WASHINGTON—The Biden administration is proposing a rule that would accelerate federal procurement policy to require a higher level of American-made products.
Under an initiative to be announced Wednesday, the government would require that products obtained under the longstanding “Buy American” program have at least 60% of the value of components made in the U.S., up from the current 55% threshold. That would increase to 75% by 2029, White House officials said.
President Biden is expected to discuss the proposal during a visit Wednesday to a Mack Trucks plant in Pennsylvania, a crucial battleground state that he narrowly won in 2020 following Donald Trump’s victory there in 2016.
The proposal aims to strengthen compliance by requiring contractors to prove that the products they purchase on behalf of the government meet the content threshold. Currently, contractors tell the government if they meet that standard, according to administration officials.
“This proposal would close a problematic loophole in the current regulation, while also allowing businesses time to adjust their supply chains to increase the use of American-made components,” according to a White House fact sheet.
In his first week in office, Mr. Biden signed an executive order imposing tougher rules on government procurement practices and Wednesday’s proposed action sets in motion the rule-making process, which includes a 60-day public comment period.
The new initiative is similar to what Mr. Trump pursued in office as he tried to strengthen domestic manufacturing with a particular aim toward lessening reliance on China.
Officials said the new rule would also give priority to purchase supply-chain goods that have become scarce during the Covid-19 pandemic, such as semiconductors and medical equipment.
In fiscal 2020, federal agencies purchased $665 billion worth of goods and services, according to the Government Accountability Office, an increase of $70 billion from 2019, with half of that increase linked to the purchase of medical supplies and pharmaceuticals to treat Covid-19.
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