Hagerstown Community College Misses Out on Potential Workforce Development Funds from ICE Facility Project

Recently obtained emails show Washington County, Maryland officials sought to leverage the ICE processing facility’s construction activities to bolster local workforce development programs, but a federal preemption will prevent the anticipated funding stream from materializing. The opportunity for Hagerstown Community College to receive contributions intended for trades education was tied to Maryland’s prevailing wage law, which mandates that contractors on certain public works projects contribute a set amount per labor hour to the Maryland Apprenticeship Trades Council (MATC). However, the nature of the federal contract governing the recent ICE facility build-out means these state-level contributions will not apply.

The effort began when Jonathan Horowitz, Director of Business and Economic Development for Washington County, Maryland, reached out to representatives of U.S. Immigration and Customs Enforcement (ICE) concerning a property the agency recently acquired near Williamsport. Horowitz, who had been involved in the property’s development for five years prior to its purchase by ICE, inquired whether the impending construction and build-out would be classified as a “prevailing wage project” under Maryland law. Such a classification would necessitate contractors contributing $0.25 per labor hour to the MATC, a fund dedicated to supporting state trades education. Horowitz’s intention was to redirect these accumulated funds to Hagerstown Community College to support its trades programs.

However, Adam Prosser, Managing Director of KVG Americas Division, the contractor responsible for the project, clarified the applicable regulatory framework. Prosser explained that because the build-out is being conducted under a federal contract with ICE, it falls under the purview of the federal Service Contract Act (SCA). This federal regulation preempts state prevailing wage requirements. Consequently, the project is not considered a Maryland prevailing wage project, and the mandated MATC workforce contributions are therefore not applicable. While this specific funding avenue is closed, Prosser indicated openness to exploring alternative partnerships for local workforce development initiatives.

This development means Hagerstown Community College will not receive the anticipated funding, which was intended to be used for purchasing equipment to train future trades professionals. This is a lost opportunity for a potential source of revenue that would have been generated passively based on the labor hours expended on the large-scale project.

It is important to note that even if the property had remained under private ownership and undergone expansion or build-out using private funds, the MATC contribution would still not have been required. Maryland’s Prevailing Wage Law, and its associated MATC contribution requirement, applies specifically to public works projects that receive significant state funding. Typically, this includes public structures like schools or bridges where the state contributes a substantial portion of the contract value, generally $250,000 or more. Privately owned commercial developments funded solely by private capital are exempt from prevailing wage mandates altogether. Therefore, whether the property was acquired by a federal agency, which exempts it through federal preemption, or remained privately owned, exempting it due to a lack of state funding, Hagerstown Community College would not have been able to utilize the Maryland prevailing wage law to secure the 25-cent-per-hour contribution. The only scenario in which the college could have benefited from this specific provision would have been if the facility had been purchased and developed by the State of Maryland or one of its political subdivisions using state taxpayer dollars.

Associated documents for this story are available in our Public Information Archive.

Article by Ken Buckler, based upon information from Washington County Government.

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