	Introduction

Congress over the years has passed several domestic content laws that aim to protect American manufacturing and manufacturing jobs. These restrictions are commonly referred to as the Buy America Act, or more simply, Buy America; they differ from requirements under the Buy American Act of 1933, which applies to direct purchases by the federal government. Statements and actions by the Trump Administration about reinvigorating domestic manufacturing and reinvesting in infrastructure have stimulated renewed interest in Buy America. Today, Buy America refers to several similar statutes and regulations that apply to federal funds used to support projects in highways, public transportation, aviation, and intercity passenger rail, including Amtrak. Unless a nationwide or project-specific waiver is granted, Buy America requires the use of U.S.-made iron and steel and the domestic production and assembly of other manufactured goods, such as rolling stock used in public transportation. To evaluate the implications of Buy America on domestic manufacturing, this report analyzes the effects of Buy America on steel and rolling stock manufacturing in the context of industry trends. Even though FHWA waives Buy America requirements for manufactured products, except those made predominantly of iron and steel, this is not the case with other U.S. Department of Transportation (DOT) agencies and Amtrak. For example, for the purchase of rolling stock using FTA funds, the Buy America requirement is waived only if (1) the cost of the components produced in the United States in FY2017 is more than 60% of the cost of all components of the rolling stock (65% for FY2018 and FY2019, and 70% for FY2020 onward); and (2) final assembly of the rolling stock occurs in the United States (49 U.S.C. In 2008, Congress incorporated a provision in the FY2009 Duncan Hunter National Defense Authorization Act (NDAA; P.L. 112- 141 ), enacted in July 2012, and the Fixing America's Surface Transportation (FAST) Act ( P.L. First, an executive memorandum requires the Secretary of Commerce to develop a plan to have all new pipelines in the United States "use materials and equipment produced in the United States, to the maximum extent possible and to the extent permitted by law." It is not clear how these requirements might be altered through the regulatory process, if at all, in response to President Trump's "Buy American and Hire American" executive order. Direct employment in steel has declined from almost 260,000 jobs in 1990 to around 140,000 jobs in 2016 ( Figure 2 ), due largely to higher productivity. Buy America and U.S. Rolling Stock Manufacturing

Besides its restriction on the sourcing of iron and steel, Buy America also places limits on state and local governments and Amtrak when using federal funds to purchase manufactured goods. One of the main manufactured products this affects is rolling stock, which includes intercity passenger rail trains, public transportation rail cars and buses, and associated equipment. Alternatively, if federal funding increases, demand for new domestically produced passenger rail cars will likely grow. Evidence of these effects, however, is largely anecdotal. The requirements have the potential to raise costs of transportation projects and contribute further to delays. The FAST Act, enacted in December 2015, did this by increasing the share of public transit rolling stock components and subcomponents that must be produced in the United States. Other bills, such as the Invest in American Jobs Act of 2015 ( S. 1043 , 114 th Congress), introduced by Senators Merkley and Baldwin, have proposed increasing the share to 100%. Broadening Buy America Restrictions

There are proposals to expand Buy America to other parts of the transportation system and to other sectors such as clean energy manufacturing.
With the aim of protecting American manufacturing and manufacturing jobs, Congress over the years has passed several domestic content laws. Statements and actions by the Trump Administration about reinvigorating domestic manufacturing and reinvesting in infrastructure have stimulated renewed interest in these laws, including Buy America. The President's "Buy American and Hire American" initiative includes an executive memorandum requiring the Secretary of Commerce to develop a plan for new pipelines in the United States to be made from domestically produced iron and steel, and a separate executive order directing agencies to strictly adhere to Buy America laws.
Buy America refers to several similar statutes and regulations that apply to federal funds used to support projects involving highways, public transportation, aviation, and intercity passenger rail, including Amtrak. Unless a nationwide or project-specific waiver is granted, Buy America requires the use of U.S.-made iron and steel and the domestic production and assembly of other manufactured goods. One of the main manufacturing industries this applies to is the production of rolling stock (rail cars and buses) used in federally funded public transportation and Amtrak's intercity passenger rail service. This report examines the effects of Buy America on these two industries, iron and steel manufacturing and rolling stock manufacturing, in the context of industry trends.
Buy America dates to passage of the Surface Transportation Assistance Act of 1978 (STAA; P.L. 95-599), and is different from the Buy American Act, enacted in 1933, which applies to direct purchases by the federal government. Although the Buy America provisions have been in place in some form for almost 40 years, it is difficult to know how they have affected steel and rolling stock manufacturing in the United States, whether measured by jobs, output, or any other indicator. Empirical evidence on the economic benefits or costs of domestic content laws is largely lacking, in part because the effects are small compared with macroeconomic forces such as global economic growth and the related growth in demand for steel. Although employment in domestic steel manufacturing has declined sharply, this is largely attributable to higher industry productivity. Buy America has likely promoted the production of rail cars and buses in the United States, but these industries are relatively small, and demand is related strongly to the combined level of federal, state, and local government funding.
Buy America could increase the cost of some transportation projects by requiring the purchase of domestic steel, vehicles, and vehicle components when imported products might be cheaper. In some cases, the difficulty of complying with Buy America rules has been blamed for project delays. The cost of imports used in federally supported projects could rise because agencies within the U.S. Department of Transportation (DOT) require some imports be carried on U.S.-flag vessels in compliance with the FY2009 Duncan Hunter National Defense Authorization Act (NDAA; P.L. 110-417, §3511). Requiring transport by U.S.-flag vessels may also contribute to project delays. Lack of information makes claims about project cost and delay difficult to assess.
Much of the congressional activity related to Buy America seeks to strengthen its requirements. The Fixing America's Surface Transportation (FAST) Act (P.L. 114-94), enacted in December 2015, increased the share of public transit rolling stock components and subcomponents that must be produced in the United States from 60% in FY2017 to 65% in FY2018 and FY2019, and to 70% for FY2020 onward. Other bills have proposed increasing the share to 100%. Other legislative proposals have called for expanding Buy America to other parts of the transportation system, such as pipelines, and to other sectors, including clean energy manufacturing.