January 19, 2025

By Lane Kimble

One of the Biden Administration’s final acts could end up costing the transportation construction industry $8.5 billion over the next decade.

Tuesday, the Federal Highway Administration published an updated Build America Buy America policy change that rolls back the long-standing manufactured products waiver.

The agency had used its waiver authority since 1983 to exempt a wide array of items used on federal-aid highway projects — including electronics, ITS hardware, electrical equipment, signal boxes, pumps and many more – from provisions mandating that they be produced in the United States, according to the American Road and Transportation Builders Association (ARTBA).

With the new rule, manufactured construction products will need to be built in the United States and be made of at least 55% US-made components.

ARTBA says FHWA will phase in the new requirements, with the US-built part beginning for federal aid-supported projects on Oct. 1, 2025 and beyond.  The 55% component rule will begin for federal aid projects on Oct. 1, 2026.

ARTBA General Counsel Rich Juliano provided some important notes on the waiver rollback during Thursday’s Contractor-Engineer Conference.  You can contact Rich HEREwith questions and feedback.