By Diana Goovaerts
The US Department of Agriculture (USDA) Rural Development division sought to delay the implementation of a “Buy American” provision included in the recently passed Infrastructure Investment and Jobs Act (IIJA) on the grounds that the requirement could hinder critical projects including broadband rollouts. Its move is notable given the USDA administers a number of key broadband funding initiatives, including the well-known ReConnect Programme.
Passed in November 2021, the IIJA included a Buy American rule which requires projects receiving federal infrastructure funding to use products and materials which contain at least 55 per cent domestic content. That requirement was set to be applied to money obligated for projects after May 14, 2022.
In a waiver request, though, the USDA asked that the rule’s implementation be delayed by six months. Among other things, the agency said the reprieve will give it more time to ensure program participants know how to meet the Buy American requirements so they can continue partaking in its programmes. It will also help “avoid unintended negative impacts of immediate implementation,” which might include delayed rollouts of critical broadband, water and community infrastructure in rural areas.
Changing programme requirements “mid-cycle would cause confusion and garner distrust that undermines Administration goals,” it argued. “Without an adjustment period there will be significant harm to RD programme delivery, relationships with rural constituents, and deployment of critical infrastructure and service in rural areas.”
