The 2026 federal infrastructure funding requirements establish new standards which federal agencies must meet for Buy America Act compliance. The new BABA regulations impose manufacturers and federal contractors with higher domestic content requirements and additional supplier tracking needs and more rigorous audit procedures. The real challenge? The compliance teams of most organizations continue to use spreadsheets together with their disorganized supplier documents and their manual processes for calculating domestic content. The situation creates risks for false certification and contract termination and federal penalties and reputation loss. Companies need to establish active compliance systems because domestic content requirements are becoming stricter and enforcement agencies are increasing their efforts to track violations. The demand for AI-powered compliance automation has become critical because organizations need to manage supplier information and assess domestic content
