[Federal Register Volume 87, Number 28 (Thursday, February 10, 2022)]
[Notices]
[Pages 7897-7898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02874]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[FTA Docket No. FTA 2022-0009]


Rescission: Equitable Economic Recovery and Workforce Development 
Through Construction Hiring Pilot Program

AGENCY: Federal Transit Administration, Department of Transportation 
(DOT).

ACTION: Notice.

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SUMMARY: As a result of a provision in the Bipartisan Infrastructure 
Law, enacted as the Infrastructure Investment and Jobs Act, that 
authorizes a recipient or subrecipient of a grant provided under title 
23 or 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 subject to applicable 
State and local laws, FTA is rescinding the Equitable Economic Recovery 
and Workforce Development Through Construction Hiring Pilot Program 
(Pilot Program).

DATES: Effective February 10, 2022.

FOR FURTHER INFORMATION CONTACT: Dana Nifosi, Deputy Chief Counsel, 
Federal Transit Administration, 1200 New Jersey Ave. SE, Washington, DC 
20590, 202-366-4011.

SUPPLEMENTARY INFORMATION:
    Background: On May 21, 2021, FTA announced an initiative to permit 
FTA recipients and subrecipients to utilize geographic, economic, or 
other hiring preferences on FTA-funded

[[Page 7898]]

construction projects. (86 FR 27672). The initiative was carried out as 
a pilot program for a period of four years and the purpose of the 
program was to provide flexibility to utilize hiring preferences to 
promote equitable creation of employment opportunities and workforce 
development activities, particularly for economically or socially 
disadvantaged workers, while evaluating the impact of such preferences 
on full and open competition and project delivery. This initiative 
implemented Section 199B of the Consolidated Appropriations Act, 2021 
(Pub. L. 116-260), a provision that has been included in prior 
Appropriations Acts since Fiscal Year (FY) 2016 that authorizes the 
Secretary to permit States and local governments to implement 
geographic, economic, or other hiring preferences not otherwise 
authorized by law, subject to certain mandatory certifications that the 
recipient must make. Through this Pilot Program, FTA also intended to 
exercise flexibility recently granted to Federal agencies by the Office 
of Management and Budget (OMB) to support recipients and subrecipients 
in achieving equitable economic recovery from the COVID-19 pandemic. 
Additionally, the pilot program advanced Executive Order 13985, 
``Executive Order on Advancing Racial Equity and Support for 
Underserved Communities Through the Federal Government,'' issued on 
January 20, 2021, by supporting workers in overcoming barriers to 
obtaining successful, long-term careers in the transit construction 
industry.
    Reason for Recission: Section 25019 of the Bipartisan 
Infrastructure Law (Section 25019), enacted as the Infrastructure 
Investment and Jobs Act (Pub. L. 117-58), authorizes recipients or 
subrecipients of Federal funds under title 23 or 49, United States 
Code, to implement certain hiring preferences related to the use of 
labor for construction projects. Specifically, Section 25019 provides 
that a ``recipient or subrecipient of a grant provided by the Secretary 
under title 23 or 49, United States Code, may 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, including 
prehire agreements, subject to any applicable State and local laws, 
policies, and procedures.'' In addition, this provision specifically 
states that the use of such preferences ``shall not be considered to 
unduly limit competition.'' Therefore, FTA will not engage in or have a 
role in evaluating the effects on competition, if any, of labor or 
hiring preferences expressly authorized by Section 25019.
    FTA has determined that because Section 25019 provides an express 
authorization for FTA recipients and subrecipients to utilize a local 
or other geographical or economic hiring preference relating to the use 
of labor for the construction of a project funded under title 49, 
United States Code, FTA recipients and subrecipients no longer must 
request approval from FTA through the Pilot Program to utilize such 
preferences. Additionally, the certification requirements of Section 
199B of the Consolidated Appropriations Act, 2021 do not apply to 
hiring preferences authorized by Section 25019 because such 
requirements only apply to hiring preferences ``not otherwise 
authorized by law.''
    FTA has determined there are no hiring preferences eligible for FTA 
approval under the Pilot Program that are not authorized by Section 
25019, and so such preferences going forward are subject to Section 
25019, not Section 199B of the Consolidated Appropriations Act, 2021. 
Accordingly, FTA has concluded that the Pilot Program no longer is 
necessary, and hereby rescinds it.

Nuria I. Fernandez,
Administrator.
[FR Doc. 2022-02874 Filed 2-9-22; 8:45 am]
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