The U.S. House of Representatives passed the "National Defense Authorization Act for Fiscal Year 2004" [H.R 1588]. The bill, sponsored by Duncan Hunter (R-CA), contains language that would create a minimum percentage of U.S.-purchased components for military applications and equipment.

Though this sounds like a win for the beleaguered American electronics industry, it might not be a part of the bill when it hits President Bush's desk to be signed into law. The Hunter "Buy American" provision in the House version of the National Defense Authorization Act faces opposition from none other than the United States Department of Defense (DoD).

The DoD is pushing for the Senate version of the bill [S.1047], which does not include any stipulation on where the DoD must procure its electronic components. CircuiTree has learned the Department of Defense opposes the wording of the House bill on the grounds that the costs of administering a "Buy American" program would be prohibitive.

CircuiTree has also learned that the Department of Defense's objection to the "Buy American" House bill language is likely to be supported in the Senate, thereby allowing the continued practice of purchasing overseas components for military electronics.

The IPC is expected to issue a press release on this subject in the near future. In the interim, American-based electronics company workers that want to voice their opinions on the National Defense Authorization Act should contact their elected federal representatives, especially the offices of their Senators.

If you'd like more information on the National Defense Authorization Act, Click Here.

If you'd like to express your opinion or keep abreast of any organized industry lobbying effort, e-mail letters@circuitree.com