releases: https://finkenauer.house.gov/media/press-releases/congresswoman-finkenauer-announces-federal-investigation-fund-swapping-practice
Data license: MIT · Data source: dwillis/congress-press
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| https://finkenauer.house.gov/media/press-releases/congresswoman-finkenauer-announces-federal-investigation-fund-swapping-practice | CONGRESSWOMAN FINKENAUER ANNOUNCES FEDERAL INVESTIGATION INTO "FUND SWAPPING" PRACTICE | 2019-09-02 | 2019 | 2019-09 | Democrat | House | IA | Abby Finkenauer | F000467 | finkenauer.house.gov | legacy | WASHINGTON, DC Today, Congresswoman Abby Finkenauer (IA-01) announced the Government Accountability Office will begin an investigation into federal fund swapping practices this month. Congresswoman Finkenauer was joined by Iowa labor leaders at a press conference in Cedar Rapids. Normally, when federal funding for transportation infrastructure is made available, the state will pass some of that funding on to cities and counties so they can fund and manage their own infrastructure projects. Under federal fund swapping, the states keeps all the federal dollars and instead gives state transportation funding to counties and cities meaning those local projects aren't subject to federal requirements like Buy American and Davis Bacon. I distinctly remember when Iowa decided to pass legislation to allow fund swapping, I was there to fight it and for good reason, Congresswoman Finkenauer said, I stood with working families and the fight for American jobs in the State House and I sure as heck stand with them now in Congress. My role as Vice Chair of Highways and Transit has given Iowans a literal seat at the table as we advocate for more investments in our communities, but also the jobs that those investments sustain. I'm happy to be working closely with Chairman DeFazio given the experience gained in Iowa on this issue working to right some wrongs and make sure we get some answers. We need to make sure that any federal investments in our infrastructure come with strong prevailing wage and Buy American requirements. This GAO investigation will be used to direct any further Congressional oversight that may be needed to achieve these goals. The GAO accepted Congresswoman Finkenauer's, and Transportation & Infrastructure Committee Chairman Peter DeFazio's (OR-04), request to investigate the fund-swapping practice. In the request, Finkenauer and DeFazio ask the GAO to investigate: - How long have states have used fund swapping? - Does fund swapping reduce number of projects or lane miles subject to federal requirements? - What reasons do state departments of transportation and project sponsors cite for engaging in fund swapping? - What impact does fund swapping have on the wages and use of local contractors? - What types of projects tend to be involved in fund swapping? As we celebrate Labor Day, Congresswoman Finkenauer isn't just telling us she's for hard-working Iowans, she's showing us, said Rick Moyle, Hawkeye Area Labor Council AFL-CIO Executive Director, It is crucial that infrastructure projects are completed by local contractors who pay fair wages and use American-made materials. We are happy that Congresswoman Finkenauer is doing all she can to ensure that working families come first. "I am excited to hear of Representative Finkenauer's action on investigating what can be done to ensure workers wage protections follow federal funding down to the local level, said Ryan Drew, president of the Des Moines-Henry County Labor Alliance, Wage protections for the skilled trades have a long history of having bi-partisan support in Washington, but creative anti-worker groups have seemed to have found a way to exploit these protections when the federal funding is distributed to the local community and state level. When we are trying to fill a skills gap in the workforce it seems counterproductive to attack the wages that attract good workers to a seasonal position. I am glad to have Abby's support and attention to correcting this injustice and what many consider to be money laundering." With federal fund swapping, it's hard to ensure that projects are built with high-quality American steel and other goods, or that the workers are hired locally and paid a fair wage. As of May 2019, 25% of projects made available for contract bids were under Iowa's fund-swapping program (104 of the 414 projects). Of those projects, 64% of them are bridges or other critical structures which if not built to high standards with high-quality materials, can pose a real safety risk While in the Iowa statehouse, Finkenauer voted against the bill that eventually became state law and allowed fund swapping. A copy of the original letter sent to the GAO can be found here. | 1 | 2026-03-30T12:14:52Z | 2026-03-30T12:14:52Z |