Key Points
  • President Biden has issued a new executive order to strengthen the Buy American program
  • The new executive order revokes a Buy American, Hire American executive order issued by President Trump in 2017
  • Biden’s executive order intends to increase American-made purchases by the federal government
  • The new executive order also intends to increase manufacturing in the U.S. and stimulate manufacturing job growth
  • The executive order makes it more difficult for contractors to sell foreign-made products to government agencies
  • Federal agencies must report on their Buy American progress
Overview

The Biden Administration has issued a new executive order titled “Executive Order on Ensuring the Future is Made in All of America by All of America’s Workers.”

What are the Changes?

The new executive order revokes an original Buy American, Hire American Executive Order that was issued by former President Trump on April 19, 2017.

By signing the new executive order, the Biden administration intends to increase the number of American-manufactured purchases made by the federal government. The executive order instructs the government to use $600 billion for boosting domestic factory production and hiring workers.

President Biden’s executive order makes it more difficult for contractors to sell foreign-made products to government agencies. Additionally, the executive order will protect American-made goods by increasing price preferences and thresholds for US-made products compared to foreign products. The executive order also requires federal agencies to report on their “Buy American” progress.

Looking Ahead

The Biden Administration’s new executive order is designed to stimulate manufacturing jobs in the United States to help the domestic economy recover from the impacts of COVID-19.


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