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Buy American requirements apply to direct purchases by the U.S. federal government valued at more than US$10,000. Buy America requirements apply to purchases of iron, steel and other manufactured products permanently incorporated into infrastructure projects.
Upon the October 25, 2022, effective date, the final FAR rule changes the domestic content threshold to 60 percent immediately, then to 65 percent for items delivered starting in calendar year 2024, and then to 75 percent for items delivered starting in calendar year 2029.
The Buy American Act restricts the purchase of non-domestic supplies. This act applies to federal government contracts for products used in the U.S. The act states that the cost of domestic components must exceed 50 percent of the total cost of components in an end product.
BABAA requirements apply to project materials including iron and steel, manufactured products, and construction materials. BABAA requirements apply to materials permanently incorporated into infrastructure projects and not to vendors or suppliers.
The current regulations which were set in October 2002, put the threshold at 60%. In 2024, it will move to 65% and then in 2029, to 75%. These thresholds are spelled out in the primary law under Buy American, which is the Buy American Act (BAA).

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This act applies to federal government contracts for products used in the U.S. The act states that the cost of domestic components must exceed 50 percent of the total cost of components in an end product.
Two conditions must be present for the Buy American Act to apply: (1) the procurement must be intended for public use within the United States; and (2) the items to be procured or the materials from which they are manufactured must be present in the United States in sufficient and reasonably available commercial
The designated Buy American Act countries are ones that are: World Trade Organization Government Procurement Agreement Countries (Australia, Germany, South Korea, Japan) Free Trade Agreement Act TAA Countries (like Mexico, Canada, or Singapore) Least Developed Countries (Afghanistan, Cambodia, Samoa, Yemen, etc.)

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