States Introduce Domestic Procurement Bills Targeting Steel, Iron, Timber

The legislative landscape of 2026 reveals a significant shift as numerous states have proposed bills aimed at bolstering domestic production. Nearly 200 bills were introduced to establish U.S. sourcing requirements for public projects, primarily focusing on materials such as steel, iron, and timber. Additionally, states are moving to limit procurement from countries deemed as foreign adversaries, aligning with broader geopolitical strategies.

Focus on U.S. Sourced Materials: Steel, Iron, and Timber

Legislation across the United States is emphasizing the use of domestically sourced steel, iron, and timber for public construction projects. These measures are seen as part of a broader strategy to boost national security and economic competitiveness.

Steel Legislation: State Initiatives

States such as Michigan, Ohio, North Carolina, Massachusetts, Oklahoma, Minnesota, South Carolina, and Washington have introduced proposals mandating the use of U.S.-produced steel in public works projects. Iowa's legislation goes a step further by requiring state agencies to exclusively procure U.S.-manufactured steel. Notably, states like Pennsylvania and Iowa tie funding and tax incentives to this requirement, asserting that public funds cannot be used unless the steel is both melted and manufactured domestically.

Iron and Timber: Expanding Domestic Preferences

In addition to steel, states such as Ohio, North Carolina, and Massachusetts have introduced bills that incorporate domestic sourcing requirements for iron. Timber procurement legislation is also gaining traction in states like Washington and New Hampshire, where preferences for locally sourced lumber are being prioritized to address construction demand and supply chain issues.

Restricting Foreign Adversaries

A significant legislative trend is the introduction of bills prohibiting the acquisition of goods and services from nations classified as foreign adversaries. States vary in their definitions but commonly include countries like China, Russia, Iran, and North Korea based on federal guidelines. For example, Georgia's legislation defines a "covered foreign entity" as one under the control of China or Russia, reflecting efforts to protect national security through procurement decisions.

Trends in Future Legislation

The trend toward reshoring manufacturing and securing domestic supply chains is likely to continue, with future bills expected to expand beyond construction materials to include critical technologies and minerals. These legislative efforts align with the current administration's focus on economic competitiveness and national security.

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