Congressman Tim Ryan Reacts to Report that Federal Contractor Offshoring Continues Under Trump Administration

Apr 25, 2017 Issues: Helping Working Families, Manufacturing

Washington, DC – Despite President Donald Trump’s campaign promises to punish companies that needlessly offshore American jobs, the flow of federal contracts to major offshorers has continued steadily since Trump’s inauguration, according to a new report released today by Good Jobs Nation and Public Citizen’s Global Trade Watch. The report, titled “Trump’s First 100 Days: Federal Contracting with Corporate Offshorers Continues,” reveals that a majority of the largest U.S. government contractors ship jobs overseas.

Key findings of the study include:

  • 56 percent of the top 50 federal contractors in FY 2016 were certified under just one narrow U.S. government program as having engaged in offshoring and 41 percent of the top 100 FY 2016 contractors were certified as having offshored jobs.
  • The top federal contractors certified as having offshored jobs received $176 billion in contracts in 2016, which accounts for more than a third of total contract spending for that year.
  • Since President Trump’s inauguration, the flow of federal contract awards to major offshorers has continued, with United Technologies, for instance, receiving 15 new awards and General Electric obtaining scores more. 

Read the full report here.  

Candidate Trump rightfully made offshoring a major pillar of his campaign, but you wouldn’t know it by looking at President Trump’s first hundred days in office. It is outrageous that companies who make billions of dollars from contracts paid for by American taxpayers should then be allowed to turn around and send our jobs overseas. Before Trump took the oath of office, he made a big song and dance about a Carrier deal to stop the company from slashing American jobs (in the end 1,000 of their Indiana jobs still went to Mexico); but now that Donald Trump is president, he is doing nothing to stop tax dollars from going to companies that are blatantly exporting American jobs. Sadly, this is yet another, in a long line of broken promises to the American people. We deserve better from our President,” said Congressman Ryan.

“After pledging to punish companies that offshore American jobs, Trump has not even used his expansive unilateral authority to ban offshorers from being awarded lucrative government contracts.  Instead of delivering on his promises to end offshoring and create American jobs, Trump is rewarding companies that offshore with big contracts paid by our tax dollars, has not even introduced the End Offshoring Act or launched the NAFTA renegotiations he promised for his first 100 days, and caved on declaring China a currency manipulator and taking tough actions to reduce our huge job-killing China trade deficit,” said Lori Wallach, director of Public Citizen’s Global Trade Watch.   

“Our analysis proves that Donald Trump is not fulfilling his signature campaign promises to stop offshoring and bring back American jobs.  Even though he’s signed over 60 executive orders during his first 100 days, he has yet to use the power of the pen to stop corporations that receive taxpayer dollars from shipping American jobs overseas,” said Joseph Geevarghese, director of Good Jobs Nation.    

US presidents have broad executive authority to enact “policies and directives” for federal contracting. Trump has failed to exercise this authority to cut off firms that offshore from obtaining lucrative government contracts paid with taxpayers funds. The report highlights that President Trump appeared willing to flex his muscle as “purchaser-in-chief” right after the 2016 election with his high-profile interventions to try to prevent United Technologies, a major defense contractor, from shipping its Carrier subsidiary’s operations to Mexico.  However, the study finds that since then President  Trump not only has failed to take promised actions, such as introducing and “fight[ing] for passage within the first 100 days of my Administration” of a Stop Offshoring Act, but his administration has approved lucrative contracts with some of the nation’s most notorious offshoring corporations.

Congressman Ryan, however, has already introduced the RETAIN Act with Representatives Marcy Kaptur (D-OH), Mark Pocan (D-WI), and Louise Slaughter (D-NY). This legislation modifies the United States Code for civilian and defense contracts by adding a preference for contractors that promise to retain jobs in the United States. To be eligible for the preference, an applicant for a federal contract must submit a certification that confirms the contractor and its subcontractors will not relocate jobs from the United States to foreign countries during the period of performance of the contract and will use products substantially manufactured in the United States and services provided in the United States under the contract.