BABAA was enacted as part of the overall Infrastructure Investment and Jobs Act in November 2021. The purpose of the BABAA is to create demand for domestically produced goods, helping to sustain and grow domestic manufacturing and the millions of jobs it supports throughout product supply chains. Broadly, BABAA requires that Federal infrastructure programs must use materials produced in the United States. Effective October 23, 2023, the Office of Management and Budget revised the OMB Guidance for Grants and Agreements. The revisions are limited in scope to support the implementation of the BABAA provisions of the Infrastructure Investment and Jobs Act and to clarify existing provisions related to domestic preferences. These revisions provide further guidance on implementing the statutory requirements, including a new part 184 and revising 2 CFR 200.322. Changes are summarized on the Department of Education website under News.
The following specific goods, when acquired under an infrastructure program and being used for construction, major remodeling, or broadband infrastructure, are covered:
- Iron and steel used in an infrastructure project in the United States;
- All manufactured products used in an infrastructure project in the United States; and
- All construction materials used in an infrastructure project that are manufactured in the United States.
Goods that do not fit the definition of manufactured products or construction materials are not subject to the BABAA domestic sourcing requirements.
These requirements do apply to the VR program as explained in the March 19, 2024 RSA updated guidance below. The Department of Education has developed training and information that can help grantees implement these requirements.
Training
- Build America, Buy America Act (BABAA) (30-minute course)