Berry Amendment
The Berry Amendment (10 U.S.C. § 4862) is a U.S. federal statute mandating that the Department of Defense procure certain end products—such as food, clothing and related textiles, tents and tarpaulins, cotton and other natural fiber products, specialized fabrics, and hand or measuring tools—exclusively from domestic sources, defined as items wholly grown, produced, or manufactured in the United States with minimal exceptions for minor components.[1][2] This requirement applies to funds appropriated for defense purposes, aiming to secure the national industrial base against supply disruptions in wartime or emergencies by prohibiting reliance on foreign suppliers for these critical items.[2][3] Originally enacted in 1941 as part of the Fifth Supplemental National Defense Appropriations Act amid World War II mobilization, the provision—sponsored by Representative Jacob Merritt Berry (D-KY)—addressed fears of overseas dependency exposed by pre-war blockades and submarine warfare, ensuring self-sufficiency in basic military necessities like uniforms and rations.[4] Over decades, it evolved from annual appropriations riders into permanent law through codification in 2006, though Congress has narrowed its scope by removing categories like machine tools (1994) and basing materials (2006) to balance protectionism with procurement efficiency.[4][2] The amendment's defining characteristics include strict "100% domestic" sourcing rules, enforced via contract clauses and Defense Logistics Agency oversight, with waivers permitted only when compliant items are unavailable in sufficient quantity, quality, or at reasonable cost—such waivers averaging dozens annually but scrutinized for potential national security risks.[2][5] It has sustained U.S. sectors like textiles and agriculture against offshore competition, contributing to specialized defense manufacturing capacity, yet draws criticism for inflating costs—estimated up to 20-50% higher for compliant goods—and complicating alliances, as seen in tensions with NATO partners or trade pacts requiring offsets.[4][6] Despite periodic reform proposals, its core endures as a tool of causal realism in supply chain resilience, prioritizing empirical wartime lessons over globalist efficiencies.[4]Overview
Provisions and Covered Items
The Berry Amendment, codified at 10 U.S.C. § 4862, restricts the Department of Defense (DoD) from using appropriated or otherwise available funds to procure specific items unless those items—or the food, clothing and components thereof, or hand or measuring tools—are grown, reprocessed, reused, or produced in the United States.[1] This domestic sourcing mandate applies to direct procurements, subcontracts, and any use of DoD funds by other agencies, ensuring that critical supplies support the U.S. industrial base and supply chain security.[7] Compliance is enforced through Defense Federal Acquisition Regulation Supplement (DFARS) clauses, such as DFARS 252.225-7012 for preference of domestic commodities.[8] Covered items fall into three primary categories: food, clothing and textiles (including related materials and components), and hand or measuring tools.[2]- Food: Encompasses all edible provisions, including meats, dairy, grains, and processed rations for military subsistence. Domestic origin requires that the food be grown (e.g., agricultural products), reprocessed (e.g., canned or packaged goods), reused, or produced entirely within the U.S., excluding incidental foreign additives if unavailable domestically. This category supports operational readiness by prioritizing U.S. agriculture, with procurements often exceeding millions of tons annually for troop feeding.[7][9]
- Clothing and Textiles: Includes uniforms, footwear, outerwear, tents, tarpaulins, removable covers, canvas products, blankets, sleeping bags, and individual equipment items classified under Federal Supply Class 8465 (e.g., packs, belts, harnesses). Materials covered are cotton and other natural fibers, wool (virgin or processed), woven silk or silk blends, spun silk yarn, synthetic or coated fabrics, and fibers/yarns used therein. Sourcing demands 100% domestic production across the supply chain: fibers must be U.S.-sourced or equivalent, with all manufacturing steps—from spinning yarn to cutting, sewing, and assembly—occurring in the U.S.; components like fabrics, threads, and trim (e.g., zippers, buttons) must similarly be domestic, though minor hardware may qualify under commercial availability tests. This strict "whole garment" rule prevents foreign offshoring of textile jobs and ensures quality control for items vital to troop protection and mobility.[10][7]
- Hand or Measuring Tools: Covers manual implements such as hammers, pliers, screwdrivers, wrenches, saws, levels, tape measures, and calipers used for maintenance, repair, or construction by DoD personnel. Domestic production requires substantial manufacturing in the U.S., meaning the tool's final assembly and value-adding processes occur domestically, with components sourced to avoid foreign dependency; tools with specialty metals (e.g., alloy steel) align with overlapping restrictions but emphasize Berry's end-product focus. This category safeguards against supply disruptions in basic equipment, applicable when sufficient U.S. commercial quantities are available.[2][7]
Exemptions, Waivers, and Exceptions
The Berry Amendment incorporates exceptions for acquisitions below specified dollar thresholds to facilitate smaller purchases without stringent domestic sourcing mandates. Under the Defense Federal Acquisition Regulation Supplement (DFARS) 225.7002-2, acquisitions not exceeding $200,000 are generally exempt from Berry restrictions, with the notable exception of athletic footwear procured for use by members of the Army, Navy, Air Force, or Marine Corps, which remains subject to the amendment irrespective of value.[12] This threshold aligns with simplified acquisition procedures but underscores targeted protections for essential uniform components. Incidental foreign-sourced cotton, wool, or other natural fibers comprising less than 10% of an end item's total value—and not surpassing the simplified acquisition threshold—are also permissible, provided they do not undermine the overall domestic content requirement.[13] Waivers, primarily through Domestic Non-Availability Determinations (DNADs), allow deviations when U.S.-produced items are unavailable in adequate quantity, quality, or at U.S. market prices. These determinations necessitate documented market research demonstrating the absence of viable domestic alternatives and are authorized by the Under Secretary of Defense for Acquisition and Sustainment, secretaries of the military departments, or the Defense Logistics Agency director.[2][13] For textiles and clothing, such waivers are rare due to the amendment's stringent coverage, but they apply to "nonavailable articles" per Federal Acquisition Regulation (FAR) 25.104(a), including items like 50-denier rayon yarn, raw silk, and goat hair canvas where domestic production satisfies 50% or less of typical U.S. demand.[13] Category-specific exceptions further refine applicability. Food acquisitions comply if manufactured or processed domestically, though seafood must derive from U.S.-flag vessels, U.S. waters, or U.S.-caught sources and undergo U.S. processing; perishable or emergency food needs outside the U.S. may qualify for broader exceptions.[2] Chemical warfare protective clothing from one of 27 qualifying countries—those with reciprocal defense procurement agreements—is exempt under DFARS 225.003. Additional carve-outs cover emergency procurements abroad, items supporting combat operations, commissary resale goods, and acquisitions between the simplified acquisition threshold and $150,000 in certain contexts, prioritizing operational exigency over strict domestic sourcing.[2][13] These mechanisms ensure flexibility while preserving the amendment's core intent of safeguarding U.S. industrial capacity for defense needs.Historical Origins
World War II Era Enactment (1941)
The Berry Amendment originated amid escalating global tensions preceding U.S. involvement in World War II, when policymakers prioritized securing reliable domestic supply chains for military essentials to mitigate risks from foreign dependencies. Enacted on April 5, 1941, as Section 2 of the Fifth Supplemental National Defense Appropriations Act (P.L. 77-29, 55 Stat. 133), the provision mandated that appropriated funds for the War Department could only procure certain goods wholly produced within the United States.[14][6] This measure addressed immediate wartime procurement vulnerabilities, such as potential disruptions in imports of wool and foodstuffs, by overriding exceptions in the broader Buy American Act of 1933 that had allowed foreign sourcing under cost or availability rationales.[14] Named for its sponsor, Representative Ellis Yarnal Berry (R-SD), the amendment reflected congressional debates over protecting surplus U.S. agricultural outputs—like wool and meat—while fortifying the industrial base against wartime shortages.[11] Berry, advocating for Midwestern producers, argued that foreign purchases undermined American farmers and risked troop readiness, a stance echoed in floor discussions highlighting the strategic folly of equipping soldiers with imported materials during conflict.[14] The law specifically prohibited expenditures on foodstuffs unless grown domestically, clothing and fabrics (including cotton, wool, and synthetic equivalents) unless manufactured in the U.S., and certain tools like hand implements and measuring devices unless produced stateside.[7][14] Stainless steel items were also included to safeguard specialized defense manufacturing.[2] This enactment marked a pivotal shift toward statutory domestic sourcing mandates for defense appropriations, driven by empirical lessons from World War I supply disruptions and contemporaneous European theater observations, where allied forces faced material scarcities.[14] By embedding these restrictions directly into annual funding bills, Congress ensured enforceability without relying on executive discretion, though implementation fell to War Department procurement officers tasked with verifying origins amid rapid mobilization.[7] The provision's narrow focus on end-items like uniforms—intended to guarantee that U.S. troops "wore clothes made in America"—underpinned its enduring national security rationale, prioritizing causal reliability in supply over short-term cost efficiencies.[14]Immediate Post-War Consolidation (1940s-1950s)
Following the conclusion of World War II in 1945, the domestic sourcing requirements of the Berry Amendment—originally enacted in the Fifth Supplemental National Defense Appropriations Act of 1941 (P.L. 77-29)—were preserved through their repeated inclusion in subsequent annual Department of Defense appropriations acts.[14] This retention reflected congressional intent to protect the U.S. industrial base from postwar economic disruptions and emerging geopolitical tensions, including the onset of the Cold War, by prioritizing American-produced foodstuffs, clothing, and related materials for military use.[15] The provisions appeared without major revisions in appropriations for fiscal years 1946–1949, underscoring a deliberate policy of continuity to sustain domestic manufacturing capacity amid demobilization and reconversion to peacetime production.[14] The National Security Act of 1947, which unified the armed services under the Department of Defense, further integrated these restrictions into broader procurement frameworks, though it did not alter the amendment's core mandates.[16] Recommendations from the Hoover Commission (1947–1949) advocated for streamlined supply management across services, leading to the establishment of the Joint Army-Navy-Air Force Support Center in 1952 to standardize nomenclature for consumable items, which indirectly reinforced Berry Amendment compliance by centralizing oversight of restricted categories.[16] However, these efforts encountered resistance from military leaders wary of reduced operational flexibility, yet the domestic preference rules persisted as a statutory safeguard.[16] In the early 1950s, amid the Korean War (1950–1953), Representative Ellis Yarnall Berry spearheaded expansions to the restrictions, introducing amendments in the 82nd Congress (second session, 1952) that broadened coverage to encompass all military clothing, cotton, and wool products, barring procurement from foreign sources unless domestic alternatives were unavailable.[15] These measures, incorporated into annual defense appropriations, formalized what became known as the "Berry Amendments" from 1952 onward, emphasizing self-sufficiency in strategic textiles to counter supply vulnerabilities exposed by wartime experiences.[14] Throughout the decade, despite ongoing debates over procurement efficiency, the amendment's enforcement supported key domestic sectors, with no substantive waivers or dilutions enacted, thereby consolidating its role in national defense policy.[16]Legislative Evolution
Codification and Amendments (1960s-2000s)
The Berry Amendment persisted as a non-permanent provision embedded in annual Department of Defense (DoD) appropriations acts throughout the 1960s and 1970s, requiring domestic sourcing for food, clothing, tents, and related textiles without major substantive changes to its scope.[14] This annual renewal mechanism ensured continuity amid Cold War-era military buildups, though it exposed the policy to potential lapse if not reenacted each fiscal year.[6] By the 1980s, the amendment's application remained consistent, covering items processed or manufactured in the United States, with DoD procurement emphasizing national security imperatives over cost considerations in restricted categories.[7] In the 1990s, amid post-Cold War defense budget reductions and industry conversion efforts, Congress introduced targeted modifications to broaden flexibility while preserving core restrictions. For instance, the FY1993 DoD Appropriations Act exempted certain items like machine tools from domestic sourcing requirements to facilitate base closures and commercial repurposing of defense facilities, reflecting a temporary prioritization of economic adaptation over strict protectionism.[11] Waiver authorities were also refined in appropriations language, allowing the Secretary of Defense limited exceptions for non-availability or urgent needs, though these required case-by-case justification.[2] Compliance challenges surfaced, prompting the FY1998 National Defense Authorization Act (P.L. 105-85) to mandate a DoD audit of military clothing procurement, which revealed gaps in awareness and enforcement among contractors.[6] The push for permanent codification accelerated in the late 1990s and early 2000s, driven by incidents of non-compliance—such as foreign-sourced berets for Army units—and concerns over reliance on annual reenactment amid fluctuating congressional priorities.[14] This culminated in Section 832 of the FY2002 National Defense Authorization Act (P.L. 107-107, enacted December 28, 2001), which codified the Berry Amendment at 10 U.S.C. §2533a (later redesignated §4862), repealing prior annual provisions like Sections 9005 and 8109.[11] The codification introduced minor clarifications, such as explicit inclusion of parachutes among covered items, and mandated congressional notification for waivers exceeding $15 million or involving multiple exceptions, enhancing oversight without diluting domestic preference mandates.[17] Subsequent Defense Federal Acquisition Regulation Supplement (DFARS) updates in 2002 implemented these changes, standardizing enforcement across DoD contracts.[7]Modern Interpretations and Expansions (2010s-Present)
In the 2010s, the Berry Amendment underwent targeted expansions via the National Defense Authorization Acts (NDAAs) to address emerging supply chain vulnerabilities and specific procurement needs. The Fiscal Year 2017 NDAA (P.L. 114-328, §817) amended the amendment to mandate that the Department of Defense (DoD) procure athletic footwear for recruits using 100% domestically sourced materials, including uppers and outsoles wholly manufactured in the United States, extending coverage beyond traditional clothing and textiles to enhance domestic production incentives for military-specific items.[9] Subsequent NDAAs, such as the FY2024 version, incorporated provisions requiring Berry-compliant uniformed clothing and tools, while directing Comptroller General reviews of acquisition practices to ensure adherence amid globalization pressures.[18] Enforcement interpretations evolved through DoD Inspector General (DoD IG) audits, revealing persistent compliance gaps despite statutory mandates. A 2018 DoD IG summary report assessed DoD-wide adherence to Berry and related Buy American requirements, identifying inconsistencies in tracking domestic sourcing for covered items like textiles and hand tools, which prompted internal guidance updates but no major statutory overhauls.[19] The September 2025 DoD IG audit of the Defense Logistics Agency (DLA) further scrutinized Berry compliance for fiscal years 2017 and 2021, finding that while DLA improved documentation for fabrics and food procurements, it failed to fully verify end-item domestic content in 20% of sampled contracts, leading to recommendations for enhanced supplier audits and data systems to mitigate risks from foreign dependencies.[5] Into the 2020s, expansions focused on closing interpretive loopholes and bolstering resilience against geopolitical threats, particularly from China. The FY2025 NDAA conference proposals included Section 1025, applying Berry requirements to vessel procurements in foreign waters to prevent circumvention via overseas assembly, and efforts to make permanent the inclusion of certain utensils like forks, originally temporary under prior NDAAs and set to expire in 2029.[20][21] House-passed FY2025 NDAA provisions targeted textile loopholes allowing non-Berry sourcing for some military items if final assembly occurred domestically, mandating full domestic content to protect U.S. industry amid deglobalization trends.[22] Concurrently, DLA staff in 2025 proposed reconfigurations, including a potential shift to "final assembly only" standards for select categories, which would represent a loosening interpretation but faced opposition from domestic manufacturers advocating stricter end-to-end domesticity to safeguard national security.[23] These developments reflect a tension between rigid enforcement for security and pragmatic adaptations for supply availability, with annual NDAAs serving as the primary vehicle for balancing these priorities.[11]Implementation and Enforcement
Department of Defense Responsibilities
The Department of Defense (DoD) implements the Berry Amendment, codified at 10 U.S.C. § 4862, by restricting the use of appropriated funds for procuring specified covered items—such as food, clothing, fabrics, tents, tarpaulins, footwear, hand or measuring tools, and certain specialty metals—from non-domestic sources unless exceptions apply.[7][24] This responsibility falls primarily under the Under Secretary of Defense for Acquisition and Sustainment, which directs policy through the Defense Federal Acquisition Regulation Supplement (DFARS) subpart 225.7002, mandating the inclusion of clause DFARS 252.225-7002 in applicable solicitations and contracts to enforce domestic sourcing requirements for end products and their components.[5] Contracting officers must verify compliance during procurement, applying the amendment to purchases exceeding the simplified acquisition threshold (currently $250,000), and extend oversight to subcontractors where covered materials are incorporated.[2][25] DoD agencies, including the Defense Logistics Agency (DLA), bear operational duties in sourcing and distribution, such as procuring textiles and clothing through DLA Troop Support while certifying Berry compliance for military end-use items.[5] When DoD provides funding to non-DoD entities for covered purchases, it requires those agencies to incorporate and enforce Berry provisions in their contracts, ensuring indirect expenditures align with statutory restrictions.[25] Waivers are issued sparingly by delegated authorities, such as the Director of Defense Procurement and Acquisition Policy, only for documented non-availability of domestic sources, combat operations urgency, or resale purposes, with requirements for public notification and congressional reporting in certain cases.[2] Enforcement involves internal audits and training programs to promote awareness among procurement personnel, with the DoD Office of Inspector General (OIG) conducting periodic reviews of compliance across military services and DLA.[19] For instance, OIG audits from 2014 to 2017 identified gaps in Army, Air Force, and Navy adherence to Berry rules for items like athletic footwear and fabrics, prompting corrective actions such as improved documentation and vendor certifications.[26][27][28] A 2025 OIG audit of DLA further assessed implementation of DFARS restrictions, recommending enhanced tracking of covered components to mitigate risks of inadvertent foreign sourcing.[5] These efforts underscore DoD's mandate to prioritize national security through domestic industrial base sustainment while addressing compliance vulnerabilities via policy refinements and oversight.[29]Compliance Auditing and Violations
Compliance with the Berry Amendment is primarily audited by the Department of Defense Office of Inspector General (DoD OIG), which conducts periodic reviews of procuring entities such as the Defense Logistics Agency (DLA) and military services to assess adherence during acquisitions of covered items.[30] These audits evaluate whether contracting officials verify domestic sourcing requirements for textiles, clothing, food, and other restricted categories before obligating funds. For instance, a September 15, 2025, DoD OIG audit of DLA examined 100 contract actions valued at $1.2 billion and determined that officials failed to comply in 82 instances, often due to inadequate documentation of end-product testing or reliance on unverified supplier certifications.[5] Earlier audits, including one in December 2020 covering DLA and service branches, identified similar gaps in 35 of 65 reviewed procurements, attributing issues to insufficient training and oversight tools.[31] Audits recommend corrective actions such as enhanced training for contracting personnel, implementation of standardized checklists for Berry compliance verification, and integration of automated tracking systems in procurement software to flag potential foreign sourcing.[32] The DoD also relies on internal controls within agencies like DLA, where acquisition teams must obtain certificates of compliance from vendors attesting to domestic production, though audits have revealed inconsistencies in enforcement and follow-up testing.[7] Violations of the Berry Amendment typically constitute breaches of the Anti-Deficiency Act (31 U.S.C. § 1341), as appropriated funds are statutorily restricted to domestic purchases of covered items, rendering non-compliant obligations improper use of taxpayer money.[7] Contracting officers face administrative penalties, including potential disciplinary action or personal liability for unauthorized expenditures. For contractors, violations can invoke the False Claims Act (31 U.S.C. §§ 3729-3733), leading to civil penalties, treble damages, and repayment of contract values; in one case, helmet manufacturer Galvion Ltd. settled allegations of submitting false Berry compliance certifications for DoD sales by paying $2.495 million in June 2024.[33] Additional consequences include suspension or debarment from future DoD contracts, aimed at deterring knowing misrepresentations of sourcing origins.[7] Over the past decade, DoD OIG has documented recurring non-compliance patterns, prompting policy memos emphasizing pre-award audits and post-delivery inspections to mitigate risks.[32]Strategic and Economic Impacts
National Security Benefits
The Berry Amendment bolsters U.S. national security by requiring the Department of Defense (DoD) to procure specified critical items—such as textiles, clothing, tents, footwear, food, and tools—exclusively from domestic sources, thereby minimizing risks associated with foreign supply chain vulnerabilities.[24][7] This domestic preference safeguards military readiness by ensuring uninterrupted access to essential materiel during conflicts or disruptions, as foreign suppliers could impose embargoes, face blockades, or prioritize their own needs in global crises.[14] Enacted amid World War II concerns over industrial base erosion, the policy originated in the 1941 Fifth Supplemental National Defense Appropriations Act to protect against the wartime shortages experienced in World War I, when U.S. forces relied heavily on imported goods that proved unreliable.[24][14] By preserving a viable domestic industrial base, the Amendment enables rapid surge production for military demands, maintaining a pool of specialized U.S. manufacturers capable of scaling output under duress.[14] For instance, between 1988 and 1991, the policy supported 9 to 16 domestic producers of camouflage fatigues, providing redundancy and capacity that foreign sourcing could not guarantee during heightened operational needs.[14] This structure reduces dependence on potentially adversarial nations for items integral to troop sustenance and protection, such as uniforms and tents, which constitute basic warfighting necessities.[24][34] Codified in 10 U.S.C. § 2533a since 2001, the requirement applies to procurements exceeding $150,000, reinforcing control over supply chains for items where quality, customization, and timely delivery directly impact operational effectiveness.[7] Furthermore, the Amendment sustains niche domestic capabilities that commercial markets alone might not support, preventing the atrophy of skills and infrastructure essential for defense mobilization.[14] Proponents, including DoD stakeholders, emphasize that this self-reliance mitigates espionage risks, quality inconsistencies, or sabotage inherent in overseas production, particularly for textiles and apparel where foreign dominance—such as in regions with state-subsidized industries—could compromise U.S. forces.[24][34] Historical precedents, like the Korean War-era invocations of similar restrictions, underscore how domestic mandates averted bottlenecks that plagued earlier conflicts, affirming the policy's role in causal links between procurement strategy and battlefield preparedness.[14]Domestic Industry Support and Employment Effects
The Berry Amendment bolsters domestic industries by mandating that the Department of Defense (DoD) procure specified items, such as textiles, apparel, footwear, food, and certain tools, exclusively from U.S. sources, thereby shielding these sectors from import competition and fostering a guaranteed market for American producers.[24] This requirement has been particularly vital for the textile and apparel industry, which has experienced an 85% decline in employment since 1990 due to globalization, as Berry-covered DoD contracts—totaling $2.3 billion in fiscal year 2021 for textiles, apparel, and footwear—represent a stable demand that sustains production capacity and specialized manufacturing capabilities otherwise at risk of erosion.[4][34] In the footwear sector, Berry Amendment compliance supports approximately 1,000 jobs, equivalent to about 9% of the domestic industry's workforce of 10,800 as of 2015, through DoD expenditures of $157 million that year, which incentivize U.S. firms to maintain compliant supply chains despite higher production costs compared to imports.[34] Similarly, in hand tools and cutlery, the amendment underpins roughly 380 jobs out of a total 38,000 in the sector, driven by $100 million in annual DoD purchases that prioritize domestic forging and manufacturing processes.[34] For food procurement, over 95% of DoD sourcing adheres to Berry rules, benefiting U.S. processors and growers with contracts like $480 million for meals ready-to-eat (MREs) in fiscal year 2021, where key suppliers derive significant revenue from military sales, employing over 1,600 workers directly.[4][34] Proponents, including industry advocates and certain lawmakers, contend that these effects preserve not only direct employment but also ancillary jobs and skills in the U.S. industrial base, preventing total offshoring of critical capabilities and enabling surge production during emergencies, though quantitative estimates indicate the overall employment footprint remains modest relative to the $5.3 billion in Berry-applicable DoD spending in fiscal year 2021 (about 1% of total procurement).[4] By design, the amendment counters the economic pressures of free trade on labor-intensive sectors, ensuring a baseline of domestic output that causal analysis links to sustained viability amid broader manufacturing declines, even as total Berry-supported jobs number in the low thousands across covered categories.[34]Criticisms and Debates
Economic Costs and Free Trade Conflicts
The Berry Amendment imposes higher procurement costs on the Department of Defense (DoD) by mandating 100% domestic sourcing for covered items, excluding lower-cost foreign alternatives even when they meet quality standards.[35] In fiscal year 2020, DoD expended approximately $4 billion on Berry Amendment-compliant products, representing about 1% of its total product and service spending, with domestic requirements often resulting in a significant cost premium; for instance, producing a military jacket domestically can cost around $115 compared to $30 overseas due to elevated U.S. labor and compliance standards.[35] [36] These elevated prices stem from limited supplier competition and the need for separate, specialized supply chains to ensure full domestic origin, which reduces economies of scale and increases overall inefficiencies.[14] Critics, including analyses from the Congressional Research Service, argue that such restrictions deviate from market-driven pricing, forcing DoD to absorb premiums that could otherwise fund additional capabilities or training.[14] A 2019 Department of Defense advisory panel highlighted that domestic preferences like the Berry Amendment create barriers to entry for some U.S. firms, disincentivize innovation by shielding inefficient producers, and elevate taxpayer-funded costs without proportional benefits in efficiency.[37] Empirical examples include food procurement, where 100% domestic content rules lead suppliers to adopt suboptimal practices, such as avoiding global commodity markets, further inflating expenses.[14] The Amendment conflicts with free trade principles and agreements by prioritizing U.S. sourcing over non-discrimination rules, necessitating explicit carve-outs in pacts like the North American Free Trade Agreement (NAFTA) and subsequent United States-Mexico-Canada Agreement (USMCA).[34] Under World Trade Organization Government Procurement Agreement disciplines, which promote open bidding, Berry restrictions limit foreign participation in DoD contracts, potentially inviting retaliatory measures from partners and undermining reciprocal access for U.S. exporters.[14] [38] Proponents of reform contend these exceptions erode the credibility of U.S. free trade advocacy, as the policy effectively maintains non-tariff barriers that strain alliances and commercial opportunities abroad.[35] Despite no formal WTO disputes targeting Berry specifically as of 2025, its incompatibility with broader liberalization efforts persists, with calls for waivers limited to treaty allies to mitigate diplomatic tensions.[35]Reform Proposals and Recent Developments (2020-2025)
In July 2025, the U.S. House of Representatives advanced a provision in its version of the National Defense Authorization Act (NDAA) for Fiscal Year 2026 to close a procurement loophole under the Berry Amendment, eliminating the simplified acquisition threshold exemption for textile purchases valued at $150,000 or less and mandating 100% domestic sourcing for all such contracts.[22] This reform, if enacted, would prevent circumvention of domestic requirements for smaller military textile orders, potentially recovering millions in annual sales for U.S. manufacturers that supply over $1.8 billion in uniforms and equipment.[22] The Senate's NDAA version, adopted on October 9, 2025, omitted this language, leaving reconciliation uncertain amid delays in the conference committee.[39][23] On September 10, 2025, the House passed a military funding bill with an amendment eliminating exceptions for seafood, fish, and shellfish under the Berry Amendment's food provisions, requiring all such procurements to originate from U.S. waters and vessels.[40] Introduced by Representative Nancy Mace, the measure addresses prior waivers that enabled foreign sourcing, particularly from countries like China and Russia, and aligns with broader efforts to bolster domestic fisheries amid supply chain vulnerabilities.[40] Senate approval remains pending as of October 2025. A September 15, 2025, audit by the Department of Defense Inspector General examined 82 Defense Logistics Agency contract actions for Berry-covered items from December 2020 to September 2023, revealing non-compliance in 35 cases totaling $40.21 million, where clauses were absent or incorrectly applied, particularly for textiles and food items.[41] The report recommended improved training and oversight to ensure consistent enforcement, underscoring persistent implementation challenges despite the amendment's statutory mandates.[42] In October 2025, Defense Logistics Agency personnel proposed reconfiguring the Berry Amendment's textile requirements to mandate only U.S. final assembly while permitting foreign-sourced components, citing supply chain constraints in domestic production.[23] This potential weakening, which would require congressional action through future NDAAs, has drawn criticism from textile industry groups like the National Council of Textile Organizations, who argue it undermines the domestic industrial base essential for military readiness and could erode $2 billion in annual U.S. contracts.[43][23] Neither the House nor Senate FY2026 NDAA drafts incorporated such changes as of late October 2025, with advocacy efforts planned to oppose them.[23] These developments highlight divergent reform impulses: strengthening enforcement against loopholes and non-compliance to preserve national security sourcing, versus easing restrictions to mitigate procurement delays, with no major legislative alterations to the Berry Amendment occurring between 2020 and mid-2025 prior to these initiatives.[9]Related Policies
Comparison to Buy American Act
The Berry Amendment, enacted in 1941 as part of the annual appropriations for the Department of Defense (DoD), mandates that certain critical items—such as food, clothing, tents, fabrics, and specialized hand or measuring tools—procured for military use must be sourced entirely from the United States, with limited exceptions approved by the Secretary of Defense. In contrast, the Buy American Act (BAA), passed in 1933, applies more broadly to federal government procurement across civilian agencies, requiring a preference for domestic end products but permitting up to 55% foreign content in manufactured goods (or 50% for critical items like iron and steel as of updates in 2021 via the Infrastructure Investment and Jobs Act). While both policies aim to bolster U.S. manufacturing and reduce reliance on foreign suppliers, the Berry Amendment's restrictions are stricter and tied explicitly to national security imperatives for DoD-specific needs, whereas the BAA emphasizes economic protectionism with greater flexibility for cost and availability considerations. Key distinctions arise in applicability and compliance thresholds. The Berry Amendment exclusively governs DoD contracts and subcontracts for enumerated items, prohibiting any domestic nonavailability determinations for most categories unless certified otherwise, and it extends to certain non-DoD purchases under specific authorities like the Kissell Amendment. The BAA, however, covers all executive agencies and focuses on "domestic end products" defined by cost-of-components tests, allowing waivers for unreasonable costs (exceeding 20-30% domestic preference), public interest, or nonavailability, which has led to higher waiver rates—over 10% of covered procurements in fiscal year 2020 per Government Accountability Office data. Enforcement mechanisms also differ: Berry compliance is audited rigorously by DoD inspectors and the Defense Contract Management Agency, with violations potentially leading to contract termination or debarment, reflecting its wartime origins amid supply chain vulnerabilities exposed in World War II. The BAA relies on agency-level certifications and Federal Acquisition Regulation oversight, but critics note laxer implementation due to broader scope and fewer resources, resulting in inconsistent application across non-defense sectors.| Aspect | Berry Amendment | Buy American Act |
|---|---|---|
| Enactment Year | 1941 (annual DoD appropriations) | 1933 (Title III of Public Law 72-428) |
| Primary Scope | DoD procurement of specific military items (e.g., textiles, food for troops) | All federal agencies; general goods, construction materials, supplies |
| Domestic Content Requirement | 100% U.S. origin for covered items; minimal exceptions | Preference for domestic end products; 55%+ U.S. components (or 50% for steel/iron post-2021) |
| Waivers/Exceptions | Rare; requires Secretary of Defense approval, no routine cost-based waivers | Common for cost (20-30% threshold), public interest, or nonavailability |
| National Security Focus | Explicit; protects defense supply chains from foreign dependencies | Implicit economic focus; some extensions via executive orders for critical infrastructure |
| Recent Updates | Incorporated into FY2007 NDAA for permanent codification; minor tweaks in FY2020 NDAA for transparency | Strengthened by Build America, Buy America Act (2021) for infrastructure, but waivers persist |