BABA / BAP

Build America, Buy America Overview

Congress passed the Build America, Buy America Act (BABA) in 2021 as part of the Infrastructure Investment and Jobs Act (IIJA). BABA established a Buy American Preference (BAP), which requires all infrastructure projects with federal financial assistance to source certain materials--iron, steel, manufactured products, and construction materials--from United States manufacturing. The Department of Housing and Urban Development (HUD) established a phased implementation process for BABA along with several other general and project-specific waivers.

Subject to BABA:

  • Community Development Programs: Community Development Block Grants (CDBG), Section 108 Loan Guarantee 
  • Housing Programs: HOME Investment Partnerships Program (HOME), Housing Trust Fund (HTF), Recovery Housing Program (RHP)
  • Homelessness Programs: Emergency Solutions Grants (ESG), Continuum of Care (CoC)
  • Other CPD Programs: HOPWA, SHOP, VHRMP, CPF/EDI, Section 4, Rural Capacity Building, PRO Housing, PRICE, and CoCBuilds NOFO

NOT Subject to BABA:

  • Housing projects with 1-4 units (considered “private”) 
  • Disaster Recovery Funding: CDBG-DR, CDBG-MIT, CDBG-NDR, RUSH
  • COVID-era Emergency Funding: CDBG-CV, HOME-ARP, HOPWA-CV, ESG-CV

Latest Updates

CPD Notice 2025-01: CPD Implementation Guidance for the Build America, Buy America Act’s Buy America Preference

HUD’s Office of Community Planning and Development (CPD) published this notice on January 13, 2025. The notice supersedes CPD Notice 2023-12 (from 2023) and includes a BAP checklist that grantees can use to document BABA compliance and check for applicable waivers. 

HUD Overview: “The refreshing of this Notice is intended to provide greater clarity to grantees implementing BABA. Specifically, the Notice clarifies how the BAP applies to public infrastructure for housing projects. Projects with one- to four-units should be classified as private and not subject to BABA. Housing projects with five or more units should be considered as public infrastructure subject to BABA unless another BABA waiver or exemption applies. In addition, the Notice includes a reclassification of HOME-ARP to CPD programs not covered by the BAP, clarification on determining a project scope, BAP applicability to program income, additional recordkeeping considerations, guidance on using HUD’s online project-specific waiver application website, and new resources to assist with compliance and determining when a project-specific waiver is appropriate.”

HUD's BABA Resources

This section is under construction. Please check back soon for updates. 

Other BABA Resources

Build America Buy America: Planning your compliance 

BABA has added complexity to the federal grant process, but grantees can navigate new regulations with these agency resources and best practices.

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