In a broader discussion of the "Buy America" provisions in the stimulus bill, Jay Eizenstadt points to state level consequences that may be worth following: A regrettable step to protectionism:
Less obvious but possibly important is the cost to the states, many of which have previously not seen any reason to prefer domestically produced goods or services in their procurements. The Buy America provision will obligate such states to establish new procurement procedures to comply with the discriminatory requirement, in a legal setting that otherwise bases procurement decisions on common criteria such as the highest quality for the lowest cost. They will do so in order to access the Act’s funds, but the waste associated with developing discrimination mechanisms (and possibly later defending them on appeal) could be substantial.
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