The White House Monday detailed its new policy requiring that U.S.-made materials be used in all new infrastructure projects, a cornerstone of President Joe Biden’s infrastructure law that some transportation advocates warn may increase costs and delays. The Build America, Buy America Act in the $1.2 trillion Infrastructure Investment and Jobs Act aims to boost U.S. manufacturing by requiring that all infrastructure projects that use federal funds – from highways to passenger rail, airports and water systems – must use construction products and materials produced in the U.S. The provision builds on existing Made in America laws, which have applied to iron, steel and various manufacturing products, by expanding it to construction materials and revamping the waiver process. The Buy America initial guidelines released Monday are a key consideration for states and cities that are starting to craft budgets and timelines for projects funded by the IIJA. The new provision applies to all infrastructure projects that use federal funding, not just IIJA projects. The 17-page guidance outlines new requirements for waivers, including that the U.S. Department of Transportation may approve a waiver if it believes compliance would be “inconsistent with the public interest” or increase the project’s cost by at least 25%. Surface transportation advocates, while saying they support Buy America’s policy goals of strengthening U.S. manufacturing, warned it could drive up costs and bring delays to the rollout of the IIJA. “If Buy America is truly applied to all ‘…iron, steel, manufactured products, or construction materials,’ it will take years before everything is domestically available,” American Association of State Highway and Transportation Officials President Shawn Wilson said in an April 1 letter to Transportation Secretary Pete Buttigieg.
Source: The Bond Buyer