The president is expected to support Biden’s Build America, Buy America and other federal procurement policies that encourage domestic manufacturing
Former President Joe Biden strengthened the federal government’s procurement policy to encourage domestic manufacturing, and even as President Donald Trump seeks to unwind much of his predecessor’s legacy, this looks to be an area of alignment. That means civil builders must prepare for heightened domestic procurement requirements stemming from both parties.
There was a marked increase of Buy American requirements during the previous Trump administration that continued under Biden, per a Nov. 11, 2024, alert authored by Eric Crusius, partner at Tampa, Florida-based law firm Holland and Knight.
“Contractors should expect that trend will continue, perhaps even further than the current trajectory,” according to Crusius’ alert.
Biden bolstered the existing Buy America requirements for federally financed infrastructure projects via the Infrastructure Investment and Jobs Act. The Build America, Buy America provision of the IIJA requires that the iron, steel, many construction materials and manufactured products used in federally funded infrastructure projects be domestically produced.
The Trump administration has temporarily frozen IIJA funding and subsequently ignored court orders to release it, according to The New York Times. However, that does not negate BABA — such a move would require an act of Congress, Jason Walsh, executive director of the BlueGreen Alliance, a partnership between union and environmental groups, said in a Jan. 23 webinar. The organization supports the policy and has released a BABA user guide.
“BABA was authorized by a supermajority in Congress and it has strong bipartisan support, and we’ve seen no indication from the new administration that it would be unsupportive,” Walsh said.
Meanwhile, Trump issued at least three Buy American executive orders during his first term, including his 2017 Buy American and Hire American order, which aimed to protect U.S. workers and promote job growth. He also campaigned on renewing domestic manufacturing and looks poised to continue and expand American-made mandates.
My Thoughts 💭
No surprise here. But you better believe the price of construction will rise!