WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded the Biden administration’s announcement on a final rule to strengthen domestic content in government procurement of American-made goods, including much-needed updates to strengthen Buy America rules. The new rule, pursuant to the Biden administration’s Executive Order 14005, increases the content threshold for products to be considered American-made from the current 55 percent to 65 percent by 2024 and 75 percent by 2029. The final rule also establishes a pathway to further Buy American enhancements for critical products or components.
The White House’s announcement also highlighted the success of its “Made in America” initiatives in manufacturing and mining. The announcements included investments and jobs in the auto sector, semiconductor manufacturing, rare earth processing, domestic content requirements, and changes to Buy American laws that the administration says will make it easier for the federal government to purchase goods made in America.
“CPA welcomes this additional action on President Biden’s Made in America Executive Order, which was a critical first step towards supporting American businesses and workers,” said CPA Chair Zach Mottl. “Under current rules, 45% of the content of goods can be made in China, Mexico or elsewhere and still qualify as “American” to win government contracts. We look forward to the full implementation of this rule, as well as additional policies that ensure taxpayer dollars support American manufacturing and American workers.”
Last July, CPA applauded the Biden administration for proposing a new rule to increase American-made content in federal purchases and bolster critical supply chains. The effort builds upon the Biden administration’s efforts to modernize and strengthen implementation of the Buy American Act. Additionally, CPA supported new guidance issued by the Biden administration last year that seeks to maximize the use of goods, products, and materials produced in, and services offered in the United States. It also requires the Office of Management and Budget (OMB) to establish the Made in America Office (MIAO), which will focus on increasing opportunities for domestic sourcing and reducing the need for waivers from federal Buy American laws.