Government effort aims to purchase more American-made goods
Washington. The Coalition for a Prosperous America (CPA) has praised President Biden’s new executive order strengthening federal Buy American requirements. The executive order includes elements of Biden’s 2020 campaign pledge to “Build Back Better” and is intended to expand federal procurement of American-made goods.
“It’s absolutely critical to keep federal procurement dollars in the United States,” said CPA Chair Zach Mottl. “Millions of Americans are looking for work during the COVID pandemic. At the same time, America’s manufacturers continue to compete with subsidized overseas producers who benefit from heavily protected home markets. Federal tax dollars must be spent on American-made products and help bring new U.S. companies to market. We commend the Biden administration for taking this step.”
The Biden executive order will close loopholes in current Buy American laws. It’s estimated that federal procurement accounts for nearly $600 billion in annual spending. Directing more of this procurement toward domestic U.S. companies will help to support manufacturers and workers throughout the nation.
A recent CPA study found that utilizing strict Buy American rules in federal infrastructure investment could significantly increase the benefits to the U.S. economy. Specifically, a $1.5 trillion federal infrastructure plan implemented under a robust Buy American framework could create a total of 3.3 million jobs and increase U.S. GDP by $2.4 trillion.
Said Michael Stumo, CEO of the CPA. “We’re pleased that President Biden is appointing a Made in America director to oversee all agencies. However, the president should withdraw from any international agreements that interfere with crucial Made in America initiatives. While we can work with allies, there is no need for the U.S. to give up jobs and industries to them in the process.”
Read more about the benefits of Buy American policy in federal infrastructure investment.