White House Says Federal Infrastructure Projects Must Use Materials From The United States

On April 18, President Joe Biden issued guidance that will require materials (including industrial metals) purchased for federal infrastructure projects be produced in the United States. The new rules will go into effect by May 14, 2022.

PLEASE NOTE: Connecting the Dots is reporting this information for MSCI’s members’ information only. As a North American trade association, MSCI recuses itself from comment on so-called “Buy American” rules.

The guidance, available here, states the rules apply to “any program under which an award may be issued for an infrastructure project, regardless of whether infrastructure is the primary purpose of the award.” It also noted the term “project” means “any activity related to the construction, alteration, maintenance, or repair of infrastructure in the United States.”

Federal agencies will be able to approve waivers if goods are not available in the United States or are prohibitively expensive, but they will have to target specific products and projects “to the greatest extent applicable,” rather than whole sectors or product types.

Canadian manufacturers have pledged to modify the rules. Dennis Darby, head of Canadian Manufacturers and Exporters, noted “Canada and the U.S. don’t compete with each other in the manufacturing sector” and said, “We’d love to say, ‘Buy North American,’ instead of just “Buy American.”

In other infrastructure news: the Federal Highway Administration has launched a $6.4 billion Carbon Reduction Program (CRP) that will support local and state projects aimed at reducing on-road highway-based carbon dioxide emissions. Projects could range from installing infrastructure to electrify freight vehicles to improving the terrain for bicycles. Read more here.