Announcements

Department of Transportation Issues Waiver of Buy America Requirements for De Minimis Costs and Small Grants

Published on: August 27, 2023

The Department of Transportation (DOT) last week issued a public interest Waiver of Buy America Requirements for De Minimis Costs and Small Grants. The waiver is intended to ensure DOT and its grant recipients make efficient use of resources by focusing domestic sourcing efforts on products that provide the greatest manufacturing opportunities for American workers and firms, consistent with the Biden-Harris Administration’s implementation of the Build America, Buy America Act, which was included in the historic Bipartisan Infrastructure Law. The waiver is also intended to reduce delays in the delivery of important transportation infrastructure projects that provide jobs and promote economic growth.

The waiver applies to a single financial assistance award obligated on or after August 16, 2023, for which:

• The total value of the non-compliant products is no more than the lesser of $1 million or 5% of total applicable costs for the project; or
• The total amount of Federal financial assistance applied to the project, through awards or subawards, is below $500,000.

The waiver is applicable to both FTA’s Buy America requirement for steel, iron, and manufactured products (49 U.S.C. 5323(j)) and to the Build America, Buy America Act’s construction materials requirement (Public Law 117–58, div. G 70901–27). It does not apply to items already subject to a product-specific waiver, such as FTA’s Partial Waiver for Vans and Minivans.

More information is available on the DOT and FTA Buy America websites.

Links:
DOT Waiver of Buy America Requirements for De Minimis Costs and Small Grants
FTA Partial Buy America Waiver for Vans and Minivans
Buy America Requirements
Build America Buy America Act
Bipartisan Infrastructure Law