The White House Office of Management and Budget issued memo M-22-11 on April 18, 2022, its first guidance on applying the Build America, Buy America Act to federal financial assistance for infrastructure.
The act was part of the Infrastructure Investment and Jobs Act signed on November 15, 2021. It required agencies to apply a Buy America preference to infrastructure awards by May 14, 2022.
What must be USA-made
- Iron and steel: all manufacturing processes, from initial melting through coating, must happen in the USA.
- Manufactured products: must be made in the USA, and USA components must be more than 55% of the total component cost, unless another standard applies.
- Construction materials: all manufacturing processes must happen in the USA.
Waivers
Agencies can waive the preference if applying it is against the public interest, if the items are not made in the USA in enough quantity or quality, or if USA-made items would raise the project’s total cost by more than 25%.
Celeste Drake, who led the “Made in America Office” at OMB, told the Associated Press the rules would create more manufacturing jobs.
FAQ
What is M-22-11?
OMB guidance on applying the Build America, Buy America Act to federally funded infrastructure.
When did the preference take effect?
Agencies had to apply it by May 14, 2022.
What is the domestic content test for manufactured products?
USA components must exceed 55% of total component cost.
Source & credit
Source: Office of Management and Budget, April 18, 2022: “M-22-11: Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure”.
Also: Associated Press via Daily Mail, April 18, 2022: “Biden pushes for all infrastructure bill items to be Made in USA”.