[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]





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                             transportation 
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                 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




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                             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.
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    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.''
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    \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.
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    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\
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    \5\ https://www.fhwa.dot.gov/construction/cqit/dbacon.cfm
    \6\ Id.
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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\
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    \7\ https://www.bls.gov/ooh/construction-and-extraction/
construction-laborers-and-helpers.htm#tab-4
    \8\ Id.
    \9\ Id.
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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\
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    \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.
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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\
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    \14\ 23 CFR 230.111.
    \15\ 23 CFR 230.113.
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    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\
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    \16\ https://www.fhwa.dot.gov/civilrights/programs/ojt.cfm.
    \17\ Id.
    \18\ 86 Fed. Reg. 8827.
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    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\
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    \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.
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    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\
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    \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/.
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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\
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    \24\ https://www.fhwa.dot.gov/innovativeprograms/centers/
workforce_dev/504e_state_core_
programs_guidance_0318.aspx.
    \25\ Id.
    \26\ Id.
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    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\
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    \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\
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    \33\ PL 114-113, Sec. 192.
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    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\
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    \34\ See 87 Fed. Reg. 8081; 87 Fed. Reg. 7897.
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                              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 [email protected].
    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.
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    \4\ https://buildculture.org/
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              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
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    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
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    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\
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    \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.
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    \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.''
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    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\
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    \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
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    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.
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    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
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    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&timestamp=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 \\
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    \\ 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, [email protected], 919 817-8626; also see LOC. Additional CAGC POC 
is Victor Barbour, Director, NC Gov't Relations & Highway-Heavy 
Division, [email protected], 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, 
[email protected] , 336 266-0006; and Apprenticeship is 
Kathryn Castelloes, Director, [email protected], 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, [email protected], 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, 
[email protected], 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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