The Stimulus Act's Buy American Clause Presents a Challenge to Manufacturers and Suppliers

President Obama signed the American Recovery and Reinvestment Act of 2009 (the Recovery Act) on February 17, 2009. The Act implements several broad economic stimulus spending and related programs, including various tax incentives for businesses. The Recovery Act contains a particular provision requiring that federal stimulus funds generally be spent on goods manufactured in the United States  – unless doing so would violate existing U.S. trade agreements. This “Buy American” clause foreshadows compliance challenges, and perhaps litigation, for companies hoping for a slice of the stimulus package pie.