Buy American and Hire American
Signed: April 18, 2017
Published: April 21, 2017
Document Number: 2017-08311
đSummary
This executive order directs federal agencies to prioritize buying goods and materials made in the United States when using federal contracts or federal grant funds, and to limit the use of exceptions that allow foreign sourcing. It affects federal agencies, companies that sell to the federal government or receive federally funded awards, and agencies involved in immigration decisionsâespecially those overseeing the H-1B temporary worker program. Agencies must review how well they follow âBuy Americanâ requirements, examine how often and why they grant waivers, and propose changes to increase the use of U.S.-made materials; Commerce and OMB provide guidance and compile reports with recommendations to the President. It also instructs key departments to tighten administration of immigration rules to protect U.S. workers, including proposing reforms so H-1B visas go to the most-skilled or highest-paid applicants and reducing fraud or abuse.
đźBusiness Impact
This order most affects **federal contractors and grant-funded project firms**âespecially **construction/infrastructure, defense, transportation, and manufacturers/suppliers of iron, steel, aluminum, cement, and other âmanufactured goodsâ**âbecause agencies are directed to **tighten enforcement of domestic-content preferences and reduce waivers**. Expect more **documentation and audit-ready proof of U.S. production** (e.g., iron/steel âmelt-to-coatingâ in the U.S.), tighter **flow-down requirements to subcontractors**, and fewer/stricter **public-interest waivers**, creating opportunities for **U.S.-based producers** to win bids and for import-reliant firms to face higher costs or bid ineligibility. The âHire Americanâ section most impacts **Hâ1B-dependent employers** (notably **IT services, consulting, engineering, healthcare staffing, and universities/research**) via heightened scrutiny, anti-fraud enforcement, and potential shifts toward **higher-wage/higher-skill** selection criteria. Immediate actions: **map your federal/grant exposure**, **audit your supply chain for domestic-content compliance**, lock in **U.S. sources and certifications**, update bid templates and subcontract
Full Text
Executive Order 13788 of April 18, 2017
Buy American and Hire American
By the authority vested in me as President by the Constitution and the laws of the United States of America, and to ensure the faithful execution of the laws, it is hereby ordered as follows:
Section 1 . Definitions. As used in this order:
(a) “Buy American Laws” means all statutes, regulations, rules, and Executive Orders relating to Federal procurement or Federal grants—including those that refer to “Buy America” or “Buy American”—that require, or provide a preference for, the purchase or acquisition of goods, products, or materials produced in the United States, including iron, steel, and manufactured goods.
(b) “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
(c) “Petition beneficiaries” means aliens petitioned for by employers to become nonimmigrant visa holders with temporary work authorization under the H-1B visa program.
(d) “Waivers” means exemptions from or waivers of Buy American Laws, or the procedures and conditions used by an executive department or agency (agency) in granting exemptions from or waivers of Buy American Laws.
(e) “Workers in the United States” and “United States workers” shall both be defined as provided at section 212(n)(4)(E) of the Immigration and Nationality Act (8 U.S.C. 1182(n)(4)(E)).
Sec. 2 . Policy. It shall be the policy of the executive branch to buy American and hire American.
(a) Buy American Laws. In order to promote economic and national security and to help stimulate economic growth, create good jobs at decent wages, strengthen our middle class, and support the American manufacturing and defense industrial bases, it shall be the policy of the executive branch to maximize, consistent with law, through terms and conditions of Federal financial assistance awards and Federal procurements, the use of goods, products, and materials produced in the United States.
(b) Hire American. In order to create higher wages and employment rates for workers in the United States, and to protect their economic interests, it shall be the policy of the executive branch to rigorously enforce and administer the laws governing entry into the United States of workers from abroad, including section 212(a)(5) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(5)).
Sec. 3 . Immediate Enforcement and Assessment of Domestic Preferences According to Buy American Laws. (a) Every agency shall scrupulously monitor, enforce, and comply with Buy American Laws, to the extent they apply, and minimize the use of waivers, consistent with applicable law.
(b) Within 150 days of the date of this order, the heads of all agencies shall:
(i) assess the monitoring of, enforcement of, implementation of, and compliance with Buy American Laws within their agencies;
(ii) assess the use of waivers within their agencies by type and impact on domestic jobs and manufacturing; and ( printed page 18838)
(iii) develop and propose policies for their agencies to ensure that, to the extent permitted by law, Federal financial assistance awards and Federal procurements maximize the use of materials produced in the United States, including manufactured products; components of manufactured products; and materials such as steel, iron, aluminum, and cement.
(c) Within 60 days of the date of this order, the Secretary of Commerce and the Director of the Office of Management and Budget, in consultation with the Secretary of State, the Secretary of Labor, the United States Trade Representative, and the Federal Acquisition Regulatory Council, shall issue guidance to agencies about how to make the assessments and to develop the policies required by subsection (b) of this section.
(d) Within 150 days of the date of this order, the heads of all agencies shall submit findings made pursuant to the assessments required by subsection (b) of this section to the Secretary of Commerce and the Director of the Office of Management and Budget.
(e) Within 150 days of the date of this order, the Secretary of Commerce and the United States Trade Representative shall assess the impacts of all United States free trade agreements and the World Trade Organization Agreement on Government Procurement on the operation of Buy American Laws, including their impacts on the implementation of domestic procurement preferences.
(f) The Secretary of Commerce, in consultation with the Secretary of State, the Director of the Office of Management and Budget, and the United States Trade Representative, shall submit to the President a report on Buy American that includes findings from subsections (b), (d), and (e) of this section. This report shall be submitted within 220 days of the date of this order and shall include specific recommendations to strengthen implementation of Buy American Laws, including domestic procurement preference policies and programs. Subsequent reports on implementation of Buy American Laws shall be submitted by each agency head annually to the Secretary of Commerce and the Director of the Office of Management and Budget, on November 15, 2018, 2019, and 2020, and in subsequent years as directed by the Secretary of Commerce and the Director of the Office of Management and Budget. The Secretary of Commerce shall submit to the President an annual report based on these submissions beginning January 15, 2019.
Sec. 4 . Judicious Use of Waivers. (a) To the extent permitted by law, public interest waivers from Buy American Laws should be construed to ensure the maximum utilization of goods, products, and materials produced in the United States.
(b) To the extent permitted by law, determination of public interest waivers shall be made by the head of the agency with the authority over the Federal financial assistance award or Federal procurement under consideration.
(c) To the extent permitted by law, before granting a public interest waiver, the relevant agency shall take appropriate account of whether a significant portion of the cost advantage of a foreign-sourced product is the result of the use of dumped steel, iron, or manufactured goods or the use of injuriously subsidized steel, iron, or manufactured goods, and it shall integrate any findings into its waiver determination as appropriate.
Sec. 5 . Ensuring the Integrity of the Immigration System in Order to “Hire American.” (a) In order to advance the policy outlined in section 2(b) of this order, the Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Security shall, as soon as practicable, and consistent with applicable law, propose new rules and issue new guidance, to supersede or revise previous rules and guidance if appropriate, to protect the interests of United States workers in the administration of our immigration system, including through the prevention of fraud or abuse. ( printed page 18839)
(b) In order to promote the proper functioning of the H-1B visa program, the Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Security shall, as soon as practicable, suggest reforms to help ensure that H-1B visas are awarded to the most-skilled or highest-paid petition beneficiaries.
Sec. 6 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof;
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals; or
(iii) existing rights or obligations under international agreements.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
