"Together, we’re going to do everything in
our power to make sure that more products
are stamped with those wonderful words:
'Made in the USA.'"--President Donald J. Trump
This new executive order directs the head of each executive department and agency administering a covered program to “encourage recipients of new Federal financial assistance awards to use, to the greatest extent practicable, iron and aluminum as well as, steel, cement, and other manufactured products produced in the United States in every contract, subcontract, purchase order, or sub‑award that is chargeable against such Federal financial assistance award.”
The types of infrastructure potentially covered run the gamut from bridges, water infrastructure, and sewer systems to broadband Internet and cybersecurity.
By extending Buy American principles to more federal financial assistance programs, this new executive order further reinforces the Trump administration’s Buy American preferences. When taxpayer-funded spending is used to Buy American, Americans can reap the benefits in three ways.
First, Buy American programs create good manufacturing jobs at good wages and thereby help lift more workers into middle-class prosperity.
Second, according to ballpark estimates, about 20 cents on every dollar spent on Buy American tend to come back to the government in the form of taxes paid by corporations earning profits on Buy American projects, workers earning wages on these projects, and states deriving more sales tax revenues.
Third, Buy American spending can strengthen our manufacturing and defense industrial base, including the manufacturing critical to economic prosperity and pillar industries like steel and aluminum that are vital to national security.
This latest Buy American executive order is the progeny of Executive Order 13788, signed April 18, 2017. That executive order sought “specific recommendations to strengthen implementation of Buy American Laws, including domestic procurement preference policies and programs.” Thursday’s new executive order implements a key recommendation.
- Today, President Trump signed an Executive Order on Strengthening Buy-American Preferences for Infrastructure Projects.
- This Executive Order will strengthen Buy American preferences for Federal financial assistance for infrastructure projects.
- This action follows President Trump’s Executive Order 13788 of 2017 that required a more judicious use of waivers to purchase foreign-made goods under Buy-American programs.
- In 2018, waivers on Federal contracts declined by 16% Government-wide.
- Government spending on foreign goods has fallen to its lowest point in 10 years thanks to President Trump’s efforts.
- Government spending on United States-made products has increased by $24 billion during the first two years of the Administration over the previous two-year average.
- Buy American programs create good paying jobs that help lift more workers into prosperity.
- Buying American strengthens our manufacturing and defense industrial base, including pillar industries like steel and aluminum that are vital to national security.
- President Trump’s deregulation policies, tax cuts, and tough trade actions have resulted in a resurgence in the American manufacturing industry.
- The President’s policies are working, with manufacturer optimism reaching an all-time high.
- Since President Trump’s election 503,000 manufacturing jobs have been created, compared to 78,000 in the last two years of the Obama Administration.
- In 2018, manufacturing added more jobs than any year since 1997.
- An average of 20,000 manufacturing jobs have been created per month since President Trump’s election, compared to 8,000 per month in the previous four years.
- The unemployment rate for the manufacturing sector stands at 2.8 percent and reached a record low of 2.6 percent last year.
- Wage growth among the lowest wage earners is outpacing median wage growth.
- President Trump signed the reauthorization of the Carl D. Perkins Career and Technical Education Act, which provides career-focused training and education to students and workers.
- The Act will benefit nearly 12 million Americans and authorizes more than $1 billion in funds for States each year.
- President Trump established the National Council for the American worker to raise awareness about the skills gap, expand apprenticeships, and encourage investment in worker education.
- More than 180 companies have pledged to provide training opportunities to workers and students thanks to the Administration’s “Pledge to America’s Workers.”
- More than 6.4 million training opportunities have been pledged so far.