If Michigan’s U.S. Senators and some of their bipartisan colleagues have their way, American manufacturers will face increased business and new jobs will be on the horizon. That’s because they have introduced federal legislation designed to strengthen Buy American laws through their proposed Make It in America Act.
U.S. Senators Debbie Stabenow and Gary Peters this morning introduced their bipartisan bill to strengthen Buy American laws. Their Make It in America Act would make it harder for federal agencies to use waivers to get around Buy American requirements, requiring the federal government to give preference to American companies and spend taxpayer dollars on American-made products and American jobs.
In 2018, Senator Stabenow released her Buy American report that found exceptions and waivers to the Buy American Act allowed federal agencies to spend $92 billion on foreign-made products between 2008 and 2016. Senator Stabenow’s Make It in America Act addresses the abuses identified in that report. The bill is part of her American Jobs Agenda, which will ensure we are making products in America, closing loopholes that send jobs overseas, and holding countries like China accountable for unfair trade practices.
Senator Stabenow says, “Michigan’s workers and manufacturers are the best in the world. This bill would make sure they are first in line when it comes to government contracts and spending. It’s common sense that American tax dollars should be used to create American jobs by purchasing American products, not products made overseas.”
Peters says has led numerous efforts to support American manufacturers and workers. This past December, his bipartisan bill to grant Manufacturing Extension Partnerships (MEP) federal funding to help small and medium-sized manufacturers across the country expand growth, maintain staff and adapt to market changes was signed into law. Peters also previously introduced bipartisan legislation to ensure that American taxpayer dollars are used to buy American-made iron, steel and manufactured products for federally funded infrastructure projects. Additionally, Peters previously introduced legislation that would address outsourcing and reform the tax code to reward businesses that bring jobs back from foreign countries.
Peters, who is a member of the Commerce, Science and Transportation Committee, says, “Ensuring that the federal government is spending taxpayer dollars on products made by American workers will create jobs and level the playing field for our small businesses and manufacturers,” and adds, “I’m proud to join Senator Stabenow in announcing this commonsense legislation that would strengthen Buy American rules, invest in Michigan and American workers and help rebuild a stronger economy.”
The two say that each year, federal agencies spend billions in taxpayer dollars to buy products from the private sector. The 1933 Buy American Act requires federal agencies to give preferential treatment to manufacturers of high quality, American-made goods and products. They contend that unfortunately, loopholes, waivers, and outright violations have allowed federal agencies to buy products overseas — leaving American manufacturers behind.
The Make It in America Act would close loopholes in the Buy American laws and make waivers public. For example, the bill would stop the use of the “public interest” waiver if a foreign contract would decrease American employment. The bill would also increase American-made content from 50- to 75-percent to ensure that manufactured products bought by the federal government are made with American-made components. The bill would also require that each waiver to the Buy American Act be publicly posted online with detailed justifications.
The bill would create a new “Made in America Office” within the Office of Management and Budget, charged with reviewing waivers to the Buy American Act and ensuring compliance with other Buy American laws. That office mirrors President Biden’s executive order to create a central office dedicated to enforcing Buy American laws.
Finally, they say that the Make It in America Act would give small- and medium-sized American manufacturers the first opportunity to provide products for federally-funded transportation projects.
