President Biden Issues Guidance Requiring U.S. Content in Fed Funded Projects
The Biden Administration issued guidelines Monday for the materials to be used on projects funded through the infrastructure passed in November. As of May 14, federally funded projects must use materials manufactured in the United States, including iron and steel. Component costs for a final product must be greater than 55% of the total cost.
However, the requirements may be waived in any of the following cases:
- 1.The application of the preference is inconsistent with public interest
- 2.The types of iron, steel, manufactured products or construction materials are not being produced, are not sufficiently available or are not of a satisfactory quality
- 3.The inclusion of U.S. based iron, steel, manufactured products or construction materials increase the cost of the overall project by over 25%
The White House states its goal is to create more jobs, ease supply chain disruptions and reduce reliance on other nations as a result of this issuance, AP News reported. U.S. steel has already seen significant increases in production over the past year due to skyrocketing demand. In 2021, steel mills produced 18.3% more steel in comparison to 2020—the largest annual increase among the world's leading steel producers, according to the World Steel Association.
Demand for steel also is expected to rise by 5.7% in 2022, per the World Steel Association. Last year, the U.S. ranked fourth in the world in steel production trailing China, India and Japan.
Bryan Mason, editorial associate