The move aims to bolster domestic manufacturing and support US jobs by maximising the use of US-produced manufactured goods in highway and bridge projects funded through federal aid, addressing what the outgoing Biden-Harris administration describes as a significant loophole in Buy America regulations.

US transportation secretary Pete Buttigieg highlighted the policy’s intent to prioritise US jobs and investment. “This rule reflects our dedication to rebuilding America’s infrastructure with domestically manufactured products.”

Acting FHWA deputy administrator Gloria Shepherd called the rule a reversal of outdated policies that previously directed taxpayer dollars to foreign products.

The rule will be implemented in two phases. From October 1, 2025, final assembly of manufactured products for federal-aid projects must occur in the USA. From October 1, 2026, at least 55% of components in such products must be sourced domestically.

Initially introduced in 1983, the waiver was deemed necessary at the time due to the limited use of manufactured products in highway projects.

However, the Build America, Buy America (BABA) Act within the Bipartisan Infrastructure Law prompted the FHWA to review and align its policies with broader federal standards.

The regulatory update is expected to drive investments in domestic manufacturing, expand reliance on US-produced goods, and enhance the economic impact of federal infrastructure spending.

Existing Buy America requirements for steel and iron products remain unchanged, but the new rule clarifies distinctions between these and manufactured goods.