WHAT IS THE BUILD AMERICA, BUY AMERICA ACT (BABA)?

by Suncourt Inc.

The Build America, Buy America Act is a law passed in 2021 as part of the Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law). Its goal is to ensure that federally funded infrastructure projects use materials that are manufactured in the United States.

That means when the government spends tax dollars on things like roads, bridges, water systems, broadband internet, clean energy, and HUD projects, those projects should be built or rehabbed using American-made iron, steel, construction materials, and manufactured goods.

 

What Does BABA Actually Cover?

Under the law, any federally funded infrastructure project or any HUD programs that provide Federal Financial Assistance (FFA) must follow these “Buy America” rules for three key categories:

  1. Iron and Steel – Things like rebar, structural beams, and pipes must be made in the U.S.
  2. Construction Materials – This includes items like drywall, insulation, and lumber.
  3. Manufactured Products – These are more complex goods that are made of many components, such as lighting systems, HVAC units / accessories, or even electric vehicle chargers.
    1. Must be manufactured or assembled in the USA
    2. Per 2024, greater than 65% of the total cost of components must be manufactured in the USA. 
      1. For example, Suncourt’s motorized dampers qualify for BABA because the major components used to build the dampers, i.e. steel pipes, motors, couplers and boxes are all sourced from and manufactured in the United States.

 

Why It Was Created

The U.S. government invests billions of dollars into public infrastructure. For a long time, a lot of those dollars ended up buying materials from overseas. BABA was created to strengthen American manufacturing, support American jobs, and boost local economies by keeping more of those dollars in the U.S.

 

Why It Matters

The BABA Act isn’t just about rules and materials. It’s about rebuilding and rehabbing more than infrastructure and buildings—it’s about boosting confidence in the American economy. It’s designed to help create jobs, boost industries, and build a more self-reliant supply chain.  So next time you see a new highway project, upgraded water system or a building being rehabilitated in your town, know that BABA is most likely working behind the scenes to make sure America is building—and buying—at home.

 

If a product qualifies for BABA does it automatically qualify as “Made in the USA”

When a product says it’s Made in the USA, it means that almost everything about it — from the parts to the labor — is sourced and done in the U.S. According to the Federal Trade Commission (FTC), for a product to carry this label, "all or virtually all" of the materials and processing must be of U.S. origin.  A product can no longer be considered Made in the USA if a critical component to the functionality of that product is sourced internationally.

  • The raw materials (like steel, fabric, or plastic) must come from American suppliers
  • The product is built/manufactured in the U.S.
  • The labor and production costs stay within the U.S. economy

 

How does Made in the USA differ from "Assembled in the USA"?

On the other hand, Assembled in the USA means that the final product was put together in the U.S., but one or some of the critical components were sourced internationally.  The FTC says that to claim “Assembled in the USA,” the final assembly must happen on U.S. soil and be a significant part of the manufacturing process.  The goods could not simply be re-packaged in the U.S. and be considered “Assembled in the USA”.

  • Some of the parts could be made in China, Mexico, or anywhere else
  • American workers assemble the final product
  • It supports U.S. jobs, but a portion of the supply chain is international
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