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Senate Fails to Move President's Jobs Bill, Dems Plan to Introduce Piece by Piece

On October 12, 2011, the Senate failed to closed debate on a “motion to proceed” to consideration of the President’s jobs bill1 (which effectively blocked further consideration of the bill at that time). Prior to the Senate's consideration of the bill, 24 associations sent a letter to House and Senate leaders expressing opposition to the Buy American provisions in the President's jobs bill.

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After the bill was blocked, the President issued a statement saying that he will work with Senate Majority Leader Reid (D-NV) to make sure the individual pieces of his jobs bill get a vote as soon as possible. Senate Majority Leader Reid also issued a statement saying that the Democrats would introduce the American Jobs Act piece by piece.

24 Associations Had Urged Opposition to Buy American Provisions in Bill

Prior to Senate consideration of the President’s jobs bill, 24 associations2 sent a letter to House and Senate leaders3 urging against the imposition of new Buy American Provisions in the American Jobs Act.

Letter warned of retaliation against U.S. goods and services. The letter warns that when the U.S. erects onerous new Buy American barriers to its own procurement market, other countries hide behind such actions as an excuse to keep U.S. goods and services out of their own markets and oftentimes continue to close their markets even more. The letter notes that the inclusion of the same Buy American provisions in the American Recovery and Reinvestment Act (ARRA) in 2009 led countries in Europe, Asia, Latin America and elsewhere to impose additional restrictions on the purchase of U.S. goods and services.

1The American Jobs Act as put forth by President Obama was introduced as S. 1549. However, Senate Majority Leader Reid (D-NV) introduced a different version (with slightly different offset provisions) under the same name (S. 1660), which was rejected by the Senate on October 11, 2011.

2Including the Business Roundtable, Emergency Committee for American Trade, National Association of Foreign-Trade Zones, National Foreign Trade Council, Retail Industry Leaders Association, U.S. Chamber of Commerce.

3House Speaker Boehner (R-OH), House Democratic Leader (D-CA), Senate Majority Leader Reid (D-NV), and Senate Minority Leader McConnell (R-KY).

(See ITT’s Online Archives 11092221 for summary stating that the President’s jobs bill contained Buy American restrictions and a provisions for a national infrastructure bank.)