The Build America Buy America act, was enacted in 2021 to help bolster American Manufacturing, the Act requires that all iron and steel, construction materials, and manufactured products used in federally-funded infrastructure and housing projects are produced in the United States. This requirement, known as the "Buy America Preference" (BAP), is detailed in the Public Law 117 - 58 - Infrastructure Investment and Jobs Act - Content Details - and 2 CFR 184.

Applicability of the Buy American Preference (BAP) to Community Planning and Development (CPD) Programs and Projects

The Buy America Preference applies when projects, funded by HUD programs, use Federal money to buy iron, steel, manufactured goods, and construction materials. These rules apply whenever the money is used to build, change, maintain, or repair public infrastructure and publicly funded housing. The list of programs that must follow these rules may change if new programs are created that pay for public infrastructure projects. The programs that are covered right now include:

  • Community Development Block Grant Formula Programs (CDBG)
  • HOME Investment Partnerships Program (HOME)
  • Housing Trust Fund (NHTF/HTF)
  • Emergency Solutions Grants (ESG)

Waivers

HUD has approved two types of BABA waivers. General waivers which do not require an application, and project specific waivers which do require an application.

General Waivers

HUD has approved three general waivers as summarized below. When a waiver’s requirements are met, BABA’s procurement preference does not apply.

Small Grants

BABA requirements do not apply to infrastructure projects whose total cost is equal to or less than the current Simplified Acquisition Threshold of $350,000 (updated October 1st, 2025).

De Minimis

BABA requirements do not apply for a De Minimis portion of a project. This waiver exempts up to 5 percent (up to a million dollars total) of the total cost of the iron, steel, manufactured products, and construction materials from BABA requirements.

Exigent Circumstances

This unique waiver may apply when the project meets an “urgent need”, which is when a situation poses an immediate threat to health and welfare of the community. An urgent need is defined by HUD in 24 CFR 570.208(c).

Project Specific Waivers

HUD may approve project specific waivers on a limited, case-by-case basis, after consulting with the Made In America Office (MIAO).

Non-Availability Waiver

This waiver is granted if the product needed is not produced in the United States in the quantity or quality needed. In the waiver application, Project Applicants should:

  • Demonstrate that they have conducted market research and adequately considered alternate items that meet the definition of Made in America.

Unreasonable Cost Waiver

This waiver is granted if BABA compliance will increase the cost of the overall project by more than 25 percent. In the waiver application, Project Applicants should:

  • Demonstrate that BABA compliance increases total project cost by more than 25%.
  • Determine the additional cost of BABA compliant products.
  • Determine the dollar amount to be waived.
  • Demonstrate that no domestic alternatives are available within the project budget.

Public Interest Waiver

This waiver is granted if BABA compliance would be inconsistent with the public interest. In the waiver application, Project Applicants should:

  • Explain how waiving the BABA requirement for this project or product serves the public interest.
  • Demonstrate definite impacts on the community if specific items, products, or materials are not utilized in an infrastructure project.

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