Buy American Act (Buy American)
A federal law requiring agencies to give preference to domestically produced goods on federal contracts, with exceptions for unavailable items and trade agreement countries.
Definition
The Buy American Act of 1933 (41 U.S.C. §8301) requires federal agencies to purchase "domestic end products" — products manufactured in the US from substantially US-origin components. The 2022 final rule raised the domestic content threshold to 60% (rising to 65% in 2024 and 75% in 2029). Exceptions allow foreign sourcing when domestic supply is unavailable, when domestic price exceeds a threshold premium (typically 20-50% depending on type), or when buying for use outside the US.
When it applies
Affects sourcing decisions on most federal goods purchases. Trade Agreements Act (TAA) modifies Buy American by treating products from over 100 designated countries as eligible for TAA-covered procurements (above certain thresholds). Berry Amendment imposes stricter domestic-sourcing rules for DoD clothing, food, and certain materials. False certifications carry False Claims Act exposure.