Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Streetsblog

How “Buy America” Restrictions Can Cost America Jobs

Proponents of Buy America restrictions -- regulations that require American-made sourcing for transportation projects supported by the federal government -- may be well-meaning, but when applied to rail expansion, these rules can be pretty pernicious. There isn't a large domestic passenger rail market in the United States, so there isn't much of a domestic traincar manufacturing industry. When you throw Buy America into the mix, that can end up being a real problem for passenger rail projects.

false

Network blog Systemic Failure points to Ray LaHood's rejection of a $5.5 billion loan application by a private group seeking to build high-speed rail between Los Angeles and Las Vegas. LaHood cited Buy America rules to justify the rejection, but ironically, that means Nevada won't be getting a whole bunch of jobs, the blogger writes:

Note that the loan was not going to be spent on the train-sets. They would have been purchased separately. But the mere fact that any non-US goods were to be used was enough to kill the project.

And how exactly is this rigid adherence to Buy-America supposed to create jobs?

Now some would argue that this was a bad project anyway. The line would have terminated too far from Los Angeles to attract enough ridership. I agree with that point, but the rejection letter makes no mention of this. So what happens when the next HSR application comes along — and it is a really solid application. Will the DOT again make unreasonable requirements on rolling stock?  There is no domestic HSR manufacturing, and it is unrealistic to expect HSR manufacturers to magically spring out of nothingness to market trains for a project.

What we have here is a classic chicken-and-egg problem. Domestic HSR manufacturing cannot exist without HSR lines being built. And HSR lines cannot be built if the DOT mandates domestic rolling stock.

Elsewhere on the Network today: This Big City lists its choices for the five best high-speed rail lines in the world. Half-Mile Circles explores the accomplishments of tactical urbanism. And Better Institutions looks at the challenge of reserving space for buses on roads that carry more transit riders than drivers.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Death of a Legend: Donald Shoup, Parking Reformer

The OG of understanding how "free parking" isn't free has died.

February 8, 2025

Report: Efforts to Speed Up Bus Speeds Have Stalled … Like Bus Speeds

City buses move slower than ever after Mayor Adams reneged on his commitment to build more bus lanes, according to a new analysis.

February 7, 2025

Paradigm Shift: MTA Boss Says State Should Pony Up More For Capital Plans

"Every time the MTA capital program comes up, we treat it like, 'Oh my god, they need a bailout,'" the MTA CEO said, pointing out the absurdity.

February 7, 2025

Who is Trump’s FTA Pick Marc Molinaro — And Will He Kill Congestion Pricing?

If confirmed, Trump FTA pick Marc Molinaro can do a lot to gum up funding for mass transit across the country. Here's a look at his record.

February 7, 2025
See all posts