Mountain Road Rules Retired: FHWA Ditches Appalachian Contract Requirements
Published Date: 12/3/2025
Rule
Summary
The Federal Highway Administration is scrapping old rules about federal contracts for building roads in the Appalachian region because they’re outdated and covered by other laws. This change affects anyone working on Appalachian road projects and takes effect January 2, 2026. It won’t change funding but will simplify how these projects are managed.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Regional Preferences and Wage Rules Stay
FHWA says rescinding the Appalachian subpart does not change the application of special preference for materials indigenous to the Appalachian region or the use of coal derivatives under 40 U.S.C. 14501(d), the implementation of Executive Order 14261 (April 8, 2025), or applicable wage rates required under 40 U.S.C. 14701. Those material-preference and wage provisions remain in effect despite removing the older subpart.
Appalachian Contract Rules Removed
If you work as a contractor or run a business on Appalachian road projects, FHWA is removing the old 23 CFR part 633, subpart B rules effective January 2, 2026. FHWA says removing these outdated provisions may simplify project management and could produce cost savings by eliminating unnecessary contract provisions.
Small Entities Not Significantly Impacted
FHWA certified under the Regulatory Flexibility Act that this rescission will not have a significant economic impact on a substantial number of small entities. FHWA therefore did not prepare a regulatory flexibility analysis for this rule.
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