OMB Proposes New Standards on American-Made Building Materials

Economics
Published

In a move that could affect single-family and multifamily affordable housing projects, the Office of Management and Budget (OMB) has proposed new standards to determine if construction materials for federally funded infrastructure projects are made in the United States.

The new guidance, required by the Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law, or BIL), “sets standards to carry out the statutory requirement that all manufacturing processes for construction material occur in the United States.” Federally funded infrastructure projects include housing developments that receive any federal support, such as through the Community Development Block Grant (CDBG) or the Home Investment Partnerships Program (HOME).

Covered Construction Materials and Manufacturing Standards

The Build America, Buy America Act, which is part of the BIL, requires OMB to issue standards that define ‘‘all manufacturing processes’’ in the case of construction materials. Initial guidance (memorandum M–22–11) issued in April 2022 fell short of this and instead provided non-binding guidance on the definition of construction materials. The latest proposal includes an expanded list of products considered construction materials and proposes standards for ‘‘all manufacturing processes’’ for the manufacturing of construction materials.

Among construction materials covered by the guidance are lumber, drywall, glass and plastics. The guidance includes domestic manufacturing process standards for the following construction materials:

Public Comment Period

OMB has provided only 30 days to comment on the new standard. NAHB will submit comments as we believe that, under OMB’s proposal as written, virtually all housing development could be excluded. We have strongly urged HUD to exempt single-family and multifamily affordable housing projects from the Build America, Buy America Back Act mandates.

However, NAHB remains concerned that the “built in America” standards may stall road and utility projects funded by CDBG or HOME that are needed to allow housing development to take place.

NAHB Senior Economist David Logan provides more analysis in this Eye on Housing blog post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Advocacy

Jul 31, 2026

City Leaders Share Lessons on Breaking Through the Housing Debate

Mayors say collaboration and community engagement are key to building consensus across different perspectives to advance pro-housing policies.

Land Development | Economics

Jul 30, 2026

AI Data Centers Are Outbidding Home Builders for America's Land

As the demand for data processing increased dramatically with the advent of AI, companies building the centers began bidding up prices of land that had been on home builders' radar.

View all

Latest Economic News

Economics

Jul 30, 2026

PCE Inflation Eased in June

After reaching a three-year high last month, the Federal Reserve’s preferred inflation gauge eased in June following declines in energy prices amid a temporary truce with Iran. This marked the first monthly decline in six years.

Economics

Jul 30, 2026

Top Ten Builder Share Across Largest Housing Markets

An earlier post described how the top ten builders in the country accounted for 43.6% of new single-family closings in 2025. BUILDER magazine has now released additional data on the top ten builders within each of the 50 largest new home markets in the U.S., ranked by single-family permits.

Economics

Jul 29, 2026

Amid Supply-Side Inflation Pressures, The Fed Holds

The Federal Reserve held the federal funds rate at a target range of 3.5% to 3.75% at the conclusion of its July policy meeting. There were three dissenting votes on the Federal Open Market Committee (FOMC), all of which supported raising the federal funds rate by 25 basis points.