U.S. DOT Delays Buy America Expansion for Six Months

What happened: The U.S. Department of Transportation (U.S. DOT) issued a temporary waiver May 19 delaying the expansion of Buy America requirements to certain construction materials for 180 days. The mandate was to go into effect May 14. ARTBA supports this delay.

Why it matters: The Infrastructure Investment and Jobs Act (IIJA) maintains and expands a number of Buy America requirements. As in the past, iron and steel components permanently incorporated into a federal-aid highway or transit project must be produced in the United States. The same applies to manufactured products, although the Federal Highway Administration (FHWA) continues applying a nationwide waiver, which exempts many of them.

Moreover, the IIJA extended Buy America coverage to ‘construction materials,’ which according to U.S. DOT includes non-ferrous metals; plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables); glass (including optic glass); lumber; and drywall. Because of an exemption in the IIJA advocated by ARTBA and allied groups, Buy America will not apply to cement and cementitious materials; aggregates such as stone, sand, or gravel; and aggregate binding agents or additives.

In May 13 comments, ARTBA supported the waiver delaying construction materials coverage, citing the impracticality of enforcing the requirements right away and concern they could exacerbate existing challenges with materials costs and availability for the transportation construction industry. ARTBA also urged a further extension of the six-month waiver if the new Buy America provisions were likely to affect the budgets and schedules for projects. In its announcement, the department reflected ARTBA’s concerns, noting, ‘Because construction materials have not previously been subject to Made in America rules as have iron and steel, there is a need to gather data on domestic sourcing capacity to inform stronger standards. For example, while the exact impact on highway project construction is unknown, the Department believes that it could be significant.’

ARTBA made similar points in an April meeting with officials from the new White House Made in America Office (MIAO), as well as in comments subsequently submitted to them.

What’s next: ARTBA is fully participating in the efforts of the MIAO and U.S. DOT to gather information on availability of domestically-produced construction materials during the waiver period. Besides written comments, ARTBA’s Contractors Division featured this topic in a virtual construction policy meeting with FHWA on May 11. FHWA Associate Administrator for Infrastructure Hari Kalla also provided an update during the May 16 Contractors Division meeting, as part of the Federal Issues Program. For more information, please contact Rich Juliano.

Photo: The Contractor Division meeting featured a discussion with Hari Kalla, right, FHWA’s associate administrator for infrastructure. Contractors Division President Mike Glezer of Wagman Heavy Civil presided.