Trump nixes $17.75 minimum wage for federal contractors adopted by Biden

(Reuters) - President
Trump, a Republican, late on Friday repealed nearly 20 Biden-era memos and executive orders touching on a range of topics, including the 2021 mandate that significantly raised pay for workers on federal contracts.
Biden had initially raised the minimum wage to
Federal contractors, including many of the country's largest companies, employ roughly 20% of the U.S. workforce.
For contracts entered into before Biden's order took effect on
President
Trump on Friday also eliminated Biden orders that had made it easier for companies to win federal contracts if they vowed to remain neutral in union campaigns and participated in government-approved apprenticeship programs.
Trump did not explain why he repealed the orders. Critics of Biden's wage mandate, including many business groups and Republicans, have said it made it more difficult for smaller businesses to compete for contracts and that the required wage was too high to be applied in areas of the country with lower costs of living.
A pair of appeals court rulings that had upheld Biden's order against challenges by businesses and Republican-led states could still be a boon to Trump if he uses his powers over federal procurement to implement other parts of his agenda, such as eliminating corporate diversity initiatives.
Those cases questioned the scope of a 1949 law that allows the president to regulate federal contracting in any way he deems necessary to promote the economy and efficiency. The courts that backed Biden's order said that power extends to setting a minimum wage for contractors.
Trump did not repeal Obama's minimum wage order in his first term, but did exempt contractors that operate seasonal recreational businesses on federal land.
When Biden raised the minimum wage, he also eliminated that exemption, a move that was upheld by a U.S. appeals court last year.
(Reporting by
(c) Reuters 2025. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Related News

-
Euro, stocks rise ahead of landmark German spending vote
Reuters - 16 minutes ago
-
US Commerce department bureaus ban China's DeepSeek on government devices, sources say
Reuters - 7:26 PM ET 3/17/2025
-
Toronto excludes Tesla from EV incentive due to US trade war
Reuters - 7:23 PM ET 3/17/2025
-
Big pharma fears best-selling drugs in crosshairs of US-EU tariff spat
Reuters - 4:10 AM ET 3/18/2025
-
Trump nominates Federal Reserve Governor Bowman as vice chair for supervision
Reuters - 8:31 PM ET 3/17/2025
-
Exclusive-Vietnam developer proposes 15-year rescue for bank at heart of giant fraud, documents show
Reuters - 9:16 PM ET 3/17/2025
-
"Bull crash" drives biggest ever drop in US equity allocation - BofA
Reuters - 3:37 AM ET 3/18/2025