How “Buy America” applies to federal financial assistance programs

(*Note: If ARPA SLFRF funds are being used as matching support and the grant program that is requiring the match requires adherence to Buy America provisions, then domestic preference mandates may apply.)

In addition, certain situations could result in the issuance of a waiver if the head of the procuring agency determines the domestic preference mandate is inconsistent with public interest, the unavailability of American-made materials, or if the cost of acquiring the domestic product is unreasonable.

In summary, with the enactment of the IIJA, the “Buy America” domestic preference mandate has been expanded to a variety of federal grant-making authorities. However, the applicability of domestic preference mandates for projects funded by Federal financial assistance programs will depend on several factors, which may include the source of their federal infrastructure grants, OMB’s oversite of agencies’ implementation of the IIJA’s domestic preference provisions and the guidance which each agency develops relating to its own grant-making authorities.

Matt Jadacki also contributed to this article.

Summary 

The OMB issued initial implementation guidance on the application of a Buy America preference in federal financial assistance programs for infrastructure projects, but there are several programs for infrastructure projects in which domestic preference mandates do not apply.