The federal government has been working to consolidate laws that require preferential treatment of American-made products for federally funded projects. The Office of Management and Budget (OMB) and the Made in America Office (MIAO) were established in 2021 and have since established the Made in America Laws. These laws cover both the Buy American Act and Buy America Requirements. 

Buy American Act (BAA)

The Buy American Act (41 U.S.C. 8301 – 8305) is the primary law addressing domestic content preferences generally applied to direct federal procurement. It applies to the goods the U.S. government buys for its own use, valued at more than the micro purchase threshold of $10,000. To qualify, 65% of a product’s material costs must be mined, produced, or manufactured in the U.S. The product must also be 100% assembled in the U.S.   

Buy America Requirements: Build America, Buy America Act (BABAA)

The Buy America Requirements are a culmination of statutes that address domestic content preferences for projects in which local government agencies receive financial assistance from federal agencies. The BABAA is the most expansive statute within the Buy America Requirements. It requires 55% of a product’s total material costs to be mined, produced, or manufactured in the U.S. In addition, the product must be 100% assembled in the U.S.         

Waivers

Made in America Laws may be waived in some cases. Both BAA and BABAA allow for waivers if domestically sourced product options are not readily available, include unreasonable costs leading to an increase of 25% or more of foreign-sourced products, or don’t appeal to the public’s best interest. For projects following BABAA requirements, recipients and subrecipients of federal financial assistance may file waivers.       

Discover more about Made in America Laws and applicable products here, or contact a Hunter Sales Manager with questions.