Bush has suspended the Davis-Bacon Act, which mandates that contractors for Federal projects pay their workers the “prevailing local wage” or better. This typically keeps the Halliburtons of the world from dragging in cheap labor from elsewhere rather than pay local labor their normal wages.

The NYT has already weighed in; we duplicate their editorial here because the Powers That Be at NYT are notoriously stupid in re: archive access:

A Shameful Proclamation Published: September 10, 2005 On Thursday, President Bush issued a proclamation suspending the law that requires employers to pay the locally prevailing wage to construction workers on federally financed projects. The suspension applies to parts of Louisiana, Mississippi, Alabama and Florida. By any standard of human decency, condemning many already poor and now bereft people to subpar wages — thus perpetuating their poverty — is unacceptable. It is also bad for the economy. Without the law, called the Davis-Bacon Act, contractors will be able to pay less, but they’ll also get less, as lower wages invariably mean lower productivity. The ostensible rationale for suspending the law is to reduce taxpayers’ costs. Does Mr. Bush really believe it is the will of the American people to deny the prevailing wage to construction workers in New Orleans, Biloxi and other hard-hit areas? Besides, the proclamation doesn’t require contractors to pass on the savings they will get by cutting wages from current low levels. Around New Orleans, the prevailing hourly wage for a truck driver working on a levee is $9.04; for an electrician, it’s $14.30. Republicans have long been trying to repeal the prevailing wage law on the grounds that the regulations are expensive and bureaucratic; weakening it was even part of the Republican Party platform in 1996 and 2000. Now, in a time of searing need, the party wants to achieve by fiat what it couldn’t achieve through the normal democratic process. In a letter this week to Mr. Bush urging him to suspend the law, 35 Republican representatives noted approvingly that Presidents Franklin Roosevelt, Richard Nixon and the elder George Bush had all suspended the law during “emergencies.” For the record, Mr. Roosevelt suspended it for two weeks in 1934, to make time to clear up contradictions between it and another law. Mr. Nixon suspended it for six weeks in 1971 as part of his misbegotten attempt to control spiraling inflation. And Mr. Bush did so after Hurricane Andrew in 1992, two weeks before he was defeated by Bill Clinton, who quickly reinstated it after assuming the presidency. If Mr. Bush does not rescind his proclamation voluntarily, Congress should pass a law forcing him to do so.