Politics Biden to require US-made steel, iron for infrastructure

Biden to require US-made steel, iron for infrastructure

-

- Advertisment -


WASHINGTON (AP) – The Biden administration is taking a key step towards ensuring that federal dollars will support US manufacturing – issuing requirements for how projects funded by the $1 trillion bipartisan infrastructure package source their construction material.

The guidance issued Monday requires that the material purchased — whether it’s for a bridge, a highway, a water pipe or broadband internet — be produced in the US, according to administration officials. However, the rules also set up a process to waive those requirements in case there are not enough domestic producers or the material costs too much, with the goal of issuing fewer waivers over time as US manufacturing capacity increases.

advertisement

“There are going to be additional opportunities for good jobs in the manufacturing sector,” said Celeste Drake, director of Made in America at the White House Office of Management and Budget.

President Joe Biden hopes to create more jobs, ease supply chain strains and reduce the reliance on China and other nations with interests that diverge from America’s. With inflation at a 40-year high ahead of the 2022 midterm elections, he’s betting that more domestic production will ultimately reduce price pressures to blunt Republican attacks that his $1.9 trillion coronavirus relief package initially triggered higher prices.

advertisement

advertisement

President Joe Biden (MANDEL NGAN/AFP via Getty Images)

“From Day One, every action I’ve taken to rebuild our economy has been guided by one principle: Made in America,” Biden said Thursday in Greensboro, North Carolina. “It takes a federal government that doesn’t just give lip service to buying American but actually takes action.”

Biden said that the roughly $700 billion the government devotes annually to procuring goods is supposed to prioritize US suppliers but regulations going back to the 1930s have either been watered down or applied in ways that masked the use of foreign imports.

The administration could not say what percentage of construction material for existing infrastructure projects is US-made, even though the federal government is already spending $350 billion on construction this year. The new guidelines would enable government officials to know how many dollars go to US workers and factories.

Tucked into the bipartisan infrastructure package that became law last November was a requirement that starting on May 14 “none of the funds” allocated to federal agencies for projects may be spent “unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States.” That’s according to Monday’s 17-page guidance.

President Joe Biden
President Joe Biden (MANDEL NGAN/AFP via Getty Images)

The guidance includes three standards for these requirements to be waived: if the purchase “would be inconsistent with the public interest”; if the needed needless materials or quantities and quantities of sufficient quality”; or if US materials increase a project’s cost by more than 25%.

American manufacturers are about 170,000 jobs short of the 12.8 million factory jobs held in 2019, as manufacturing jobs began to decline before the pandemic began. But the US has 6.9 million fewer manufacturing jobs compared with the 1979 peak, a loss caused by outsourcing and automation.

Most Read

  • Queens mom Orsolya Gaal, found dead in duffel bag, was stabbed more than 50 times

    Queens mom Orsolya Gaal, found dead in duffel bag, was stabbed more than 50 times
  • Biden and Trump release very different Easter messages

    Biden and Trump release very different Easter messages
  • Fox News host Jesse Watters let air out of colleague’s tires so he could drive her home

    Fox News host Jesse Watters let air out of colleague's tires so he could drive her home

Getting more industrial jobs will likely mean adding more factories and assembly lines — as manufacturers are operating at a 78.7% capacity, which the Federal Reserve notes is above the historical average.

Latest news

Germany begins returning Benin bronzes to Nigeria

On Friday, Germany returned two priceless artifacts known as the Benin bronzes to Nigeria after reaching a political...

Kate Bush broke three world records with ‘Running Up That Hill’

(CNN)If she doesn't already have one, Kate Bush may want to send a muffin...

David Asman on ‘America’s Newsroom’: The ‘gang that couldn’t shoot straight’

Off Video David Asman: 'It's not Russia, it's here' Fox Business Anchor David Asman on how Biden...

January 6 Committee Kinzinger: Secret Service agent disputes claim Hutchinson ‘likes to lie’

Close Video A former aide to Meadows claimed that Trump did not care that his supporters had...
- Advertisement -

N. Korea suggests that balloons flown from the south may have brought COVID-19

Close Video Fox News Flash Top Headlines on July 1st Here are the top headlines from Fox...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you