The Build America, Buy America Act, part of the Infrastructure Investment and Jobs Act (2021). It requires that iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects be produced in the United States, unless a waiver applies. 

BABA applies to ARC grants for infrastructure awarded since May 14, 2022. However, the new guidance applies to ARC construction (infrastructure) awards approved by the Federal Co-Chair on or after August 1, 2026. Non-construction awards that do not include infrastructure follow different rules. If unsure, ask your RSBA. 

The updated ARC BABA Guidance applies to awards approved by ARC on or after August 1, 2026. Awards approved by ARC before August 1 have the option to still apply the previous Interim Implementation Guidance on the Application of the Buy America Preference in ARC Grants for Infrastructure (“ARC Interim Guidance”) adopted in May 2022.  To confirm the date of your award was approved, open your application in Pathways, navigate to the “Approvals” tab, and scroll down to “Federal Co-Chair Approval – Action Date.” In all cases, you have the option to apply the updated ARC BABA Guidance.

Non-construction grants may be subject to BABA guidelines. ARC determines the applicability of BABA on a case-by-case basis using the ARC BABA Guidance and the ARC Grantee Manual for BABA. Grantees should not assume that an award is exempt from BABA solely because it is described as a non-construction grant or because construction is not the primary purpose of the project. If any portion of the ARC funds will be used to pay for activities involving infrastructure for the benefit of the public, grantees should consult ARC or, if appliable, their RSBA to determine whether BABA requirement apply.

Conversely, even construction-designated awards are not generally subject to BABA if it funds only activities such as basic research, software development, workforce training, education, planning, technical assistance, feasibility studies, environmental analyses, policy development, or other activities that do not involve the construction, alteration, maintenance, or repair of infrastructure. 

It depends on the category. Iron and steel: all processes from initial melting through coating occur in the U.S. Manufactured products: made in the U.S. and U.S. component cost is more than 55% of total component cost. Construction materials: all manufacturing processes occur in the U.S. Learn more.

Tools and temporary items brought to the site and removed later (like scaffolding), and equipment or furnishings not permanently part of the project (movable chairs, desks, portable computers). Also cement and aggregates (Section 70917(c) materials) are generally excluded.  BABA may also be waived under certain conditions (see related questions below). 

You, the grantee, hold primary responsibility. BABA duties flow down to your subrecipients, contractors, subcontractors, suppliers, and manufacturers through the terms in your subawards and contracts. 

Because ARC has no direct contract with your contractors or suppliers, you must include the ARC BABA term and condition in every subaward, contract, subcontract, and purchase order so the requirement reaches everyone. 

Keep documentation: supplier and manufacturer certifications, invoices, and records of country of origin and manufacturing location. Collect the certifications in Appendices E–H of the BABA Manual and retain them for audits. 

You may request a waiver. First do market research to show a good-faith effort to find domestic sources (see the Market Research Guide), then submit the ARC BABA Waiver Request Form through your RSBA. Absent a waiver, the products cannot be incorporated into the project. 

Public interest, nonavailability, and unreasonable cost (using domestic materials would raise total project cost by more than 25%). 

ARC issues the waiver, after a public comment period (at least 15 days) and review by OMB’s Made in America Office. The MIAO approves; it does not issue ARC waivers. 

No. A waiver only applies to costs incurred after its effective date. Request waivers early. 

No, unless ARC formally adopted it in writing. Even on jointly funded projects, you must meet ARC’s requirements and use ARC’s waiver process. 

BABA has no blanket exemption for trade-agreement countries (unlike the Buy American Act). Foreign materials remain subject to BABA unless an approved waiver applies. Consult ARC’s BABA guidance for more information.

Certain Stafford Act disaster and emergency assistance is excluded. Always confirm with your Basic Agency before assuming BABA does not apply. 

If listed materials (like glass or plastic) are combined through manufacturing into a distinct product with a specific function, it is a manufactured product. A single listed material on its own (like plate glass) is a construction material. 

Yes. A kit assembled on site can be a single manufactured product if it was manufactured before delivery and functions as one unified product. On-site assembly labor and transportation are not counted in the component-cost test. 

Generally three years from the final expenditure report under the Uniform Guidance, longer if audit, litigation, or other circumstances apply. 

Consequences range from repayment and disallowed costs to withheld or terminated funding, and in serious cases False Claims Act liability or suspension and debarment.