The nation’s spring construction season is starting up, and, in theory, it should be a big one. The 2021 bipartisan infrastructure law devoted more than $1 trillion dollars to upgrading the country’s roads, rails and ports. The 2022 Inflation Reduction Act is supposed to pump tens of billions more into renewables and other energy infrastructure.
But tucked into these laws are provisions that make it harder to build the things the country needs to sustain Americans’ quality of life and reduce planet-warming emissions: protectionist clauses such as “Buy America” requirements.
The Post reported in February that state and local transportation officials worry that they cannot source domestically enough of certain goods, such as the reflective glass beads used to make highway safety stripping. High-speed rail parts, meanwhile, are mostly built in Japan or Europe.
Now, Bloomberg reports that companies interested in helping reach the 30 million people who lack high-speed internet access are begging for exceptions from Buy America requirements. The government’s ambition to connect more Americans is a high one, with a congressional commitment of $42.5 billion in the Broadband Equity, Access and Deployment Program.
But while enough U.S.-made fiber optic cable exists to meet network builders’ needs, Bloomberg reports, it is harder to find sufficient U.S.-made routers, wireless radios, switches, user terminals and other electronics. Broadband companies are not likely to proceed with projects until they know they can get all the necessary parts. Potential delays and higher costs could result, meaning less cable will likely run to fewer homes.
The obvious solution is for the government to issue a waiver allowing broadband companies to buy abroad the products the U.S. market cannot furnish. The needed electronic components account for only a sliver of what it costs to build broadband networks, according to outside experts — so even with a waiver, most of the spending would go to U.S. workers and firms.
Senior Biden administration officials stressed that waivers will be available in certain circumstances so that contractors are not scrambling to buy every last bit of material from a U.S. supplier. If building as much green energy, broadband lines and new miles of track is the top priority — and it should be — the Biden administration will liberally waive Buy America requirements.
That seems unlikely, however, as Mr. Biden seeks to transform the economy into one in which the federal government directs investment to domestic industries, particularly in manufacturing, that officials deem critical. He has called his economic plan “a blue-collar blueprint to rebuild America.” New U.S. supply chains will develop, if enough money is thrown into the effort. But that will take time, and the probable result would be more expensive products.
The country should not spend more than necessary as the planet warms and other needs go unmet. Trying to do too much risks the likelihood that too little will happen.
— The Washington Post
