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Build America, Buy America: What Is It,  How Can We Help You Comply?

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Build America, Buy America: What Is It,  How Can We Help You Comply?
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The Build America, Buy America (BABA) provisions of the 2021 Infrastructure Investment and Jobs Act (IIJA) mark the start of a new chapter in the future of United States infrastructure. As part of the sweeping IIJA, these BABA provisions foster the U.S. government’s clear mission to prioritize U.S.-made products and services in federally funded building projects – including network connectivity.

With BABA, the U.S. government is reinforcing its commitment to strengthen domestic manufacturing, support American jobs, and enhance the resilience of national supply chains. With this mandate in mind, network infrastructure partners like Belden, and its broadband business units like PPC, are adapting their supply chains, product offerings, and vendor relationships to make BABA-compliant products available to our customers and partners.

What is Build America, Buy America?

The BABA provisions of the IIJA outline standards to prioritize U.S.-produced materials and products in federally funded projects to ensure taxpayer dollars contribute directly to the U.S. economy. The provisions build on the foundation of the IIJA to address critical infrastructure needs.

The BABA standards will impact federal financial assistance recipients and extend to municipalities, utility services, cable providers, and others involved in projects backed by federal funding. The BABA standards may also apply to diverse project types, including transportation, water systems, energy, and broadband connectivity.

What are the Requirements of Build America, Buy America?

BABA’s requirements are set forth in Title 2, Part 184, of the Code of Federal Regulations, otherwise known as 2 C.F.R. Part 184, which is available here. BABA classifies articles, materials, and supplies used in federally funded infrastructure projects into three main categories, each with its own separate standards and requirements.

Iron and Steel Products: Iron or steel products are items that consist wholly, or predominantly of, iron or steel, or a combination of both, where the iron and steel content must exceed 50 percent of the item’s total component costs. For these products, all manufacturing processes from the initial melting state through applications of coatings must occur in the U.S.

Manufactured Products: For a manufactured product to comply with BABA, it must be manufactured in the U.S. and greater than 55 percent of its component costs must be of U.S. origin. What constitutes as “manufactured in the U.S.” may vary based on the nature of the manufactured product and guidance by the relevant federal agency.

Construction Materials: BABA has unique requirements for eight specific categories of construction materials, including plastic and polymer-based products (including polymers used in fiber optic cables), glass (including optic glass), fiber optic cable (including drop cable), and optical fiber.

However, various federal agencies and departments have issued, or may issue, their own guidance on these classifications. Any party involved in a network infrastructure project involving federal funds should consult with the procuring agency or department to clarify which guidelines are applicable. We’ve included links with more extensive information regarding BABA guidance at the bottom of this blog.

Although BABA emphasizes domestic sourcing, waivers may be available in special cases when using a non BABA-compliant item is in the public interest, or when suitable American-made products are unavailable or financially unfeasible. Waivers are reviewed on a case-by-case basis by the relevant government agency or department funding the project at issue.

How do these BABA Requirements Apply to Network and Connectivity Infrastructure Projects Under the BEAD Program?

Network infrastructure products and projects – critical for bridging the digital divide – are often subject to BABA requirements due the federal funding involved in such projects. With the U.S. pushing for digital equity and connectivity as part of the IIJA and programs like Broadband Equity, Access, and Deployment (BEAD), network and broadband frameworks are essential to modernizing connectivity in rural and underserved areas.

The BEAD program provides $42.45 billion to expand high-speed internet access by funding planning, infrastructure deployment and adoption programs across the U.S. and its territories.

Under BABA, federally funded network infrastructure projects, including fiber optic cable systems; broadband networks; and other connectivity solutions, must meet the same sourcing standards for traditional projects, such as transportation or energy.

For example, the NTIA has categorized fiber optic cables used in federally funded projects under the BEAD program as construction materials, which must be manufactured and sourced domestically. Specifically, the NTIA has indicated that glass or plastic fibers, protective coatings, and cable jacketing must predominantly be sourced, manufactured, or assembled in the U.S. Other critical broadband-related products – such as routers, switches, and signal transmission devices – are likely deemed manufactured products, which must also meet BABA's applicable manufacturing and sourcing standards.

General Summary of IIJA, BABA, and BEAD

 

Purpose

Scope

Requirement

Infrastructure Investment and Jobs Act (IIJA)

 

Comprehensive legislation aimed at modernizing U.S. infrastructure across sectors, including transportation, energy, water, and broadband. Provides more than $1 trillion in funding for projects on roads, bridges, public transit, broadband internet expansion, clean energy, water systems, and more. Emphasizes improving infrastructure resilience, promoting American manufacturing, and supporting economic growth, particularly in underserved communities. It serves as the foundational legislation for BABA and BEAD.

Build America, Buy America (BABA) Act

 

Incorporated within the IIJA, BABA mandates that federally funded projects use domestically produced materials. Applies across all sectors funded under IIJA, enforcing U.S.-based sourcing for iron, steel, manufactured goods, and construction materials like glass and fiber optics. Federal agencies must ensure that materials comply with BABA standards when distributing IIJA funds. Waivers are allowed, but are subject to strict requirements and public transparency.

Broadband Equity, Access, and Deployment (BEAD)

 

Also part of the IIJA, and aims to address the digital divide by providing funding to expand affordable, high-speed internet access, particularly in underserved and rural areas. Allocates $42.45 billion specifically for broadband infrastructure development, digital equity, and adoption programs. Projects funded through BEAD must comply with BABA requirements, meaning broadband network materials, like fiber optic cables and other construction materials, must be U.S.-sourced.

 

How Belden is Prioritizing BABA Compliance

Belden and PPC, leading network infrastructure partners to American connectivity projects, are committed to maximizing the BABA-compliant products available to our customers and partners. For instance, PPC has comprehensively restructured our global supply chain and manufacturing operations, placing U.S.-sourced materials and domestic production at the forefront of our strategy.

Since the introduction of the IIJA, we have also strategically restructured our supply chain to prioritize U.S.-sourced materials and components, ensuring compliance with BABA's manufactured goods and construction materials requirements. By identifying gaps and shifting sourcing to domestic suppliers, PPC can provide products and solutions that adhere to these standards without sacrificing availability, quality, or reliability.

Our approach has also involved extensive collaboration with U.S. vendors and distributors to secure locally sourced components. These partnerships allow Belden to source high-quality, American-made materials that meet BABA’s strict guidelines, supporting both the reliability of our network infrastructure products and the domestic economy.

Belden has also leveraged a well-established U.S. manufacturing footprint to adapt seamlessly to BABA requirements. For example, we positioned our manufacturing facility in Syracuse, New York, to scale up for growing demand, minimizing disruption and bolstering local economic growth, in line with BABA’s objectives.

In parallel, Belden and PPC have been taking proactive steps to minimize the financial strain of BABA on customers. By redesigning supply chains and optimizing processes, we are working to minimize the impact of BABA compliance while keeping BABA-compliant products accessible.

Beyond compliance, our commitment to U.S.-based manufacturing fosters local community growth, job creation, and economic revitalization. From supporting broadband expansion in underserved areas to advancing innovative fiber technologies, Belden’s efforts align with the broader objectives of the IIJA, building a stronger, more connected America.

Through these actions, we are not only reinforcing our role as a leader in connectivity solutions, but also directly contributing to the growth and stability of American manufacturing.

How Belden Can Help You Comply With BABA

Belden and PPC offer a range of BABA-compliant solutions tailored to meet the needs of federally funded network infrastructure projects subject to BABA, including fiber premises and outside plant solutions. We design these products to help fulfill compliance obligations by providing reliable, high-quality components to cable providers, utility services, municipalities, and others, so they can source the broadband products they need without sacrificing quality.

The BEAD program permits manufacturers to certify their broadband products that are BABA complaint for BEAD purposes. We have certified several of our broadband and broadband-related products. Spanning fiber cabling, duct, enclosures, wall plates, and handholes, as well as hardware and ancillary products, we have prioritized our broadband and fiber-to-the-home products to give our customers an extensive portfolio of solutions tailored to meet the demands of federally funded network infrastructure projects.

Browse all our BABA-compliant products

Conclusion

For companies involved in network infrastructure, BABA represents both an opportunity and a responsibility. By applying a preference for American-manufactured goods in federally funded infrastructure projects, BABA helps secure the supply chain for telecommunications equipment, fostering innovation within the domestic market and creating a cycle of economic growth that aligns with both building needs and the national goal of closing the digital divide.

Our expertise in navigating the complexities of BABA compliance – combined with our strong relationships with domestic suppliers and robust U.S. manufacturing capabilities –positions us uniquely to support your project needs. By partnering with us, you gain access to high-quality, reliable components that meet federal standards and contribute to the broader goal of strengthening America’s manufacturing base and infrastructure.

To learn more about BABA compliance, we have gathered below some more extensive resources for you from the NTIA website:

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