Made in America

The Buy American Act applies when the federal government is directly assisting the procurement of products or a federal facility is being constructed. Under this statute, the goods or products are qualified as being domestic when they are 100% manufactured in the United States and with at least 50% domestic content.

The Buy America Act typically applies only to mass-transit procurements for state and local government projects, such as the construction of highways, railways, or rapid transit systems. The requirements of this statute are regulated by the Federal Transit Administration (FTA) and the Federal Highway administration (FHWA). Under the Buy America Act, end products must be 100% manufactured in the United States and all steel and iron components MUST be mined, melted, and manufactured in the United States. However, there is one important exception; foreign-sourced materials may be allowed if they are valued at $2,500 or 0.1% (whichever is greater) of the contract value. This is referred to as the minimal use amount.

The official definition as set forth by the Federal Trade Commission (FTC) requires that a product advertised as “Made in the USA” be entirely or virtually entirely made in the United States. The details regarding exactly what that means are spelled out in a 40-page document titled “Complying with the Made in the USA Standard.”

This legislation was enacted in November 2021 as part of the Infrastructure Investment and Jobs Act (IIJA). Its purpose is to strengthen Made in America requirements for federally funded infrastructure projects, ensuring that they use American-made iron, steel, construction materials, and manufactured products. Specifically, BABA focuses on the requirements related to manufactured products used in such projects