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

IBS | Advocacy

Feb 18, 2026

Podcast: Live From IBS 2026 – A Special Home for a Special Cause

In the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez take center stage at NAHB HQ at the 2026 International Builders’ Show (IBS) in Orlando, with special guest Jason Eichenholz sharing his behind-the-scenes involvement with The New American Home.

IBS

Feb 18, 2026

Georgia Builder Elected to Senior Leadership of NAHB

Jim Chapman, an Atlanta-based real estate developer with more than 25 years of experience in the construction field, was elected today as 2026 third vice chairman of the National Association of Home Builders (NAHB) during the association’s International Builders’ Show in Orlando.

View all

Latest Economic News

Economics

Feb 18, 2026

Overall Housing Starts Inch Lower in 2025

Despite a strong finish in December, single-family home building dipped in 2025 as persistent affordability challenges continued to weigh on the market.

Economics

Feb 18, 2026

How Housing Affordability Conditions Vary Across States and Metro Areas

The NAHB 2026 priced-out estimates show that the housing affordability challenge is widespread across the country. In 39 states and the District of Columbia, over 65% of households are priced out of the median-priced new home market. This indicates a significant disconnect between higher new home prices, elevated mortgage rates, and household incomes.

Economics

Feb 17, 2026

Builder Sentiment Edges Lower on Affordability Concerns

Builder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).