Proposed Change to Federal Service Contract Labor Thresholds

The Frame

What this does

This amendment changes the dollar-value threshold that triggers federal labor requirements for service contractors, potentially impacting which contracts are subject to prevailing wage and benefit standards starting in 2027.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Federal service contractors

These entities must comply with labor standards based on the new, inflation-adjusted contract value threshold rather than the previous fixed $2,500 limit.

Department of Labor

The Secretary of Labor is tasked with calculating and determining the socioeconomic labor threshold annually.

What changed

Last recorded activity June 24, 2026.

What's next

Next step not available in the current record.

Summary

Senator Lankford has proposed an amendment to the 2027 National Defense Authorization Act that would update how the government calculates the minimum contract value for labor standards. The proposal introduces a 'socioeconomic labor threshold' that adjusts based on the Consumer Price Index, replacing the current fixed $2,500 limit for federal service contracts.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the 'socioeconomic labor threshold'?

It is a new, inflation-adjusted dollar amount that determines whether a federal service contract is subject to specific labor standards under the .

How will the threshold be calculated?

The Secretary of Labor will calculate it using the , comparing current data against historical benchmarks from 1965 and annual June-to-June changes.

Does this change apply to existing contracts?

No, the amendment specifies that the new threshold applies to contracts and bid specifications made on or after the date of enactment of the Act.

Why It Matters

This amendment changes the dollar-value threshold that triggers federal labor requirements for service contractors, potentially impacting which contracts are subject to prevailing wage and benefit standards starting in 2027.

News Coverage

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Related Legislation

congressional_record

Senate Scheduling Update for S. 4784

The Senate has agreed to delay the vote on a cloture motion for S. 4784 until after the confirmation vote for the Schwartz nomination. This procedural

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Inflation-Indexing of Labor Thresholds

The amendment shifts federal service contract labor requirements from a static dollar amount ($2,500) to an inflation-indexed threshold, reflecting a policy move to maintain the real-value impact of the Service Contract Act over time.

Secretary of Labor Bureau of Labor Statistics

Connected Entities

organizationDepartment of Defense“Agency whose activities are authorized by the underlying bill.”Map →

organizationDepartment of Energy“Agency whose defense activities are authorized by the underlying bill.”Map →

organizationGovernment Publishing Office“Publisher of the Congressional Record.”Map →

personMr. Lankford“U.S. Senator who submitted the amendment.”Map →

organizationBureau of Labor Statistics“Agency that publishes the Consumer Price Index used for adjustments.”Map →

personSecretary of Labor“Official responsible for determining the socioeconomic labor threshold.”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy20
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz10
Current news / social attention level