Trump Reverses Biden's Federal Contractor Wage Boost

President Donald Trump rescinded an executive order from Joe Biden that required federal contractors to pay a minimum wage of $17.75. Biden had increased the wage with automatic updates, impacting about 20% of the U.S. workforce. Trump's decision affects earlier appeals court rulings supporting Biden's mandate.

In a significant shift, President Donald Trump has repealed an executive order by former President Joe Biden that mandated federal contractors pay workers a minimum wage of $17.75 an hour. The reversal is part of Trump's broader move on Friday night to dismantle nearly 20 Biden-era policy directives.

Previously, Biden had increased the federal contractor minimum wage starting at $15 with automatic updates that reached $17.75, affecting approximately 20% of the nation's workforce under contracts with major companies. Earlier orders by Barack Obama had set this wage at $10.10 in 2014, with subsequent periodic increases.

Trump's rollback also includes eliminating requirements that encouraged neutrality in union campaigns and participation in government-backed apprenticeship programs. While Trump's administration hasn't detailed the rationale, critics suggest Biden's policies raised competitive and cost barriers, particularly for small businesses.