On June 18, 2026, the U.S. Department of Housing and Urban Development (HUD) published a Request for Information (RFI) calling on grantees, manufacturers, trade associations, and other stakeholders to share their experiences meeting domestic sourcing preference requirements for federally-assisted infrastructure projects under the Build America, Buy America Act (BABA), Section 70914(a) of the Infrastructure Investment and Jobs Act (IIJA), Pub. L. 117-58.

HUD is seeking comments on the availability of domestically manufactured products used in the construction, alteration, maintenance, and repair of housing and other HUD-assisted infrastructure projects. The agency intends to use the information collected to better understand current market conditions and to inform future implementation of BABA requirements, including waiver determinations.

Comments must be submitted through www.regulations.gov under Docket No. FR-6616-N-01 by July 20, 2026.

Products of Interest and Key Considerations

Through the RFI, HUD aims to gather information on a range of products identified by grantees and builders as presenting domestic sourcing challenges, including: 

• HVAC systems
• Plumbing fixtures
• Door hardware
• Elevators
• Fire alarm and suppression systems
• Solar panels
• Electrical components of certain products
• Wood trusses

For each product category, HUD requests detailed information addressing:

• Domestic Production: Whether products are currently manufactured in the U.S., including locations and quantities
• BABA Compliance: Whether products meet BABA requirements for being produced in the United States, current and future production capacity, and, if not compliant, what actions could be taken to achieve compliance
• Additional Considerations: Factors affecting industry’s ability to meet demand, availability of key components, and opportunities for innovation

Potential for Additional BABA Waivers

One purpose of the RFI, HUD has stated, is to evaluate whether additional BABA-specific guidance or actions are warranted, including the need for short-term product-specific waivers. 

Since the BABA regulations were implemented, HUD has issued project-specific waivers and three general applicability waivers: 

• Small Grants: Applies to projects with total costs up to the Simplified Acquisition Threshold, currently at $350,000
• De Minimis: Excludes a limited (de minimis) portion of an infrastructure project from BABA requirements, provided the cumulative total does not exceed 5% of the total cost of the iron, steel, manufactured products, and construction materials, up to a maximum of $1 million
• Exigent Circumstances: Applies where there is a need to complete the project immediately. See HUD, BABA Waivers.

Stakeholder Comments Highlight Affordable Housing Concerns

Review of selected comments indicates BABA domestic sourcing requirements may hinder production of affordable housing due to operational and financial barriers. For example:

• Product Availability and Supply Chain Gaps: Key building components are often unavailable in BABA-compliant form or cannot be certified, leading to repeated waiver requests
• Administrative Burden and Cost Increases: Compliance research, certifications, documentation, and waiver requests add costs without corresponding benefits to housing production
• Waiver Delays Threatening Projects: Six- to ten-month waiver timelines can conflict with financing and construction deadlines, increasing costs and jeopardizing projects
• Disproportionate Effects on Nonprofit and Small Developers: BABA’s infrastructure-focused framework can burden nonprofit developers, small contractors, and rural builders, who often lack dedicated compliance staff

Opportunity for Stakeholder Input

Organizations and individuals involved in HUD-assisted housing and infrastructure projects, including affordable housing developers, architects, contractors, Community Housing Development Organizations (CHDOs) and HUD grantees, should consider sharing their experiences. While HUD may consider comments filed late, interested parties should post their comments before the July 20, 2026, deadline.

Feldesman attorneys are closely following developments from federal agencies’ implementation of the Build America, Buy America Act. If you have questions about domestic sourcing preferences in federally-supported infrastructure projects and other grant compliance matters, please contact Phillip Escoriaza or Adam Oppenheim.