January 1, Biden-Era Embassy Deal Backfires as Contractors Sue Trump Administration

Wyatt’s Take

• Biden officials pushed contractors to keep building during COVID lockdowns and now the bill is landing on the current administration.
• The State Department already approved a $370 million settlement, then walked away after political leaders stepped in.
• American contractors are warning that if the government breaks its word, fewer companies will risk building embassies abroad.

The Trump administration is facing a $461 million lawsuit from a major embassy builder over construction projects that were ordered to continue during the COVID-19 pandemic under Biden-era leadership.

B.L. Harbert International says it was told to keep crews working and materials moving on 17 diplomatic sites around the world even as countries shut down and supply chains collapsed.

“We did not want to take this step. The U.S. Government is an important partner, and we are proud of the work we do together to advance America’s interests and protect Americans serving overseas,” Charles Bohn, president of BL Harbert’s International Group, said in a statement.

“But we have a responsibility to our employees and to the future of that mission. We kept our commitment under extraordinarily difficult conditions. We are asking the government to keep its commitment to us.”

The company reached a $370 million settlement with career State Department officials last September, but received just over half a million dollars before the deal collapsed.

Harbert claims political appointees stepped in and reversed the agreement after it was already signed, leaving the contractor holding the bag for massive pandemic-related costs.

The lawsuit covers 12 projects across Turkey, Iraq, Thailand, Morocco, Mexico and Central America. All of the facilities are now in government hands and some have been in use for years.

Harbert says it spent hundreds of millions keeping work moving under impossible conditions while being promised later reimbursement that never came.

The company warns that if contractors lose faith that the government will honor its word, even fewer American firms will be willing to build secure embassies overseas.

Only a handful of U.S. companies are cleared for this kind of work, and Harbert says the pool is shrinking fast.

Wyatt Matters

Middle America knows that when the government tells a contractor to keep working through a crisis and then refuses to pay up, every small business and every worker should pay attention. Promises made should be promises kept, especially when American lives and American security are on the line.