The Biden administration announced Thursday that it will be taking steps to strengthen the supply chain in the U.S., including new rules governing the federal government’s purchase of American-made goods.
“The White House Office of Management and Budget will soon issue a new Buy American rule that will create a new category of critical products that will be eligible for enhanced price preferences,” the White House said in a statement. “By allowing the Federal government to pay an additional premium for critical domestic-made products and components essential to the Administration’s supply chain resiliency strategy, the new rule will create a steady source of demand that will help catalyze domestic production and bolster thin supply chains.”
The announcement comes a year after President Joe Biden signed an executive order directing the federal government to look for ways to improve the U.S. supply chain. The White House released a report Thursday laying out the conclusions of the analysis, as well detailed reports on the issue from seven cabinet agencies, including Defense, Energy and Commerce.