Buy American and Hire American (E.O. 13788)

Summary

Makes the government buy more American-made products and hire more American workers by strictly following existing laws and reviewing immigration rules.

What problem does this solve?

Some believe that government purchasing and hiring practices favor foreign goods and workers, which can harm American businesses and job seekers. This order directs federal agencies to prioritize buying American-made products and hiring American workers to support the national economy.

What does this order do?

Establishes 'Buy American and Hire American' policy

Sets the official policy of the executive branch to maximize the use of goods made in the United States and to rigorously enforce laws about hiring workers from other countries.

Reforms the H-1B visa program

Directs federal agencies to suggest reforms to the H-1B visa program to ensure that visas are awarded to the most-skilled or highest-paid applicants.

Requires strict enforcement of 'Buy American' laws

Orders every federal agency to closely monitor and enforce all 'Buy American' laws and to minimize the use of waivers or exceptions to these rules.

Requires agency review of 'Buy American' practices

Mandates that all federal agencies assess how well they are following 'Buy American' laws and how their use of waivers impacts domestic jobs and manufacturing.

Proposes new immigration rules

Instructs the heads of State, Justice, Labor, and Homeland Security to propose new rules and guidance to protect U.S. workers and prevent fraud or abuse in the immigration system.

Requires a report on strengthening 'Buy American' laws

Directs the Secretary of Commerce to submit a report to the President with specific recommendations to make 'Buy American' laws and policies stronger.

Who does this affect?

American businesses and manufacturers
Foreign workers and visa applicants
Federal government agencies

What is the real world impact?

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Strengthens the US economy

Aims to boost American manufacturing and create jobs by ensuring that federal tax dollars are used to buy American-made products. This keeps money circulating within the U.S. economy and supports domestic industries.

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Protects American workers

Seeks to reform visa programs like the H-1B to prevent them from being used to hire foreign workers for lower pay, thereby protecting jobs and wages for American workers.

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May increase costs and limit talent pools

Critics argue that forcing agencies to buy American could increase government costs if domestic products are more expensive. Additionally, tightening visa rules might make it harder for companies to hire highly skilled foreign talent when qualified American workers are not available.

When does this start?

This order took effect on April 18, 2017, and set several deadlines for federal agencies to review policies and submit reports.

Agency assessment guidance

Within 60 days of the order, the Secretary of Commerce and Director of OMB must issue guidance to agencies on how to conduct their policy assessments.

Agency assessments completed

Within 150 days of the order, all agency heads must assess their compliance with 'Buy American' laws and their use of waivers.

Report to the President

Within 220 days of the order, the Secretary of Commerce must submit a report to the President with findings and recommendations to strengthen 'Buy American' laws.

Annual agency reports

Starting November 15, 2018, each agency head must submit annual reports on their implementation of 'Buy American' laws.