President Joe Biden announced proposed changes to the Buy American Act on Wednesday that would increase the requirement for U.S.-produced components in products bought by the federal government.
The proposed rule would mandate all products bought with taxpayer dollars to have at least 60% of their components manufactured in the U.S., the Biden administration announced in a statement Wednesday. The requirement would increase to 75% by 2029, The Wall Street Journal reported.
Under the Buy American Act, “substantially all” components of products bought by the federal government must be made in the U.S., which was previously interpreted to mean at least 55% of components, according to the White House’s statement.
“At his first Cabinet meeting, the President made it clear that supporting U.S.-based manufacturing through procurement was a top priority,” the statement read.
The proposed rule would also establish a reporting requirement for manufacturers to report the total domestic content in their products. Previously, manufacturers were only required to report whether or not they met the 55% threshold, according to the statement.
“The President believes that when we spend American taxpayers’ dollars, it should support American workers and businesses,” the statement read.
Biden issued an executive order in January strengthening American manufacturing protections and establishing the Made in America Office within the Office of Management and Budget to oversee matters relating to the Buy American Act.
Former President Donald Trump had proposed changes to the Buy American Act in March 2020, requiring that all medical supplies and pharmaceuticals be purchased from American suppliers. Trump had also issued the “Buy American and Hire American” executive order, which scaled back the use of waivers exempting companies from Buy American requirements.
Biden will publicly unveil the proposal at a Mack Trucks plant in battleground state Pennsylvania, The Wall Street Journal reported.
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