Executive Order 13881-Maximizing Use of American-Made Goods, Products, and Materials
Issued 2019-07-15 by Donald J. Trump
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
Executive Order 13881 directs the federal government to strengthen its enforcement of the Buy American Act, which requires the government to prefer American-made goods when making purchases. The order instructs federal agencies to maximize their use of products and materials produced in the United States to the greatest extent permitted by law. It builds on earlier executive orders from the same administration focused on buying American products.
The order specifically addresses how the government determines whether a product counts as American-made or foreign-made. Under a 1954 rule by President Eisenhower that was still in effect, materials were considered foreign if 50 percent or more of their component costs came from foreign products. This executive order directs the Federal Acquisition Regulatory Council to consider tightening that standard—proposing that iron and steel products would be considered foreign if just 5 percent of their costs are foreign, and other products would be considered foreign if 45 percent or more of their costs are foreign. The order also proposes changes to the price preference formulas used when comparing American versus foreign bids on government contracts.
This action affects companies that sell goods to the federal government and potentially American manufacturers who may benefit from stricter buy-American requirements. The order does not immediately change the rules but directs federal agencies to propose new regulations, accept public comments, and then issue final rules if appropriate.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
Executive Order 13881 addresses "Executive Order 13881-Maximizing Use of American-Made Goods, Products, and Materials". The President's stated reasoning: "the principles underlying the Buy American Act of 1933 (41 U." Executive orders are a long-established exercise of presidential power, used by every President since George Washington. They are grounded in Article II of the Constitution, which vests executive power in the President and directs them to "take Care that the Laws be faithfully executed."
Executive orders cannot create new law, contradict existing federal statutes, or exceed the President's constitutional authority. The legitimacy of any specific order depends on whether it operates within statutory authority Congress has delegated, directs the executive branch on matters within its constitutional purview, or attempts to substitute executive policy for legislative choices. Courts can and do review executive orders for conformity with the Constitution and federal law.
Official Summary
Administration of Donald J. Trump, 2019 Executive Order 13881—Maximizing Use of American-Made Goods, Products, and Materials July 15, 2019 By the authority vested in me as President by the Constitution and the laws of the United States of America, and to promote the principles underlying the Buy American Act of 1933 (41 U.S.C. 8301–8305), it is hereby ordered as follows: Section 1 . Policy . (a) As expressed in Executive Order 13788 of April 18, 2017 (Buy American and Hire American), and in Executive Order 13858 of January 31, 2019 (Strengthening Buy-American Preferences for Infrastructure Projects), it is the policy of the United States to buy American and to maximize, consistent with law, the use of goods, products, and materials produced in the United States. To those ends, my Administration shall enforce the Buy American Act to the greatest extent permitted by law. (b) In Executive Order 10582 of December 17, 1954 (Prescribing Uniform Procedures for Certain Determinations Under the Buy-American Act), President Eisenhower established that materials shall be, for purposes of the Buy American Act, considered of foreign origin if the cost of the foreign products used in such materials constitutes 50 percent or more of the cost of all the products used in such mater