Trump administration extends Buy American rule to infrastructure projects

The rule is meant to boost the use of American-made products and support U.S. manufacturing and jobs

February 01, 2019
White House executive order infrastructure

The Trump administration will implement a new executive order to extend “Buy American” requirements to infrastructure projects that receive federal funding.

According to a Roll Call news report, President Trump signed the order Thursday, a move meant to boost the use of American-made products and support U.S. manufacturing and jobs, White House adviser Peter Navarro said this week. Navarro, director of trade and manufacturing policy, told reporters Buy American requirements generally apply to direct federal purchases of goods or products.

Navarro said the administration wants to close what he characterized as possible gaps in Buy American coverage that allows agencies to provide loans, grants or other forms of financing for bridges, roads and other projects without encouraging the purchase and use of U.S.-made steel, aluminum, cement and other products. The use of American-made products would apply to contracts, subcontracts, purchase orders and subawards.

A review of projects that received federal financing in fiscal 2016, according to Navarro, found that Buy American requirements did not apply to 200 of 265 infrastructure projects that received funding. He said the 200 projects across 14 agencies added up to $45 billion.

The new executive order builds on one issued in April 2017 that launched reviews of so-called Hire-American, Buy-American practices in federal agencies and to limit exemptions or waivers to Buy American provisions.

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Source: Roll Call

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