the award and administration
    of DOT-assisted contracts
          Help remove barriers to the participation of DBEs in DOT-
    assisted contracts
          Assist the development of firms that can compete
    successfully in the marketplace outside of the DBE program

        To be certified as a DBE, a firm must be a small business owned and
    controlled by socially and economically disadvantaged individuals.
    Certifiers make the determinations based upon on-site visits, personal
    interviews, reviews of licenses, stock ownership, equipment, bonding
    capacity, work completed, resume of principal owners and financial
    capacity.
        To be regarded as economically disadvantaged, an individual must
    have a personal net worth that does not exceed $1.32 million. To be
    seen as a small business, a firm must meet SBA size criteria AND must
    not have average annual gross receipts, over the previous 5 years, in
    excess of the DBE size limit (< $28.48 million). Size limits for the
    airport concessions DBE program are higher (< $56.42 million).
        The DBE program ensures disadvantaged businesses have the
    opportunity to do business with the N.C. Department of Transportation.
    The DBE program is generally effective but could be improved by
    addressing the recommendations below.

        1.b.  How can we improve these programs?
        Answer. Please see list of NCDOT Recommendations:
    Certifications/ Eligibility
        Despite NC efforts to increase spending amongst diverse businesses,
    our Diversity Spend for FY20 was 9.41%. Our Diversity Spend for FY 21
    was 8.43%. From FY 20 to FY 21, NCDOT spent $1 Billion in revenue. This
    was due to COVID 19. There were less projects during this time. As we
    are coming out of the pandemic, more funds are being released and more
    opportunities are being made available. The Office of Civil Rights is
    working with our Division of Highways to recruit small and minority
    firms.
          The DBE application process is burdensome and creates a
    barrier to participation. A condensed version is needed. The paperwork
    alone is 16 pages not including all the gathering of verification
    documents and site visit requirements. For smaller projects, DBE may
    not reap the benefit of this long and sometimes costly burden-need to
    obtain tax documents, printing etc.
          State-level certification for small, women and minority
    owned businesses is less complicated and this steers firms away from
    federal certification. However supportive services and enforcement is
    less at state level than federal level. Utilization is also not
    realized at federal level.
          Lack of access to high-speed broadband and internet
    connectivity creates a barrier to eligibility as most documents are
    obtained on-line and applicated processed online.
          There is no designation for Minority Women. Currently
    Women Business Enterprise (WBE) is reserved for non-minority women. The
    DBE designation is for women and minorities. Minority women are
    defaulted to a minority owned business. When in fact they face
    challenges as both women and minority. Therefore, a separate
    designation should be created for Minority Women. Non-minority women
    receive a disproportionate amount of DBE dollars as compared to their
    representation in NC's DBE Directory. For 2021, non-minority women made
    up 31% of all DBEs in North Carolina, however, they received 65% of all
    dollars going to DBEs.
          Congress should prohibit any additional requirements to
    contracting such as prequalification. NAICS codes are assigned at the
    time of certification at the state level. However, some states add
    additional ``prequalification'' requirements (additional work codes).
    The need to be prequalified as a subcontractor represents additional
    and unnecessary barriers to project delivery. Many do not understand
    this requirement and feel it is complicated and redundant as they were
    already assigned NAICS codes when they were certified.
          Congress should prohibit states from having excessive
    insurance/ bonding practices for risk management. There should be a
    sliding scale requirement relative to the risk and project size. Laws
    should prohibit these excessive requirements e.g., $1 million bonding
    requirement on a $100k project.
          DBEs often experience the inability to qualify for
    traditional funding which forces them to use alternative funding (high
    interest loans, factoring, bad terms). We need to have a Small Business
    Administration program that assists with these funding/loan challenges.
    Firms should not have to use their personal savings, home, or
    retirement to qualify. This will also help risk mitigation with non-
    traditional lenders such as Community Financial Development
    Institutions (CDFIs).
          The personal net worth (PNW) limit of $1.32 million and
    the gross receipts limit should be increased to allow the firms to
    grow. Many state programs do not use PNW as a qualifier for
    eligibility.
          State DOTs could benefit from DBE supportive services
    funding directed toward the development of a prisoner reentry program.
    Additional funding specifically designed for reentry/ workforce
    development is critical to economic development and the underserved
    communities we serve. Many incarcerated individuals are denied entry
    into traditional labor market and entrepreneurship is another critical
    path.
    Enhancement to Utilization
        IIJA money will be distributed fast and without proper enforcement,
    small and disadvantaged businesses will be left out.
          Congress could improve or pass legislation allowing
    states that operate a mentor/protege program to offer mentors an
    incentive to participate in these programs. Some DOTs, such as Illinois
    DOT, offer a reduction on a project's DBE goals as an incentive for
    prime contractors to mentor DBE proteges.
          When the market restricts some states allow primes to
    keep working and are not enforcing Good Faith Efforts. This has
    resulted in small businesses not getting any work and going out of
    business.
          USDOT requires selection criteria include small
    businesses, disadvantaged businesses and new entrants. This should be
    required and enforced at the state level.
          There should be more enforcement and mandates on having
    DBE Liaison Officer at the table when selection criteria are developed.
          USDOT could mandate incentives to the prime contractors
    for meeting and exceeding DBE goals.
          Congress could strengthen legislation on requiring goal
    setting at the state level. Some states currently only set DBE goals on
    the construction portion of projects, and they should be setting goals
    on professional services such as architectural and engineering
    services. USDOT expressly allows for DBE goals on A&E Services
    projects.
          Despite state efforts and lack of enforcement
    capabilities from state Civil Rights Divisions, states like NC fail to
    achieve parity. As recently evidenced in our spend numbers we only
    achieved an 8.43% goal achievement
          The Airport Concession DBE Program (ACDBE) is similar to
    the DBE program in that it is a Department of Transportation (DOT)
    program designed to level the playing field for small businesses who
    wish to participate in contracting opportunities at airports. It is
    difficult for DBEs to be successful due to unlimited or long lease
    lives. A tax incentive for prime concessionaires to use small
    businesses would make this overly competitive environment more small
    business friendly.
          More robust data tracking and reporting is needed at the
    federal level to assist state DOTs. Often states are unaware of and
    unfamiliar with the successes and lessons learned from other state
    DOTs. Having a central repository and clearing house could assist to
    program development and technical assistance.
          Currently if a DBE wants to be recognized as a DBE in
    more than one state, there is excessive administrative work that must
    be completed. It would be advantageous to the DBE and the UCP if all
    states would recognize the home state certification.
          USDOT could assist states create a regional incubator/
    mentor protege with transportation partners to increase small, women
    and minority-owned businesses participation, provide a blueprint and
    technical assistance for State DOTs. These incubators could include an
    innovative approach by utilizing artificial intelligence to assess DBE
    capabilities and future training needs. Some of the benefits include
    resources centered around active project to ensure quality and
    deliverables met, firms receive on-site technical assistance to
    mitigate impediments and essentially grow their business, economic
    development and growth for transportation industry, building talent
    pipeline regionally and nationally. NCDOT is in the process of creating
    an incubator with the newly announced Toyota Battery Plant project.
    These incubators not only assist firms with funding but provide
    guidance/business assistance and business planning. The recipients
    would be required to pay it forward and help other firms in the future.
    This will also provide office space for DBEs like a ``We Work'' model.
          As written in CFR 49 part 26, DBE goal setting only
    applies to projects for the Federal Highway Administration, Federal
    Transit Administration and the Federal Aviation Administration. Other
    modes of transportation (most notably rail projects) receive
    substantial Federal funding and should also have DBE participation
    goals.
          There is a federal Brooks act that requires that the U.S.
    Federal Government select engineering and architecture firms based upon
    their competency, qualifications and experience rather than by price,
    however states have created mini brooks act that circumvent federal
    policy. There is no precedent for these cases. The states' procurement
    methods are generally more restrictive.
    Program Development
          With the development of Electrical Vehicle charging
    stations, there should be a federal requirement to consider how this
    massive initiative can benefit small and minority owned businesses. For
    example, if minority landowners had the opportunity to lease their land
    for the purpose of housing the stations, this would provide a revenue
    stream for the landowner.
          In addition to Disparity Studies, Congress should provide
    funding for states to conduct an Economic Impact Study to examine the
    economic benefits of contracting and workforce development programs.
          The guidelines for using Supportive Services funds which
    is apportioned from the FHWA are overly restrictive and can only be
    used to assist DBEs who are performing highway-related construction
    work. DBEs engaged in other activities related to transportation do not
    benefit from these funds.
          Congress could provide financial assistance specifically
    designated for American Indian/Native American (funding allocation).
    Tribes missed a lot of the prior emergency funding.
          The DBE Supportive Services and the OTJ training units
    should work in conjunction to address workforce training solutions by
    identifying gaps in skills and using OJT funds to support that
    training.

        I want to again thank the Subcommittee for the opportunity to
    testify at its April 27 hearing and to provide answers to the question
    here. The North Carolina Department of Transportation is committed to
    working with industry and other key partners to provide our citizens
    with access to good jobs in the highway industry. We appreciate the
    Subcommittee's interest in that goal as well. If you have additional
    questions or we can provide additional information, please let us know.

      Question from Hon. Eddie Bernice Johnson to Tunya Smith, Director,
      Office of Civil Rights, North Carolina Department of Transportation

        Question 1. Ms. Smith, we haven't increased funding for On-The-Job
    training programs since 1974.
        Would you and others working in your field benefit from increased
    funding for this program?
        Answer. Thank you for asking this important question. Over the
    decades, the OJT program has become a fundamental part of NCDOT's
    Office of Civil Rights and other states' similar programs. An increase
    of funding will give us all the opportunity to do the following:
          Help hundreds more minorities, women, and disadvantaged
    people around the state/s increase their skill and abilities in the
    highway construction field.
          Provide support to women, minorities, and disadvantaged
    individuals by removing barriers that prevent their retention within
    training and then with the prime contractor or state highway workforce.
          Offer many more `Highway Construction Trade Academies'
    including needed specialty versions around the country, including the
    procurement of simulators
          Provide opportunities for advanced training in the field
    including credentials and commensurate career-building skills and wage
    increases.
          Increase high school students' knowledge of the highway
    industry through increased construction career days, career fairs,
    Career Technical Education (CTE), and career expos--both in-person or
    virtual and blended.
          Provide (more) opportunities for paid or work-based
    learning experiences thru training allowances or stipends for
    participants.
          Develop or procure new technology to obtain more accurate
    reporting and monitoring.
          Work even better with prime contractors to increase their
    participation in the OJT/SS opportunities; and if made an allowable
    expense.
          Link state correctional systems with DOTs in pre-release
    programs for incarcerated individuals in collaboration with prime
    contractors, worksites, and OJT/SS opportunities.

        With the enactment of the Infrastructure Investment and Jobs Act
    (IIJA), the Congress has made a significant commitment to improving the
    Nation's deteriorating infrastructure. For some years now, highway
    contractors have tried to do the best they can to delivery projects in
    a timely and efficient manner, but the shortage of skilled workers has
    compromised their efforts. While the additional Infrastructure
    Investment and Jobs Act (IIJA) funding is certainly needed, the results
    on the investment is challenged by an already difficult workforce issue
    that will only become more challenged as employers try to recruit and
    train new workers to deliver the IIJA funded projects.
        The FHWA OJT/SS program is certainly a benefit, but with only $6
    million to be distributed annually to 50 states and some US
    territories, and without any funding increases in decades, highway
    contractors face serious workforce shortages that will only become more
    challenging with the IIJA investment. At the same time, there are
    underutilized and virtually untapped sources of labor--such as pre-
    release populations--that could be reached by OJT/SS programs if that
    Federal highway funding restriction could be lifted or waived for our
    training models.
        One additional initiative that should be re-funded and offered
    nation-wide again is the FHWA's Highway Construction Workforce
    Partnership (HCWP). This is identical in its goals as state DOT
    agencies' On-the-Job Training program OJT/SS program, although an
    important emphasis for HCWP is the broad based private/public
    partnership for workforce development. HCWP receives no annual funding.
    $4 million for the HCWP grant program was made available to the states
    this past year using years of OJT/SS Program accumulated carryover
    funds.
        In a debriefing from FHWA, we learned that of the $4 million
    available, they could fund only 11 of the 21 state DOT applications.
    North Carolina--and 9 other applicant states--did not receive an FHWA
    HCWP grant simply because there was not sufficient funding to support
    the 21 state DOT proposals for the HCWP program. And though it is
    difficult to speak for all states, the other 29 states could probably
    benefit from such partnership and capacity-building funds as well. [We
    have attached a copy of the North Carolina HCWP proposal to FHWA which
    is only 16 pages in length. The Scope of Work is shown on pages 4-10.]
        As mentioned in our written testimony as well, FHWA has also
    identified workforce development to be one of seven programs to be part
    of the 20-21 Every Day Counts (EDC-6) Program. FHWA together with state
    DOTs provides an emphasis on these programs through workshops,
    materials development, demonstration projects and technical support to
    their own Divisions, state DOTs, local agencies, and private sector
    partners. The highway community can implement those EDC programs that
    will benefit their work in the highway program. Program implementation
    is managed with the State DOTs working with state and local partner
    groups in their states.
        Thirty-three state DOTs selected this as one of the EDC-6 programs
    for their state; NC was one of them but, again, there were no funds
    available. [For EDC-6 purposes, HCWP is titled the Strategic Workforce
    Development (SWD) initiative.] The HCWP/SWD states are in various
    stages of implementation, and all HCWP/SWD states will need funding at
    some point, and sooner than later. There are at least 33 states that
    want to move forward with a robust workforce development program
    through HCWP, but do not have funding. It is also safe to say that if
    funding were available additional states would have committed to HCWP
    and/or EDC-6.
        These experiences of OJT/SS, HCWP, and EDC-6 SWD are evidence that
    additional funding for workforce development is needed now and for the
    future. The Congress has just made a significant commitment to
    improving the Nation's highway infrastructure. There needs to be a
    commitment to improving the quality and quantity of workforce necessary
    to deliver highway projects through a skilled and diverse labor force
    as well.
        I want to again thank the Subcommittee for the opportunity to
    testify at its April 27 hearing and to provide answers to the questions
    here. The North Carolina Department of Transportation is committed to
    working with industry and other key partners to provide our citizens
    with access to good jobs in the highway industry. We appreciate the
    Subcommittee's interest in that goal as well. If you have additional
    questions or we can provide additional information, please let us know.

                                                  Attachment \\
    ---------------------------------------------------------------------------
        \\ Editor's note: The original grant application has been
    reformatted for inclusion in this publication. References to page
    numbers in NCDOT's preceding responses apply to the original grant
    application and do not apply to this reformatted version.
    ---------------------------------------------------------------------------
                       NCDOT On-the-Job Training Program
          Highway Construction Workforce Partnership Grant Application
                         NC DOT--Office of Civil Rights
                                 February 2021
              NCDOT HCWP Grant Application: Supplemental Narrative
    A. Statement of Problem
        The growing national demand for highway construction, maintenance
    and administrative workers presents a need for higher-level skill sets.
    To attract, train, retain, and advance workers in the contractors'
    labor force, new resources, training opportunities and pipeline
    strategies are needed. Reflective of the national industry trends,
    North Carolina (NC) faces a highway construction workforce and skills
    gap issue. North Carolina, also known as the ``Good Roads'' State,
    contains 80,000 miles of roadway, over 13,500 bridges, and makes up one
    of the nation's largest highway systems. As the 9th most populated
    state, with rapid growth, NC must consider both new build and legacy
    maintenance needs related to highway and bridge construction.
        A recent report from the NC Chamber and TRIP, a national
    transportation research nonprofit, revealed North Carolina motorists
    pay about $10.3 billion annually in transportation-related expenses
    that result from driving on poorly maintained and deteriorating
    statewide roads and bridges. The report provides evidence that a strong
    transportation network supports a strong statewide economy, with 1.9
    million jobs in North Carolina directly dependent on our transportation
    infrastructure. As North Carolina focuses on ramping up transportation
    infrastructure, a pending workforce shortage emerges as the average age
    of NC construction trades workers nears 50 years old. The impact of the
    anticipated workforce shortage is exacerbated as many potential workers
    consider construction trades both uninspiring and difficult to enter.
        To properly address workforce deficiencies in North Carolina's
    highway construction industry key players such as CAGC \1\, NC WIOA/WDB
    \2\, NC Economic Development, NC Community Colleges, and NCSU's LTAP
    \3\, need to be at the table with NCDOT. This integrated approach will
    also help to ensure sustainability and institutionalization in the
    future. The inaugural Working Group (WG) has identified that North
    Carolina has experienced a misalignment of workforce development
    efforts resulting in inefficient labor supply and pipeline disconnect.
    An important element being left out of workforce discussions and
    programing is the k-20 and out-of-school youth/adult training pathway,
    as well as partnership collaborations.
    ---------------------------------------------------------------------------
        \1\ Carolinas AGC (Association of General Contractors)
        \2\ Workforce Innovation and Opportunity Act/Workforce Development
    Boards
        \3\ Local Technical Assistance Program
    ---------------------------------------------------------------------------
        The WG members and other collaborators identified these issues and
    agreed that this HCWP project would help address them. This partnership
    and coordinating grant for our proposed statewide and multi-entity/
    level approach will close these HCW gaps--from recruitment, to
    training, to placement/employment, and then retention and advancement.
    B. Amount Requested and Proposed Project Duration
        For Fiscal Years 2021-2022, the NCDOT requests a total $200,000 for
    this proposal. [$100,000 for project coordinator; $50,000 for needs
    assessment; $25,000 for curricula development; $10,000 for marketing;
    and $15,000 for independent evaluation--also see Cost Proposal.]
    C. Needs Assessment:
        North Carolina faces many of the same highway construction
    workforce challenges that other states do--a lack of skilled
    candidates, disjointed workforce development (WD) providers/programs,
    scattered marketing/recruitment, low employment retention rates, and
    worker transportation, daycare, and other barrier, issues. According to
    the FHWA/EDC-6, there is a projected workforce shortage of 60%--or
    500,000 skilled highway construction jobs--nationally over the next
    decade. The North Carolina Department of Transportation's (NCDOT)
    Innovation Council (STIC) has even adopted Strategic Workforce
    Development to prepare NC with the needed skilled labor force. While
    the economic situation in many rural and poor counties/communities
    complicate State efforts, the needs of residents in such distressed
    Tier 1 counties, along with other disadvantaged and non-traditional
    populations, can be supported through this grant. Performing a thorough
    3-way needs assessment will be a key first step to help identify the
    untapped labor force, occupations, numbers, skill sets, and course
    needs that our NC firms require and can be made available.
        The US Bureau of Labor Statistics estimates that increases in
    spending on heavy/civil construction projects will result in above
    average job growth. Specific to NC, it was projected that between 2016
    and 2026, Federal infrastructure spending would increase at the State
    and other levels--resulting in a 12 percent increase in workforce
    opportunities related to the highway construction industry. Currently,
    NCDOT is spending about $9 billion annually on active highway
    construction, and over the next 30 years will need a skilled workforce
    to complete 750 highway construction projects estimated to infuse $123
    billion dollars into the State economy (``NCDOT2040 Statewide
    Transportation Plan Modal Needs Report'' \4\).
    ---------------------------------------------------------------------------
        \4\ https://www.ncdot.gov/initiatives-policies/Transportation/plan/
    Documents/2040_ModalNeedsReport.pdf
    ---------------------------------------------------------------------------
        Findings from the 2021 CAGC Construction Hiring and Business
    Outlook Survey include 75% of hiring contractors having a hard time
    filling positions, plus expecting a 10% growth in 2021. Another 65%
    reported hiring shortages/concerns, and 61% say that inexperienced
    skilled labor present challenges to the safety and health of workers. A
    direct report given to the WG by ARTBA indicates the current North
    Carolina workforce lacks the capacity to meet the job demands of the
    state highway modality maintenance, improvement and building project
    schedule.
        In 2018, the US Census Bureau County Business Patterns data report
    provided the most recent highway employment (by county and even zip
    code) trends. But the labor market numbers, skills gaps and
    occupational projections needed solely for the highway construction
    sector in NC are not available. Also, a separate analysis of
    horizontal/transit construction sector gaps, and responsive training
    programs (v. vertical trades and skills) is needed. In order to avoid
    assumptions based on national, combined, or out-of-date data, an
    assessment of NC's HWC employment outcomes, and employment projections
    by occupation/classification and need would be beneficial to strategic
    planning efforts. Non-traditional populations can then help make up the
    gaps.
        North Carolina currently lacks a HCW sector partnership initiative.
    An industry-led collaborative to facilitate workforce pipeline
    activities and supportive services--that increases the representation
    of minorities, women and disadvantaged persons in the highway
    construction sector--is needed to benefit all partners, drive training
    efforts, and create a clear and related pathway program. Pilots with
    some community colleges, some Local Education Agencies/public schools,
    some regional/local Workforce Boards, and some contractors will be
    scalable models once found to be successful for replication to others
    inside and outside of NC. For the NC Strategic HCWP project, the
    continuance of COVID and its effects on the overall economy including
    the public sector (WG partner funding and Federal/state highway
    spending) are seen as being the biggest external risks associated with
    the successes of the initiative.
    D. Scope of Work:
                1. Establish HCWP Working Group
        The core group (and additional partners listed below) was brought
    together during six weeks of concentrated outreach and communication by
    the NCDOT's OJT/SS Department to pull the genesis of the Working Group
    and application SOW together rather quickly. The NC's Strategic HCWP
    Working Group (WG) will be formally established once the grant award is
    announced. The engagement of relevant stakeholders will continue to
    leverage knowledge and resources.

    ----------------------------------------------------------------------------------------------------------------

    -----------------------------------------------------------------------------------------------------------------
    Inaugural NC WG Membership:
    ----------------------------------------------------------------------------------------------------------------
     NCDOT (OJT/SS; Business Opportunity and WD; HBCU/NSTI; and EDC-6 Initiative)
     FHWA Division Office
     Carolinas AGC (CAGC)
     United Minority Contractors of NC (UMCNC)
     NCWorks Commission (State WDBNC Department of Commerce/ Economic Development Partnership of NC (EDPNC)
     and Division of Workforce Solutions (DWS)--State Departments of ED and WD
     NC Community Colleges (NCCCS) including State Apprenticeship Program
     NC State University's Institute for Transportation Research and Education (ITRE)/LTAP
    ----------------------------------------------------------------------------------------------------------------
    Other current collaborators:
    ----------------------------------------------------------------------------------------------------------------
    NC Department of Public Instruction (DPI) Career Technical Education (CTE), Local Education Agencies (LEA), and
     NC Association of WDB Directors.
    ----------------------------------------------------------------------------------------------------------------
    Future plans call for the inclusion of:
    ----------------------------------------------------------------------------------------------------------------
    NC Rural Center, NC Veteran's Council, Fort Bragg TAP (f/d/b/a ACAP), NC Chamber (of Commerce), NC Business
     Committee for Education (NCBCE), Tribal organizations, and other community-based organizations involved in the
     recruitment, training, and employment of highway construction workers.
    ----------------------------------------------------------------------------------------------------------------

        NC trade groups such as the CAGC and UMCNC will lead the initiative
    to explain the needs of the highway construction industry at ground
    level--job numbers (current and future), classifications/positions, and
    required skills. Our contracted researcher will also consult other data
    sources plus do a mapping of available programs and community work
    force sources. Then, our existing public sector training/education/
    placement programs--such as WIOA structure/partners and NC Community
    Colleges--will be tailored to meet those needs and/or new programs or
    partnerships will be formed. Defining a lead role for industry in our
    WG will help align all of our partners towards more meaningful
    outcomes, bringing greater focus and accountability to our
    collaboration. The NC WIOA/WDB and Community College systems already
    have experience with this for other sectors, such as healthcare, and
    have designed a process called `NextGen' (not to be confused with youth
    initiatives) which rightfully puts industry and employers in the
    driver's seat for `sector partnerships', which the HCWP is for the
    highway construction industry.
        One major innovation for NC--per the `Playbook'--will be to develop
    and launch Highway Construction Trade Academies via some of our network
    of 58 community colleges serving all 100 counties, many of them
    economically distressed and rural Tier 1. One model site that is ready,
    willing, and able to pilot this concept is a community college located
    in a very distressed county. This particular campus already hosts some
    NCDOT heavy equipment simulators in its Continuing Education department
    plus they are a virtual NCCER \5\ sponsor. [In addition, their county
    high school is also interested in either hosting a pilot Highway
    Construction Trades Academy (HCTA) or creating a Highway Construction
    (HC) Career Pathway program. Both programs could then perhaps be linked
    via NC's Career & College Promise for dual enrollment.]
    ---------------------------------------------------------------------------
        \5\ National Center for Construction Education and Research
    ---------------------------------------------------------------------------
        In addition, non-profit and community-based organizations all over
    NC have been or will be involved in hosting some training centers.
    These include CAAs (Community Action Agencies), CDCs (Community
    Development Corps.), EDCs (Economic Development Corps.) and entities
    such as OIC (Opportunities Industrialization Center). Initial WG
    discussions have also considered opening such Academies with two of
    NC's tribes: The Cherokee, in far west mountains, and the Lumbee, in
    far down east NC. Other specialty academy ideas involve All-Female
    (perhaps Re-Entry), Spanish-Immersion, and (other) Re-Entry models.
    Some consideration has also been given to perhaps High School-based
    Academies as part of their Career Tech programs, or an HWC career
    pathway for interested LEAs at a minimum. Plans also include two
    virtual programs (primarily due to lingering COVID restrictions/
    impacts): 1. Use of the on-line NCCER course platform; and 2. Use of a
    virtual `career fair' platform to be used with middle and high
    schoolers (as well as adults) in lieu of traditional in-person
    Construction Career Days (and actual hiring events) held physically
    around the State (at least until COVID abates).
        A second major innovation discussed for this project would be the
    addition of formal Pre-/Apprenticeship components. NC is behind in
    connecting the HC industry with such key skilled craft WD programs, now
    operated under the umbrella of the NC Community College System. This
    would most easily fit with and complement existing OJT programs with
    trainees and contractors. Another related creative idea would be to
    implement what our contractors call `co-op', NC OJT calls `paid
    training', and community colleges now call `work-based learning'. We
    envision a training allowance paid out of NC OJT/SS funds for Academy
    completers to work FT for 4-6 weeks with a contractor--especially DBEs,
    MBEs and SBEs. Pay would be at least $10 an hour and based on their
    position classification rate. The hosts would be offered first dibs on
    hiring, and hopefully with this real on-the-job practical experience
    under their tool belts, participants would be more easily hired
    elsewhere as well--maybe even into the OJT program with a prime. This
    would help fill a labor supply continuum gap in NC.
                2. Distribution of Working Group/Partner Responsibilities
        As indicated in the Letters of Commitment (LOC), in addition to
    staff participation on the WG, the following lists the roles and
    responsibilities of the initial representative organizations:
        NCDOT--Overall coordination and administration of the grant and
    subsequent programs via OJT/SS Unit, Office of Civil Rights and FT
    Project Coordinator including regular reporting, performance
    management, and TA via FHWA; direct connection (co-champions) to NCDOT
    EDC-6 Strategic Workforce Development initiative; connections to
    regional Highway division staff; use of equipment for `skills rodeos';
    local staff participation in career day events; job placement
    assistance; @ Key Contacts
        CAGC/ARTBA, and UMCNC--Direct connection to and representation of
    highway contractors (from large primes to SBEs/DBES/MBEs) for labor
    market and gap data, curricula development assistance, presentations,
    project site tours, `skills rodeos', career/job fair participation, OJT
    assignments, `coop' slots, apprenticeships, and employment; plus
    reporting and data; @ Key Contacts. [NOTE: UMCNC POC is Brenda Pollard,
    ED, bpollard@umcnc.org, 919 817-8626; also see LOC. Additional CAGC POC
    is Victor Barbour, Director, NC Gov't Relations & Highway-Heavy
    Division, vbarbour@carolinasagc.org, 919 906-3807. The local ARTBA
    chapter is CAGC.]
        NCWorks Commission/WDBs/Youth Councils--Project marketing/outreach,
    participant recruitment, assessment, advising, enrollment, soft skills
    and job getting instruction/preparation, job placement assistance, data
    collection/reporting, (explore `dual enrollment'); @ Key Contacts.
    [NOTE: The NCDOL is not the state workforce or economic development
    agency in this state.]
        NC DOC/EDPNC--Assistance with labor market analyses, additional
    connection to employer and economic development representatives
    statewide; @ Key Contacts
        NCCCS--Project/program marketing/outreach, participant recruitment,
    assessment, advising, Highway Construction Trade Academy/Con Ed
    curricula development, enrollment, soft skills, and job getting
    instruction/preparation, skills instruction, pre-/apprenticeship
    components, job placement assistance, data collection/reporting. [NOTE:
    Community College ConEd POC is Karen Tikkanen, Director, Training,
    tikkanenk@ncommunitycolleges.edu , 336 266-0006; and Apprenticeship is
    Kathryn Castelloes, Director, castelloesk@nccommunitycolleges.edu, 919
    368-4280; also see LOCs]
        ITRE/LTAP--Assistance with research, graduate students, HWC courses
    and credentials, connections with local government and rural
    transportation departments. [NOTE: POC is James Martin, Assoc. Dir.,
    ITRE/Dir., LTAP, jbm@ncsu.edu, 919 412-0713; also see LOC]
        FHWA Division Office--Technical assistance, management
    interactions, monitoring, WG meeting participation, regular evaluation
    and review of grant activities including those contracted. [NOTE: POC
    is Lynise DeVance, Civil Rights Program Manager,
    lynise.devance@dot.gov, 919 747-7010]
                3. HCWP Program Plan Development
        Our HCWP program plan and workforce strategies will improve the
    contractor talent pipelines statewide, help to skill and re-skill the
    workforce, develop/expand pre-/apprenticeships, and other credentials,
    and engage even more with high schools down the road. The following
    represents in goals/objectives and tasks/activities how the NC
    Strategic HCWP WG has so far scoped out and outlined its program plan
    to align all pipeline programs and stages:

                       Overall Main Goal & Key Objectives
    ------------------------------------------------------------------------

    ------------------------------------------------------------------------
    Goal: Employment for participants from the programs within three months
     of graduation..
    ------------------------------------------------------------------------
    Objective 1...............................  Form official NC Strategic
                                                 HCWP Working Group; hire
                                                 Project Coordinator
    Objective 2...............................  Contract with researcher;
                                                 Conduct needs assessment
                                                 (for projected construction
                                                 workforce needs over next 2
                                                 years to identify specific
                                                 fields/crafts)
    Objective 3...............................  Perform coordinated, joint
                                                 outreach, recruitment,
                                                 screening for veterans,
                                                 minorities, women, and
                                                 other targeted non-
                                                 traditional groups
    Objective 4...............................  Develop and provide skills
                                                 training via community
                                                 colleges and formal pre-/
                                                 apprenticeship, to increase
                                                 highway construction skill
                                                 level of minorities, women,
                                                 and other disadvantaged
                                                 individuals
    Objective 5...............................  Ensure 100% employment
                                                 within 6 months of
                                                 graduation
    Objective 6...............................  Provide supplemental
                                                 supportive services to
                                                 program participants during
                                                 trainings and continued
                                                 employment on Federal-aid
                                                 highway construction jobs
    Objective 7...............................  Provide post-graduation
                                                 tracking of participants
                                                 for retention (180 days),
                                                 advancement, Federal
                                                 reporting, and
                                                 administrative purposes
    ------------------------------------------------------------------------

                                                Planned Tasks/Activities
    ----------------------------------------------------------------------------------------------------------------

    -----------------------------------------------------------------------------------------------------------------
     Develop a contractor-led/informed NC Strategic Highway Construction Workforce Partnership Initiative,
     Working Group, and umbrella goals
     Re-determine specific workforce needs via new updated labor force needs study
     Develop formal partner relationships, consortium structure, MOU/MOAs, and trainings
     Align and connect outreach, recruitment, and training/education to employment and funding
     Help OCR/DOT more formally connect with WIOA, Voc Rehab, DSS, VA, etc.
     Launch planned activities/ programs and pilots; with continuous evaluation
     Innovate around community college involvement, NCCER virtual component, training allowance inclusion,
     connection to formal apprenticeship program, etc.
     Develop a statewide performance data collection system and shared metrics
    ----------------------------------------------------------------------------------------------------------------

        The main vehicle for this program plan will be the Highway
    Construction Trades Academies (HCTA)--for adult students who are at
    least 18 years old. The purpose of the proposal HCTA will be to train
    and develop a highly skilled highway construction workforce via the
    community colleges plus their add-on pre-/apprenticeship components.
    Working with our contractor trade groups, and large primes themselves,
    together with NC OJT/SS SMEs and PC, community colleges in the State
    will develop a scalable model for highway construction worker training.
        The WG further plans to leverage existing programs (such as NC's
    current 4- and 8- week community-based non-profit hosted HCT Academies)
    and re-purpose them to meet Community College Con Ed course for highway
    construction needs and criteria. Additional resources can come from
    other WG service providers such as CAGC, ITRE/LTAP, other funding
    sources (such as WIOA), and even other industries. For instance, the NC
    WG will also create its pilot Community College HC training programs by
    using pieces of its much more common vertical construction industry
    training curricula. [The current 4-week NC OJT/SS CBO HCTA model is
    more of a readiness course and needs to be segued out, or an additional
    4-6 week paid, real-world work experience attached to it, and/or
    considered a pre-apprenticeship.]
        Participants will graduate from all training with industry-
    recognized construction (micro) credentials. This (additional) training
    will cover a wide range of skills needed by the highway transportation
    industry, including dump truck CDL, heavy equipment operation,
    striping, flagging, surveying, rigging, and signaling, scaffolding, rod
    tying, pipe laying and forklift operations. These upgrade skills
    trainings are/will be offered by several types of entities: heavy
    equipment distributors, contractors, community colleges, LTAP, and
    other approved on-call Advanced Training providers around the State.
    Perhaps it can be designed to be modular or competency-based in nature
    including basic math, written and interpersonal skills, and the OSHA
    Safety Certificates.
        Other Professional Development sessions will teach even more
    advanced skills, such as team building, critical thinking, and conflict
    resolution. All courses/programs will culminate through connecting
    completers/graduates to participating highway construction firms for
    job interviews and placement/employment. Some graduates may even be
    able to work towards opening their own contracting firm, with supports
    and training via NC DOT's BOWD, local EDCs, UMCNC, and NCSU's ITRE/LTAP
    business and professional development courses and TA. Again, a critical
    Pre-/Apprenticeship component will also be added to the current NC OJT
    program via the Community Colleges (USDOL funded State Apprenticeship
    Expansion Grant).
                4. Program Activity Linked to Workforce Development and
                        Jobs
        By having contractors lead the WG effort, Community Colleges host
    HCTAs, and adopting a recognized Pre-apprenticeship and Apprenticeship
    program, NC will better link WD practices with actual contractors and
    construction jobs. A more uniform approach to training, including
    community college apprenticeship connection, will also help trainees to
    visualize a construction career ladder. NC hopes to rekindle interest
    in the heavy highway construction industry--from middle schools
    onward--by professionalizing the un/skilled trades through industry-
    recognized training. Trainees will work through CAGC and UMCNC members
    and NCCCS to receive recognized pre-apprenticeship and apprenticeship
    certification, among other micro-credentials. The CAGC/UMCNC, NCDOT,
    NCCCS, and Division of Workforce Solutions will work with partnering
    contractors to employ/place successful graduates of the programs in
    hopes of setting them on a career path in the heavy highway
    construction industry leading to full-time, gainful employment.
    Statewide recognition of these new standardized training programs will
    also help completers transition into the existing job market more
    easily. This will have the added benefit of NC highway/bridge projects
    being built and maintained more safely, efficiently, and cost-
    effectively by home-grown talent.
        Staff and consultants will meet with participants and training
    providers periodically to identify and resolve issues that may arise.
    NC OJT/SS field consultants will meet with program partners and/or
    individual trainees to provide them with any support needed while in
    training, or first weeks on jobs. These supportive services may include
    safety gear and PPE purchase, tutoring, counseling services, childcare,
    transportation, housing, and financial assistance for any other
    personal issues that may negatively affect trainee success. [Supportive
    services funding is need based case-by-case and discretionary, and does
    not exceed 1 year per trainee (30 days is the longest we currently pay
    for day care and housing).] This project will also increase the number
    of Advanced Training providers, courses, and opportunities for both
    HCTA completers and OJT trainees. Periodic check-ins with participants/
    workers will help promote up-skilling and maybe even peer-to-peer
    mentoring, in addition to retention.
        While nothing beats on-the-job training, the WG members believe
    that trainees/participants can gain critical knowledge in the
    classroom, on-line, and via hands-on training in simulated work
    experiences prior to employment. What almost all contractors say they
    need most are workers who have the basic job and life skills to succeed
    in the real work world. These include `soft' employability skills,
    basic math, oral and written communication skills, and OSHA 10-hour
    safety and health training. If potential workers are moved into
    technical construction training before they have those foundational
    skills, they can fail to get or stay on jobs. To this end, all
    curricula will be built with these necessary building blocks in mind.
        Inaugural WG members also believe that many highway construction
    skills are transferable across various construction modes, whether it
    be vertical building or horizontal highway/bridge construction. So,
    training workers for non-highway projects will add good carpenters,
    electricians, masons, etc. to the future pool of available highway
    workers, and benefit the heavy highway construction sector as well.
    Furthermore, following the industry-led Needs Assessment, other
    partners in education and training will mold their offerings directly
    to those occupations, skill levels, and job needs contractors have
    identified. While, as indicated elsewhere, there are some existing
    basic training programs that provide at least some of those skills--
    such as offered by OJT/SS, CAGC, ITRE, etc.--totally new ones need to
    be built as well. Also, training resources, though somewhat scattered
    and disconnected, are available, but the key partners and potential
    participants are not always aware of them. This grant will allow us to
    create and meld together an effective coordination and communication
    plan for external outreach through a shared marketing message. By
    building close relationships with the primes and DBEs, and everyone in
    between, through our pilot Working Group, and then designing/offering
    training programs to meet their immediate needs, this NC Strategic HWCP
    will be more successful and mutually rewarding.
                5. Plans for Outreach, Recruitment, and Sharing Results
        Like many other states, NC faces overarching challenges to getting
    sufficient applicants for highway construction jobs: 1. Poor
    understanding of the true opportunities and nature of jobs/demands in
    the `field'; 2. A perception by youth/parents and adults that a college
    degree is always preferable to any (highway) construction or other
    trades career; and 3. Poor marketing and outreach approaches by the
    industry and WD/education partners to date. Initial NC Working Group
    partner conversations have identified a gap between the perception of
    highway construction careers and the reality. Therefore, it is
    important to communicate that highway construction involves many
    cutting-edge technologies and hi-tech skills, plus high pay.
        The push for college attendance by many parents and school systems
    has also presented a challenge, though the economic realities of COVID
    have ameliorated this somewhat. But through the NC Strategic HCWP work
    with LEAs (school systems), NCWorks Career Centers, and community
    colleges, counselors will begin to communicate that highway
    construction is a viable career option for many--including Veterans.
    The addition of a Pre-/Apprenticeship will be advertised as the
    ``other'' `college degree' along with new community college-based
    Highway Construction Trade Academies (supported in part by NCDOT OJT/SS
    funding). In addition, FHWA and CAGC developed outreach materials,
    packaged messaging, and the social media hashtag--#RoadsToYourFuture--
    will be adopted, adapted, and used by all partners to better
    communicate our collective efforts and value-add to the general public
    and industry stakeholders.
                6. Contractors: Competitive Selection and Service Provision
        There are several methods that will be used for the competitive
    procurement of consultants, such as Professional Services, Purchasing,
    Research, etc. Solicitation of competitive bids include RFLOIs (formal/
    informal), RFPs, and Federal Grant applications. There are some nuances
    to each process; however, competitive typically means formally posting
    advertisements publicly for a minimum period of time, with selection
    criterion and requirements for submission of a response, plus other
    required provisions. Following posting, a selection process is used to
    determine which firm(s) will be awarded the contract. The selection
    process includes a team who scores/evaluates each submission, plus
    perhaps an interview, and the recommendation for contract award must be
    based on the selection criterion posted in the advertisement, and that
    all other requirements for submission are met. Consultants contracted
    for this grant will include work on the Needs Assessment; Marketing;
    and Formal Independent Program Evaluation.
                7. Evaluation and Monitoring Plan
        The fiscal monitoring will be done via the detailed budget prepared
    for this grant and through a report that NCDOT Business & Finance will
    produce quarterly. The grant required Quarterly Report submittal will
    also provide fiscal as well as programmatic/performance information. NC
    DOT will also hold contractors, if applicable, accountable for
    performance and achieving specific, measurable outcomes, including
    providing: a statement of work including outcomes; monthly or quarterly
    reports containing sufficient statistical data and narrative content to
    enable evaluation of both progress and problems; access to contractor
    records and the right to audit; a non-collusion certification; a
    requirement that contractors provide all information necessary to
    support progress payments if such are provided for in the contract; a
    clause for contractor termination; and nondiscrimination provisions
    required by Title VI of the Civil Rights Act of 1964 as set forth in
    FHWA Form PR-1273, and a statement of nondiscrimination in employment
    because of race, color, religion, age, national origin or sex. (The WG
    also proposes a formal independent evaluation of the program/s.)
                8. Expected Duration of the Project
        This HCWP project would be a two (2) year a new pilot program--
    complete with Working Group and targeted Needs Assessment--that will
    leverage, modify, and build upon some existing partner WD activity with
    new and/or increased involvement of the NCDOT. The two (2) new
    innovations for year one (1) are for NCDOT to implement a community
    colleges Highway Construction Trade Academy (HCTA) model, plus the
    addition of the Pre-/Apprenticeship components. This would all be based
    on the results of the comprehensive Needs Assessment. In year two (2),
    a stronger connection to the State's high school CTE programs--official
    career pathway and/or actual school-based HCTA--would also be a new
    initiative. The addition of a post-HCTA/pre-hire or OJT placement paid
    training allowance period would be another innovation under this grant
    activity.
                9. Schedule for Completion of Tasks
        There are two major, complex, and over-arching deliverables for
    this 2-year project. The first deliverable consists of a formal
    statewide HC industry and education gap assessment--for both near- and
    long-term contractor workforce needs. The second group of key
    deliverables will be the multiple training curricula and delivery
    models tailored to meet the contractors' workforce needs. This schedule
    assumes a late June 2021 grant ward.

    ------------------------------------------------------------------------

    ------------------------------------------------------------------------
    Implementation Calendar.................................................
    ------------------------------------------------------------------------
    July 2021.................................   Official grant
                                                 `kick-off'
                                                 Initiate hire of
                                                 the overall Program
                                                 Coordinator (PC)
                                                 Strategic tasks and
                                                 roles will be delineated
                                                 (MOUs/MOAs)
    ------------------------------------------------------------------------
    August-September 2021.....................   Contract researcher
                                                 to conduct various surveys
                                                 -Contractor workforce
                                                 training needs
                                                 -Community /Project
                                                 workforce survey
                                                 -Education & training
                                                 providers inventory
    ------------------------------------------------------------------------
    October-November 2021.....................   Collection,
                                                 analysis and report out of
                                                 surveys and other data
                                                 Explore Pre-/
                                                 Apprenticeship aspect to
                                                 OJT with community colleges
                                                 Sub-task: A new
                                                 training allowance and paid
                                                 work-based learning/co-op
                                                 experience for community-
                                                 based HCTA completers (4-6
                                                 weeks) considered for
                                                 implementation
    ------------------------------------------------------------------------
    December 2021.............................   Presentation of
                                                 initial survey findings and
                                                 begin working on a final
                                                 Workforce/Development Needs
                                                 Assessment Report
                                                 Sub-task: Begin
                                                 forging more formal
                                                 connections with NCWorks/
                                                 WIOA partners
                                                 Submit 2Q report
    ------------------------------------------------------------------------
    January 2022..............................   Final report
                                                 including recommendations
                                                 due by researcher
                                                 WG and contracted
                                                 consultant co-develop an
                                                 outreach, PR, marketing,
                                                 and recruitment message and
                                                 shared strategy for both
                                                 prospective participants,
                                                 contractors, and public
    ------------------------------------------------------------------------
    February-April 2022.......................   Finalize
                                                 development of training
                                                 curricula and programs
                                                 Begin recruitment,
                                                 also newly targeting
                                                 veterans
                                                 Submit 3Q report
    ------------------------------------------------------------------------
    May 2022..................................   NC Community
                                                 Colleges begin pilot
                                                 `Academy model' training to
                                                 initial program
                                                 participants including pre-/
                                                 apprenticeship aspect (*A
                                                 Federal grant application
                                                 process will be used to
                                                 `procure' these services
                                                 from the CCs via NCDOT's
                                                 OJT/SS funds.)
    ------------------------------------------------------------------------
    June-July 2022............................   Graduate first
                                                 cohort of Community College-
                                                 based Academy
                                                 Submit 4Q and 1st
                                                 annual performance reports
    ------------------------------------------------------------------------
    August 2022...............................   Placement and
                                                 employment activities for
                                                 1st cohort completers
                                                 Plan for fall
                                                 career events for middle
                                                 and high schools
    ------------------------------------------------------------------------
    Sept-October 2022.........................   Assess and evaluate
                                                 pilot CC-based HCTA
                                                 programs and results
                                                 Submit 1Q report
    ------------------------------------------------------------------------
    Nov-December 2022.........................   Launch 2nd cohort,
                                                 Community College- and/or
                                                 Special Population HCTAs
                                                 Submit 2Q report
                                                 Mid-term
                                                 independent evaluation
                                                 results due
    ------------------------------------------------------------------------
    Jan-Feb 2023..............................   Graduate and place/
                                                 employ 2nd cohort of
                                                 participants
    ------------------------------------------------------------------------
    March 2023................................   Submit 3Q report
    ------------------------------------------------------------------------
    April-May 2023............................   Conduct robust and
                                                 comprehensive joint
                                                 Construction Career Day
    ------------------------------------------------------------------------
    June 2023.................................   Submit 4Q and final
                                                 Annual (Two-Year) Reports
                                                 to FHWA
                                                 Final external
                                                 evaluation of overall
                                                 program due
    ------------------------------------------------------------------------

    E. Performance Measures
        NCDOT's OJT Department already has a plan and system in place for
    recording and reporting its programmatic outcomes to FHWA on a
    quarterly basis, including a description of the activity and
    accomplishments made, challenges or difficulties experienced/addressed,
    and activity/program plans for the next quarter. As applicable,
    quarterly reports for this grant will include the number of
    individuals--especially women, minorities, and disadvantaged:
        1.  who entered into a highway construction skill development/
    training program(s),
        2.  successfully completing the program(s) and/or achieving an
    applicable credential(s),
        3.  placed in highway construction jobs and/or advanced incumbent
    workers, and
        4.  work retained after 180 days.

        To this list, the WG would like to add the following: Number of
    program participants attaining a credential; Average wages; and Number
    of participants in pre-/apprenticeship programs. In addition, Costs and
    any Budget Revisions will be included as will qualitative metrics such
    as survey results, exit interviews, and worker tracking, but not
    limited to this data. Working Group members and other partners are
    committing to continual cycles of collaboration, training and placing/
    employing workers, and program/s evaluation.

                                     Measurable Performance Evidence Oversight Plan
    ----------------------------------------------------------------------------------------------------------------

    -----------------------------------------------------------------------------------------------------------------
    Objective 1: Conduct Needs Assessment
    ----------------------------------------------------------------------------------------------------------------
    Metrics: A) Jobs/skills Assessment; B) Training skills Assessment outreach plan
    Deliverables: Recruitment plan, Outreach materials, and Assessment tools.
    Evaluation: The information collected will help NCDOT and WG to determine which geographic areas and trades
     would benefit the most from HCTAs and Pre-/Apprenticeship training and job placement at the targeted NC highway
     projects.
    Responsible for information collection: NC Project Coordinator/Researcher
    ----------------------------------------------------------------------------------------------------------------
    Objective 2: Perform outreach, recruitment, placement, and case management
    ----------------------------------------------------------------------------------------------------------------
    Metrics: A) Recruitment activities; B) Number of applicants; C) # of placements.
    Deliverables: Recruitment plan, Outreach materials, and Assessment tools.
    Evaluation: The information collected will demonstrate the recruitment and marketing strategies used and
     determine efficiency and effectiveness. Number of qualified applicants will show demand for the program.
     Evaluation of applications and assessments can determine if the training collaborative collected the proper
     information on each participant.
    Responsible for information collection: NCWDBs; NCCCS; NCDOTOJT; CAGC Contractors
    ----------------------------------------------------------------------------------------------------------------
    Objective 3: Provide Education & Training
    ----------------------------------------------------------------------------------------------------------------
    Metrics: A) Number of enrollments; B) Number of graduates.
    Deliverables: Attendance records, Periodic progress reports, Class evaluations, Graduation/Completion
     certificates
    Evaluation: The PC will use attendance records supplied by other partners to track the number of enrolled
     participants. Weekly progress reports will track participant's success rates. Class evaluations will provide
     student feedback on course effectiveness. The PC will use this information to assist with program planning.
    Responsible for information collection: NCCCS; NCWDBs; NC OJT; CAGC/Contractors
    ----------------------------------------------------------------------------------------------------------------
    Objective 4: Ensure 100% employment within 6 months of graduation
    ----------------------------------------------------------------------------------------------------------------
    Metrics: A) Number of placements; B) Average wage at placement; C) Trade/employment data
    Deliverables: Copies of employment offer letters, emails, or timesheets
    Evaluation: Timesheets will prove employment in the industry.
    Responsible for information collection: NCWDBs; NCCS; CAGC/Contractors; NC OJT
    ----------------------------------------------------------------------------------------------------------------
    Objective 5: Provide employment supplemental services to program participants
    ----------------------------------------------------------------------------------------------------------------
    Metrics: A) Number of trainees needing assistance
    Deliverables: Proof of employment, job needs assessment, receipts
    Evaluation: Employment records will demonstrate actual employment. Needs assessments will demonstrate potential
     barriers the trainee faces. Receipts for purchases will show that financial assistance was provided to trainee.
    Responsible for information collection: NCOJT/Consultants; NCWDBs; NCCCS
    ----------------------------------------------------------------------------------------------------------------
    Objective 6: Provide post-graduation tracking of participants for Federal reporting and administrative purposes
    ----------------------------------------------------------------------------------------------------------------
    Metrics: A) Number Employed; B) Number in OJT; C) Number in Advanced Training (AdT); and D) Pre-/Apprenticeship
     status report
    Deliverables: Demonstrated progress as the trainee works through initial employment/OJT, AdT, and/or Pre-/
     Apprenticeship program
    Evaluation: Quarterly reports will demonstrate the participants are full-time and utilizing their newly acquired
     skills.
    Responsible for information collection: NCWDBs; NCCCS; NCOJT/Consultants; CAGC Contractors
    ----------------------------------------------------------------------------------------------------------------

      All Objectives: Responsible for analysis/report to FHWA: NC Project
                                  Coordinator

    F. Geographic Location, Target Groups, and Emphasis Areas
        NCDOT is divided into 14 highway divisions in three (3) regions.
    Factors considered when selecting the location of an NC highway
    construction trades academy are and will be:
        Active contract award in a county (region); Average project
    completion rate; Number of open projects; Tier rating of the county
    (region); Urban development factors/community develop initiatives; and
    Natural disasters impacting regional transportation needs.
        A formula is then used to calculate the number of Academy
    participants that have the potential to become employed in the
    location. Academies will also be placed in higher Tier (2 and 3)
    communities to address workforce issues or problems affecting qualified
    opportunity zones--usually pockets in more urban areas. The map below
    shows current and proposed HCTA sites.
    Project Map

                               NCDOT Division Map

        Target populations include women, minorities, and other
    disadvantaged groups. NCDOT defines disadvantaged populations as:
    Veterans; Homeless/Displaced; Unemployed; Justice challenged;
    Documented disability; and any Resident of a Tier 1 NC County. It is
    also expected that this project will launch the new community college-
    based HCTA and then OJT/Pre-apprenticeship program for job placement in
    collaboration with two NC tribal organizations and a Re-Entry model
    through NC Department of Public Safety/Corrections. The planned Needs
    Assessment will identify additional recruitment areas and other
    potential targeted demographic groups.
        While NC OJT/SS always targets non-traditional and under-
    represented populations, evidence from 2020 NCDOT OJT data indicates a
    need to recruit more minority females to all programs. In 2020,
    participants in all OJT activities were approximately 33% Black, 31%
    Hispanic, 30% White, and 6% Other; 76% Male, 24% Female; Average Age
    32; and 20% Tier 1 County Residents. While difficult to project, the WG
    believes that a total of 225 such participants will complete their
    program/s and be employed over this 2-year grant performance period.
    G. Final Deliverables
        NCDOT and the current WG members would like to share successes,
    program models, and best practices with others. To demonstrate
    outcomes, the WG already plans to present a break-out session during
    the annual statewide NCWorks Partnership Conference and explore the
    creation of an entity and/or membership conference or structured
    regional (Southeastern) peer exchange vehicle for national/State DOT
    OJT colleagues.
                Annual/Final Reports
        The NCDOT SHCWP Project Coordinator will be responsible for
    preparing an annual report upon the completion of each program year.
    The reports will include: Comprehensive account of program
    accomplishments; The number of individuals affected; Identified issues
    and implemented resolutions; Other items that impacted program
    performance and outcomes; Status of goal achievement; Recommendations
    for program improvements; and Quantitative and qualitative performance
    results and budget status detailing expenditures, and explanation of
    deviations. There will also be an Annual Budget Review and Program Plan
    submitted at the mid-point of the 2-year performance period.
        The second final detailed program report will be submitted to FHWA
    within 60 days after completion of the grant-funded project in
    accordance with the guidelines. In addition to updating the first-year
    report for 12 additional months, this final report will also include a
    section on lessons learned. NCDOT will also provide a summary of goals
    and measurements in the final report and will state whether the 2-year
    program met the established goals. Finally, there will be a separate
    evaluation completed by an independent external party of the entire 2-
    year program.
                Other Final Deliverables
        Additional final products and deliverables may include, but not be
    limited to: Needs assessment; Program SOPs; Program outlines/
    descriptions; Case studies; Curricula and class materials; Websites;
    Applications and/or software; Recruitment materials, flyers, and
    brochures; Pictures/videos; and/or other reports including the formal
    final evaluation.
        FHWA seeks the scalability of this and other programs. To that end,
    the NCDOT/WG will include in the final report a description of how the
    project can apply or scale to others along with recommendations. The
    final project deliverables will improve the state of the practice for
    workforce development within the highway construction industry in NC
    and hopefully other parts of the US.
    H. Cost Proposal
                Budget Proposal and Financial Requirements
        NCDOT requests $200,000 in total FHWA grant funding to meet all
    objectives. There are also estimated in-kind/matching contributions
    from various partners for each task. Please find the budget summary and
    narrative for these objectives below (related to 424 and 424A forms).
    [NOTE: The cost of training and supportive services at the 5 community
    college HCTAs will be covered by OJT/SS funds at $100K per. Funds will
    also be coupled with the Apprenticeship State Expansion Grant the NCCCS
    received from USDOL to expand registered apprenticeship to pay for the
    tuition, books, and fees--$3,000 per apprentice as long as there are
    funds available, and it is an approved program.]

       Task/Expense 1: Employ/Supervise/House FT Project Coordinator (Two
                                     Years)
    ------------------------------------------------------------------------
              Project Coord.                    NCDOT Budget Summary
    ------------------------------------------------------------------------
                                         FUNDING
                  ITEMS                  REQUESTS     IN-KIND     TOTAL COST
    ------------------------------------------------------------------------
    Personnel........................  $100,000.00  $19,000.00*  $119,000.00
                                      --------------------------------------
      Totals:........................     $100,000      $19,000     $119,000
    ------------------------------------------------------------------------
    Personnel: $100,000 (Grant); $11,000 Supervision/Hosting by OJT
     Management, $8,000 WG Partner Meetings (In-kind funds) NCHCWP Project
     Coordinator: The PC will administer the overall program, which includes
     an outreach plan review, recruitment efforts, community college HCTA
     pilots, program application review, federal reporting, and other
     program support, as needed. *Supervision/Occupancy (In-kind): NCDOT's
     estimated in-kind is $11,000 for management supervisory time and
     travel, office space and equipment/supplies (state funds) for 2 years.
     See Section C. B. Applicant on 424A. Partner members (public/private)
     contributing $8,000 worth of WG meeting time. See C. State and D. Other
     on 424A................................................................
    ------------------------------------------------------------------------

                Task/Expense 2: Conduct Needs Assessment (Year 1)
    ------------------------------------------------------------------------
             Needs Assessment                   NCDOT Budget Summary
    ------------------------------------------------------------------------
                                         FUNDING
                  ITEMS                  REQUESTS     IN-KIND    TOTAL COSTS
    ------------------------------------------------------------------------
    Contractual Research.............   $50,000.00  $10,000.00*   $60,000.00
                                      --------------------------------------
      Totals:........................      $50,000      $10,000      $60,000
    ------------------------------------------------------------------------
    Contractual: $50,000 (Grant); Coordination and Assistance: $10,000 (In-
     kind WG Members) As indicated above as well, NCDOT will contract a
     researcher to conduct a formal statewide ``Needs Assessment''. This
     process will determine local employment interests, contractors'
     workforce needs/gaps, and an environmental scan of existing or to-be-
     developed training and employment opportunities and potential
     participants. *Personnel (In-kind): NCDOT ($2500) and other partner
     staff (CAGC/members) will work with the consultant to identify focus
     areas and help provide select data for the `Needs Assessment' for a
     total $10,000 in-kind public/private match. See Section C. 424A........
    ------------------------------------------------------------------------

       Task/Expense 3: Develop/Launch Shared Marketing Message/Collateral
    ------------------------------------------------------------------------
                Marketing                       NCDOT Budget Summary
    ------------------------------------------------------------------------
                                         FUNDING
                  ITEMS                  REQUESTS     IN-KIND    TOTAL COSTS
    ------------------------------------------------------------------------
    Materials Development............   $10,000.00   $2,500.00*   $12,500.00
                                      --------------------------------------
      Totals:........................      $10,000       $2,500      $12,500
    ------------------------------------------------------------------------
    Contractual: $10,000 (Grant); Coordination and Assistance: $2,500 (In-
     kind WG Members) As described in D.5, the PC will work with a
     consultant and *all WG members to develop and launch an outreach and
     marketing program for both potential program participants and
     contractor employers as well. This will also be usable with the general
     public and parents.....................................................
    ------------------------------------------------------------------------

      Task/Expense 4: HCTA-based Skills Trainings, and Pre-/Apprenticeship
                                    Component
    ------------------------------------------------------------------------
             Skills Trainings                   NCDOT Budget Summary
    ------------------------------------------------------------------------
                                         FUNDING
                  ITEMS                  REQUESTS     IN-KIND    TOTAL COSTS
    ------------------------------------------------------------------------
    Course Development...............   $25,000.00  $10,000.00*      $35,000
    Apprentice Registration..........               $5,000.00**       $5,000
                                      --------------------------------------
      Totals:........................      $25,000      $15,000      $40,000
    ------------------------------------------------------------------------
    Curricula/Training Development: $25,000 (Grant); Coordination and
     Assistance: $15,000 (In-kind WG Members). Curricula and lesson plans to
     provide training based on results of the workforce Needs Assessment.
     *Additional In-Kind contributions will be from having OJT ($3,000) and
     WG members/contractors consulting with NCCCS ConEd course development
     staff to create the curriculum training based on the Needs Assessment
     for total $10,000. **A community college consultant will work with
     NCDOT/OJT to register the pre-apprentices and apprentices $5,000. See
     Section C. columns on 424A.............................................
    ------------------------------------------------------------------------

        Task/Expense 5: Develop and Conduct Evaluation of Program Results
    ------------------------------------------------------------------------
             Skills Trainings                   NCDOT Budget Summary
    ------------------------------------------------------------------------
                                         FUNDING
                  ITEMS                  REQUESTS     IN-KIND    TOTAL COSTS
    ------------------------------------------------------------------------
    Program Evaluation...............   $15,000.00   $2,500.00*   $17,500.00
                                      --------------------------------------
      Totals:........................      $15,000       $2,500      $17,500
    ------------------------------------------------------------------------
    Contractual Program Evaluation: $15,000 (Grant); Coordination and
     Assistance: $2,500 (In-kind WG) Independent researcher will conduct a
     formal program evaluation with *in-kind assistance from various WG
     members including individual contractors. See Section C. 424A..........
    ------------------------------------------------------------------------

        Questions from Hon. Peter A. DeFazio to Brent Booker, Secretary-
               Treasurer, North America's Building Trades Unions

        Question 1. The IIJA's historic funding levels are estimated by the
    Economic Policy Institute (EPI) to support over 772,000 jobs annually.
    The large boost in infrastructure investment under the IIJA will create
    thousands of new positions in the transportation construction sector
    over the next five years.
        Mr. Booker, how will the building trades unions meet the need for
    skilled construction workers as more infrastructure projects get
    underway and hiring demands increase?
        Answer. Mr. Chairman, we will meet the need for skilled
    construction workers the same way we have always met that need: by
    responding to market demand. Our affiliates, together with our
    contractor partners, operate 1,600 Registered Apprenticeship training
    centers in the United States that produce highly-skilled journey-level
    workers. The apprentices enrolled in those programs ``learn while you
    earn'' and also constitute part of our skilled workforce. In addition,
    our affiliates operate referral programs to provide our contractor
    partners with the skilled workers needed. Working with our contractor
    partners and project owners, our affiliates also continue to recruit
    workers for their Registered Apprenticeship programs by investing in
    Apprenticeship Readiness Programs to bring in more women, communities
    of color, veterans, and the justice involved. Our recruitment and
    referral efforts are predicated on the demand of the construction
    market, and what our contractors, as far as number of workers, need to
    complete a project.

        Question 2. In her written testimony Ms. Karst states that,
    ``government-mandated PLAs hurt both union and open-shop contractors.''
        What impact do PLAs have on the building trades unions' members?
        Answer. Mr. Chairman, the benefit of a PLA to workers is
    tremendous, whether they are members of building trades unions or not,
    as both union and non-union contractors bid on PLAs. A PLA creates a
    uniform and stable system of labor relations for a project. A PLA
    standardizes the terms and conditions of employment for everyone who
    works on the project, establishes various forums for communication and
    coordination, and prevents work stoppages with no-strike, no-lockout,
    and speedy dispute-resolution provisions. Furthermore, PLAs help create
    well-paying jobs and expand job opportunities for disadvantaged and
    marginalized communities. And PLAs often include provisions on
    apprenticeship and apprenticeship readiness programs that enable
    workers to ``earn while they learn'' and put them on the path to
    becoming highly skilled, six-figure earning construction workers.
    Apprenticeship readiness requirements in PLAs have helped thousands of
    women, people of color and veterans access career pathways in the
    construction industry. Furthermore, PLAs ensure pay equity, as the
    uniform terms apply to women and men alike on the job. A PLA ensures
    that a journey-level plumber, for example, earns the same wage
    irrespective of their gender, race, age, ethnicity, etc.
        Project owners also recognize the benefits of PLAs, which is why
    they have been used on private sector and public construction projects
    for almost 100 years. PLAs help meet deadlines by providing a steady
    supply of highly skilled labor, helping to ensure that large-scale
    projects are completed on time, with the highest degree of quality, and
    in a cost-effective manner. PLAs produce substantial direct and
    indirect cost savings, provide job stability, and promote productivity
    and greater efficiency. In fact, due to the use of a PLA, the Navy's
    multi-year effort to build a Second Explosive Handling Wharf at Naval
    Base Kitsap-Bangor in Washington state came in approximately $250
    million under budget.
        As far as the issue of government-mandated PLAs, within the context
    of the Infrastructure Investment and Jobs Act, there is unfortunately
    quite a bit of misinformation out there. Opponents of PLAs have tried
    to give the impression that the Biden Administration's Executive Order
    on PLAs is mandating their use on all the projects funded under the
    law. That is false. The Executive Order only applies to direct federal
    procurement, not federally assisted construction like that covered by
    the Infrastructure Investment and Jobs Act. The federal assistance
    provided under the infrastructure law, whether through formula funding,
    discretionary grants, loans, etc., is not subject to the Executive
    Order. Federal agencies can encourage PLAs use on such projects, but
    PLA use on such projects is not mandated under the Executive Order.

      Question from Hon. Henry C. ``Hank'' Johnson, Jr. to Brent Booker,
          Secretary-Treasurer, North America's Building Trades Unions

        Question 1. Too often, federal funding has experienced peaks and
    valleys depending on the party in power. The IIJA provides a historic
    level of funding for infrastructure, but agencies need consistent
    support to meet the enormous demands of maintaining our roads, bridges
    and sewers. Funding from IIJA will last years but not forever.
        How can we maximize workforce training and job creation to be
    immune from the variable funding going forward? Or at least ensure that
    the skills are transferable.
        Answer. Congressman Johnson, the best way to maximize workforce
    training and job creation, and to ensure skills are transferable, is to
    maximize the Registered Apprenticeship system. The building trades'
    Registered Apprenticeship system is comprised of 1,600 joint labor-
    management training centers across the United States, in practically
    every single Congressional district. Our programs are not dependent on
    federal funding to operate and continually train both apprentices and
    provide up-skill training to journey-level workers. This allows us to
    respond to the demands of the constructure market without being captive
    to the fluctuations in federal funding levels. However, that it not to
    say that core formula programs do not need a stable and long-term
    funding mechanism, because they absolutely do, and we hope Congress
    will provide that in the very near future.
        As far as the transferability of skills, once again, the best way
    to maximize that is to maximize the Registered Apprenticeship system.
    Our members' skills are transferable because our programs train for the
    breadth of a career in a craft. A member could be working on a transit
    or aviation project, and go from that project to an energy project, or
    a commercial construction project, or a port project. The benefits of
    the Registered Apprenticeship system ensure that workers are properly
    trained so that their skills are not only transferrable, but portable
    as well.

     Questions from Hon. Eddie Bernice Johnson to Brent Booker, Secretary-
               Treasurer, North America's Building Trades Unions

        Question 1. Mr. Booker, the training program you described sounds
    excellent. What is the process for getting into the program?
        Answer. Congresswoman Johnson, the process is fairly
    straightforward. A prospective construction apprentice does need to
    have some basic math skills to, for example, allow them to read
    blueprints. Other than that, they need to show up and be ready and
    willing to learn and work, and sign an apprenticeship agreement. In
    order for an apprenticeship position to become available and for our
    training centers to open their doors, we work with our contractor
    partners to determine their workforce needs, and train accordingly. We
    also work with community-based organizations around the country to
    establish well-defined pathways for their constituents into
    Apprenticeship Readiness Programs and ultimately into building trades
    Registered Apprenticeships.

        Question 2. Mr. Booker, Ms. Karst stated that Project Labor
    Agreements hurt union employees. Would you disagree with that?
        Answer. Congresswoman Johnson, I wholeheartedly disagree with that.
    The benefits to workers that are ensured by a PLA are numerous, and as
    someone who has negotiated PLAs, I can tell you that labor will not
    agree to provisions that hurt workers, period. It is hard to imagine
    how PLAs' assurance of uniform and stable labor relations that
    establish pay equity and fairness hurt workers.

        Question 3. Mr. Booker, there is a lack of skilled transportation
    construction workers for many projects today. What else could
    contractors and other transportation companies be doing to develop,
    train, and retain a skilled transportation workforce?
        Answer. Congresswoman Johnson, in our experience, the best way to
    develop and train a skilled workforce is through the Registered
    Apprenticeship system. In our experience, the best way to retain a
    skilled workforce is to treat workers with the dignity and respect that
    they deserve by paying them good wages, with good benefits such as
    healthcare and retirement, so that they can provide for themselves and
    their families and make them want to show up and take pride in their
    work. It has been argued that the United States has a skills gap, but
    we would argue that we in fact have a pay gap, where too many are not
    willing to compensate workers to the extent that the job they are
    trying to fill is an attractive career option.

        Questions from Hon. Mark DeSaulnier to Brent Booker, Secretary-
               Treasurer, North America's Building Trades Unions

        Question 1. As you know, the country has already begun a transition
    away from fossil fuels in response to the climate crisis and the
    transition will only accelerate. While prioritizing that transition,
    however, we must ensure that we provide support to those workers who
    are at risk of being displaced and provide them with opportunities for
    meaningful work that offers the same standard of living. I have
    authored legislation aimed at tackling this challenging problem with a
    multifaceted approach, but the whole transition will require a lot of
    planning and support.
        How are the Building Trades planning and preparing for this
    eventuality and what can Congress do to assist your efforts?
        Answer. Congressman DeSaulnier, because the building trades'
    Registered Apprenticeship programs train for the breadth of a career in
    an individual craft, our members are prepared to build every type of
    energy project, and at this moment we are particularly focused on
    offshore wind, which holds tremendous promise not just for renewable
    energy, but for job creation with good wages and benefits, and could
    open doors of opportunity to many of those who have been left out.
        I would say that the single greatest thing that the Congress could
    do to ensure building trades members view the transition as a lateral
    move rather than a step down is to ensure that any and all types of
    federal assistance, whether it is through grants, loans, or tax
    credits, which provide funding for renewable and cleaner energy
    projects, have strong labor standards. The type of standards that we
    see throughout surface transportation programs for instance, like
    strong Davis-Bacon prevailing wage and Buy America provisions, must be
    included in cleaner energy projects. Furthermore, Congress can ensure
    that projects that receive federal assistance utilize registered
    apprentices, which will guarantee proper training opportunities to
    ensure that a new generation of highly skilled construction workers is
    trained on all projects, including cleaner energy projects.

        Question 2. The Infrastructure Investment and Jobs Act made
    historic investments in electric vehicle charging stations. In order to
    see the full value of these investments, however, we must ensure that
    we have the workforce trained to do the work.
        What efforts are currently underway to support the unionized
    workforce to be able to step in and install EV chargers at the rate
    that will be needed?
        Answer. Congressman DeSaulnier, because we train for the breadth of
    a career, building trades members are already prepared to build this
    infrastructure. Our affiliates and their contractor partners are
    already training on this technology. The level at which we can build EV
    charging projects will be determined by how successful our contractor
    partners are in winning bids to build that infrastructure. With our
    training programs, I am confident that our members will be the ones
    building EV charging stations.

        Questions from Hon. Jake Auchincloss to Brent Booker, Secretary-
               Treasurer, North America's Building Trades Unions

        Question 1. This [https://www.hbs.edu/managing-the-future-of-work/
    Documents/research/hiddenworkers09032021.pdf] Harvard report highlights
    the disparity between individuals eager to find full-time employment
    but are often overlooked by employers when they do not meet specific
    hiring criteria.
        1.a.  In your testimony, you mention apprenticeship training
    programs that allow individuals to get paid while they gain the on-the-
    job experience necessary to secure a full-time position. Can you
    explain the pay and benefits apprentices receive during their training?
        Answer. Congressman Auchincloss, first and foremost, apprentices do
    not pay tuition for their world-class training. Second, apprentices
    typically receive a percentage of journey-level pay depending upon
    their level in the Registered Apprenticeship program. For example, an
    apprentice in their final year of training may receive 90% of journey-
    level pay, while a starting apprenticeship may receive 50% or 60% of
    journey-level pay. There is no standard formula, but what is uniform is
    that apprentices enrolled in our Registered Apprenticeship programs
    receive a graduated pay scale so that prospective apprentices know from
    day one what they will be paid and when they will see pay increases. It
    is transparent, allowing someone who is looking to enter the
    construction trades to make an informed decision on whether or not to
    enter the program. As we have seen an average of 75,000 new apprentices
    per year for the last five years, we are confident that more and more
    individuals view the construction trades as a good career option.

        1.b.  How can apprenticeship programs connect hidden workers with
    meaningful employment?
        Answer. Congressman Auchincloss, our Apprenticeship Readiness
    Programs have articulation agreements with one or more of our
    Registered Apprenticeship programs. This allows for those who go
    through Apprenticeship Readiness to transition to Registered
    Apprenticeship more easily. As I stated in my testimony, we utilize
    Apprenticeship Readiness to bring in more women, communities of color,
    the justice involved and veterans into our programs. These can also be
    utilized by hidden workers, who may be trying to find a career path
    that offers them more stable employment and who aren't quite sure which
    career path may be best suited for them. As far as our Registered
    Apprenticeship programs, I can confidently say that those who are
    looking for a stable, secure pathway to a long-term, middle-class
    career can join one of our programs, and receive good wages and
    benefits from day one. And since our unions, in conjunction with our
    contractors, fund these programs privately, someone wishing to enter
    into the construction trades can do so with the confidence that they
    will not be burdened with debt.

     Questions from Hon. Peter A. DeFazio to Kari J. Karst, President and
      Chief Executive Officer, BX Civil & Construction, on behalf of the
                   Associated General Contractors of America

        Question 1. Ms. Karst, your written testimony states that
    ``recently, the U.S. Department of Transportation has signaled a desire
    to impose preferences for projects that include local hire
    requirements.'' However, the statutory authority provided by the IIJA
    clearly stipulates that a project's sponsor may utilize local labor
    hiring preferences if they want to, but there's no preference or
    requirement for their use.
        Do you oppose state and local governments having the flexibility to
    require contractors to ensure that a portion of their workforce on a
    construction project be hired from the community where the project is
    being built? Why or why not?
        Answer. We share the goal of seeing more people--particularly from
    disadvantaged areas--enter the middle class via high paid construction
    careers. Our members are desperate to hire workers and would love to
    hire local employees where they do business. On a construction site,
    our number one job is to maintain safety. So these requirements must
    have flexibility to not only ensure that their current workforce, union
    or non-union, is not displaced but also ensure that the safety of all
    workers is not jeopardized because these hires lack the proper training
    and experience.
        Unfortunately, too many communities have defunded their career and
    technical education programs and as a result there are often too few
    local workers with any interest in construction careers or basic skills
    that would make them qualified to hire.
        Local hire programs let communities off the hook for failing to
    provide sufficient career and technical education options to meet
    employer needs. As a result, we have seen some local hire programs,
    where 80 percent of people hired from local communities that are hired
    choose to leave the job before the project is even finished. Local hire
    programs solve a symptom and not a problem.

     Questions from Hon. Henry C. ``Hank'' Johnson, Jr. to Kari J. Karst,
      President and Chief Executive Officer, BX Civil & Construction, on
            behalf of the Associated General Contractors of America

        Question 1. Black Americans continue to struggle with unemployment
    at unacceptable levels--currently [https://fred.stlouisfed.org/series/
    LNS14000006], it's at 6.2 percent. Although that's an improvement from
    an obscene 16.6% unemployment in May 2021, we can all agree there is
    always room for improvement.
        1.a.  What have been the largest factors in preventing Black
    Americans from joining the construction workforce?
        Answer. Attracting a more diverse workforce continues to be a
    priority for the construction industry. The Culture of CARE is an
    initiative created in partnership between the Associated General
    Contractors of America (AGC) and the AGC of Washington to advance the
    construction industry as the industry of choice for diverse and
    talented workers by building inclusive work environments in
    construction firms nationwide.
        To foster an environment that will attract a more diverse
    workforce, AGC of America is asking construction industry leaders to
    make a public commitment to building diverse and inclusive workplaces
    by taking the Culture of CARE pledge. The Culture of CARE pledge has
    four pillars:
          Commit to hire and pay based on skill and experience,
    regardless of ability, age, ethnicity, gender identity, nationality,
    race, religion, sex or sexual orientation;
          Attract prospective employees, suppliers and
    subcontractors by creating inclusive workplaces that are free from
    harassment, hazing and bullying;
          Retain high-performing employees by identifying and
    removing barriers to advancement; and
          Empower every individual to promote a culture of
    diversity and inclusion

        Culture of CARE helps companies be more proactive and intentional
    about creating a culture where every employee feels valued, safe, and
    welcomed by providing resources to address common diversity- and
    inclusion-related challenges in the construction industry. Resources
    include sample HR policies, toolbox talks on mental health and suicide
    prevention, racism, sexism, and creating a Culture of CARE; and a
    company assessment to help companies establish benchmarks and measure
    progress related to diversity and inclusion efforts.
        To date, more than 700 companies have taken the Culture of CARE
    pledge, including AGC of America and 35 AGC chapters, other national
    industry associations, and unions.

        1.b.  How can job creation and workforce development programs
    elevate Black Americans and those of color, who even now face unequal
    opportunities in the workforce?
        Answer. Attracting a more diverse workforce continues to be a
    priority for the construction industry. AGC fully embraces diversity
    within its membership. People of diverse backgrounds, opinions,
    perspectives, experiences, and ideas bring creativity and vitality that
    maximizes member engagement at all levels of the association. Fostering
    an environment that is welcoming and inclusive to all individuals is
    essential to achieving our mission and places our members in a position
    to contribute to the industry's future success.
        In addition to the Culture of Care program, designed to make sure
    construction firms and project sites are more welcome and inclusive,
    AGC of America also launched a nationwide digital advertising campaign
    to recruit more people--especially more diverse individuals--into the
    profession.

        Question 2. For decades, Georgia has suffered from a systemic lack
    of infrastructure investment. There are 374 bridges and more than 2,260
    miles of highway in poor condition in GA, including Houston Mill Road
    over S Fork Peachtree Creek which has been found to be structurally
    deficient. In fact, Georgia received a grade of C- from the American
    Society of Civil Engineers on its infrastructure report card. That's
    abominable.
        If funding is continued to be provided for American infrastructure,
    like it has been in IIJA, do you feel we can overcome the worker
    shortages and create the A+ infrastructure that our great nation
    deserves?
        Answer. The Infrastructure Investment and Jobs Act represents the
    most historic investment in the future of our industry since the
    creation of the interstate highway system. And most importantly, it
    demonstrates to our existing and future workforce that there is
    sustainable work in the years to come.
        The construction industry continues to face workforce shortages due
    to expected craft worker retirements, growth in other sectors, and
    challenges to recruiting and training new workers into the industry.
    Meanwhile, construction demand and activity continue to grow.
        Prioritizing the selection of projects based on labor preferences
    and the mandate on project labor agreements through executive order
    paper over the real problems facing the construction workforce and miss
    the mark. These policies will neither attract nor prepare workers for a
    long-term career in construction. They attempt to treat the symptoms--
    not the root causes--of workforce shortages.
        Making reforms to higher education policy by making high-quality,
    shorter-term education and training programs eligible for federal Pell
    Grants would help reverse the skills gap, correct education funding
    inequities, and provide job training and credentialing opportunities
    that are in high demand. The bipartisan JOBS Act, or H.R. 2037, is one
    legislative initiative that could help make a tangible impact on this
    problem.

     Question from Hon. Eddie Bernice Johnson to Kari J. Karst, President
    and Chief Executive Officer, BX Civil & Construction, on behalf of the
                   Associated General Contractors of America

        Question 1. Ms. Karst, Mr. Booker testified that his organization
    has trained over 80,000 transportation workers.
        Can you go into more detail about what specifically the Associated
    General Contractors of America are doing to develop and train new
    transportation workers?
        Answer. Through our network of 89 state and local chapters, AGC of
    America supports workforce training programs. Here in South Dakota, our
    AGC chapter has three Federally Registered Apprenticeship programs that
    allow our workers to achieve journey level certification in Carpentry,
    Concrete Finishing & Heavy Equipment Operation.
        Our South Dakota Chapters also focus heavily on attracting the next
    generation of construction workers through Construction Career Camps
    which focus on exposing students to the opportunities in our industry
    during their middle and high school years. In the last year, we will
    have exposed over 600 students through our traditional camps all across
    the state of South Dakota. We also have a special camp called Pizza,
    Pop & Power Tools that focuses on 8th grade girls. These girls are
    given a hands-on experience in equipment operation, carpentry, welding,
    finishing concrete and using power tools. When we complete our Pizza,
    Pop & Power Tools camps by the middle of April, we will have impacted
    close to 300 8th grade girls in South Dakota.
        Our innovative Construction Career Academy allows 16- to 18-year-
    old students to earn and learn during the summer months. The students
    are matched with one of our member employers who pay them to attend
    classes and work under supervision on our jobsites. These students can
    apply their experience to our Youth Apprenticeship Program and
    eventually move on to one of our Federally Registered Apprenticeship
    programs.

        Question from Hon. Peter A. DeFazio to Kelly Kupcak, Executive
     Director, Oregon Tradeswomen, on behalf of the National Taskforce on
                              Tradeswomen's Issues

        Question 1. The IIJA's historic funding levels are estimated by the
    Economic Policy Institute (EPI) to support over 772,000 jobs annually.
    The large boost in infrastructure investment under the IIJA will create
    thousands of new positions in the transportation construction sector
    over the next five years.
        Ms. Kupcak, what can Congress do to ensure women and minority
    workers have equal access to these opportunities?
        Answer. Thank you, Chair DeFazio for your question. The experience
    of the state of Oregon and other regions where real progress has been
    made in increasing gender and racial diversity in nontraditional
    occupations teaches that generating change requires resources,
    technical advice, clearly stated goals and expectations, and regular
    monitoring and enforcement \1\. Oregon Tradeswomen and the National
    Taskforce on Tradeswomen Issues recommend that infrastructure and
    related funds disbursed to states include clear set-asides for
    workforce development, including for support services such as childcare
    and transportation stipends, as well as for enforcement and oversight
    as have seen such investments result in retention of workers, and
    economic mobility for themselves and their families.
    ---------------------------------------------------------------------------
        \1\ See Report on the Use of Federal Funds to Increase Diversity
    and Prepare those Entering the Highway Construction Workforce (ORS
    184.866), Oregon Department of Transportation (2020). https://
    www.oregon.gov/odot/About/GR/
    Highway%20Construction%20Workforce%20Development
    %20Report.pdf ; and Untapped Resources, Untapped Labor Pool: Using
    Federal Highway Funds to Prepare Women for Careers in Construction by
    Ariane Hegewisch, Jane Henrici, Elyse Shaw; Thomas Hooper (2014).
    Boston, MA: Jobs For the Future https://www.jff.org/resources/untapped-
    resources-untapped-labor-pool-using-federal-highway-funds-prepare-women
    ---------------------------------------------------------------------------
        Through our work at Oregon Tradeswomen, and through the National
    Taskforce on Tradeswomen's Issues, we have seen firsthand the
    challenges of tackling the intersectional nature of barriers to
    economic security, particularly for women of color. Improving gender
    diversity in such fields has two main components: improving the supply
    of women by providing quality job training without the burden of debt,
    gender-equitable workforce development programs, such as registered
    apprenticeships and pre-apprenticeship training programs, and programs
    that help expand pathways for women to enter or re-enter non-
    traditional occupations and skilled trades careers. Such job-training
    efforts must be coupled with public policy that includes such
    strategies as creating the demand for women by setting ambitious
    workforce goals, monitoring progress, and enforcing compliance, and
    providing technical advice and building capacity among contractors,
    employers, and other industry stakeholders.
        Because of its oversight role, this Subcommittee has a critical
    role to play to ensure that workforce development and job creation not
    only meet industry demand for a skilled workforce but invest in an
    equity framework for all Americans. To that end, Oregon Tradeswomen and
    the National Taskforce on Tradeswomen's Issues respectfully ask that
    this Subcommittee conduct robust oversight of the design and delivery
    of the infrastructure investments by both the federal and the state
    DOTs to ensure that they not only meet industry demand for a skilled
    workforce but invest in an equity framework for all Americans.
        We recommend a number of specific measures like those described in
    the March 25, 2022, Multimodal Project NOFO that state DOTs should
    require of construction contractors for projects funded by IIJA where
    the total project cost exceeds $10 million state DOTs should adopt to
    prioritize equity for women and people of color in the surface-
    transportation workforce:
        1.  Nondiscrimination and affirmative action. First and foremost,
    state DOTs should make sure that contractors implement the affirmative
    action requirements, including the specific numeric goals for minority
    and female participation and the 16 minimum steps, which apply to
    federally assisted construction contracts.
        2.  Supportive services. State DOTs should require each project's
    General Contractor to spend at least one-half of one percent (0.5%) of
    the overall project budget on supportive services for project workers
    to maximize opportunities for women and people of color. The supportive
    services eligible for funding under this requirement should be pre-
    apprenticeship; childcare; tools; workwear; retention services
    (including support groups, mentoring, and peer networking); and
    application fees and other costs of entering registered apprenticeship
    programs and required pre-employment training.
        3.  Respectful worksites. State DOTs should require each project's
    General Contractor to adopt workplace anti-harassment policies and to
    provide effective, on-going respectful-workplace training accompanied
    by a social campaign designed to create inclusive and diverse work
    sites for all the employees working on the project.
        4.  Transparency. State DOTS should require each project's General
    Contractor to report the participation rates for women, minorities, and
    apprentices working on the project, alongside the applicable goals, to
    the public on an accessible online site, to Office of Federal Contract
    Compliance Programs (OFCCP) in DOL, and to the state DOT; and to update
    those reports twice per month.
        5.  Community engagement. (a) State DOTs should convene a meeting
    of representatives of community-based organizations and the labor
    unions that will represent workers on each project as the bid
    solicitation conditions are being developed; and (b) Once the contract
    is awarded, state DOTs should require each project's General Contractor
    to convene meetings with a committee that includes the state DOT,
    community-based organizations, relevant labor unions, relevant
    government officials, and the subcontractors on the project at least
    monthly, beginning at least 90 days before any hiring for the project
    begins, and to require subcontractors' participation in these meetings
    in their contracts. The purpose of these community meetings is to
    review the General Contractor's and subcontractors' implementation of
    the equity requirements, to provide the committee members with
    necessary records, and to brainstorm solutions to challenges
    encountered in implementing the equity requirements. The General
    Contractor should also be required to provide an OFCCP representative,
    a representative of the state DOT, and an ombudsperson from the
    community committee with direct access to the work site to monitor
    conditions, provide support and assistance, and mediate issues.
        6.  Robust oversight. State DOTs should require the General
    Contractor and subcontractors to consent to twice-monthly compliance
    reviews by OFCCP and to participate in OFCCP's ``Mega Construction
    Project'' program.
        7.  Sanctions. State DOTs should require the General Contractor and
    subcontractors to agree to the sanctions in addition to those already
    available under law if the state DOT or OFCCP finds that the General
    Contractor or subcontractor is not in compliance with these
    requirements. These additional sanctions include mandatory suspension
    of progress payments until such time as the contractor comes into
    compliance; a discretionary civil penalty of up to $14,502 per
    violation and $145,027 per day for failure to comply after the
    effective date of an administrative order or OFCCP compliance
    agreement; and compensatory and where warranted under current legal
    standards, punitive damages if such noncompliance results in monetary
    harm to an individual or class of individuals because of unlawful
    discrimination.
        8.  Flow-down applicability. State DOTs should require the General
    Contractor and the subcontractors working on the project to include
    these requirements in all their subcontracts.
        9.  Administrative expenses. State DOTS should require that the
    General Contractor dedicate at least one-half of one percent (.5%) of
    the overall project budget to the administrative expenses of
    implementing these requirements.
        10.  Apprentice utilization minima. State DOTs should require that
    the General Contractor and subcontractors together employ registered
    apprentices for a minimum of twenty percent (20%) of hours worked on
    the project, by trade.

      Question from Hon. Henry C. ``Hank'' Johnson, Jr. to Kelly Kupcak,
       Executive Director, Oregon Tradeswomen, on behalf of the National
                       Taskforce on Tradeswomen's Issues

        Question 1. As of January 2022 [https://www.shrm.org/
    resourcesandtools/hr-
    topics/behavioral-competencies/global-and-cultural-effectiveness/pages/
    over-1-million-
    fewer-women-in-labor-
    force.aspx#::text=Millions%20of%20women%20left%20the,
    this%20trend%20isn't%20new.], 1.8 million fewer women are employed
    since February 2020. Poverty, childcare, and a lack of paid leave
    directly impact an individual's ability to participate in the work
    force--especially our nation's women. If you can't afford gas to get to
    a job site, you can't work. If you can't find someone to watch your
    kids while you are away, you can't work. If you can't take time off
    when a need arises, you can't work.
        How can we ensure that workforce development programs don't just
    create jobs but careers--with quality pay and benefits that allow women
    to fully engage in the labor market?
        Answer. Thank you, Congressman Johnson, for your question. In the
    work we do at Oregon Tradeswomen, as well as our sister tradeswomen
    organizations across the country, in advocating for access, equity, and
    opportunity in blue-collar careers is a tangible, cost-effective, and
    proven anti-poverty strategy for women. The women we serve are in fact,
    largely very low-income, often with significant barriers to employment,
    and through the pre-apprenticeship training model we implement, which
    includes support services such as childcare, transportation assistance,
    housing stabilization and other services, are how we help move women go
    to work in careers that move them and their families from poverty to
    prosperity.
        For example, in Oregon Tradeswomen's 192-hour pre-apprenticeship
    training program, which is certified by Oregon Bureau of Labor and
    Industries Apprenticeship and Training Division, our placement rate
    averages at 87 percent, with the last two cohorts being 100 percent
    industry placement, with average starting wage of $22.81 an hour--
    significantly higher than Oregon's minimum wage. That wage increases
    regularly, when women complete our program and move up and complete
    their registered apprenticeship programs, and when programs with
    quality standards, such as union programs and employers, those wages
    include critical benefits such as healthcare and a pension. Through our
    retention services program, we work closely with tradeswomen after
    industry placement to ensure that they complete their 2, 3, 4, or 5-
    year registered apprenticeship programs where they continue to achieve
    additional skills training and guaranteed wage increases.
        We know that it is critical to ensure that women in Oregon and
    across our country are able to care for themselves and their families,
    and that having access to high-wage, high-skilled employment
    opportunities as those in the transportation and construction
    industries, as women are the ones who continues to struggle most to
    meet basic needs. In their 2021 report, Overlooked & Undercounted:
    Struggling to Make Ends Meet in Oregon, authors Annie Kucklick & Lisa
    Manzer of the Center for Women's Welfare at the University of
    Washington School of Social Work remind us of just how economically
    fragile many households in Oregon are--where Oregon Tradeswomen is
    working to change that through helping women move into high-wage,
    skilled blue-collar careers.
        As an example, in East Multnomah County, where Oregon Tradeswomen
    is headquartered, 35% of households experience income inadequacy,
    noting that in Oregon, 49% of Black households, and 41% of Latinx
    households lack sufficient income and struggle to meet their basic
    needs. The data for women is even more stark. Households headed by
    women have higher rates of income insufficiency when compared to
    households headed by men, and further, households with children are at
    a greater risk of not meeting their basic needs, accounting for close
    to half of households with inadequate income. Part of these equation is
    due to the higher costs associated with children, such as childcare,
    where Oregon is third in the nation for highest costs.
        Lastly, I am compelled to share how significant the income
    inadequacy for women across Oregon is impacting our ability to care for
    our families. Households headed by women are disproportionately below
    the Self-Sufficiency Standard and their concentration in low-wage
    occupations with high pandemic unemployment rates places this group at
    risk of further economic marginalization. The combination of being a
    woman, a single mother, and a person of color results in the highest
    levels of income inadequacy. These rates are particularly high for
    single mothers of color: 92% of Black and 65% of Latina lack adequate
    income--compared to 55% of white single mothers. Please let that sink
    in--92% of Black single mothers and 65% of Latina single mothers lack
    adequate income to care for their families. We know this is
    unacceptable, untenable, and must change for us to truly make equity
    more than a value, but a living way in which we make change.
        Programs like ours at Oregon Tradeswomen and other pre-
    apprenticeship training programs across Oregon, work deeply with both
    our Workforce Investment Boards and BOLI Apprenticeship and Training
    Division, as they bring critical leverage and coordination, and support
    our programs with technical assistance to ensure jobseekers have the
    supports they need, including the critical wrap around support services
    as outlined in the recommendations put to this committee by the
    National Taskforce on Tradeswomen Issues. At Oregon Tradeswomen, and in
    the Taskforce, we have seen first-hand how critical it is to serve
    jobseekers in a holistic way that not only includes quality job-
    training and education, but support services to ensure any barriers to
    full employment and successful careers are addressed, and retention
    services which keep them in those high-wage careers.
        Quality pre-apprenticeship training programs, such as those that
    meet robust industry standards, and as outlined by the U.S. Department
    of Labor in the Training and Employment Notice 13-12, published in
    November 2012 which includes clear guidelines for supporting
    jobseekers, and specifically those historically marginalized and
    underrepresented in high-wage careers, such as women, people of color,
    for supporting long-term career pathways, not simply a short-term job.
        The key strategies included in the guidance for developing and
    executing a quality pre-apprenticeship training framework are outlined
    in TEN 13-12, and were gleaned from national data and evidence-based
    outcomes from such programs as those administered by North American's
    Building Trades Unions partners delivering the Multi-Craft Core
    Curriculum, Oregon Tradeswomen, ANEW, Chicago Women in Trades, Building
    Pathways Boston, Mississippi Women in Construction, Vermont Works for
    Women, Women in Nontraditional Employment Roles (WINTER),
    Nontraditional Employment for Women (NEW-NYC) and others--many of which
    have been are currently are U.S. Department of Labor WANTO (Women in
    Apprenticeship and Nontraditional Occupations) grantees.
        These strategies include:
          Approved/industry informed quality training and
    curriculum that is aligned with employer skills needs and registered
    apprenticeship requirements
          Employability and employment readiness training (``soft
    skills'')
          Career exploration, coaching, placement services and
    retention services post industry placement
          Long-term services and industry partnerships which
    prioritize under-served populations and jobseekers
          Access to appropriate support services (such as
    transportation, childcare, housing stabilization, etc.) and wrap-around
    services both during enrollment in pre-apprenticeship training, post
    placement, and early-term registered apprenticeship
          Strong linkages to registered apprenticeship, including
    committed leveraged resources, deep engagement and significant
    percentage of referrals accepted through facilitated entry or
    articulation
          Meaningful industry hands-on experience which does not
    displace apprentices or employees
          Industry recognized credential that is portable and
    stackable

        These strategies are also highlighted in the 2018 U.S. Department
    of Labor report, ``Pre-Apprenticeship: Pathways for Women into High-
    wage Careers A Guide for Community-Based Organizations and Workforce
    Providers'' and focus on pre-apprenticeship as a best practice model
    designed to prepare individuals to enter and succeed in a Registered
    Apprenticeship program. A pre-apprenticeship program, by definition,
    has a documented partnership with at least one Registered
    Apprenticeship program.
        Quality pre-apprenticeship programs are a starting point toward a
    successful career path for under-represented jobseekers such as women
    and people of color, as well as individuals with disabilities, formerly
    incarcerated persons, and others who may not be aware of this approach
    to obtain good jobs with opportunities for advancement. The pre-
    apprenticeships model for skilled trades, including transportation,
    construction, and manufacturing have proven outcomes in helping
    unemployed, under-employed, and low-skilled, low-wage earners enter and
    succeed in highly skilled, high-wage careers--a fundamental anti-
    poverty strategy for our nation's workforce. These careers provide
    quality benefits and high, family-sustaining rates of pay--and we have
    seen, as have our colleagues as demonstrated by WANTO grantees, that
    the model of quality pre-apprenticeship does in fact lead to much more
    than a job, but a lifelong career.

      Question from Hon. Eddie Bernice Johnson to Kelly Kupcak, Executive
     Director, Oregon Tradeswomen, on behalf of the National Taskforce on
                              Tradeswomen's Issues

        Question 1. Ms. Kupcak, I'm pleased that there are organizations
    like yours advocating for women in the transportation industry.
        Could you discuss what more you think contractors could do to make
    the industry more appealing to women? Also, what could Congress do to
    help you accomplish your mission?
        Answer. Thank you, Congresswoman Johnson, for your questions. As
    many Subcommittee members may know, women remain severely
    underrepresented in the construction and transportation sectors--fields
    that provide good wages, benefits, and opportunities for a life-long
    career. Without intentional efforts to improve and support access to
    such publicly funded jobs, women, particularly women of color, are
    unlikely to benefit from these historic levels of investment. Beyond
    sound public policy, advocates and practitioners like Oregon
    Tradeswomen, our sister tradeswomen organizations, and industry allies
    know that industry employers are key to creating workplaces that are
    welcoming to all workers, including women, and through quality
    workplaces--ones that prioritize health, safety, and respectful
    workplaces--a key to worker retention.
        With continued labor shortage challenges identified by industry
    employers, the time to reach untapped jobseekers to become part of a
    skilled, qualified, and highly trained workforce is upon us. According
    to the 2020 report, ``New Plan to Address Growing Construction
    Workforce Shortages'', the Associated General Contractors of America
    (AGC) and Autodesk nationwide survey of industry employers indicated
    that eighty percent (80%) of construction firms reported they were
    having a challenging time finding workers.\2\ With the industry's
    current workforce aging, and retiring, at a rapid pace and a lack of
    young workers interested in entering the skilled trades, the impact of
    construction workforce shortages, according to the survey, is that it
    takes longer and costs more to build many types of projects. Workforce
    shortages run the risk of undermining broader economic growth by making
    private- and public-sector development projects--including
    infrastructure--more expensive and time-consuming.
    ---------------------------------------------------------------------------
        \2\ Associated General Contractors of America and Autodesk, ``The
    Workforce Development Plan 2.0: AGC of America's New Plan toAddress
    Growing Construction Workforce Shortages,'' 2019
    ---------------------------------------------------------------------------
        However, there is significant research which has shown that women,
    and particularly women of color, face discrimination in hiring and
    long-term employment and experience high rates of sexual and racial/
    ethnic harassment and gender bias on the job. As a result, they are
    less likely to be retained on core crews, promoted to field leadership
    positions or to receive the same on-the-job technical training as men,
    and they do not complete their apprenticeships at the same rates as
    their male counterparts.\3\
    ---------------------------------------------------------------------------
        \3\ Sarah Burd-Sharps, Kristen Lewis, and Maura Kelly, ``Building a
    More Diverse Skilled Workforce in the Highway Trades: Are Oregon's
    Current Efforts Working?'' 2021
    ---------------------------------------------------------------------------
        Oregon Tradeswomen and the National Taskforce on Tradeswomen's
    Issues strongly support the strategic priorities and equity framework
    outlined in the recent Memorandum of Understanding between the U.S.
    Departments of Transportation and Labor, as well as inclusion of
    priority considerations around strong labor standards, workforce
    training programs that bring more underrepresented populations into
    infrastructure jobs, and changes in hiring policies to hire and retain
    more underrepresented populations.
        When tradeswomen have access to sustainable careers, which includes
    equitable work hours, workplace policies that support work/family
    balance, comprehensive on-the-job training and freedom from sexual and
    racial harassment, the broader industry benefits from this
    underutilized portion of demographic in the skilled trades workforce.
        We would also encourage contractors to do the following, simple,
    cost-effective, and proven activities that support recruitment and
    retention of women in the industry:
          conduct a marketing campaign aimed at women featuring
    successful women tradesworkers--this not only can increase the number
    of women being recruited into the industry but starts to ``normalize''
    jobsites with representation from all workers--not just men.
          Provide clean, sanitary, and locked toilets.
          Provide a private, clean, sanitary space for
    breastfeeding women and a place to safely store breastmilk.
          Provide adequate break periods for pumping.
          Make standard practice to accommodate for women's care
    responsibilities.
          Engage in a respectful worksite training program and
    approach jobsite harassment, hazing, and bullying not as a ``women's
    issue,'' but a health and safety issue for the industry
          Have and use a robust zero tolerance policy for jobsite
    harassment
          Ensure on-the-job-training and mentoring are part of your
    leadership development and training program
          Help women become qualified for leadership positions and
    then put them there

        In addition, we suggest the following:
          Provide the aforementioned strategies as informational
    posters, pamphlets, or make available on the U.S. DOL and U.S. DOT
    website, including on the page pertaining to FHWA OJT-Support Services
    page
          Convene round tables of contractors who have significant
    success in incorporating female tradesworkers into their workforce
    together with contractors who are still underutilized for women to have
    them learn from the best practices of successful contractors.

        Congress can continue to make changes to help women enter and
    succeed in skilled transportation and highway construction careers
    through implementing the policy recommendations that have been outlined
    by the National Taskforce on Tradeswomen Issues that have been
    previously provided and are reiterated below:
        1.  Nondiscrimination and affirmative action. First and foremost,
    state DOTs should make sure that contractors implement the affirmative
    action requirements, including the specific numeric goals for minority
    and female participation and the 16 minimum steps, which apply to
    federally assisted construction contracts.
        2.  Supportive services. State DOTs should require each project's
    General Contractor to spend at least one-half of one percent (0.5%) of
    the overall project budget on supportive services for project workers
    to maximize opportunities for women and people of color. The supportive
    services eligible for funding under this requirement should be pre-
    apprenticeship; childcare; tools; workwear; retention services
    (including support groups, mentoring, and peer networking); and
    application fees and other costs of entering registered apprenticeship
    programs and required pre-employment training.
        3.  Respectful worksites. State DOTs should require each project's
    General Contractor to adopt workplace anti-harassment policies and to
    provide effective, on-going respectful-workplace training accompanied
    by a social campaign designed to create inclusive and diverse work
    sites for all the employees working on the project.
        4.  Transparency. State DOTS should require each project's General
    Contractor to report the participation rates for women, minorities, and
    apprentices working on the project, alongside the applicable goals, to
    the public on an accessible online site, to Office of Federal Contract
    Compliance Programs (OFCCP) in DOL, and to the state DOT; and to update
    those reports twice per month.
        5.  Community engagement. (a) State DOTs should convene a meeting
    of representatives of community-based organizations and the labor
    unions that will represent workers on each project as the bid
    solicitation conditions are being developed; and (b) Once the contract
    is awarded, state DOTs should require each project's General Contractor
    to convene meetings with a committee that includes the state DOT,
    community-based organizations, relevant labor unions, relevant
    government officials, and the subcontractors on the project at least
    monthly, beginning at least 90 days before any hiring for the project
    begins, and to require subcontractors' participation in these meetings
    in their contracts. The purpose of these community meetings is to
    review the General Contractor's and subcontractors' implementation of
    the equity requirements, to provide the committee members with
    necessary records, and to brainstorm solutions to challenges
    encountered in implementing the equity requirements. The General
    Contractor should also be required to provide an OFCCP representative,
    a representative of the state DOT, and an ombudsperson from the
    community committee with direct access to the work site to monitor
    conditions, provide support and assistance, and mediate issues.
        6.  Robust oversight. State DOTs should require the General
    Contractor and subcontractors to consent to twice-monthly compliance
    reviews by OFCCP and to participate in OFCCP's ``Mega Construction
    Project'' program.
        7.  Sanctions. State DOTs should require the General Contractor and
    subcontractors to agree to the sanctions in addition to those already
    available under law if the state DOT or OFCCP finds that the General
    Contractor or subcontractor is not in compliance with these
    requirements. These additional sanctions include mandatory suspension
    of progress payments until such time as the contractor comes into
    compliance; a discretionary civil penalty of up to $14,502 per
    violation and $145,027 per day for failure to comply after the
    effective date of an administrative order or OFCCP compliance
    agreement; and compensatory and where warranted under current legal
    standards, punitive damages if such noncompliance results in monetary
    harm to an individual or class of individuals because of unlawful
    discrimination.
        8.  Flow-down applicability. State DOTs should require the General
    Contractor and the subcontractors working on the project to include
    these requirements in all their subcontracts.
        9.  Administrative expenses. State DOTS should require that the
    General Contractor dedicate at least one-half of one percent (.5%) of
    the overall project budget to the administrative expenses of
    implementing these requirements.
        10.  Apprentice utilization minima. State DOTs should require that
    the General Contractor and subcontractors together employ registered
    apprentices for a minimum of twenty percent (20%) of hours worked on
    the project, by trade.

        Oregon Tradeswomen and the National Taskforce on Tradeswomen's
    Issues respectfully urge you to support the recommendations outlined
    herein to implement strategies to attract, retain, and empower diverse
    qualified workers to build and maintain our transportation system. By
    implementing these strategies, we can collectively address industry
    demands and tap into the talent of our nation's women who can help
    build our nation's road and bridges while building a more secure
    economic future for themselves and their families.

     Question from Hon. Eddie Bernice Johnson to April Rai, President and
        Chief Executive Officer, Conference of Minority Transportation
                                   Officials

        Question 1. Ms. Rai, it's been my honor to work with COMTO and its
    members over the years. As you well know, contractors and some State
    DOT's bemoan even the idea of DBE goals. But the truth is that these
    large companies add DBE sub-contractors to their proposals, and once
    they secure the contract, they either ignore them or give them a
    miniscule amount of work compared to the whole contract. This is what
    DBE's face every day.
        Can you go into further detail on how we can address this
    unscrupulous behavior?
        Answer. Congresswoman Johnson, first of all, COMTO is most grateful
    for your strong support and shared vision of inclusion of minorities in
    transportation over the years. As you well know, part of COMTO's
    mission is to ensure opportunities and maximum participation in the
    transportation industry for minority businesses. We appreciate your
    question which gives us the opportunity to address the issues that
    currently plague the DBE program. In fact, our list of legislative
    priorities includes recommendations to improve efficiency and
    accountability in its administration.
        A good percentage of our membership does include of minority-owned,
    DBE-certified businesses and there are documented legal cases regarding
    unscrupulous behavior by companies participating in or with the DBE
    program.
        On USDOT funded state transportation projects, agencies set goals
    that require a prime contractor to meet a certain percentage of
    participation from DBE-certified firms. These goals may vary by
    jurisdiction, depending on the number of DBEs in a specific trade or
    NAICS code that are available in the agency's portfolio.
        Many firms have experienced the exact scenario you have described.
    Majority-owned primes will ostensibly include a DBE subcontractor in
    their bid submission, but once the award is made, they will ``shop''
    that DBE's price to other subcontractors in order to save money on the
    job, claiming that they did make a ``good faith effort'' to meet the
    goal.
        Some agencies do require the prime contractor to sign a letter of
    intent with their DBE subs, which describes the DBE work scope, how
    much to be paid for performance and the price submitted to prime.
    Although 49 CFR 26.53 requires written confirmation from each DBE
    listed as participating in USDOT-assisted contracts for which a DBE
    goal has been established, that commitment or ``intent'' is not
    binding. Enforcement is inconsistent from state to state and agency to
    agency. We believe that the DBE review officers of each agency should
    be equipped with the tools and the authority (teeth) to enforce
    compliance with the goals and compel bad players to fulfill their
    commitment to their DBE partners though training, education, and
    tighter accountability.
        For example, the City of Atlanta's Office of Contract Compliance
    (OCC) is a stellar model of how DBE utilization can be monitored. For
    every contract where DBE participation is claimed, the OCC requires
    that the prime contract awardee provide a monthly status report on DBE
    utilization. The report requires the prime contractor to list all
    subcontracted DBE firms for the awarded contract, percentages agreed
    upon per the service agreement, and the utilized DBE dollar and
    percentage amount to date per DBE firm.
        This report requires DBE owner signatures, and it is reviewed
    monthly. If the percentages are not in line with the original contract,
    the prime contractor must schedule a meeting with the compliance
    officer to explain the gap and the anticipated path forward to address
    the situation. We believe a requirement to implement formal agency
    programs that monitor work (dollars/percentage/by trade) committed to a
    DBE every month would have a significant impact.
        Our COMTO DBEs have also been victimized when unscrupulous
    businesses attempt to exploit the program through fraud and/or
    deception. DBE fraud is when a prime contractor utilizes what is
    recognized labeled a ``front'' company or a ``pass through'' company.
    In front company fraud, a non-DBE firm creates a DBE company to
    ``front'' bid on projects, while all of the work and profits go to the
    non-DBE contractor. In the pass-through company fraud, a legitimate DBE
    acts as the prime but passes the majority of the work to a non-DBE firm
    while invoicing for the non-DBE's work.
        This behavior tarnishes the reputations of legitimate DBEs and
    places qualified DBE in a dubious light. Importantly, it is
    counterproductive, even destructive, to the true intent of the DBE
    program.
        Once again, the best so solution is for the agency receiving the
    USDOT funding to have adequate enforcement focused on fully and
    thoroughly vetting entities participating in the DBE program and
    establishing severe penalties for DBE fraud and attempted fraud. Agency
    officials overseeing the program must verify that the DBE is performing
    a ``commercially useful function.''

    Questions from Hon. Jake Auchincloss to April Rai, President and Chief
       Executive Officer, Conference of Minority Transportation Officials

        Question 1. COMTO specializes in closing the employment gap for
    many types of hidden workers--veterans, immigrants, and the formerly
    incarcerated--with a nuanced insight into these individuals' needs, as
    well as credibility with the workers and other groups, including
    government agencies. What barriers have you and your team encountered
    in connecting your members with work?
        Answer. Congressman Auchincloss, thank you for your questions and
    also thank you for your service to your country. COMTO counts many
    veterans and veteran-owned businesses among our membership.
        Another component of COMTO's mission is to ensure opportunities and
    maximum participation in the transportation industry of minorities and
    communities of color, through advocacy, information sharing, training,
    education, and professional development. The transportation industry is
    a reflection of our society, but we want to see that representation
    fairly and fully inclusive, from the C-Suite to the front-line labor
    force.
        However, transportation is presented with the same barriers as
    other industries in connecting veterans, minorities, and other
    underrepresented populations as other industries. Unconscious bias
    leads to underestimating the qualifications of certain job candidates
    leading to fewer being contacted for interviews. Several studies have
    been conducted to prove these unconscious cultural and racial biases.
        And once onboarded, many minority employees face the misperception
    from colleagues that they were hired not because of the experience and
    qualifications, but simply because of their race, gender, or military
    service.
        For our member firms, one of the biggest obstacles is that they are
    not viewed as a qualified professional service firm, contractor, or
    developer, etc. We are considered ``DBEs'' and not much more. This
    subcategory comes with a lot of baggage. We are considered less
    capable, that we do not have capital, that we will cost the prime, that
    we do not know how to contract, that we are overall subpar.
        The DBE program was established in an effort to level the playing
    field so that historically underutilized and disadvantaged firms can
    get foot hold in both traditional and non-traditional industry niches,
    thereby obtaining experience, establishing a reputation for quality
    work and promoting economic growth in the minority community. Without
    the DBE program and the participation goals, there would be little to
    no business supporting DBEs. As we like to say, ``If they don't have
    to, they won't.''

        Question 2. What can Congress do to improve the relationship
    between organizations like yours to strengthen this workforce pipeline?
        Answer. In an environment where employers are unable to find enough
    qualified workers to fill position, the challenge is in filling the
    skills gap and the opportunity gap. In the public transportation space,
    where the majority of the users are minorities, potential workers are
    unaware or unable to access opportunities. And once they do access the
    opportunities there may be a short of skills to do the job. I believe
    that the stakeholders of workers, educators, supportive community
    members and professional associations have the answer and need
    Congress' ear and support in producing solutions.
        COMTO appreciates the hard work done by the Transportation and
    Infrastructure Committee and its Member Subcommittees on the
    Infrastructure Investment and Jobs Act (IIJA). As I said in my
    testimony, we believe that JOBS is the operative word in the IIJA. But
    workforce recruitment and retention have been issues that plagued the
    transportation construction industry even before the pandemic. The
    pandemic only made those problems more acute and now threaten the
    industry's ability to carry out the goals of the bill. The
    transportation construction industry has historically not well
    reflected groups to get the most out of the legislation. Both Congress
    and the Administration will need to be innovative and take aggressive
    action in the next few months to make these programs a reality, to give
    them the teeth to be effective and to establish accountability to
    measure results.

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