Buy America Compliance Guide for Contractors and Procurement Teams
Which domestic procurement law applies to your project, what products are covered, and how to stay compliant
Last updated: April 19, 2026
Overview
You won a federally funded project. Maybe it's a highway job, a water treatment plant upgrade, or a school renovation paid for with federal grants. Somewhere in the contract documents, there's a clause about "Buy America" requirements. If you ignore it, you're risking your contract, your payment, and potentially your ability to bid on federal work ever again.
The Build America, Buy America Act (BABA), signed into law as part of the 2021 Infrastructure Investment and Jobs Act, requires that iron, steel, manufactured products, and construction materials used on federally funded infrastructure projects are made in the United States. It applies to every federal agency that gives out grants, loans, or cooperative agreements for infrastructure. That covers highways, bridges, water systems, transit, airports, broadband, energy, and more.
Two deadlines matter right now. As of October 1, 2025, every manufactured product on FHWA-funded highway and bridge projects must have its final assembly in the US. Starting October 1, 2026, those same products must also prove that at least 55% of their component costs are domestic. That second threshold is the one catching manufacturers and contractors off guard, because "assembled in America" is a much lower bar than "mostly made from American parts."
This guide walks through who BABA applies to, which products are covered, what documentation you need, how to get a waiver if you're stuck, and what happens if you get caught using non-compliant products.
Does BABA Apply to My Project?
If your project receives federal money in any form (grants, loans, cooperative agreements, or credit assistance), BABA almost certainly applies. Federal funds often flow through state agencies, so the money trail is not always obvious.
| Agency | Program | What It Funds |
|---|---|---|
| FHWA | Federal-Aid Highway Program | Highways, bridges, tunnels, road safety improvements |
| FTA | Transit Capital & Formula Grants | Bus fleets, rail systems, transit stations, maintenance facilities |
| FAA | Airport Improvement Program (AIP) | Runways, taxiways, terminals, airport safety equipment |
| EPA | CWSRF / DWSRF | Wastewater treatment plants, drinking water systems, stormwater infrastructure |
| FEMA | BRIC / HMGP | Flood mitigation, seismic retrofits, wildfire resilience, hazard mitigation |
| USDA | Rural Development (RD) | Rural water and wastewater systems, rural broadband, community facilities |
| HUD | CDBG / HOME | Community development, affordable housing, public facilities |
| DOE | Grid Resilience, EV Charging | Power grid upgrades, EV charging stations, building energy efficiency |
| NTIA | BEAD Program | High-speed broadband deployment in underserved areas |
Not sure if your project has federal money? Ask your project owner or general contractor. Federal funds often flow through state agencies, so a "state-funded" project may actually have a federal funding component. It is much cheaper to verify now than to rip out non-compliant products later.
Which Law Applies?
Multiple domestic procurement laws exist, and they overlap. Use this decision flow to figure out which one governs your situation:
- Is the government buying the product directly through a procurement contract? → Buy American Act (BAA)
- Is the project funded by a federal grant, loan, or cooperative agreement for infrastructure? → Build America, Buy America Act (BABA)
- Is it an EPA-funded water or wastewater project? → American Iron and Steel (AIS) on top of BABA
- Is it a DoD contract for food, clothing, textiles, or hand/measuring tools? → Berry Amendment
- Is it a direct federal purchase above $183,000 from a trade-agreement country? → Trade Agreements Act (TAA) may apply
| Law | When It Applies | What Products | Domestic Content Rule | Key Deadline |
|---|---|---|---|---|
| BABA | Federal grant/loan-funded infrastructure | Iron, steel, manufactured products, construction materials | 100% domestic iron/steel; 55% component cost for manufactured products | Oct 2026 (55% threshold) |
| BAA | Direct federal purchases | End products and construction materials | 60% domestic component cost (rising to 75% by 2029) | 2029 (75% threshold) |
| AIS | EPA water/wastewater projects | Iron and steel products | 100% domestic from initial melt through final coating | Active now |
| TAA | Federal purchases above $183,000 | End products from designated countries | Substantial transformation in US or designated country | Active now |
| Berry Amendment | DoD contracts | Food, clothing, textiles, hand tools, measuring tools | 100% domestic | Active now |
| FTC Made in USA | Any product marketed as US-made | All consumer and commercial products | "All or virtually all" made in US | Enforcement sweep April 2026 |
For a detailed side-by-side breakdown, see our BABA vs BAA vs AIS Comparison.
Product Categories and Thresholds
BABA divides covered products into three categories, each with its own domestic content rule.
Iron and Steel Products
If a product is primarily iron or steel (more than 50% by cost), every step of manufacturing from the initial melt through final coating must happen in the US. Examples: steel safety cabinets, steel pipe, structural steel beams, fire hydrants, steel storage tanks, steel bollards, steel guardrails.
Manufactured Products
Final assembly in the US, and at least 55% of the cost of all components must come from domestic sources. Examples: fire extinguishers, HVAC equipment, fire alarm panels, electrical panels, emergency eyewash stations, pumps, generators.
Construction Materials
All manufacturing must happen in the US. Covers non-ferrous metals, plastics and polymer-based products, glass, fiber optic cable, lumber, engineered wood, drywall.
| Category | Domestic Content Rule | Examples | Key Deadline |
|---|---|---|---|
| Iron and Steel | 100% domestic, initial melt through final coating | Steel cabinets, pipe, beams, hydrants, bollards, guardrails | Active now |
| Manufactured Products | US final assembly + 55% domestic component cost | Fire extinguishers, HVAC, alarm panels, eyewash stations, pumps | Oct 2026 (55% threshold) |
| Construction Materials | 100% US manufactured | Non-ferrous metals, plastics, glass, fiber optic, lumber, drywall | Active now |
What Counts as "Permanently Incorporated"?
BABA only applies to products consumed in, incorporated into, or affixed to an infrastructure project. The canonical example from OMB/FEMA guidance: "A table lamp is NOT subject to BABA, but a light fixture IS."
Covered (permanently incorporated)
- Hard-wired light fixtures
- HVAC systems
- Plumbing fixtures (sinks, toilets)
- Fire alarm and suppression systems
- Fixed gas detection systems
- Door closers and hardware
- Permanent fall arrest anchors
- Recessed fire extinguisher cabinets
- Plumbed-in emergency eyewash stations
Not covered (portable/removable)
- Portable fire extinguishers
- Table lamps, floor lamps
- Movable furniture
- Portable computers
- Scaffolding and temporary lighting
- Hand tools
- PPE (harnesses, hard hats, gloves)
- Fire trucks and ambulances
- Portable eyewash units
The line between covered and not covered is not always clear. Freestanding safety cabinets, wall-mounted first aid cabinets, and security cameras fall in a gray zone where no agency has published definitive guidance. When in doubt, check with the funding agency before you install.
Key Deadlines
| Date | What Happens | Who It Affects |
|---|---|---|
| January 2025 | FHWA terminated the 42-year-old manufactured products waiver | Contractors on federal-aid highway projects |
| October 1, 2025 | Manufactured products on FHWA projects must have final assembly in the US | Contractors, suppliers, manufacturers on FHWA projects |
| October 1, 2026 | 55% domestic component cost threshold kicks in for manufactured products on FHWA projects | Same, plus component suppliers |
| March 2026 | Executive Order directing FTC to prioritize enforcement of false Made in USA claims | Anyone selling products to federal projects |
| 2029 | BAA domestic content threshold for direct federal purchases rises to 75% | Manufacturers selling directly to federal agencies |
What does the October 2026 deadline mean in practice? If you're on a highway project and you order a fire extinguisher, the manufacturer needs to show that more than half the cost of its parts came from US suppliers. The valve, the cylinder, the chemical agent, the handle, the gauge: the manufacturer needs to track where each component comes from and what it costs. Many manufacturers are still working to get their supply chains documented.
Documentation
For iron and steel products
- Mill test report showing the steel was melted and poured in the US
- Manufacturer certification letter on company letterhead, signed by a company officer
- Letter must name the specific product being supplied
- Letter must reference the specific project (generic letters do not count)
- If the product has coatings, the letter must confirm those were also applied in the US
For manufactured products
- Manufacturer self-certification letter on company letterhead
- Must state where final assembly happened (city and state)
- Must confirm domestic component cost exceeds 55% of total component cost (for projects after October 2026)
- Must be project-specific
For construction materials
- Manufacturer certification letter confirming all manufacturing in the US
- Must identify the specific material and manufacturing facility location
Don't wait until project closeout to collect these. Get the certification letter before you place the order. If your supplier can't provide one, that's your signal to find a different supplier. Discovering a compliance gap after installation means you're looking at a rip-and-replace at your own cost.
Waivers
Three types of waivers exist when you cannot meet BABA requirements:
- Non-availability: The product is not made in the US or domestic supply is insufficient. You need to document that you tried to find domestic sources.
- Unreasonable cost: The domestic product costs more than 25% above the foreign alternative. You need actual price quotes from both domestic and foreign suppliers.
- Public interest: Rare. Usually reserved for emergency situations where compliance would delay a critical project.
The process: written request to the funding agency, followed by a 15-day public comment period, then agency head review, then OMB review.
Plan on waivers taking weeks to months. They are not a last-minute escape hatch. If you think you might need a waiver, start the process as early as possible.
Enforcement
The consequences of non-compliance are severe and getting worse:
- False Claims Act: treble damages (3x the government's loss) plus penalties of $14,308 to $28,619 per false claim. DOJ recovered $6.8 billion in FCA cases in FY2025.
- Whistleblowers: 1,297 qui tam lawsuits filed in FY2025. Your competitors, employees, or subcontractors can file and collect 15-30% of what the government recovers.
- Rip and replace: Non-compliant products get torn out at your cost.
- Contract termination and payment withholding.
- Debarment: barred from ALL federal contracts for up to three years, government-wide.
- March 2026 Executive Order: FTC prioritizing enforcement of false Made in USA claims. First enforcement sweep announced April 2026.
Frequently Asked Questions
Does BABA apply to state-funded projects with no federal money?
No. BABA only applies to projects receiving federal financial assistance. Some states have their own domestic preference laws, so check state requirements separately.
What's the difference between "Buy America" and "Buy American"?
"Buy American" with an "n" is the Buy American Act, for direct federal purchases. "Buy America" without the "n" is BABA, for grant-funded infrastructure. Different laws, different rules, different thresholds.
My project mixes federal and non-federal funds. Does BABA apply to the whole project?
Yes. If any portion uses federal financial assistance, BABA applies to the entire project. You cannot split it into federal and non-federal segments.
Do portable items count, or just permanently installed products?
BABA applies to products "permanently incorporated" into the infrastructure. Portable fire extinguishers are generally excluded (removable, serviced off-site). Fixed fire suppression systems, plumbed-in eyewash stations, and hard-wired fire alarm panels are covered. The line can be blurry, so check with the funding agency when in doubt.
What if a product is assembled in the US but uses imported components?
For manufactured products after October 2026, US assembly alone is not enough. At least 55% of component costs must be domestic. A product assembled in Ohio from 90% Chinese components would fail the component cost test.
Can I buy BABA-compliant products from a distributor, or do I need to go direct?
Buy from any distributor, dealer, or supplier. BABA compliance is about the product itself, not the sales channel. Ask your distributor for the manufacturer's certification letter before you order.
What if I already ordered non-compliant products?
You have a problem. The products cannot go into the project without a waiver. Options: return them, apply for a waiver, or use them on a different project. Do not install them and hope nobody notices.
Are there products that are exempt from BABA?
Equipment and furnishings that are not permanently incorporated (portable items, temporary construction equipment, scaffolding, rental generators) are generally exempt. Check with the funding agency for any active waivers.
Does BABA apply to maintenance and repair projects?
Yes. BABA applies to construction, alteration, maintenance, and repair of infrastructure, not just new construction.
How do I verify a manufacturer's compliance claim?
Start with the certification letter. It should be on the manufacturer's letterhead, signed by an authorized representative, reference your specific project, and state where manufacturing occurs. For iron and steel, ask for the mill test report. If a manufacturer gives you a generic form letter with no project reference, push back.
This content is for informational purposes only and does not constitute legal advice. Federal procurement requirements vary by agency, program, and project. Consult legal counsel for project-specific compliance determinations.
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