Strengthening Buy-American Preferences for Infrastructure Projects

This executive order expands Buy-American requirements from federal procurement to federal financial assistance programs for infrastructure projects. It directs agencies to encourage domestic sourcing of iron, steel, aluminum, cement, and other manufactured products in infrastructure grants and awards, and requires reports on strategies to maximize domestic preferences.

Federal Register Open PDF 84 FR 2039

Impact dates

May 31, 2019
Agency heads submit report to President on tools and strategies to maximize Buy-American principles, including analysis of mandatory requirements
May 1, 2019
Agency heads encourage domestic sourcing in new federal financial assistance awards

Key directives

Within 90 days: Agency heads must encourage recipients of new federal financial assistance to use domestically produced iron, aluminum, steel, cement, and manufactured products to greatest extent practicable (Sec. 3(a))
Within 120 days: Agency heads must submit report to President through Assistant to the President for Trade and Manufacturing Policy identifying tools, techniques, terms, or conditions to maximize domestic sourcing, including analysis of whether covered programs could support mandatory domestic requirements (Sec. 4)
Amend Executive Order 13788 to substitute 'Federal financial assistance' for 'Federal grants' (Sec. 5)

Who is ordered

Timeline

Immediate

Policy directive takes effect; agencies must begin developing strategies for covered programs

Near term (90d)

Agency heads must encourage domestic sourcing in new federal financial assistance awards (Sec. 3(a))

Long term

Potential structural shift in federal infrastructure grant conditions toward mandatory domestic preferences; possible designation of additional infrastructure sectors by Federal Permitting Improvement Steering Council

Risks & tensions

Encouragement language ('encourage,' 'to the greatest extent practicable') falls short of mandate; actual compliance depends on agency discretion
Exemptions for programs where domestic preference is 'inconsistent with law' or already subject to 'comparable domestic preferences' may limit scope
Broad infrastructure definition (including fossil fuels, broadband, cybersecurity) creates implementation complexity across disparate sectors
Sec. 6(iii) preserves existing international agreement obligations, creating potential tension with WTO commitments
Vague: 'as appropriate and to the extent consistent with law' provides significant wiggle room for agencies