Prices of materials and services used in new nonresidential construction leaped nearly 21 percent in April from year-ago levels, according to an analysis by the Associated General Contractors of America of government data released today. The association urged the Biden administration to provide relief to hard-hit employers by ending tariffs on key construction materials and reconsidering its recently proposed Buy America regulations that will make it harder for firms to find and pay for key construction materials.

The $1.2 trillion bipartisan Infrastructure and Jobs Act (IIJA) included the “Build America, Buy America Act” which applies a domestic preference to all taxpayer-funded infrastructure projects. The Office of Management and Budget released new guidance on these rules on April 18th, 2022. The new guidelines are meant to assist federal agencies in the application of “Buy America” requirements and the waiver processes for all federally funded infrastructure projects and not just those funded by the IIJA. The requirements are currently set to be in effect starting May 14th.

Construction Official Says New Guidance will Undermine New Bipartisan Infrastructure Measure’s Benefits, Adds the Kind of Red Tape that Betrays Americans’ Confidence in Federal Spending