The Build America, Buy America Act is slowing affordable housing projects that use federal money, because developers cannot find many required products made in the USA, the Associated Press reported on March 27, 2026.
The bottleneck
BABA, signed in 2021 as part of the infrastructure law, requires USA-made iron, steel, manufactured products and construction materials in federally funded infrastructure, including HUD-backed housing. Developers can apply for waivers, but HUD has approved only a handful, and many take at least six months.
- A Denver developer said she spent more than $60,000 on a consultant to find USA-made materials. Her waivers for about 125 items, filed in November, had not been approved.
- A North Dakota developer could not find USA-made ceiling fans for a 36-unit building.
- A Vermont developer estimated $150,000 in added costs just to verify that her iron and steel were USA-made.
- A Kentucky developer plans two small four-unit projects instead of 20 to 30 homes, to stay below the BABA threshold.
Two sides
Supporters say the law is sound but HUD must move faster. “You’ve got a system in place that leans heavily on using imported materials to make a better profit,” said Scott Paul of the Alliance for American Manufacturing. Rep. Mike Flood (R-Neb.) has pushed to exempt some HUD funding. HUD said it is monitoring how the policies affect costs for builders.
Why it matters for Made in USA
BABA is meant to create steady demand for USA-made goods, but suppliers need time to build capacity. As one housing industry official said, raw materials can scale faster than manufactured items such as appliances and elevators. How HUD handles waivers will shape whether the policy builds USA supply or just slows construction.
FAQ
What is Build America, Buy America?
A 2021 law requiring USA-made iron, steel, manufactured products and construction materials in federally funded infrastructure projects.
Why are housing projects delayed?
Many required items are not readily available made in the USA, and HUD waivers are slow.
Are there exceptions?
Yes. Waivers are possible when a USA-made product raises total project cost by more than 25%, and a small share of material cost is exempt.
Source & credit
Originally reported by The Associated Press (Charlotte Kramon), March 27, 2026, via WRAL: “A Build America, Buy America law is causing construction delays amid the US housing crisis”