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Raising the Threshold for Federal Service Contracts Wage Protection.

This Act raises the minimum value of government contracts for which contractors must comply with federal prevailing wage and benefit rules. The previous $2,500 limit is replaced by a new threshold, immediately adjusted for inflation since 1965 and then annually indexed. This means smaller federal service contracts may no longer be subject to government-mandated minimum wage requirements.
Key points
A new, higher contract value threshold (the 'socioeconomic labor threshold') is established, above which federal wage and benefit rules apply.
The new threshold is immediately adjusted for inflation (CPI) since 1965 and will be automatically adjusted for inflation every subsequent year.
Workers on small government contracts valued below the new threshold may lose the guarantee of receiving federally determined prevailing wages.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 118_S_335
Sponsor: Sen. Lankford, James [R-OK]
Process start date: 2023-02-09
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Service Contract Modernization Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_335.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-02-09.

What are the main provisions?

Key points include:

  • A new, higher contract value threshold (the 'socioeconomic labor threshold') is established, above which federal wage and benefit rules apply.
  • The new threshold is immediately adjusted for inflation (CPI) since 1965 and will be automatically adjusted for inflation every subsequent year.
  • Workers on small government contracts valued below the new threshold may lose the guarantee of receiving federally determined prevailing wages.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Lankford, James [R-OK].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Labor Economy