Biden raises minimum wage for federal employees 1:09
Washington (CNN) -
US President Joe Biden will sign a presidential decree on Monday aimed at boosting American manufacturing and launch a process to fulfill his campaign pledge to strengthen "Buy American" rules. US) of the federal government.
Similar decrees signed by former President Donald Trump had little effect because his administration waited to formalize the changes until his penultimate day in office.
Rather, Biden will set a 180-day deadline to make fundamental changes to the process, according to an administration official.
ANALYSIS |
The decrees that Biden signed in his first days in office are not a solution.
They are a symptom
“He believes that we can rebuild the vitality of American manufacturing and our industrial strength.
Much of that centers on the idea that when we use taxpayer money to rebuild America, we buy American and support American jobs, "the official said.
The decree follows others that Biden signed last week to direct additional economic relief to Americans most in need, as well as starting the process of raising the minimum wage for federal workers and contractors to $ 15 an hour.
The president signed 30 decrees in his first three days in office, some of which reversed Trump's policies.
Additional decrees are expected this week, in which a series of themed days are scheduled to cover racial equity, climate, health care and immigration.
Closing the loopholes in federal purchases
Currently, a patchwork of federal rules requires that a portion of government spending on things like infrastructure, vehicles, and other equipment be restricted to goods that are made in the United States.
But there are gaps depending on the material, the amount of the purchase, and what qualifies as made in America.
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Biden's presidential decree will change the way local content is defined and measured for qualifying products, in addition to increasing the required threshold.
He will also create a senior position in the Office of Management and Budget to oversee the process by which contractors can request exemptions from the Buy American rules, with the goal of reducing the number of exemptions granted.
The administration will also create a website that will post all exemption requests and direct agencies to proactively connect with small American manufacturers that are often left out of the process.
What happened to the boost promised by Trump?
The manufacturing sector did not get the boost Trump repeatedly promised.
The number of manufacturing industry jobs grew during the first two years of his administration, albeit at roughly the same rate as they did under President Barack Obama, but then slowed in 2019 after the momentum of US-backed tax cuts. Republicans disappeared and because Trump's tariffs on China created uncertainty for companies.
Biden signs decrees that include measures to raise the minimum wage of US $ 15 to federal employees and contractors
The pandemic hit the manufacturing sector hard as the rest of the economy slowed.
The sector has still lost 543,000 jobs since February 2020, according to the Bureau of Labor Statistics.
"Trump talked a lot about buying American and hiring American, but his presidential decrees didn't mean much," said Scott Paul, president of the Alliance for American Manufacturing.
"Here's an opportunity for Joe Biden to really be a 'Made in America' president," he added.
Paul said he is eager to see Biden close the loopholes in the current federal procurement process and fulfill his campaign promise to purchase $ 400 billion in US-made goods and materials for infrastructure projects.
Biden's Buy American policy may affect some foreign business partners.
Canadian Foreign Minister Marc Garneau said in an interview with CBS News on Sunday that it "could jeopardize the very strong and integrated supply chains that exist between our two countries."
Presidential Decrees Manufacturing