The Federal Highway Administration (FHWA) has issued a final rule that amends its existing Buy America requirements. This rule terminates the general waiver for manufactured products and applies new requirements to products used in Federal-aid highway projects, aligning with the Build America, Buy America Act (BABA). These requirements mandate that manufactured products must be assembled in the U.S., and beginning October 2026, at least 55% of their components by cost must also be of U.S. origin. The rule aims to bolster domestic manufacturing and create a more resilient supply chain.
Simple Explanation
The government has made a new rule that says things used to build roads with their help have to be mostly made in the USA, and by the year 2026, more than half of the parts need to come from the USA too. This is to help make things in the USA and keep jobs here.