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# "Buy America" Preference in FEMA Financial Assistance Programs for Infrastructure

                            - English 

Background

Resources

Waivers

The Build America, Buy America Act (BABAA) requires all federal agencies, including FEMA, to ensure  that no federal financial assistance for “infrastructure” projects is provided unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States. 

For subject FEMA grant programs, these “Buy America” preference requirements apply to awards issued on or after **Jan. 2, 2023**, as well as funds obligated to existing awards issued on or after **Jan. 2, 2023**.

## Background

The Office of Management and Budget (OMB) has revised Title 2 of the Code of Federal Regulations (2 C.F.R.) to add a new part 184 and revise 2 C.F.R. § 200.322, to provide guidance to federal agencies on how to apply the domestic preference requirements as set forth in BABAA. OMB also issued OMB Memorandum M-24-02, *Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure*, which provides supplemental implementation guidance to federal agencies on: (1) the application of a Buy America preference to federal financial assistance programs for infrastructure; and (2) the process for waiving such a Buy America preference, including the circumstances under which waivers may be justified as consistent with applicable law and policy. These revisions are effective for subject FEMA awards issued on or after **Oct. 23, 2023**.

For subject FEMA awards issued between **Jan. 2, 2023- Oct. 22, 2023**, 2 C.F.R. Part 184 and OMB Memorandum M-24-02 do not apply. Instead, see OMB Memorandum M–22–11, *Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure* for BABAA implementation guidance.

Not all FEMA grant programs are subject to BABAA. For instance, many of FEMA's disaster programs are not subject to the requirements, including but not limited to, the Public Assistance Program (PA), Hazard Mitigation Grant Program (HMGP), and Fire Mitigation Assistance Grant Program (FMAG). For a full list of FEMA programs not subject to BABAA, please visit Programs and Definitions.

### Programs and Definitions

Please see the following links for key definitions of federal financial assistance, as well as the full lists of FEMA federal financial assistance programs for which BABAA does and does not apply.

Subject to BABAA

Definitions

NOT Subject to BABAA

## FEMA Resources

These FEMA resources will provide clarity on the applicability of the BABAA requirements to FEMA financial assistance programs and implement a transparent process for waiver requests.

### BABAA Decision Roadmap

Respond to four questions to learn whether the domestic preference requirements of BABAA apply to your project.

### Three Requirements Flyer

Once you learn whether your project is subject to the domestic preference requirements of BABAA, download this flyer to learn about the three key requirements of BABAA.

### Build America, Buy America Act: Applying the General Applicability Waivers

This fact sheet provides key information to FEMA award recipients and subrecipients on the application of three of FEMA’s general applicability waivers of the Build America, Buy America Act domestic preference requirements.

### BABAA Best Practices Guide

Review the BABAA Best Practices Guide to understand how to document compliance with the BABAA Requirements.

### BABAA Video Brief

Watch FEMA’s instructional brief on the BABAA requirements.

Read the Policy

Read Frequently Asked Questions

## Issuing "Buy America" Waivers

Per section 70914(b) of BABAA, FEMA may waive the application of a "Buy America" preference under an infrastructure program in any case in which FEMA finds that:
                        - Applying the domestic content procurement preference would be inconsistent with the public interest (public interest waiver);
                        - Types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality (nonavailability waiver); or
                        - The inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25% (unreasonable cost waiver).

### Public Comment Period

As outlined in OMB Memorandum M-24-02, before issuing a waiver, FEMA must make publicly available on FEMA’s website a detailed written explanation for the proposed determination to issue the waiver and provide at least 15 days for public comment on the proposed waiver. FEMA uses this website to post proposed waivers for public comment from the "Buy America" preference requirement for a FEMA program.

### FEMA Waivers

#### Approved General Applicability Waivers

#### Approved Project Specific Waivers

#### Proposed Waivers for Public Comment

There are no proposed waivers for public comment at this time. Proposed waivers will be posted here as available.

#### Expired Waivers

## More Information

If you have any questions, please contact your applicable point of contact for more information, including:
                        - Office of Management and Budget’s Made in America Office Website ( Home | Made in America ) and the  Build America, Buy America Factsheet and FAQs for Award Recipients (whitehouse.gov) .
                        - State Emergency Management Office for:                           - Preparedness Grants:  State Administrative Agency (SAA) Contacts                           - Hazard Mitigation Assistance Grants:  State Hazard Mitigation Officers
                        - FEMA Regional Grants Office
                        - FEMA Regional/HQ Program Office

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