The Federal Highway Administration (FHWA) issued a new rule to eliminate a longstanding waiver that allowed manufactured products in federal-aid highway projects to bypass Buy America requirements.
The new federal rule updates outdated policies and aligns with the Bipartisan Infrastructure Law, specifically the Build America, Buy America (BABA) Act. The FHWA reviewed its Manufactured Products General Waiver and determined that removing it would increase the use of American-made materials in highway and bridge projects.
This rule will roll out in two phases:
- Starting October 1, 2025, all manufactured products used in federally funded highway projects must undergo final assembly in the U.S.
- By October 1, 2026, at least 55 percent of the total cost of a product’s components must come from materials mined, produced, or manufactured in the U.S.
Originally, FHWA enacted its Buy America statute in 1983 but determined that manufactured products were used too infrequently in highway projects to justify domestic manufacturing incentives. However, the BABA Act now brings federal highway projects in line with broader governmentwide standards, ensuring greater reliance on U.S.-made products.