Build America, Buy America law delays affordable housing construction

The law requiring federally-funded projects to use American-made materials is causing bottlenecks and cost overruns for affordable housing developers.

Mar. 27, 2026 at 4:18pm

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A new law called Build America, Buy America (BABA) requires that nearly everything used in affordable housing projects that receive federal funding must be made in the USA. However, developers say many products they need are not available domestically, leading to construction delays and hundreds of thousands of dollars in extra costs as they navigate a backlogged waiver process with the Department of Housing and Urban Development (HUD). This is exacerbating the affordable housing crisis, with some developers having to scale back projects.

Why it matters

The BABA law was intended to boost American manufacturing, but its implementation is hindering the construction of affordable housing at a time when the US is facing a severe shortage of such units. Developers say the waiver process is failing, with HUD taking months to approve requests, and that the law's requirements don't align with the current domestic manufacturing capacity for many building materials and products.

The details

The BABA law, signed by President Biden in 2021, mandates that infrastructure projects funded by federal agencies use American-made materials and products. This applies to affordable housing developments that receive any federal dollars, even if it's just a small portion of the overall funding. Developers say they are struggling to find American-made alternatives for items like HVAC systems, lighting, and even basic hardware like sink hooks and ceiling fans. While they can apply for waivers, the process has been extremely slow, with HUD approving only a handful of requests so far.

  • The Build America, Buy America Act was signed into law by President Biden in 2021 as part of the Infrastructure Investment and Jobs Act.
  • Developers say the waiver process with HUD is taking at least 6 months, causing major delays in affordable housing construction projects.

The players

Build America, Buy America Act

A law signed by President Biden in 2021 that requires infrastructure projects funded by federal agencies to use American-made materials and products.

Department of Housing and Urban Development (HUD)

The federal agency responsible for overseeing the waiver process for the Build America, Buy America law as it applies to affordable housing projects.

Tyler Norod

President of Westbrook Development Corporation, an affordable housing developer in Maine.

Diana Lene

A 76-year-old resident in Fargo, North Dakota who has been on affordable housing waitlists for 5 years due to the high cost of her current apartment.

Dan Madler

CEO of nonprofit affordable housing developer Beyond Shelter.

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What they’re saying

“We've sort of resigned ourselves that we're just gonna build less units across the entire country during a housing crisis.”

— Tyler Norod, President, Westbrook Development Corporation

“I'm just trying to keep a roof over my head, but it's getting more and more difficult. I don't like to live in fear, and yet sometimes it jumps in there.”

— Diana Lene

“If they take much longer then we'll come to a standstill.”

— Julie Hoebel, Denver developer

What’s next

HUD Secretary Scott Turner said the agency is looking into providing more flexibility to developers on the Build America, Buy America requirements as they pertain to affordable housing projects.

The takeaway

The implementation of the Build America, Buy America law is exacerbating the affordable housing crisis, as developers face lengthy delays and higher costs to comply with the requirement to use American-made materials. This highlights the need for the government to better align the law's mandates with the current domestic manufacturing capacity, in order to support the construction of much-needed affordable housing units.