What is BABA and Justice40?

June 24, 2022
Examining two of the IIJA’s programs

What is the Build America, Buy America Act?

The Build America, Buy America Act (BABA) is a part of the IIJA. BABA prioritizes and incentivizes the usage of goods, products, materials, and services made or provided for in the United States. Specifically for infrastructure, BABA will provide Federal financial assistance for any program that has infrastructure, even if infrastructure is not the primary purpose of the program. However, keep these adherences in mind:

  • All iron and steel used in infrastructure projects must be made in the United States throughout the entirety of the manufacturing process.
  • All manufactured products must be produced in the United States. All components of the manufactured product must be produced in the United States and be greater than 55% of the total cost of all components of the manufactured product.
  • All construction materials must be made in the United States throughout the entirety of the manufacturing process.

What is the Justice40 Initiative?

The Justice40 Initiative has made it a priority of the federal government to commit at least 40% of all federal funds from federal investments to disadvantaged communities that are marginalized, underserved, and overburdened with pollution.

The categories of investment are:

  • Climate Change
  • Clean Energy/Energy Efficiency
  • Clean Transit
  • Affordable and Sustainable Housing
  • Training and Workforce Development
  • Remediation and Reduction of Legacy Pollution
  • The Development of Critical Clean Water and Wastewater Infrastructure

Covered federal investments include any grant or procurement spending, financing, staffing costs, direct spending, or benefits to individuals for a covered program in a Justice40 program.

How do they determine these communities?

The Climate and Economic Justice Screening Tool is a geospatial mapping tool to identify disadvantaged communities across all 50 states, the District of Columbia, and the U.S. territories that are marginalized, underserved, and overburdened by pollution. This tool can help promote the Justice40 program as it can help identify disadvantaged communities.


Source: GFOA.org

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