Table of Contents

Introduction ..................................................................................................................... 2

Overview: What is “Build America, Buy America?”.......................................................... 2

Section 1 ......................................................................................................................... 4

Do I have a Build America, Buy America-covered project? ......................................... 4

Section 2 ......................................................................................................................... 6

How do I document compliance with Build America, Buy America? ............................ 6

Section 3 ......................................................................................................................... 7

Where can I find examples of BABAA construction contract language?...................... 7

Section 4 ......................................................................................................................... 7

What if I need to request a wavier? ............................................................................. 7

Contact Us ...................................................................................................................... 9

Because information changes, always consult official program regulations or contact 

your local USDA Rural Development office for help. A list is available at this link: 

https://go.usa.gov/xJHPE. You will find additional BABAA resources, forms, and 

program information at https://www.rd.usda.gov/build-america-buy-america. This guide 

does not outweigh technical and regulatory language in the Infrastructure Investment 

and Jobs Act (Public Law 117-58 – available at this link: https://tinyurl.com/2p9hcpww - 

PDF). In questions of precedence, always refer to the Public Law or regulation. 

A note about website links: For ease of reference, this guide provides links to 

relevant, useful information hosted outside the USDA domain. Federal endorsement of 

non-USDA programs or activities is neither intended nor implied. Please be aware that, 

when you access information through a link provided in this document, you are subject 

to the copyright and licensing restrictions of those sites. All links in this document were 

active as of February 2023. 
2 

Introduction

The Build America, Buy America Act (BABAA) guide is designed to help USDA Rural 

Development (RD) financial assistance recipients and their design professionals, 

contractors, and material and product suppliers navigate part of the Infrastructure 

Investment and Jobs Act. Examples of RD financial assistance include loans or loan 

guarantees, grants, loan-grant combinations, and cooperative agreements. 

Beginning February 4, 2023, all non-federal entities who receive RD financing for an 

infrastructure project that includes construction, alteration, maintenance, or repair are

subject to BABAA unless a waiver is in place. 

This customer guide offers an overview of BABAA and its role in increasing domestic 

manufacturing in communities across the country. It will help you determine if your 

project is subject to BABAA, and explain how to document compliance. 

You will find additional BABAA information and links to important resources at this link: 

https://www.rd.usda.gov/build-america-buy-america. 

Overview: What is “Build America, Buy America?” 

When Congress passed the Infrastructure Investment and Jobs Act – also known as the 

Bipartisan Infrastructure Law – it made a once-in-a-generation investment in the 

nation’s infrastructure, and created a historic opportunity to increase domestic 

manufacturing across the country. With this law, we’re rebuilding America’s roads, 

bridges, and rails, expanding access to clean drinking water, getting high-speed internet

into rural places, helping address the climate crisis, advancing environmental justice, 

and investing in communities that too often have been left behind. 

In addition to addressing infrastructure issues, the Act also requires the use of American 

iron and steel, manufactured goods, and construction materials. In so doing, the Build 

America, Buy America Act (BABAA) will help stimulate private-sector investments in 

domestic manufacturing, bolster critical supply chains, and support the creation of wellpaying jobs so America’s workers and firms can compete and lead globally. 

The pandemic exposed gaps in America’s supply chains. Still, manufacturers need time 

to find on-shore suppliers and scale up production to meet demand. Federal agencies 

can issue BABAA waivers, but will do so judiciously and strategically, ensuring 

American-produced goods will be used once manufacturers are able to expand 

domestic production. Waivers will be limited, targeted, and conditional; covering specific 

items or periods of time to allow recipients and the private market to build capacity. 

BABAA waivers are not meant to impede American manufacturing. Instead, waivers are 

intended to send clear market signals and create incentives for American firms to invest 

in America – including generating jobs in rural communities.
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You should plan early in the design phase of your project to incorporate products that

meet BABAA requirements. We recommend contacting your USDA Rural Development

representative before you devote significant time and money designing your project. 

You’ll find a list of contacts on page 9. 

It’s important to know that Build America, Buy America applies to federal financial 

assistance programs for infrastructure, regardless of whether those programs received 

funding in the Infrastructure Investment and Jobs Act. These new, across the-board 

domestic content requirements present an unprecedented opportunity to support wellpaying construction and manufacturing jobs while strengthening the industrial base and 

promoting American innovation for years to come. 

Build America, Buy America creates unprecedented opportunity for a “virtuous cycle” in 

which infrastructure investment, critical supply chain efforts, and other priorities – 

including sustainability and equity – align and support each other.
4 

Section 1 

Do I have a Build America, Buy America-covered project?

BABAA applies to federally-funded infrastructure projects awarded to non-federal 

entities. However, if your total federal funding is below the Simplified Acquisition 

Threshold, (information is available at this link: https://tinyurl.com/2epu3b2w) – currently 

set at $250,000 – BABAA requirements are waived. 

For additional information about this waiver, please review the document “USDA 

Department-wide Public Interest Waivers: De Minimis, Small Grants and Minor 

Components of Build America, Buy America, Provisions as Applied to Recipients of 

USDA Federal Financial Assistance” (available at https://tinyurl.com/2p8ch4t2 – PDF). 

NOTE: This waiver applies to loans and loan guarantees, as well as to small grants.

If you determine the total federal funding associated with your project is at or above the 

Simplified Acquisition Threshold, use the following questions to see if you and your 

project are subject to BABAA:

1. Are you a non-federal entity?

BABAA applies only to non-federal entities. Examples of non-federal entities include

state or local governments, Indian Tribes, institutions of higher education, or 

nonprofit organizations that carry out federal awards as recipients or subrecipients. 

Regulatory definitions of non-federal entities are available at the following links:

• “Local governments” – available at https://tinyurl.com/3yxsp3x5 

• “Indian Tribes” – available at: https://tinyurl.com/ywfe9r8t

• “Nonprofits” – available at https://tinyurl.com/4edc2vkw 

Contact your USDA Rural Development representative if you are uncertain whether 

your business or organization is considered a non-federal entity. A list of state office 

contacts is available at this link: https://go.usa.gov/xtpEe. 

NOTE: Even if BABAA requirements do not apply, other domestic preference 

requirements might. Examples include 7 CFR Part 1787, The “Buy American” 

requirement (available at this link: https://tinyurl.com/y7awbhx3), and “American Iron 

and Steel” requirements outlined in Rural Utilities Service (RUS) Bulletin 1780-35 

(available at this link: https://tinyurl.com/5c2sfcts - PDF). 
5 

2. Are you financing an infrastructure project?

For BABAA purposes, “infrastructure” is defined as structures, facilities, and 

equipment for:

• roads

• highways

• bridges

• public transportation

• dams

• ports

• harbors and other maritime 

facilities

• intercity passenger and freight 

railroads

• freight and intermodal 

facilities

• airports

• water systems (including 

drinking and wastewater)

• electrical transmission 

facilities and systems

• utilities

• broadband infrastructure

• buildings and other real 

property

It also includes structures and equipment to generate, transport and distribute 

energy, including electric vehicle (EV) charging stations. 

Does the scope of your project include construction, alteration, maintenance, 

or repair?

Under BABAA, all non-federal entities must comply with the domestic preference 

requirement when purchasing iron and steel, construction materials, or 

manufactured products employed in the construction, alteration, maintenance, and 

repair of infrastructure funded by federal programs.

If you answered “yes” to all of the questions above, you and your project are subject 

to BABAA. This requires that:

• All iron and steel used in the project – including manufacturing processes from 

the initial melting state through the application of coatings – are produced in the

United States. 

• All manufactured products used in your project are produced in the United 

States. This means the manufactured product itself was built in the United

States, and the cost of the components of the manufactured product mined, 

produced, or manufactured in the United States is greater than 55 percent of 

the total cost of all components of the manufactured product. (Note: In some 

instances, other laws or regulations that determine minimum domestic 

content apply.) 
6 

• All construction materials are manufactured in the United States. This means 

that all manufacturing processes for the construction material occurred in the 

United States.

Build America, Buy America Act Project Evaluation and Determination Guidance 

(available at this link: https://tinyurl.com/mw7k7yer) can be used to help you determine

whether your project must adhere to BABAA. 

Your USDA Rural Development representative will be able to confirm your selfdetermination during the application process. They’ll also let you know if other domestic 

procurement preferences apply. 

Section 2

How do I document compliance with Build America, Buy America?

First, you need to determine whether the products used in your infrastructure project

satisfy the BABAA requirement for all permanently installed iron, steel, manufactured 

products, and construction materials to be produced in the United States. 

If the product is domestic, evidence from the manufacturer that demonstrates 

compliance with BABAA – such as an authoritative statement or certification specific to 

the purchase – is required.
7 

USDA Rural Development BABAA Evidence Standards (available at this link:

https://tinyurl.com/mrte2x9x) can be used to help you, your architect, engineer, 

contractors, and product manufacturers to document BABAA compliance. 

Alternatively, sworn statements can be provided by supervising contractors or licensed 

architects and professional engineers. Refer to Instructions for Submitting Build 

America Buy America Certifications (available at this link: https://tinyurl.com/edrdxpdf

- PDF) for sample statements.

Section 3

Where can I find examples of BABAA construction contract language? 

USDA Rural Development has developed sample language that supports BABAAcovered construction requirements. You can find it at this link:

https://tinyurl.com/32h2wk9j - PDF.

Section 4 

What if I need to request a waiver?

USDA Rural Development BABAA waivers will be limited, targeted, and conditional.

They will cover specific items or periods of time to allow USDA Rural Development

financial assistance recipients and the private market to build capacity and respond to 

the new conditions. Waivers are not an alternative to increasing domestic production; 

they are a tool to promote investment in our domestic manufacturing base, strengthen 

supply chains, and position U.S. workers and businesses to compete globally. 

Waivers can be requested for: 

1. Nonavailability. Iron, steel or relevant manufactured goods or construction

materials not produced or manufactured in sufficient and reasonably available

commercial quantities of a satisfactory quality.

2. Unreasonable cost. The inclusion of domestic iron, steel, or relevant

manufactured goods will increase the cost of the overall project by more than 25

percent.

3. Inconsistent with public interest. Application of BABAA elements would be

considered inconsistent with the public interest.

For example: USDA issued a departmentwide public interest waiver for de

minimis, small grants, and minor components to help keep projects moving and

prevent delays on critically-important projects; to continue providing economic

opportunity through innovation, and to promote agriculture production.

For additional information about this waiver, please review the document “USDA

Departmentwide Public Interest Waivers: De Minimis, Small Grants and Minor
8 

Components of Build America, Buy America, Provisions as Applied to Recipients 

of USDA Federal Financial Assistance” (available at this link: 

https://tinyurl.com/2p8ch4t2 – PDF).

Reminder: The waiver applies to loans and loan guarantees, as well as to small grants. 

If you believe your project qualifies for a waiver, contact your USDA Rural Development

representative for guidance. Your representative will:

1. Determine if domestic sources are available to meet BABAA requirements

2. Review existing waivers to determine if any apply to your project 

3. Provide detailed guidance to submit a waiver request 

If your USDA Rural Development representative determines a waiver request is

appropriate, it is your responsibility to provide information specific to the material, 

manufactured product, or construction material for which the waiver is sought. 

Most of this information is already available as part of your planning, design phase, or

bid documents. Information should include the item description, price, date required, 

project location, and the name and address of the proposed supplier. 

A list of required waiver information is available at this link: https://tinyurl.com/yc5adwrd. 

It is crucial to include a detailed, written justification for the use of a non-domestic 

product. You should show evidence of a good-faith effort to procure a domesticallyproduced product. 
9 

Contact Us

For additional assistance, please contact the USDA Rural Development program area 

associated with your project: 

• Rural Utilities Service Electric programs: 

Contact Electric Program customer service:

• Email: ElectricProgramCustomerService@rd.usda.gov 

• Phone: (202) 720-1979

• Rural Utilities Service Telecom programs: contact the Telecom General Field 

Representative serving the state in which your project is located:

Telecom General Field Representatives: https://go.usa.gov/xhrux 

• For all other USDA Rural Development programs, contact the office in the state 

in which your project is located:

List of USDA-RD state offices: https://go.usa.gov/xtpEe 

You also can send general email inquiries to sm.rd.babaa.inquiry@usda.gov. 
10

In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) 

civil rights regulations and policies, the USDA, its agencies, offices, and employees, 

and institutions participating in or administering USDA programs are prohibited from 

discriminating based on race, color, national origin, religion, sex, gender identity 

(including gender expression), sexual orientation, disability, age, marital status, family

or parental status, income derived from a public assistance program, political beliefs,

or reprisal or retaliation for prior civil rights activity, in any program or activity 

conducted or funded by USDA (not all bases apply to all programs). Remedies and 

complaint filing deadlines vary. Those with disabilities who need alternative means of 

communication (for example, Braille, large print, audiotape, and American Sign 

Language, among others) can contact the responsible agency or USDA’s TARGET 

Center at (202) 720-2600 (voice and TTY), or contact USDA through the Federal Relay 

Service at (800) 877-8339. Program information also can be made available in 

languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination 

Complaint Form, AD-3027, available at this link: https://go.usa.gov/xzzfW, and at any 

USDA office. Or, write a letter addressed to USDA and provide all of the information 

requested in the form. Call (866) 632-9992 to request a copy of the complaint form.

Submit your completed form or letter to USDA by: (1) postal mail: U.S. Department of 

Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence 

Avenue, SW, Washington, D.C. 20250-9410 (2) fax: (202) 690-7442, or (3) email:

program.intake@usda.gov. 

USDA is an equal opportunity provider, employer, and lender.

RD-23001

February 2023