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Senate passes Senator Stabenow’s Make It In America Act and provision to address the semiconductor shortage

Stabenow provisions passed in the U.S. Innovation and Competition Act, which will boost American manufacturing, create jobs and improve American competitiveness

WASHINGTON, D.C. — The U.S. Senate today passed a bipartisan bill to invest in American innovation and manufacturing. The U.S. Innovation and Competition Act, which passed 68-32, included U.S. Senator Debbie Stabenow’s Make It In America Act to strengthen Buy American laws. The bill will make it harder for federal agencies to use waivers to get around Buy American rules that require the federal government to give preference to products made in America.

The U.S. Innovation and Competition Act also includes Senator Stabenow’s and Senator Peters’ provision to provide the right incentives to increase American manufacturing of crucial manufacturing components. The Senators’ provision would provide $2 billion for the production of mature semiconductor technologies, which are needed by the automotive and defense industries and other manufacturing sectors. In total, the U.S. Innovation and Competition Act will invest $52 billion to offset the cost of constructing new American semiconductor facilities.

“For too long, countries on the other side of the world have been investing to win the global clean energy race. They have been outpacing us on funding new technologies, making critical components Americans rely on, and building electric vehicles. We are now at a crucial moment in our competition to win the clean energy manufacturing future for America and eliminate the real vulnerabilities we are seeing in our supply chains. These vulnerabilities have, unfortunately, been made much worse by COVID-19. My provisions that we are passing today address our long-term semiconductor shortage, close loopholes that allow the federal government to get around Buy American requirements, and will create new good paying jobs right here in Michigan,” said Senator Stabenow.

In 2018, Senator Stabenow issued her Buy American report that found exceptions and waivers to the Buy American Act allowed federal agencies to spend $92 billion on foreign-made products. Each year, federal agencies spend billions in taxpayer dollars to buy products from the private sector. The 1933 Buy American Act requires federal agencies to give preferential treatment to manufacturers of high quality, American-made goods and products. Unfortunately, loopholes, waivers, and outright violations have allowed federal agencies to buy products overseas — leaving our American manufacturers behind.

The bill would also create a new “Made in America Office” within the Office of Management and Budget, charged with reviewing waivers to the Buy American Act and ensuring compliance with other Buy American laws. This office mirrors President Biden’s executive order to create a central office dedicated to enforcing Buy American laws. Finally, the Make It in America Act would give small- and medium-sized American manufacturers the first opportunity to provide products for federally-funded transportation projects.

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