The Build America, Buy America Act (BABA) was enacted as part of the 2021 Infrastructure Investment and Jobs Act (IIJA). It requires that infrastructure projects receiving federal financial assistance — grants to states, municipalities, utilities, and agencies, not direct federal procurement — use domestic iron, steel, manufactured products, and construction materials. The Office of Management and Budget implemented the initial government-wide guidance (OMB M-22-11 and subsequent memos), and individual funding agencies (DOE, DOT, EPA, and others) have layered their own program-specific guidance on top.
This is a different, older lineage than the original 1933 Buy American Act, which governs direct federal government procurement. BABA is specifically about federal financial assistance flowing to non-federal recipients for infrastructure — which is exactly the funding mechanism behind a lot of grid, EV charging, and broadband buildout since 2022.
It's easy to conflate this with the domestic content bonus credit covered in the FEOC compliance guide, but they're triggered by completely different mechanisms:
| BABA | IRA domestic content bonus | |
|---|---|---|
| Trigger | Project receives federal financial assistance (a grant) | Project ownership elects a specific tax credit structure |
| Legal basis | IIJA (2021), implemented via OMB/agency guidance | Inflation Reduction Act (2022) tax code provisions |
| What it governs | Sourcing of iron, steel, manufactured products, construction materials | Percentage of domestic manufactured product/component cost for a tax credit adder |
| Applies regardless of tax election? | Yes — funding source is what matters | No — only matters if claiming this specific bonus |
A project can be subject to BABA, the IRA bonus, both, or neither, depending entirely on how it's funded and owned. Screening for one doesn't clear the other — they need to be checked independently.
Federal awarding agencies can issue waivers under three categories: public interest, nonavailability (the item isn't reasonably available domestically in sufficient quantity or quality), or unreasonable cost (domestic content would raise total project cost above a specified threshold). Waivers are typically proposed by the agency and opened for public comment before being finalized — a buyer or contractor can request one be considered, but can't self-certify a waiver the way they might self-certify domestic content.
The Data Centers, Renewables, and Battery Storage desks flag domestic-content and FEOC-clean sourcing options at the configuration stage where they apply. If your project is also navigating the interconnection process, see the grid interconnection guide; for the separate IRA domestic-content bonus question, see the FEOC compliance guide.
This guide is general information, not legal advice — confirm BABA applicability and waiver status for your specific award with the funding agency and your own counsel before relying on it for compliance decisions.
BABA is part of the 2021 Infrastructure Investment and Jobs Act (IIJA). It requires that infrastructure projects receiving federal financial assistance (grants to states, utilities, and agencies) use domestic iron, steel, manufactured products, and construction materials, subject to certain waivers, as implemented through OMB guidance.
They're triggered by different things. BABA applies based on the funding source — whether the project receives federal financial assistance — regardless of tax status. The IRA domestic content bonus is a tax-credit adder tied to a project's ownership and tax election, independent of whether any federal grant funding is involved. A project can be subject to one, both, or neither depending on how it's funded and owned.
Yes, under specific categories: public interest, nonavailability (the item isn't reasonably available domestically in sufficient quantity or quality), or unreasonable cost (domestic content would raise total project cost by more than a specified threshold). Waivers are granted by the federal awarding agency, not the contractor or buyer, and are typically published for public comment first.
Manufacturer certifications of domestic origin for iron, steel, and manufactured products; a record of which BABA category (iron/steel, manufactured products, or construction materials) each component falls under; and awareness of any waivers already published by the specific funding agency for the applicable program.
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