Build America, Buy America: How BABA Impacts CAA Programs

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Contracts, Federal Grant Programs, Financial, Procurement, Weatherization

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Executive Director, Program Director

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2023

Federal grant recipients such as Community Action Agencies (CAAs) working on public infrastructure projects will now need to ensure the supplies and materials they purchase are primarily manufactured in the United States. The Build America, Buy America Act (BABA, or Buy America) was enacted under Division G, Title IX of the Infrastructure Investment and Jobs Act (IIJA), Pub. L. No. 117-58, which took effect on November 15, 2021. BABA applies a domestic content procurement requirement to federally funded public infrastructure projects, meaning that certain supplies purchased with federal funds are required to be manufactured primarily in the United States. Existing “Made in America” laws already required this for iron, steel, and certain manufactured goods, and BABA now extends the requirement to nonferrous metals, such as copper, plastic and polymer-based products, glass, optical fiber, and other construction materials such as lumber and drywall.

New federal grant awards funding public infrastructure projects made on or after May 14, 2022, as well as renewal awards and amendments obligating additional funds to existing awards that are executed on or after May 14, 2022, must comply with BABA requirements. Based on federal agency reports submitted to the Office of Management and Budget and subject to certain factors identified by such agencies, BABA may apply to a variety of CAA programs. This article describes the new Buy America requirements and how they impact specific federally funded programs that CAAs operate.

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