Trump Reverses Biden's Federal Minimum Wage Order

President Donald Trump has repealed an executive order from Joe Biden that mandated a $17.75 minimum wage for federal contractors. Business groups criticized the order for raising costs. The repeal removes Biden's pro-union initiatives; court decisions supporting the order may still impact Trump's power to reshape federal procurement.

President Donald Trump has revoked a key executive order from his Democratic predecessor, Joe Biden, which imposed a minimum wage of $17.75 per hour for federal contractors. This move, made late Friday, repeals nearly 20 Biden-era directives, including those aimed at raising pay for workers on federal contracts. Biden had initially set the federal contractor minimum wage to $15 per hour before it climbed to $17.75 in January, impacting a significant portion of the U.S. workforce.

Biden's wage mandate had faced criticism from business groups and Republican leaders, who argued it imposed excessive costs on smaller businesses and made it more difficult for them to compete for federal contracts. Trump's repeal also eliminated previous pro-union initiatives launched under Biden, which included easier criteria for companies wishing to secure federal contracts if they committed to union neutrality and participated in apprenticeship programs endorsed by the government.

The decision not only affects federal contractors but also signals a broader shift in policy direction. The U.S. Supreme Court had declined to review two appeals court rulings upholding Biden's wage order, focusing on a 1949 law allowing presidential regulation of federal contracting for economic promotion. Under Trump's changes, contractors for seasonal recreational businesses gain relief similar to Obama's previous exemptions. The impact of this move on federal procurement and labor policy remains to be seen.

(With inputs from agencies.)