HUD expands Buy America steel rules

The federal government’s Department of Housing and Urban Development (HUD) has published a document in the Federal Register codifying the use of American-made steel in certain projects it funds.

The cabinet-level department lists “infrastructure projects funded with new Choice Neighborhood, Lead Hazard Reduction, and Healthy Homes Production Grants” as now needing to comply with the Buy America Preference (BAP) that is part of the 2021 federal infrastructure act.

“HUD is expanding the application of the BAP to iron and steel products” used in projects that are funded by those three programs, says the department, starting with projects approved “on or after Feb. 22, 2023.”

The BAP protocol and the larger Build America, Buy America Act (BABA) are part of the Infrastructure Investment and Jobs Act signed into law in mid-November 2021.

The domestic steel preference largely has been welcomed by America’s steel industry and has been referred to as a likely source of steel demand by producers such as North Carolina-based Nucor Corp.

The HUD notice posted March 21 also refers to waivers to the BAP requirement for smaller projects. “This allows for efficient phased implementation while reducing the administrative burden to potential grantees and funding recipients where the costs of uncertainties surrounding compliance with BABA could distract from the focus on higher value BABA compliant items,” the department says.