President JoeBiden is raising the standards for businesses that compete for lucrative federal contracts with locally made products, taking a swipe at former President Donald Trump in the process.
Biden will announce on Friday that he is increasing the threshold for would-be federal contractors to use U.S.-made goods from 55% to 75% by 2029, according to senior administration officials. The threshold will be 60% this year, 65% in 2024, and peak five years later to provide businesses time to adjust their supply chains to depend more heavily on American parts or to move their in-house manufacturing facilities stateside.
A new Small Business Administration manufacturing office within its federal contracting division will help with the"Make Buy American Real” rule transition process, according to an official. Agencies will work with the Hollings Manufacturing Extension Partnership to identify and develop American sources for government needs as well.
Biden's rule builds on previous regulations trying to increase"equity" in federal procurement, introducing novel entrants to the federal marketplace, including small, minority, and women-owned businesses, according to officials. "Folks, that means make more cars and semiconductors in America, more infrastructure and innovation in America, more goods moving faster and cheaper in America, more jobs where you can earn a good living in America," he said.