A bipartisan group of U.S. senators has introduced new legislation aimed at strengthening enforcement of domestic sourcing requirements on federally funded infrastructure projects, following concerns about inconsistent compliance across agencies.
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Sens. Tammy Baldwin and Jim Banks unveiled the Build America, Buy America Compliance Act on May 4. The bill would require federal agencies to fully comply with the Build America, Buy America Act for projects funded under the Infrastructure Investment and Jobs Act.
The proposed legislation would mandate annual reporting to the federal Made in America Office and Congress, detailing how agencies are implementing Buy America provisions. It would also require those reports to be published in the Federal Register to improve transparency and accountability. The bill has been referred to the Senate Committee on Homeland Security and Governmental Affairs.
If enacted, the legislation would require agencies to identify all federal financial assistance programs dedicated to infrastructure and specify whether they have fully implemented Buy America requirements.
For programs already in compliance, agencies would need to outline the steps taken to meet or exceed statutory requirements. For those not yet compliant, the bill would require a timeline and specific actions to achieve full implementation, including efforts to replace broad waivers with more targeted, project-specific exemptions.
The Build America, Buy America provisions were expanded under the 2021 Infrastructure Investment and Jobs Act, signed into law by former President Joe Biden. The law authorized $1.2 trillion in infrastructure spending and strengthened domestic sourcing requirements originally established under the Buy American Act of 1933.
The updated rules require federal agencies to prioritize U.S.-manufactured materials, including iron, steel and construction products, for government-funded projects. Agency heads must also ensure that infrastructure funds are not obligated unless those requirements are met, except in cases where waivers are granted.
The introduction of the compliance bill follows a recent audit by the Office of Inspector General that identified shortcomings in how certain agencies applied Buy America requirements.
The audit found that the Federal Aviation Administration failed to include required Buy American clauses in some contracts funded through the Infrastructure Investment and Jobs Act. Additionally, the agency did not consistently follow proper procedures when issuing waivers for foreign-made products.
According to the report, three of nine reviewed contracts—representing $115.9 million in funding—used foreign-made products without proper waiver approvals or documentation. Investigators also noted that the FAA relied on a “longstanding” waiver without reassessing its applicability and lacked “complete and accurate” data on Buy American compliance.
Supporters of the new bill argue that stronger oversight is necessary to ensure taxpayer dollars support domestic manufacturing and labor.
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“To me, this is straightforward: When we use American tax dollars, we should be investing those dollars back into American workers, products, and businesses,” Baldwin said in a statement.
Industry groups have also voiced support for the legislation, including the Alliance for American Manufacturing and the United Steelworkers.
“The Build America, Buy America Act was enacted in 2021 to ensure taxpayers’ dollars spent on infrastructure strengthen U.S. supply chains and support America’s workers,” said Scott Paul, president of the Alliance for American Manufacturing. “But that promise only works if the law is fully and consistently implemented across federal programs.”
Originally reported by Sara Samora, Reporter in Construction Dive.
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