White House to expand use of domestic products in infrastructure projects

The White House issued guidelines on Wednesday on expanding the use of American-made products in government-funded infrastructure projects.

President Joe Biden, in his State of the Union address, highlighted efforts to ensure that building materials used in federal infrastructure projects are made in the United States.

“When we do these projects … we will buy American,” Biden said. “This is fully in line with international trade rules.”

Biden explained that the new rules would ensure the use of “wood, glass, drywall, fiber optic cables” made in the United States.

The proposed new guidance, first reported by Reuters, was released by the White House Office of Management and Budget (OMB) at the request of Congress under the $1 trillion infrastructure bill. of 2021.

The proposed guidance “will strengthen the implementation of standards for the use of domestic products, as well as improve the management, consistency, transparency and oversight of federal aid,” said Livia Shmavonian, chief of the office of the White House to encourage government purchases of American products.

Recall that in his early days in office, Biden signed an executive order aimed at closing loopholes in existing Buy American provisions that apply to about a third of the $600 billion in goods and services purchased annually by the federal government.

In March last year, the Biden administration issued rules that increased the percentage of domestic products used.

Previously, items qualified as “Made in America” ​​for federal procurement if 55% of the value of their components were made in the United States. New rules have increased this percentage to 60% in October, 65% in 2024 and 75% in 2029.