Federal Grants & Buy America: OMB Proposes Requirements for Federally Funded Infrastructure Projects

Hogan Lovells – In February, the Office of Management and Budget (OMB) proposed new Buy America regulations for Federal grants, to implement the Build America, Buy America (BABA) Act signed into law on November 15, 2021. BABA requires that by May 2022, “none of the funds made available for a Federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States.” OMB’s proposed rule would standardize this requirement by creating new regulations and by amending the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to require compliance.