New Dollar Limits Hit Government Buying Rules in 2026
Published Date: 1/2/2026
Notice
Summary
Starting January 1, 2026, new dollar limits kick in for government buying rules under the Trade Agreements Act. These changes affect U.S. government agencies and businesses selling goods, services, or construction work worth certain amounts. Some trade deal thresholds will stay the same until updated data arrives later in January 2026, covering purchases in 2026 and 2027.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 0 costs, 5 mixed.
New procurement thresholds start Jan 1, 2026
Starting January 1, 2026, new U.S. dollar dollar thresholds take effect for applying certain trade agreement procurement rules for calendar years 2026 and 2027. These thresholds determine which government purchases of goods, services, or construction are covered by the Trade Agreements Act.
WTO procurement dollar thresholds set
For the WTO Agreement on Government Procurement, the thresholds effective January 1, 2026 are: central government goods and services $174,000; sub-central goods and services $474,000; other entities goods and services $535,000; and construction services $6,683,000. Procurements at or above these amounts are covered by the agreement.
US-Korea FTA construction threshold of $6,683,000
Under Chapter 17 of the United States-Korea Free Trade Agreement, the threshold for procurement of construction services by central government entities is $6,683,000, effective January 1, 2026 for 2026 and 2027.
Morocco, Panama, Peru FTA thresholds for goods and construction
For the United States-Morocco, United States-Panama, and United States-Peru agreements, the notice sets these thresholds effective January 1, 2026: central government goods/services $174,000 and construction $6,683,000; sub-central goods/services $474,000 and construction $6,683,000; other entities goods/services $535,000 and construction $6,683,000. The Panama Canal authority has a goods/services threshold of $537,000.
Delayed threshold updates for eight trade agreements
Threshold updates for these agreements are delayed until BLS data is released in January 2026: United States-Australia, United States-Bahrain, United States-Chile, United States-Colombia, Dominican Republic–Central America–United States, USMCA, United States-Oman, and United States-Singapore. Until the updated data is released, the existing thresholds for those agreements remain in place.
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