OMB Issues Proposed Guidance On Requirement For U.S.-Produced Construction Materials In Infrastructure Projects

WHAT: Following the State of the Union, in which President Biden reiterated the Administration's focus on made-in-America infrastructure, the Office of Management and Budget (OMB) issued proposed guidance aimed at standardizing the implementation of the Build America, Buy America (BABA) provision of the Bipartisan Infrastructure Law. As we've previously discussed, the BABA requires, among other things, the use of U.S.-produced iron and steel, manufactured products, and "construction materials" in federally-funded infrastructure projects. On February 9, 2023, OMB issued a proposed rule and notification of proposed guidance about the implementation of the BABA's requirements.

The proposed rule includes a number of proposed changes to the federal grant rules, which largely reflect the initial implementing guidance contained in OMB's Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure,