Build America law delays
The Build America, Buy America law is creating supply headaches and delaying construction projects as builders scramble to source U.S.-made materials — a factor worsening delivery backlogs during the housing shortage ( ). Homes also remained less affordable than historic levels in 97% of U.S. counties in Q1 2026 — underscoring why backlogs are so damaging for buyers and renovators (probuilder.com).
FHWA’s final BABA rule took effect March 17, 2025, and requires final assembly of manufactured products in the U.S. for projects obligated on or after Oct. 1, 2025, with a 55% domestic‑component cost test becoming effective Oct. 1, 2026. (federalregister.gov) Developers report HUD has “greenlit a handful” of waiver requests while many others sit unresolved, leaving ready‑to‑build projects stalled. (apnews.com) HUD’s waiver pathway requires a HUD review, a public‑comment period and final approval by OMB’s Made in America Office, and HUD ended its phased implementation waivers for some programs on Aug. 23, 2024. (hudexchange.info) Builders say the paperwork and slow approvals are tangible: Maine developer Tyler Norod told reporters his group expects to “build less units,” and Beyond Shelter CEO Dan Madler said he postponed lumber orders and could not source U.S.‑made ceiling fans, with developers tallying delays and “hundreds of thousands” in extra costs. (apnews.com) Data show the timing matters for buyers: ATTOM’s Q1 2026 U.S. Home Affordability Report found homes were less affordable than historical averages in 97% of counties analyzed, and the national median home price rose roughly 8% from $333,438 to $360,000 since Q1 2024. (attomdata.com) Industry groups and some lawmakers have pushed for changes: building trade coalitions have petitioned OMB for clarity on rollout and waivers, several members of Congress have urged rolling back or modifying BABA provisions, and Rep. Chellie Pingree publicly called on federal officials to address delays hobbling affordable housing. (constructionowners.com) The next federal milestone is Oct. 1, 2026, when the 55% domestic‑component test becomes binding for applicable projects, a change FHWA and industry analysts have warned could add programwide costs (FHWA estimated multi‑billion dollar impacts in related analyses). (gao.gov)
