Build America, Buy America Bottlenecks Housing

The 'Build America, Buy America Act', signed by Joe Biden in 2021, mandates that federally funded infrastructure projects, including affordable housing, use American-made materials. However, the implementation of this law has led to significant challenges for developers in the United States. Many products, from HVACs to ceiling fans, are not readily available with a 'Made in the USA' label, as they have historically been imported due to cheaper labor costs. The United States — United States Department of Housing and Urban Development, responsible for granting waivers, has been slow in its approval process, causing construction delays and hundreds of thousands of dollars in extra costs for developers. This bottleneck is exacerbating the affordable housing crisis, with developers like Westbrook Development Corporation, Beyond Shelter, and Julie Hoebel facing project standstills and increased expenses. While organizations like the Alliance for American Solar Manufacturing and Trade and United Steelworkers support the law's goal of boosting domestic manufacturing, industry groups such as the National Council of State Housing Agencies and the National Housing and Rehabilitation Association highlight the failing waiver process and the lack of domestic manufacturing capacity for certain products. U.S. Rep. Mike Flood has advocated for exemptions, and United States — United States Department of Housing and Urban Development Secretary Scott Turner has indicated the agency is exploring flexibility. The ongoing issues are prompting some developers to consider avoiding federal funds altogether for smaller projects.