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ASA Urges Delay of New Buy America, Build America Act (BABAA) Requirements for Construction Materials in the Infrastructure and Investment Jobs Act (IIJA)

This week, ASA, along with the AGC and other similarly situated associations, urged the Department of Transportation (DOT) to delay the new Buy America, Build America Act (BABAA) requirements for construction materials in the Infrastructure and Investment Jobs Act (IIJA).  Currently, infrastructure project costs continue to climb amid rising construction materials prices and shortages.  Additionally, lead times for procurement and delivery of many of these materials has dramatically increased; thereby, we have concerns about the new (BABAA) requirements for construction materials and before these requirements take effect, it is critical that DOT conduct thorough analyses of domestic manufacturing capabilities, provide sufficient opportunity for public comment on draft rules, and provide adequate time for public and private entities to adjust and learn final rules. To accomplish the necessary work, the Administration should extend the 180-day BABAA waiver to ensure that projects are not needlessly delayed.  Rushing through this process could further drive inflation and result in significant delays to projects that will facilitate the enhanced movement of people and goods that, in turn, will help improve the nation’s constrained supply chain.