The Biden administration has announced that it’s waiving some made-in-America requirements for components used in its $42 billion broadband internet buildout project because not enough of the materials, such as fiber optic cable components, are produced in the United States.
Specifically, all of the iron, steel, manufactured products, and construction materials used in infrastructure products must be made in the United States, per BABA rules.
However, the made-in-America legislation allows for heads of federal agencies to apply for BABA waivers under certain conditions, such as when using domestically made products would increase the project cost by 25 percent or if doing so would be “inconsistent with the public interest.”
Another possible condition for a waiver is if the materials and products that are subject to domestic procurement preference aren’t produced in the United States in sufficient quantity or at acceptable quality standards.
Last summer, the National Telecommunications and Information Administration (NTIA) applied for a BABA waiver—and on Feb. 22, received a green light for it—in order to meet the needs of the Biden administration’s broadband internet buildout program.
The release of the waiver follows a year or so of engagement with stakeholders who could be impacted by the waiver, including U.S. manufacturers, internet providers, as well as trade associations and unions. It also follows a 30-day public comment period.
“At first, many in industry told us that requiring the Buy America domestic manufacturing preference for the BEAD Program couldn’t be done—and that a blanket waiver would be necessary,” Mr. Arbuckle said in a statement.