US companies, and their location, that manufacture broadband components and equipment for the country鈥檚 internet expansion. (Image: NTIA)

Following a petition for change by four US-based construction associations to the Biden administration鈥檚 鈥榤ade in America鈥� requirements, the NTIA 鈥� an agency of the US Department of Commerce (DOC) has as foreign parts and equipment will now be allowed on certain broadband projects.

The trade associations 鈥揂ssociated General Contractors, American Road & Transportation Builders Association, American Public Transportation Association, and National Association of Home Builders 鈥� stated that their members were having 鈥� navigating implementation of the Build America, Buy America Act by the Office of Management and Budget (OMB).

The US Congress passed the Build America, Buy America Act (BABA) in 2021 as part of the Infrastructure Investment and Jobs Act (IIJA). The BABA establishes domestic content procurements preference requirements for Federal financial assistance projects for infrastructure. It applies to all iron or steel products, manufactured products, and construction materials used for infrastructure projects under Federal Financial assistance programmes.

鈥淒OC has determined that certain manufactured products and construction materials are not produced in the United States in sufficient and reasonably available quantities to meet the needs of the Broadband Equity, Access, and Deployment (BEAD) Program,鈥� stated the notice of final waiver.

鈥淒OC, therefore, is issuing a limited, general applicability, nonavailability waiver of the Buy America preference requirements for certain construction materials and certain manufactured products as applied to recipients of Federal financial assistance under the BEAD program.鈥�

Specifically, materials waived included electronics (sans exceptions for optical line terminals, network terminals and network units) and non-optic-glass inputs (like an overclad cylinder), which is used to manufacture optical fibre and fibre optic cable.

The BEAD program established US$42.45 billion in allocated funds for deploying broadband service to 鈥榰nserved locations鈥� and 鈥榰nderserved locations.鈥�

Waiver does not include China-made components

While the waiver will allow contractors some flexibility, additional restrictions remain for China-made components. However, specific waivers to navigate that regulation also exist.

鈥淏EAD Program funds may not be used to purchase or support 鈥榝ibre optic cable and optical transmission equipment manufactured in the People鈥檚 Republic of China,鈥欌€� stated the DOC, which added the exceptions can be made if 鈥渢he eligible entity that awards a subgrant for the project shows that such application would unreasonably increase the cost of the project.鈥�

While the allowance of outside materials will expand, NTIA鈥檚 senior policy advisor, Will Arbuckle, wrote that the agency still expects a high percentage of equipment and components to come from within the US.

鈥淲hen we released the proposed BABA waiver in August [2023], we estimated that our approach would mean close to 90% of BEAD funds spent on equipment would be spent on equipment manufactured in the US,鈥� he said. 鈥淯nder the waiver released [February 2024], that estimate holds steady.鈥�