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Biden to sign executive order requiring government to increase purchase of U.S. made goods

The order is designed to strengthen the Buy American program

U.S. President Joe Biden. Jan. 20, 2021. Washington, D.C.
(CHANDAN KHANNA/AFP via Getty Images)
Updated: January 25, 2021 - 9:13am

President Biden will sign an executive order Monday to increase government purchases from United States manufacturers.

Since February, the U.S. has lost more than half-a-million factory jobs, due primarily to the novel coronavirus pandemic.

The presidential order will attempt to boost the country's factory sector by requiring the federal government to procure an increased number of goods exclusively from U.S. factories. The White House hopes the initiative will encourage factories to go on a hiring spree. 

The order will alter some of the rules of the Buy American program, making it more difficult for contractors to secure a waiver that allows them to sell foreign goods to federal agencies. A higher percentage of a given good's components will also have to come from U.S. factories. 

The executive order also will create a new position at the White House Office of Management and Budget to oversee the initiative and requiring federal agencies to periodically provide updates on their progress in purchasing an increased number of domestic goods. 

In addition, the order attempts to strengthen and underscore Biden's support for the Jones Act, which requires vessels traveling between U.S. ports carrying goods to fly the flag of the United States.