Examining the Buy American Requirements of the American Recovery and Reinvestment Act

1074 Words Jan 13th, 2018 4 Pages
The Act provided for $787 billion in spending and tax cuts that were intended to stimulate the U.S. economy. The ARRA provided funds for contracts to be awarded by various federal agencies. These contracts were subject to significant constraints and compliance regulations, including requirements to Buy American.
The inclusion of Buy American provisions in the ARRA affected how the funds could be spent. Of the $787 billion in stimulus funds, approximately $89.4 billion was assigned for education training, aid and employment services, $32.7 billion for transportation projects, $25 billion for infrastructure projects, $22.4 billion for energy projects and $12.3 billion for housing (Government of Canada, 2012). The Buy American provisions of the ARRA were specified in Section 1605. ARRA requirements reflected provisions of the 1933 Buy American Act and the 1982 Buy America Acts. These stipulations required that for federal, state, and municipal projects funded by the ARRA, a preference was imposed to use U.S. domestic products. Specific ARRA Buy American requirements applied only to projects funded by the Act and no longer would apply once the ARRA funding is exhausted.
Buy American requirements for federally funded projects are not new, reflecting a long-standing preference of the U.S. government to buy…

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