Biden Proposes Overhaul of

Yesterday, President Biden released details about a proposed rule that aims to toughen Buy American rules, with the hope that it will help bolster U.S. manufacturing.

The proposed rule, which the Biden Administration characterizes as the “most robust changes…in 70 years,” makes the following changes to Buy American requirements:

  • Raises the domestic content threshold for products to qualify for federal government procurement. Currently, 55% of a product’s component parts must be manufactured in the U.S. to qualify under Buy American rules. The proposal would immediately increase the threshold to 60%, then gradually increase it further to 65% in 2024 and 75% in 2029.
  • Creates new price preferences for critical goods, such as semiconductors and medical supplies. The Biden Administration argued that certain products are too important to be dependent on foreign suppliers, and that price preferences would support the development and expansion of domestic supply chains.
  • Increases transparency of Buy American rules by establishing a reporting requirement for critical products. Currently, contractors must tell the government if they meet the content threshold, rather than reporting the total domestic content in their products.

The proposal is subject to a 60-day comment period to allow industry and the public to weigh in, after which the administration will work on a final rule. If you have questions about this announcement, please reach out to Mike Dankler at mldankler@michaelbeststrategies.com and Alex Nichols at janichols@michaelbeststrategies.com

Michael Best Strategies (Strategies) helps companies accelerate their success through a combination of strategic business consulting, lobbying, government relations, public affairs, and communications. The firm has thrived by providing a diverse team of professionals with the experience, skills, and relationships necessary to help each client achieve their goals more quickly and fully.
Bio Link As a Principal on Michael Best Strategies’ Government Relations team, Mike leverages more than a decade of experience on Capitol Hill to help businesses influence positive outcomes through the legislative process. Expertise: Government Relations, Legislative Process, Policy Advocacy, Stakeholder Engagement, and Communications
Bio Link Alex works with businesses and associations to help them successfully navigate federal legislative, regulatory, and political solutions on a wide variety of issues. As a member of Strategies’ International Trade Practice, Alex helps clients in more than a dozen industries navigate international trade agreements and various U.S. trade actions, supply chain solutions, and customs issues. Expertise: Trade, Tax & Finance, Education, and Manufacturing

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