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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.
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Status:
Expired
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Additional Information
Print number: 118_S_335
Sponsor: Sen. Lankford, James [R-OK]
Process start date: 2023-02-09
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

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.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Labor Economy