View all text of Chapter 501 [§ 50101 - § 50105]
§ 50101. Buying goods produced in the United States
(a)Preference.—The Secretary of Transportation may obligate an amount that may be appropriated to carry out section 106(k), 44502(a)(2), or 44509, subchapter I of chapter 471, or chapter 481 (except sections 48102(e), 48106, 48107, and 48110) of this title for a project only if steel and manufactured goods used in the project are produced in the United States.
(b)Waiver.—The Secretary may waive subsection (a) of this section if the Secretary finds that—
(1) applying subsection (a) would be inconsistent with the public interest;
(2) the steel and goods produced in the United States are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality;
(3) when procuring a facility or equipment under section 44502(a)(2) or 44509, subchapter I of chapter 471, or chapter 481 (except sections 48102(e), 48106, 48107, and 48110) of this title—
(A) the cost of components and subcomponents produced in the United States is more than 60 percent of the cost of all components of the facility or equipment; and
(B) final assembly of the facility or equipment has occurred in the United States; or
(4) including domestic material will increase the cost of the overall project by more than 25 percent.
(c)Labor Costs.—In this section, labor costs involved in final assembly are not included in calculating the cost of components.
(d)Limitation on Certain Rolling Stock Procurements.—
(1)In general.—Financial assistance made available under the provisions described in subsection (a) shall not be used in awarding a contract or subcontract to an entity on or after the date of enactment of this subsection for the procurement of rolling stock for use in an airport-related project if the manufacturer of the rolling stock—
(A) is incorporated in or has manufacturing facilities in the United States; and
(B) is owned or controlled by, is a subsidiary of, or is otherwise related legally or financially to a corporation based in a country that—
(i) is identified as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of the date of enactment of this subsection;
(ii) was identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as a foreign country included on the priority watch list defined in subsection (g)(3) of that section; and
(iii) is subject to monitoring by the Trade Representative under section 306 of the Trade Act of 1974 (19 U.S.C. 2416).
(2)Exception.—
(A)In general.—For purposes of paragraph (1), the term “otherwise related legally or financially” does not include—
(i) a minority relationship or investment; or
(ii) relationship with or investment in a subsidiary, joint venture, or other entity based in a country described in paragraph (1)(B) that does not export rolling stock or components of rolling stock for use in the United States.
(B)Corporation based in people’s republic of china.—Notwithstanding subparagraph (A)(i), for purposes of paragraph (1), the term “otherwise related legally or financially” includes a minority relationship or investment if the relationship or investment involves a corporation based in the People’s Republic of China.
(3)International agreements.—This subsection shall be applied in a manner consistent with the obligations of the United States under international agreements.
(4)Waiver.—
(A)In general.—The Secretary may waive the limitation described in paragraph (1) using the criteria described in subsection (b).
(B)Notification.—Not later than 10 days after issuing a waiver under subparagraph (A), the Secretary shall notify the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1298, § 49101; renumbered § 50101 and amended Pub. L. 104–287, § 5(88)(D), (89), Oct. 11, 1996, 110 Stat. 3398; Pub. L. 118–63, title VII, § 768(a), May 16, 2024, 138 Stat. 1293.)