On September 21, 2026, the Department of Agriculture announced an important step in the ongoing implementation of the Build America, Buy America Act. The USDA submitted an information collection requirement to the Office of Management and Budget for review. This submission specifically addresses the process for granting waivers to the Act's domestic sourcing mandates for infrastructure projects. This move opens a 30-day public comment period. It invites stakeholders to provide feedback on the necessity, utility, and burden associated with collecting information from recipients of federal financial assistance who seek exemptions from "Buy America" provisions. This development is crucial for state, local, and tribal governments, as well as institutions of higher education and nonprofit organizations reliant on USDA funding for infrastructure development.
Background of the Build America, Buy America Act
The Build America, Buy America Act (BABAA) was enacted as part of the Infrastructure Investment and Jobs Act (Public Law 117-58, Sections 70901-70952). It significantly expanded domestic content preferences for federally funded infrastructure projects. At its core, BABAA mandates that all iron and steel, manufactured products, and construction materials used in such projects must be produced or manufactured in the United States. This legislative push aims to bolster American manufacturing, create domestic jobs, and strengthen supply chains. The Office of Management and Budget (OMB) provided initial implementation guidance through Memorandum M-22-11. This guidance outlines how federal agencies should apply these preferences and manage potential waivers.
USDA's Implementation and the Waiver Mechanism
The USDA, as a major dispenser of federal financial assistance for infrastructure across rural America, plays a pivotal role in enforcing BABAA. Recognizing that strict adherence to domestic sourcing might not always be feasible or in the public interest, BABAA includes provisions for agencies to grant waivers. The Federal Register notice details the USDA's mechanism for evaluating these waiver requests. Under sections 70914(b) and (d), 70921(b), and 70935 of BABAA, along with OMB Memorandum M-22-11, USDA agencies and staff offices can approve waivers for infrastructure projects identified under their federal financial assistance programs. This authority applies even if infrastructure is not the primary purpose of the award.
The current process for submitting waiver requests involves electronic data collection. Recipients and subrecipients send the necessary documentation and the BABAA Waiver Request Data Collection form via email to their respective USDA awarding agency or staff office point of contact. The notice acknowledges that this information for each entity is unique. This uniqueness limits the extent to which technological efficiencies can be fully leveraged at this stage. Looking ahead, the General Services Administration (GSA) is developing a comprehensive web-based electronic data submission system for BABAA. The USDA anticipates utilizing this system once it becomes available. However, a completion date for this system has not yet been established.
Implications for Stakeholders
The information collection directly affects a broad array of entities. These include state, local, and Indian tribal governments, institutions of higher education, and nonprofit organizations. These groups often manage complex infrastructure projects and rely on USDA funding. The requirement to justify a waiver adds an administrative layer to project planning and execution. The USDA estimates 200 respondents will be impacted annually, with a total burden of 6,000 hours. This suggests that each respondent could spend an average of 30 hours per year on these waiver requests. This administrative burden underscores the need for clear guidelines and efficient processes, as detailed in the ongoing OMB review.
The opportunity for public comment is particularly significant here. Stakeholders can voice concerns or offer suggestions on several critical aspects. These include the necessity of the information collected, its practical utility, the accuracy of the agency's burden estimate, ways to enhance data quality and clarity, and methods to minimize the burden on respondents through technological advancements or other means. This feedback mechanism is central to the Paperwork Reduction Act of 1995. It ensures that federal agencies only collect information that is essential and does so in the least burdensome way possible.
Balancing Policy Goals and Practicalities
The BABAA represents a strong federal commitment to domestic manufacturing and job creation. However, its implementation often presents practical challenges for entities on the ground. Supply chain disruptions, availability of specific materials, or cost considerations can sometimes make strict adherence to "Buy America" provisions difficult. It can even be impossible without significant project delays or cost increases. The waiver process is designed to provide a necessary safety valve. It allows projects to proceed while still upholding the spirit of the law where possible. The ongoing information collection and public review process reflect an attempt to find a pragmatic balance between these overarching policy goals and the realities of infrastructure development across diverse communities.
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