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Build America, Buy America Law Causing Construction Delays Amid the US Housing Crisis

The law's emphasis on U.S.-made materials causes procurement delays, slowing affordable housing projects amid the national housing crisis, affecting communities in multiple states.

  • The Build America, Buy America Act requires federally funded infrastructure projects to use American-made materials, but the law has created a bottleneck for affordable housing, with construction delays and waiver approval times stretching to at least six months.
  • Vermont-Based Developer Jessica Neubelt spent $150,000 verifying iron and steel compliance, while Denver developer Julie Hoebel spent over $60,000 on consultants to source American-made materials, illustrating mounting compliance costs across projects.
  • Hoebel's waivers for around 125 materials in an 85-unit building remain unapproved, and she warned, "If they take much longer then we'll come to a standstill." Some builders are avoiding federal funds entirely to bypass BABA requirements.
  • Roy Houseman, legislative director at United Steelworkers, called developer complaints "overblown," arguing the law supports domestic manufacturing, while HUD maintains commitment to "ensuring that federal spending supports America's industrial base."
  • HUD Secretary Scott Turner stated the agency is reviewing flexibility options, though advocates warn that without faster waiver approvals and clearer guidance, the industry will struggle to meet affordable housing supply needs.
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Montana StandardMontana Standard
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Build America, Buy America law causing construction delays amid the US housing crisis

A law requiring that most materials in federally funded affordable housing are made in America is fully kicking in. But it is wreaking havoc on affordable developments.

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TelegraphHerald.com broke the news in on Saturday, March 28, 2026.
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