US steel associations reacted positively to initial guidance the White House issued today to federal agencies implementing the Build America, Buy America Act.
The new 17-page guidance released by the Office of Management and Budget is intended to ensure that “none of the funds made available for a federal financial assistance program for infrastructure, including each deficient program, 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,” according to Shalanda Young, OMB director.
The guidance includes three situations in which waivers may be issued within “Buy America” preferences: when it is not in the public interest; when the materials are not sufficiently available in the United States; or when using the materials would increase the cost of the project overall by more than 25 percent.
US steel associations reacted positively to the news. Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), said, “We appreciate the commitment of the Biden-Harris administration to ensure that all federally-funded infrastructure and public works projects use iron, steel and other products that are made in America. As some federal programs do not apply Buy America requirements for the procurement of iron and steel products, we are pleased that today’s initiative begins the process to remedy this situation by providing clear guidance to federal agencies for adopting appropriate Buy America requirements for all federally-funded infrastructure projects.”
Dempsey noted that today’s announcement implements legislation authored by Senators Sherrod Brown (D-OH) and Rob Portman (R-OH) that was enacted as part of the Bipartisan infrastructure Law last year.
Steel Manufacturers Association (SMA) President Philip K. Bell also commented, “This announcement demonstrates the administration’s commitment to ensure that federally funded infrastructure projects are built with steel made by Americans for Americans. Clarification and strong enforcement of Buy America domestic procurement preferences will lead to an infrastructure that is made with the cleanest lowest carbon intensity steel in the world.”