Purchasing American Generates Employment Act - Prohibits a federal department or agency from using funds to procure any article or item of paper or paper products that are not grown, reprocessed, reused, or produced in the United States. Allows an exemption from such requirement: (1) if a department or agency head determines that satisfactory quality and sufficient quantity of such paper or paper products cannot be procured as and when needed at U.S. market prices; (2) for procurements outside the United States in support of combat or contingency operations or by vessels in foreign waters; and (3) for items purchased for resale in commissaries, exchanges, or certain facilities operated by the Department of Defense (DOD).