The Buy American Act was signed into law by President Hoover on his last day in office in 1933. This law requires the United States Government to prefer US made product in its purchased. The intent of the Act is to ensure that domestic materials make up the bulk of government purchased materials. In simpler terms, the Buy American Act requires Federal Agencies to procure domestic materials and products.
While in 1933 this was an honorable goal the through government regulations the lofty goal has been watered down. For example, in statute and regulation a limit of for purchases above $10,000.00. Over the years Congress has grappled with the “Buy American” provision being added to National Defense Authorization Act (NDAA) to clear up the meaning. This year Congress is once again discussing “Buy American.”
This year’s NDAA provision recognizes that a strong national defense requires a robust domestic defense-industrial base with thriving U.S.-based manufacturers, small businesses and, most importantly, American workers. This year’s “Buy American” wants to protect the defense-industrial base and the workforce. However, some in Congress are saying that by creating American jobs we weaken national security. They are saying that by strengthening the domestic supply chain allies would be exclude.
More to follow on these arguments.
