On Monday, The White House issued guidance on the Build America, Buy America (BABA) ruling, in order to boost U.S. manufactured goods, including steel, iron, and other construction materials used on infrastructure projects.
The White House Office of Management and Budget (OMB) finalized the guidance after receiving approximately 2,000 comments.
OMB said the final guidance directed by Congress under the bipartisan Infrastructure Investment and Jobs Act (IIJA) "will bolster American businesses, workers, and economic growth."
The IIJA expanded standards to use more U.S.-made construction materials for government-funded infrastructure projects.
The OMB guidance sets manufacturing standards for plastic and polymer-based products, glass including optic glass, lumber, engineered wood, drywall, fiber optic cable and optical fiber.
OMB added engineered wood but opted not to include some additional construction materials, including paint and stain, and bricks. To qualify manufactured products must be U.S. manufactured and the cost of domestic-made components must exceed 55% of the cost of all components.
These rules do not apply to tools, equipment, and supplies, such as temporary scaffolding.
OMB noted agencies can issue waivers if needed when U.S. manufactured products are not sufficiently available. Agencies can also seek a waiver if the use of U.S. materials will increase the cost of the overall infrastructure project by more than 25%.
Products previously qualified as Made in America for federal purchases if 55% of the value of their component parts were manufactured in the United States. The 2022 rule increased the threshold to 60% in October, 65% in 2024, and 75% in 2029.