President Signs Executive Order Strengthening Buy American Provisions

President Biden has signed an executive order that closes federal “buy American” loopholes. This measure is a part of the president’s promise and commitment to “Build Back Better” while boosting activity and investment in U.S. manufacturing.

This order further encourages the federal government to purchase goods and services made in the U.S. The objective is for the government to spend taxpayers’ dollars on American-made goods by American workers and with American-made components. Furthermore, President Biden hopes to make certain that the federal government is investing taxpayer dollars in American businesses, both small and large. The dollars the federal government spends on goods and services are a powerful tool to support American workers and manufacturers. In addition, these investments are designed to help create well-paid union jobs and build back the economy.

Although federal law requires government agencies to give preferences to American firms, many manufacturing groups proved that these regulations were not seriously implemented or enforced. While many supply chains have been exposed and weakened by COVID-19, these actions should help support U.S. workers and businesses, strengthening our economy and communities across the country—making good on a key Biden campaign promise.

The president’s executive order:

• Directs agencies to close current loopholes in how domestic content is measured and increases domestic content requirements.
• Appoints a new senior leader in the executive office of the president in charge of the government’s Made-in-America policy approach.
• Increases oversight of potential waivers to domestic preference laws.
• Connects new businesses to contracting opportunities by requiring active use of supplier scouting by agencies.
• Reiterates the president’s strong support for the Jones Act.
• Directs a cross-agency review of all domestic preferences.
• Supports America’s workers through federal purchasing.