President Trump signed an Executive Order last week to promote the employment of American workers and purchase of American goods.  The "Buy American Hire American" order explains that the federal government will closely administer and enforce laws related to the entry of foreign workers into the United States.  The Secretary of State, Attorney General, Secretary of Labor and Secretary of Homeland Security are directed to propose rules or issue guidance to "protect the interests of United States workers in the administration of our immigration system, including through fraud or abuse."  The order specifically targets the H-1B visa program, directing the foregoing agency heads to suggest reforms to ensure that such visas are "awarded to the most-skilled or highest-paid petition beneficiaries."

 

The Order also instructs federal agencies to assess their compliance with existing "Buy American" laws, defined as including statutes, regulations, rules and Executive Orders "relating to Federal procurement or Federal grants including those that refer to "Buy America" or "Buy American" that require, or provide a preference for, the purchase or acquisition of goods, products, or materials produced in the United States, including iron, steel, and manufactured goods."  In addition to evaluating their internal compliance with "Buy American" laws, federal agencies are also directed to assess their use of waivers and propose strategies for ensuring that, moving forward, federal financial assistance and procurements maximize the use of materials produced in this country.

 

In remarks made during the Executive Order's signing ceremony, President Trump explained the rationale for the Order.  "No longer are we going to allow foreign countries to cheat our producers and our workers out of federal contracts.  Everyone in my administration will be expected to enforce every last Buy American provision on behalf of the American worker, and we are going to investigate every single trade deal that undermines these provisions."

 

Trump also stated the rationale for his Administration's focus on hiring American workers.  "Right now, widespread abuse in our immigration system is allowing American workers of all backgrounds to be replaced by workers brought in from other countries to do the same job, sometimes for lesser pay.  This will stop."

 

While the Executive Order does little more than directing agencies to review and propose changes, the practical impact of Trump's directive will become clear once those agency recommendations become known.