Congressman John D. Dingell

"Outsourcing these jobs is wrong and should not even be an option for the federal government," said DeLauro. "Our country is hurting enough with more than 8 million Americans out of work since President Bush took office, including nearly 3 million manufacturing jobs lost. This bill will ensure that the federal government can not use taxpayer dollars to outsource work to other countries. We need to be doing everything we can to help workers and keep jobs in the United States."

"This bill is all the more necessary in light of the Bush administration’s mismanagement of the federal budget - from Halliburton to the prescription drug program to exaggerated promises of jobs," Dingell said. "We shouldn’t pay for the White House’s mistakes with the displacement of taxpayer funded, American jobs; this bill will ensure that won’t happen. We still need to find new ways to create jobs in the private sector, but this legislation is just the first shot fired in a battle to save American jobs."

Federal agencies generally privatize government services by setting up a competition between federal government employees and prospective private contractors. The work is then awarded to whoever can perform the work most efficiently and effectively. This bill makes permanent a one-year restriction on privatizing federal jobs to contractors using offshore workers. It prohibits private companies who propose to utilize offshore labor from competing in the bidding process.

The bill also prohibits federal agencies from awarding procurement contracts to companies that would use overseas workers either on their own payroll or through foreign subcontractors for purposes of fulfilling such contracts. It provides for a presidential waiver for such prohibition on national security grounds.

In addition, the bill bars state governments from receiving federal funds unless such states certify that none of such funds will be expended for services performed outside the United States under federally-funded contracts. Under this legislation, each state has until the end of the following fiscal year to bring its practices into compliance.