South Carolina Covers Its Public Works Spending with a Buy America Law

A bill mandating the use of American-made iron and steel made for state-funded road and construction work passed almost unanimously, then was signed into law in June.

South Carolina has assured that, when it spends state tax revenue on state-funded projects and roads, it will use iron and steel produced in the United States.

H.4709, the Buy American Iron and Steel Act, passed both chambers of the South Carolina General Assembly last month, and has since been signed by the Governor. This legislation mandates the use of iron and steel manufactured in the U.S. for public work projects funded by the state treasury. 

The bill was proposed just ahead of America’s 250th anniversary, coinciding with renewed national attention on domestic industry and manufacturing. Steel, too, has been a symbol of economic growth and stability in South Carolina and across the country.

Gov. Henry McMaster signed H. 4709 on June 30, adding South Carolina to the growing number of states that have extended these procurement requirements beyond federally funded projects to those funded with state and local dollars. The House gave unanimous approval to the measure, and only two senators voted against it, which is a great show of bipartisan unity that underscores just how broadly South Carolinians support keeping public dollars close to home.

The new statute is not unreasonable and inflexible; it builds on existing federal policy. The only difference is South Carolina’s Buy American policy would apply to construction funded by state and local tax dollars, not by the federal treasury. And, like other such policies, it considers the needs of purchasers of steel. The bill includes a well-understood waiver process that provides flexibility in cases where domestic steel is unavailable or its use would increase expenses past an unreasonable threshold.

This legislation was led by the extraordinary efforts of Rep. Richie Yow and Sen. Larry Grooms, and helped along by co-sponsors like Reps. Cody Mitchell and Mark Smith, who were very active in pushing it across the finish line.  

The bill was supported by us here at the Alliance for American Manufacturing, but local industry played an important role too. Columbia-based, American Spiralweld was very active in its support, testifying at hearings and facilitating visits to the capitol for its workers to assure their voices were heard. Nucor Steel, a global steel manufacturer with a mill in Darlington, was very supportive too. Rep. Yow made a point to acknowledge how important this legislation would be in maintaining jobs at the Nucor facility.  

South Carolina now joins other states with Buy America laws in place. In addition to Texas and Florida, there’s Illinois, Indiana, Maryland, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Virginia and West Virginia.