Federal Highway Administration’s New ‘Buy America’ Proposal Will Harm U.S. Manufacturing
WASHINGTON, D.C.: On Tuesday, February 10, the Federal Highway Administration (FHWA) released a proposal to update the Build America, Buy America waiver for manufactured products, bringing the required percentage of components used to make electric vehicle (EV) chargers purchased through funded programs from 55 to 100 percent.
In response, CALSTART Head of Policy, Trisha DelloIacono, issued the following statement:
“CALSTART strongly supports the goal of expanding U.S. manufacturing and creating American jobs. It is central to our mission and to the future of the U.S. transportation sector. However, domestic manufacturing goals must be aligned with real-world supply chain capacity. Without corresponding domestic production capacity in place, this proposal would undermine the very manufacturing growth it seeks to promote.
“The original waiver for EV chargers was not designed to give the industry preferential treatment, but to reflect the reality that key components like LCD displays, transformers, charging cables, circuit boards, and connectors are simply not manufactured at sufficient scale in the United States. Without viable manufacturing for these complex components, requiring 100 percent domestic manufacturing essentially blocks the implementation of critical infrastructure, weakening U.S. manufacturers and threatening the jobs tied to this growing industry.
“Federal investments in EV charging through programs such as the National Electric Vehicle Infrastructure program, the Congestion Mitigation and Air Quality Improvement program, the Carbon Reduction Program, and the Reduction of Truck Emissions at Port Facilities program are helping build the backbone of a competitive American EV industry. Slowing charger deployment at this critical stage risks weakening U.S. manufacturers, suppliers, and fleet operators who are working to compete in a rapidly electrifying global market.
“As the global auto industry accelerates its transition to EVs, U.S. competitiveness depends on building the charging infrastructure that supports that shift. Policies that disrupt this build-out at a critical moment will not strengthen American industry but make it harder for U.S. companies to compete and lead in the next generation of transportation.”
About CALSTART
A mission-driven industry organization focused on transportation decarbonization and clean air for all, CALSTART has offices in New York, Michigan, Colorado, California, Florida, and Europe. CALSTART is uniquely positioned to build the national clean transportation industry by working closely with its nearly 200 member companies and building on the lessons learned from the major programs it manages for the State of California. CALSTART manages more than $1 billion in vehicle incentive and technical assistance programs in the United States and is leading a global effort to build the zero-emission commercial vehicle market.