2026-16812NoticeWallet

FTA Ponders Ditching Electric Rule for 'Made in America' Minibuses

Published Date: 8/18/2026

Notice

Summary

On December 20, 2024, the Federal Transit Administration (FTA) published a notice of proposed Buy America waiver for certain battery- electric minibuses. FTA has not made a final decision on the proposal. FTA is seeking supplemental comment as to whether FTA should remove the proposed requirement that the minibuses be battery-electric propulsion.

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Battery-electric Requirement Removed

FTA now proposes to remove the December 20, 2024 requirement that eligible minibuses be battery-electric. If approved, minibuses with other propulsion types would be eligible for the same partial Buy America waiver along with battery-electric vehicles.

Waiver Covers Small Unibody Minibuses

The revised proposed partial Buy America waiver would apply to any vehicle that: has or can have low-floor entry; is unibody or monocoque (not body-on-chassis); has GVWR under 11,794 kg (26,001 pounds); and is designed for fewer than 16 seated passengers including the driver. The waiver would be a general waiver available to any FTA grant recipient.

Two-Year U.S. Assembly Phase-In and Three-Year Sunset

Under the revised proposal, for contracts awarded more than two years after the waiver's effective date the waiver would apply only if vehicle final assembly occurs in the United States, and the waiver would expire three years after the effective date.

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Key Dates

Published Date
Comments Due
8/18/2026
9/2/2026

Department and Agencies

Department
Independent Agency
Agency
Transportation Department
Federal Transit Administration
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