FHWA final rule rescinds Manufactured Products General Waiver and phases in manufactured-products domestic content requirements (final assembly 2025; 55% components 2026)

FHWA published a final rule amending its Buy America regulation for Federal-aid highway projects (23 CFR 635.410) to terminate the longstanding general waiver for manufactured products and establish standards for when manufactured products are considered produced in the United States. The rule provides a phased approach tied to project obligation dates (including a U.S. final assembly requirement starting for projects obligated on/after October 1, 2025, and a 55% domestic component cost requirement for projects obligated on/after October 1, 2026). This change is directly relevant to BABA-aligned domestic preference compliance for highway construction supply chains and contract specifications.