WASHINGTON, D.C. — President Joe Biden signed an executive order Monday aimed at strengthening federal government rules on purchasing American-made goods.
Biden signed the order following remarks on the state of the manufacturing sector in America.
The executive order aims to close loopholes on federal rules that allow American manufacturers to assemble goods for government contracts with foreign-made parts.
“The executive action I’m signing today will not only require that companies make more of their components in America, but that the value of those components is contributing to our economy, measured by things like the number of American jobs created and/or supported,” said Biden.
The order establishes goals and standards that the Biden administration believes are necessary to use federal purchasing and other forms of federal assistance with domestic preference requirements as a way to proactively invest in American industry, so it can continue to lead in the global marketplace.
First, the order directs agencies to close current loopholes in how domestic content is measured and increase domestic content requirements.
Next, the order appoints a new senior leader in the Executive Office of the President who will be in charge of the government’s “Made-in-America” policy approach.
The order will also increase oversight of potential waivers to domestic preference laws and connect new businesses to contracting opportunities by requiring active use of supplier scouting by agencies.
Additionally, the order reiterates the president’s support for the Jones Act and its mandate that only U.S.-flag vessels carry cargo between U.S. ports, which supports American production and workers.
The order also directs a cross-agency review of all domestic preferences. It requires agencies to report on their implementation of current “Made in America” laws and make recommendations for achieving the president’s “Made in America” goals, and to continue to do so on a bi-annual basis.
During Biden’s remarks over the order, he said the order also calls for the fleet of federally-owned vehicles to be gradually replaced with electric vehicles.
NBC News reports that Biden proposed a "Buy American" plan during the 2020 presidential campaign that called for an increase of $400 billion in the purchase of American-made goods over four years.
Former President Donald Trump made similar promises to increase the government's purchase of American-made goods. NBC News says Biden administration officials claim the new order is a "clear directive" with a "clear direction."