White House unveils plan to boost use of U.S.-made goods in infrastructure
Adds confirmation, document released
By David Shepardson
WASHINGTON, Feb 8 (Reuters) -The White House on Wednesday released proposed guidance to boost the use of American-made goods in government-funded infrastructure projects.
President Joe Biden in his State of the Union address Tuesday touted the effort to require that construction materials used in federal infrastructure projects be made in the United States.
"When we do these projects ... we’re going to buy American," Biden said. "It's totally consistent with international trade rule."
Biden said the new rules will insure the use of U.S.-made "lumber, glass, drywall, fiber optic cables. And on my watch, American roads, American bridges, and American highways are going to be made with American products."
The new proposed guidance, first reported by Reuters, was released by the White House Office of Management and Budget (OMB) and directed by Congress under the $1 trillion 2021 infrastructure law.
The proposed guidance "will strengthen implementation of domestic content standards, while also improving federal financial assistance management, consistency, transparency, and oversight," said Livia Shmavonian, who runs a White House office aimed at spurring U.S. government purchases of more American goods.
The proposed OMB guidance sets standards to ensure manufacturing processes for construction material occur in the United States, including standards for "plastic and polymer-based products, glass (including optic glass), lumber, and drywall," Shmavonian added.
The infrastructure law significantly expanded standards to require government-funded infrastructure projects use more American-made iron, steel, construction materials and manufactured products.
OMB is seeking input on whether to include additional construction materials, including paint and stain, bricks and engineered wood products. The public will have 30 days to comment on the proposed guidance.
Biden in his first days in office signed an executive order aimed at closing loopholes in existing "Buy American” provisions, which apply to about a third of the $600 billion in goods and services the federal government buys annually.
Last March, the Biden administration issued rules to raise domestic content thresholds.
Products previously qualified as Made in America for federal purchases if 55% of the value of their component parts are manufactured in the United States. The rule increased the threshold to 60% in October, 65% in 2024, and 75% in 2029.
Reporting by David Shepardson; Editing by Lincoln Feast and Jonathan Oatis
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.