Buy American Provisions Proposed for Infrastructure Act Awards

By Christian Roselund

As highlighted in President Biden’s 7 February 2023 State of the Union speech, the U.S. Office of Management and Budget (OMB) has proposed new “Buy American” provisions for projects which receive funding under the 2021 Infrastructure Investment and Jobs Act (IIJA). OMB’s new measures would require iron, steel, and manufactured products which are used in IIJA projects to be made in the United States, and the agency is currently seeking comments on multiple details including how to define “U.S.-made.”

These new proposed regulations will replace existing temporary regulations. More stringent requirements could affect the sourcing of components for the large numbers of EV charging stations, and zero-emissions busses and ferries funded by the law, as well as electricity system and hydrogen infrastructure funded by various portions of the law (for more details on IIJA funding see the 17 November 2021 US Energy Transition Report).

Buy American provisions have been a concern for U.S. allies. However, they are one of the few areas of consensus between the Democratic and Republican parties in the United State. During President Biden’s state of the union, House Speaker Kevin McCarthy (R-California) applauded during Biden’s description of the Buy American provision, as did several Republican members
of Congress.

OMB is currently seeking feedback on how to calculate cost of components, a definition for “predominantly” iron and steel items, how to distinguish between categories of products, how to reduce the burden on recipients, and many other details. Comments are due by 13 March 2023.

News analysis: White House details ‘buy American’ plan (E&E News)

News coverage: White House unveils plan to boost use of U.S.-made goods in infrastructure (Reuters)

Source: Guidance for Grants and Agreements (Federal Register)