Buy American: Biden to require higher share of US-made parts for products purchased by government

• The federal government spends more than $600 billion each year to buy goods and services.
• Products the government buys must have a higher share of U.S. parts to qualify as “Made in America”.
• The current share is 55% but Biden's rule will require 60% by October, 65% by 2024, and 75% by 2029.

WASHINGTON – Products purchased by the federal government will be required to have a higher share of parts made in the United States to qualify as “Made in America” under a new rule that President Joe Biden announced Friday.

Under current rules, a product is considered “Made in America” if 55% of its parts came from the U.S. The rules change that Biden announced at a White House ceremony will increase that threshold to 60% in October. The content threshold will jump again to 65% in 2024 and increase to 75% in 2029.

The federal government spends more than $600 billion each year to buy goods and services. The administration believes requiring a higher content of U.S.-made parts will create more opportunities for small- and medium-sized manufacturers and their employees, including small and disadvantaged enterprises.

“I’m placing a bet on America,” Biden said, calling the revision the biggest change in the Buy American Act in 70 years.

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At the same ceremony, Biden and Barbara Humpton, the chief executive officer of Siemens USA, announced that the technology company is investing $54 million to expand domestic production and create 300 jobs to manufacture electrical infrastructure that will support everything from electric vehicle chargers to data centers to industrial sites.

Siemens will invest more than $10 million to expand its existing Smart Infrastructure manufacturing hub in Grand Prairie, Texas. The expansion will include a 25,000-square-foot addition, featuring a new electric-powered paint line that will help the facility reduce its carbon footprint by 90%.

Can his plan work?:Biden says making more goods in the US, like cars and chips, will lower inflation.

More:Biden’s Build Back Better bill would speed up conversion to electric mail trucks at struggling USPS

The plant manufactures circuit breakers and equipment that support essential power infrastructure in some of the country’s most critical installations, including data centers, industrial sites, and healthcare facilities.

The company will invest another $40 million to build a greenfield manufacturing site to replace its facility in Pomona, Calif. The facility will produce low-voltage electrical equipment for industrial and commercial installations in addition to “make-ready” power distribution equipment to serve the expanding electric vehicle market.

Michael Collins covers the White House. Follow him on Twitter @mcollinsNEWS.