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April 14, 2016

Poliquin, Tsongas introduce bill requiring DOD to adhere to 'buy American' rule

Courtesy / Office of U.S. Rep. Bruce Poliquin U.S. Rep. Bruce Poliquin of Maine catches a behind the scenes glimpse at a New Balance manufacturing facility. Poliquin introduced legislation requiring the DoD to purchase American-made footwear for United States military personnel, which would give Boston-based footwear company and other American manufacturers a chance to compete for that work.

U.S. Reps. Bruce Poliquin of Maine and Niki Tsongas of Massachusetts have introduced legislation requiring the Department of Defense to purchase American-made footwear for United States military personnel, which would give Boston-based footwear company New Balance and other American manufacturers a chance to compete for that work.

The “Stepping Up for American Workers and Troops Act” would require the Pentagon to adhere to the 1941 Berry Amendment, a law requiring it to purchase American-made clothing, textiles and other equipment as much as possible. Since the 2002 fiscal year, the Pentagon has circumvented that policy in relation to footwear by issuing cash allowances to new recruits for training shoes, which are not required to be American-made or compliant with the Berry Amendment. In 2014, prodded by Tsongas, the Maine delegation and other members of Congress, the Pentagon agreed to close that footwear loophole.

But, as New Balance stated this week in a public airing of its frustration, two years later the Pentagon still has not implemented the 2014 requirement extending the Berry Amendment’s Buy American regulations to training shoes.

“Manufacturers in Maine and across our nation, like New Balance, have invested in their production to make sure that their American-made shoes are fully Berry Amendment compliant,” Poliquin said in a statement. “I am proud to introduce this bill with Congresswoman Tsongas, which will make sure the Berry Amendment is fully implemented and these American-made shoes are available for our American men and women serving to protect our freedom.”

“This legislation is simple and straightforward: the DOD needs to adhere to the law and stop circumventing a policy that is a win for both domestic manufacturing and our service members,” said Tsongas. “It is time the DOD stops stalling and moves the process forward. The benefits are widespread, as the closing of this loophole would simultaneously provide our service members with high-quality training shoes, keep business here on American soil, boost job growth and continue to spur American economic development and innovation.”

Poliquin and Tsongas noted that New Balance and several other American companies have developed the ability to produce American-made athletic shoes that are 100% compliant with the Berry Amendment rules. Their legislation would require the Pentagon to stop using cash allowances as a way of sidestepping the 1941 law and 2014 loophole-closing amendment.

The lawmakers estimated approximately $180 million has been spent through the cash allowance loophole on athletic footwear, characterizing that sum in their joint statement as “critical funds that could have gone to American jobs and manufacturing.”

Matt LeBretton, vice president of public affairs for New Balance, said the legislation introduced by Poliquin and Tsongas “will be an important step forward in rectifying what has been an inequity in the application of the federal law known as the Berry Amendment.”

New Balance has 1,400 employees making footwear at five factories in New England. It employs 900 workers at its Maine factories in Norridgewock, Skowhegan and Norway. The remainder work in Lawrence and Brighton, Mass.

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