What is the Build America, Buy America (BABA) Act?

BABA tech article blog

Build America, Buy America (BABA) expands the transparency requirements of American made products established by the Infrastructure Investment & Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). Under the title “Buy America Sourcing Requirements” within IIJA, materials that are subject to BABA include: iron and steel, manufactured products and construction materials.

To maximize the impact of the use of domestically made procurement conditions in compliance with the Bipartisan Infrastructure Law, BABA requires that end products benefiting from federal financial assistance are manufactured solely in the United States. At least fifty five percent of the total cost of the components involved in the manufacturing process must be mined, produced, or manufactured in the United States. For example, for public water infrastructure projects to receive the full federal funding in compliance with BABA, all iron and steel materials involved in the manufacturing process must exclusively be produced in the United States from the early stages of melting the iron to the final coating stage.

BABA expands the original preferences of AIS compliancy requirements by now covering all federally funded EPA infrastructure programs, including the following:

  • Tribes, Territories, and District of Columbia
  • Section 319 Nonpoint Source Implementation Grand Program
  • National Estuary Program
  • Water Infrastructure Improvements for the Nation (WIIN) Grant Program
  • Sewer Overflow and Stormwater Reuse Municipal Grans (OSG)
  • Alaska Native Village (ANV) Grant Program
  • United States – Mexico Border Infrastructure Program
  • America’s Water Infrastructure Act (AWIA) Resiliency Grant Program
  • Congressionally Directed Spending/Community Projects

On April 18, 2022, the Office of Management and Budget’s (OMB) Made in America Office released its guidance for implementing the BABA Act. Visit MadeInAmerica.gov to learn more about the Made in America Office. If you have any further questions about BABA, contact us at here.