U.S. DOT Proposes Phased-in Approach for Buy America Expansion

What happened: The U.S. Department of Transportation (U.S. DOT) April 28 released a proposed ‘transitional waiver’ which would allow an additional 180 days before full enforcement of new Buy America requirements for certain construction materials. The department is seeking public comments on the proposal through May 13.

Why it matters: The Infrastructure Investment & Jobs Act (IIJA) maintained the longstanding domestic manufacturing requirement for iron, steel and manufactured products permanently incorporated in federal-aid highway and transit projects. The IIJA also expanded coverage to ‘construction materials,’ although Congress did not provide a complete list of products to be covered. (The law explicitly exempts aggregates and several pavement-related materials.) Compliance with new Buy America requirements was to begin May 14.

In initial guidance released April 18, the White House Made in America Office instructed U.S. DOT and other federal agencies to gather additional information on potential construction materials to be covered, and to consider applying short-term waivers if it is in the ‘public interest’ to adopt a phased-in approach beyond mid-May. U.S. DOT is proposing to do this, but asking for public comment as to the length of its waiver for construction materials (180 days) and whether some domestically-produced materials are already available to the point that a waiver is not necessary.

What’s next: As previously reported, ARTBA has met with and provided comments to the Made in America Office, asking in part that U.S. DOT take this type of ‘ramp up’ approach so as not to exacerbate already difficult materials cost and availability issues. ARTBA will provide a response to U.S. DOT’s new waiver proposal and continue to engage with federal agencies on this topic during the coming months. We continue to value member feedback and encourage our chapters and member-firms to submit their own comments to U.S. DOT as well. Please contact Rich Juliano or Nick Goldstein with any questions or thoughts.