White House Issues Guidance Requiring U.S.-Made Steel for Infrastructure Act Projects
04/18/2022 - On Monday, the Biden administration issued a new memorandum clarifying its “Buy America” requirement for construction projects financed through the US$1 trillion Infrastructure Investment and Jobs Act (IIJA).
According to the guidelines, beginning 14 May 2022, all iron and steel material used in IIJA-funded projects must be produced in the United States. The “Buy America” preference applies to the entirety of the steelmaking process, from primary melting to processing and finishing.
The memo also outlined three situations where the Buy America regulation could be waived. Projects may apply for a waiver if sourcing the steel domestically would be “inconsistent with the public interest;” if the iron or steel products are not produced in sufficient quantities or quality within the U.S.; or if the use of U.S. iron and steel products would increase the project’s cost by more than 25%.
According to the official document, the new guidelines are intended to boost the U.S. supply chain, reduce reliance on waivers, and provide transparency and guidance to domestic steel producers.
Read the official memo here.