AAM in comments to the department: Targeted waivers are sometimes appropriate, but the tools to put the Build America, Buy America Act into action are already in hand.
When Congress enacted the Build America, Buy America Act (BABA), it established a simple principle: Infrastructure projects supported by taxpayer dollars should also support American workers, American manufacturing and American supply chains. That principle applies just as much to taxpayer-backed housing projects as it does to roads, bridges and water systems.
The U.S. Department of Housing and Urban Development’s (HUD) recent Request for Information (RFI) on products used in housing programs is an important opportunity to improve how BABA is implemented, because BABA applies to HUD’s programs too. The Alliance for American Manufacturing (AAM) recently submitted comments encouraging the department to use this process to strengthen the law’s implementation, identify legitimate supply-chain challenges and improve transparency into all of the above.
The good news is that HUD already has the tools to do this.
Some have argued that implementation challenges justify new statutory exemptions from BABA. But Congress already provided agencies with flexibility through existing waiver authorities. That’s a part of BABA: If a product is unavailable in sufficient quantities, if domestic sourcing would increase costs unreasonably, or if a waiver is otherwise in the public interest, HUD can already grant relief.
The challenge isn’t the law itself. The challenge is making the process work efficiently.
To that end, HUD should focus on accelerating waiver reviews, improving guidance for project sponsors, engaging domestic manufacturers earlier and identifying tailored solutions for genuine supply constraints. Waivers should not serve an end-run around Buy America requirements; used correctly, they’ll strengthen domestic supply chains by identifying production gaps and encouraging investment.
With that in mind, HUD deserves credit for taking a targeted approach in its RFI. Instead of questioning the availability of all products and materials used in housing construction, it has focused on a limited set of manufactured products that stakeholders have identified as hard to source; items like HVAC systems, heat pumps, elevators, fire-suppression equipment and some electrical components.
That focus is important because not every BABA compliance issue means there’s a lack of domestic manufacturing.
In many cases, products may already be manufactured or assembled in the United States, but project sponsors can’t identify suppliers, document compliance or navigate certification requirements. HUD should carefully distinguish between true nonavailability and administrative challenges like supplier visibility, paperwork burdens or simple unfamiliarity with BABA requirements.
For products where domestic assembly already occurs but manufacturers are still working to localize component sourcing, narrowly tailored and temporary waivers can help bridge the gap while preserving incentives for further investment in American production.
One category that should not be subject to broad waiver discussions is iron and steel.
Unlike some manufactured products, domestic steel supply chains are mature, established and well-understood. American steel producers manufacture a wide range of products used in housing and related infrastructure projects – things like rebar, structural steel, pipe, tubing fasteners and fabricated steel products. Contractors have decades of experience complying with similar Buy America requirements through programs administered by other federal agencies.
What’s more, the industry has available capacity. According to data cited in AAM’s comments, domestic steel mills are operating at or below the 80 percent utilization rate considered important for long-term profitability and investment. That means there’s substantial ability to supply federally assisted housing projects without resorting to imports. Weakening BABA’s steel requirements would do little to address housing affordability or project delivery challenges. It will, however, redirect taxpayer dollars away from domestic manufacturers and workers.
The same logic applies to construction materials. Products from lumber and aluminum to drywall and fiber optic cable are broadly produced in the United States. Housing affordability challenges are driven by many factors, including financing costs, permitting delays and land-use policies – not by Buy America requirements on readily available construction materials.
One of the most important improvements HUD can make is increasing transparency in its waiver process.
Current waiver determinations often don’t disclose key milestones, such as when requests were submitted, when they were deemed complete, how long they spent under agency review, or how long they remained before the Made in America Office. As a result, stakeholders lack visibility into where delays are occurring. HUD should publish these metrics, establish a public waiver dashboard and move requests through the system on a rolling basis rather than releasing waiver determinations in batches. Greater transparency would improve accountability, help manufacturers ID demand signals and provide everyone with more predictable timelines.
Continued engagement with manufacturers, labor organizations, contractors, developers, public housing agencies and industry associations will be critical to ensuring this works right. Supplier scouting programs, certification initiatives (like the National Electrical Manufacturers Association’s Make It American program) and ongoing outreach can all help connect projects with domestic suppliers and expand compliance opportunities.
Ultimately, the goal should be straightforward: improve BABA’s implementation while preserving its core purpose. HUD has the authority, flexibility and tools necessary to address legitimate short-term market limitations. What it needs now is a transparent, efficient and well-resourced implementation framework that strengthens American manufacturing, supports housing development and ensures that taxpayer-funded projects deliver benefits to American workers and communities.
Read our full comments to HUD regarding BABA here.