Progress Update on BABA Issues and Collaboration with the Made in America Office
On Tuesday, in conjunction with our partnership with the Citizens Housing & Planning Association (CHAPA is the MA affordable housing association) and the New England Housing Network, David had a meeting with the leadership of the Made in America Office (MIAO), part of the Office of Management and Budget (OMB).
Under the leadership of Director Michael Stumo, an expert in international trade and domestic manufacturing, the MIAO oversees the Build America/Buy America (BABA) program. This office coordinates with federal agencies, including HUD and RD at USDA, and is tasked with promoting domestic production and job creation.
Following our outreach on BABA concerns, Director Stumo asked to meet to discuss the challenges the BABA mandate is creating for affordable housing. At the very beginning of our conversation, he acknowledged that BABA has caused challenges for affordable housing and emphasized the MIAO’s commitment to resolving these issues. He indicated meetings are ongoing with HUD and other agencies to address these concerns.
The presenters from the NEHN did an excellent job relaying to Director Stumo and his staff the costs in time, materials, and administration caused by the mandate. They raised the effect delays caused by the waiver process have on production, the added cost of hiring consultants to abide by the mandate and file waivers, and how the lack of domestically sourced materials, combined with the waiver process, can kill production.
Key Data Points Shared by Director Stumo
It was clear the MIAO staff had heard many of these concerns, and the Director’s response was most welcome. He outlined the following points:
The office is open to issuing general waivers for products that are not available domestically, at least for a year. These waivers will be reviewed as the year-end approaches. Importantly, this could also apply to products that cannot be sourced in sufficient quantity.
MIAO is preparing to leverage artificial intelligence to conduct market-based research on product availability.
The goal is to streamline processes by reducing unnecessary time delays and labor costs.
Currently, there are no pending waivers at MIAO. If there are difficulties with waivers being processed at HUD, the office is prepared to assist.
When we raised the idea of pausing the BABA mandate on HUD and RD programs until the waiver process and product lists are clarified, Director Stumo did not respond, which we take as an indication that they are not yet ready to go that far.
After discussing whether housing should be subject to the BABA mandate, as it is not public housing, he indicated that they consider housing to be under the mandate.
Industry Collaboration and Next Steps
The main takeaway from this meeting is that we appear to have a partner at OMB in the MIAO. The industry now needs to develop a list of materials that cannot be sourced domestically or in sufficient quantity. The faster this list is compiled and sent to MIAO, the sooner we can begin working with them on blanket waivers. We have communicated this information to our DC partners and will keep everyone updated on progress in the industry to assemble a comprehensive list. Please feel free to share any lists of hard-to-source products that you or your partners may have.
Legislative Update
As part of our industry’s efforts to address BABA, we are working with a bipartisan group of House and Senate Members who plan to offer language in the next appropriations bill directing HUD to examine the effects of the BABA mandate on housing. Bob will be meeting with Senator Angus King’s (I-ME) staff and Congressman Mike Flood’s (R-NE) staff, two of the leaders of this effort, to discuss the appropriations language and explore how we might assist in including it in the FY 2027 appropriations.