Congress passed legislation this week blocking the implementation of the Obama Administration’s controversial “blacklisting” rule. Monday, the U.S. Senate passed the Congressional Review Act (CRA) resolution, which was approved by the House of Representatives last month.

Implementation of the rule, under the Fair Pay and Safe Workplaces Executive Order 13673, would have required companies seeking federal contracts to disclose past determinations and pending accusations of labor law violations. The first phase of implementation of the requirements was scheduled for October 25 for bids valuing $50 million or more. When fully put into action, subcontractors, such as glaziers bidding on jobs worth $500,000 or more, would be subject to the rule.

However, a U.S. District Court in October ruled the policy would violate federal contractors’ due process rights “by treating non-adjudicated and often nefarious and frivolous pre-adjudicated claims of violations the same as actual wrongdoing,” according to Ben Brubeck, vice president of regulatory, labor and state affairs at Associated Builders and Contractors (ABC). ABC was the center of a lawsuit fighting the regulation.

The Obama administration issued the regulations in August 2016.

“Federal contracts should deliver value for taxpayers in a way that is consistent with our nation’s values,” then-U.S. secretary of labor Thomas E. Perez said at the time. “Contractors that illegally cut corners at the expense of their workers should not benefit from taxpayer-funded federal contracts. At the same time, employers who meet their legal responsibilities should not have to compete with those who do not. The regulations and guidance … seek to ensure a level playing field for contractors and workers alike.”

This week, Congress used the CRA to nullify the rule. Under the CRA, Congress may pass a resolution of disapproval to prohibit a federal agency from implementing a rule without congressional authorization with a majority vote in both houses.

“Congress has taken an important step in removing burdensome and duplicative reporting requirements and eliminating a costly barrier to entry that would have discouraged many small contractors from bidding on government contracts,” Brubeck said in a statement. “ABC looks forward to working with the Trump administration and Congress to improve the federal government’s existing suspension and debarment system, which already requires contractors to report violations, as well as to ensure contracts are bid through a process that encourages competition from all qualified contractors while protecting the American workforce and taxpayers’ investment.”

The Associated General Contractors of America (AGC) also supports the CRA resolution. Stephen Sandherr, the association’s CEO, said Congress “wisely voted to preserve the integrity and fairness of the federal contracting process” in voting to repeal the blacklisting rule.

“This measure … would have allowed government officials to debar, or blacklist, construction companies from bidding on federal projects based on the mere allegation of labor law violations without any due process,” he said in a statement. “To be clear, there should be no place in federal contracting for unsafe or unscrupulous firms. Yet the former President’s measure did nothing to reform or improve the existing suspension and debarment process. Instead, it created a new layer of bureaucracy that would have given federal officials broad discretion to punish construction firms based on any number of unsubstantiated allegations without establishing a process for those firms to defend themselves.”

President Trump is expected to sign the bill into law.

“The bill disapproves a rule that would require federal contractors to disclose findings of non-compliance with labor laws,” a February 1 statement from the White House reads. “The rule would bog down Federal procurement with unnecessary and burdensome processes that would result in delays, and decreased competition for Federal government contracts. Rolling back this rule will also help to reduce costs in Federal procurement. The Administration is committed to reducing onerous regulatory burdens on America’s businesses and using existing authorities to continue enforcing the nation’s workplace laws.”