President Joe Biden proposed on July 28, 2021, to raise how much of a product must be made in the USA for the federal government to buy it as domestic under the Buy American Act.
He announced the plan at Mack Trucks’ Lehigh Valley plant in Lower Macungie Township, Pennsylvania.
What the proposal does
- It raises the minimum USA content for manufactured goods from 55% to 60% right away, then to 65% in 2024 and 75% in 2029.
- It gives larger price preferences to certain critical products and components.
- Makers would report the total domestic content of their products instead of just certifying that they meet the threshold.
- It makes waivers harder to get.
- The public has 60 days to comment before the rule is finalized.
Officials called it the biggest update to the Buy American Act in nearly 70 years. The rules cover about a third of the roughly $600 billion the federal government spends each year on goods and services. They do not apply to services.
“My administration is going to make Buy American a reality.”
President Joe Biden
Reaction
UAW President Ray Curry welcomed the proposal. The UAW represents 85% of the 2,500 workers at the Mack plant. The U.S. Chamber of Commerce called the changes “inefficient, costly, and ultimately counterproductive.”
FAQ
What is the current threshold?
55% USA content for manufactured goods.
What would it become?
60% immediately, 65% in 2024 and 75% in 2029.
Where was it announced?
At Mack Trucks’ Lehigh Valley plant in Pennsylvania.
Source & credit
Source: Reuters, July 28, 2021: “Biden promotes tougher ‘Buy American’ rules in visit to Mack Trucks plant”.
Also: USA Today, July 28, 2021: “Buy American: Biden to increase the share of US-made parts for government purchases”.