Public projects must require U.S.-made iron and steel

Public entities must put a requirement in covered contracts that permanently used iron and steel products be produced in the United States. This covers state and local governments, school districts, and other public entities entering contracts for public works or materials for those projects. Covered projects include construction, repair, renovation, and improvement of public facilities paid with state funds, but not emergency repairs affecting public health, safety, or property. A product is covered when it is made primarily of iron or steel, meaning more than 50 percent by component cost, volume, or weight. All manufacturing steps from initial melting through coating must occur in the United States, except certain processes used to refine steel additives. The requirement must be applied consistently with international agreements. Electrical components and related equipment are generally exempt, except transmission and distribution poles. The requirement took effect when the Governor approved the act on June 30, 2026, and applies to covered contracts entered into under the section.

The procurement official may allow exceptions to the domestic-product requirement, and the State Fiscal Accountability Authority must issue implementation rules. Exceptions apply to covered public works contracts and material purchases when the responsible procurement head makes the required determination. An exception may apply when U.S.-made products are unavailable in sufficient quantities, not reasonably available, or not satisfactory in quality. An exception may apply when using U.S.-made products would raise the project's total cost by more than 25 percent, or when compliance conflicts with the public interest. Small incidental foreign content is allowed if it is not separately listed and stays within the stated cost limit; foreign components may also make up 5 percent or less of an otherwise domestic product. The section does not apply to Department of Transportation contracts governed by federal Buy America rules, and state funds exclude certain housing authority bonds and state tax credits. The State Fiscal Accountability Authority must develop rules to implement the section; the supplied text gives no deadline for those rules.