White House Finalizes Guidance To Boost Use of U.S.-Made Goods in Infrastructure
There will be a boost in the following items according to the White House: steel, iron and other construction materials, in government-funded infrastructure projects.
According to Reuters, the infrastructure law significantly expanded standards to require government-funded infrastructure projects use more U.S.-made iron, steel, construction materials and manufactured products.
The OMB guidance sets manufacturing standards for plastic and polymer-based products, glass including optic glass, lumber, engineered wood, drywall, fiber optic cable and optical fiber.
The infrastructure law includes $110 billion for roads, bridges and major projects; $66 billion for rail; $55 billion for water infrastructure and $42 billion in broadband infrastructure grants.
OMB added engineered wood but opted not to include some additional construction materials, including paint and stain, and bricks. To qualify manufactured products must be U.S. manufactured and the cost of domestic-made components must exceed 55% of the cost of all components.
The rules do not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at the end of the project.
President Joe Biden in 2021 signed an executive order aimed at closing loopholes in existing “Buy American” provisions, which apply to about a third of the $600 billion in goods and services the federal government buys annually.
