Biden to Require Products Made in America for Federal Government

President Joe Biden waves as he walks down the steps of Air Force One at Lehigh Valley International Airport in Allentown, Pa., Wednesday, July 28, 2021. (AP Photo/Susan Walsh)

Under a proposal by the White House, the federal government’s “Buy American” program would require a higher percentage of the of American-made products.

The current threshold for the program requires 55% of components to be made by American companies, the Wall Street Journal reported. The proposal would increase that threshold to 60%, and to raise it to 75% by 2029.

In his first week in office, Biden signed an executive order that would strengthen the requirements for what qualifies as American-made, and set aside $400 billion dedicated to infrastructure projects on American-made goods.

Contractors would be required to prove the products they have bought on behalf of work with the federal government meet the American-made threshold. Currently, contractors only have to say they have met the requirement.

“This proposal would close a problematic loophole in the current regulation, while also allowing businesses time to adjust their supply chains to increase the use of American-made components,” according to a White House fact sheet published on its website.

The new rule would prioritize supply-chain goods such as medical equipment and vital car parts. Federal agencies spent $665 billion on goods and services in the fiscal year 2020.

Biden is expected to formally introduce the proposal during a speech in a Mack Trucks plant in Pennsylvania, a vital swing state.


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