The second of occasional AAM policy recommendations begins as a new era in Washington.
Investing in reliable infrastructure directly addresses the competitiveness of your manufacturing site. American manufacturers benefit from more efficient networks to move goods to market and the opportunity to supply products and materials used to build highways, water systems, and other critical public works projects. I am receiving
That’s why we made the Infrastructure Investment and Jobs Act of 2021 (IIJA) such a big deal. After years of neglect, our nation’s public utility infrastructure system is finally getting the attention it deserves. The bill dedicated $1 trillion, including $550 billion in new funds, to renovate aging assets and build new assets needed for American businesses to compete in the global economy.
But what made IIJA particularly impactful was its inclusion of the Build America, Buy America Act (BABA). Adding existing American law to existing traditional highway and transportation systems, BABA expands preferences for all taxpayer-supported public works infrastructure projects. The legislation strengthens coverage to include products and materials beyond just iron and steel and creates a strong market signal to encourage capital investment in other U.S. industries and their upstream supply chains. It also adds needed transparency and accountability where exemptions are needed to overcome short-term market limitations, addressing the myriad loopholes and exceptions that have weakened American rules in the past.
BABA has already delivered positive economic impact infrastructure investments to ensure that U.S. manufacturers and their workers feel the benefits. 1 quote The attribution of 1.8 million jobs created annually for IIJA spending follows previous analysis. 33% Increased manufacturing jobs created when the use of domestic content is maximized.
That’s because Buy America is creating a strong market signal for companies to work here. Hornell Alstrom increased production For example, thanks to the purchase at the New York railroad car factory, Corning announced hundreds of new jobs Planned fiber optic factory in Arizona and another north carolina. Coupled with Buy America’s preferences, investments in broadband infrastructure are in order spurred significant investment More than 2,200 jobs will be created across the sector’s supply chain.
However, for American workers to fully benefit from this new Buy America law, federal agencies must fully implement it and avoid creating new loopholes. Additionally, the agency must comply with Congressional directives to eliminate loopholes and avoid issuing widely applied exemptions that have bypassed American businesses and their workers for decades. Every unnecessary or excessive exemption that reduces America’s coverage, leaving each loophole open is a market signal that undermines incentives for domestic manufacturing investment.
It is clear policy of the United States under enactments of Congress and various acts of Congress. presidential order To buy Americans. Still, vigilance is required to ensure that Baba’s rules are followed. Furthermore, investments in infrastructure must respond to the clear needs of our country. IIJA’s authorization is extended through 2026, making reauthorization of the infrastructure program an immediate action item for Congress. In the meantime, the Trump administration has an opportunity to accelerate implementation of BABA to the benefit of U.S. manufacturers and their workers.
Policy recommendations
1. Reauthorize the surface transportation program and identify a long-term, robust funding solution before it expires in late 2026.
2. Keep American laws strong by denying special interest lobbying to restore access to products and materials imported from China and other foreign countries.
3. Accelerating implementation of BABA in departments and agencies that continue to lag behind the law more than three years after enactment, with particular attention to “missing” programs where BABA is not fully applicable.
4. Reduce the number of Shop America’s nationwide “general exemptions” that bypass U.S. businesses and their workers and undermine market signals for U.S. investments. Instead, prefer using For this purpose Project-specific exemptions and, where appropriate, “general exemptions” that are narrow, time-limited, and transparent.
5. Under a “transition period” established under the Biden administration, it suspends FHWA’s 1983 “general exemption” for manufactured products, which is not set to fully expire until October 2026.
6. Use the MadeInamerica.gov website to increase transparency for federal agencies of America’s exemptions as a tool to highlight investment opportunities for companies seeking to close gaps in the U.S. supply chain.
7. Accelerate timelines for institutions to evaluate and publish For this purpose, Project-specific exemptions by ensuring adequate resources for administration of American law.
