Published February 18, 2026
By NZero
Federal investment in electric vehicle charging infrastructure has become one of the most visible components of the United States’ broader transportation modernization strategy. Since the passage of the Infrastructure Investment and Jobs Act in 2021, billions of dollars have been allocated to expand charging networks along highways and in communities. However, federal agencies are now reassessing how those funds intersect with domestic manufacturing objectives. A recent notice from the Federal Highway Administration proposes reconsideration of the existing Buy America waiver for EV chargers, potentially tightening domestic content requirements. At the same time, administrative actions signal a move toward restricting funding eligibility in ways that could strengthen U.S. production capacity. Together, these developments indicate a recalibration of priorities that may affect deployment timelines, equipment costs, and supply chain strategies across the EV ecosystem.
The Infrastructure Investment and Jobs Act authorized significant funding for EV charging corridors, primarily through the National Electric Vehicle Infrastructure program. These funds are subject to the Build America Buy America Act, which generally requires federally funded infrastructure projects to use domestically produced iron, steel, manufactured products, and construction materials. When the charging program was first launched, however, domestic manufacturing capacity for EV charging equipment was still developing. Many critical components, including power electronics, connectors, and communication systems, were sourced globally.
To prevent supply bottlenecks that could delay project implementation, the Federal Highway Administration issued a temporary public interest waiver in 2023. The waiver created a phased approach. Initially, chargers needed to undergo final assembly in the United States. Beginning in July 2024, an additional requirement mandated that at least 55 percent of component costs be domestically manufactured. This framework aimed to balance two objectives: rapid deployment of charging infrastructure and gradual strengthening of domestic supply chains.
The phased structure provided market participants with transitional certainty. Manufacturers had time to localize production, and state departments of transportation could move forward with corridor buildouts without waiting for a fully domestic component ecosystem to mature. According to federal guidance issued at the time, the approach was designed to accelerate network coverage while incentivizing long term investment in U.S. manufacturing.
In February 2026, the Federal Highway Administration published a notice seeking public comment on whether to modify or discontinue the existing waiver. Among the options under consideration is a substantial increase in domestic content thresholds, potentially requiring that all components used in federally funded chargers be manufactured in the United States. Such a shift would represent a significant escalation from the current 55 percent cost threshold.
The notice emphasizes alignment with statutory Buy America objectives and highlights the importance of reinforcing domestic industrial capacity. If finalized, stricter requirements could apply to projects funded after publication of a final rule. The agency is soliciting stakeholder input on market readiness, supply availability, and potential impacts on cost and delivery timelines.
Raising the domestic content threshold to 100 percent would have measurable effects across the supply chain. Many charger manufacturers rely on globally sourced semiconductors, display units, and power management systems. Achieving full domestic sourcing would require either rapid reshoring of component manufacturing or substitution with U.S. produced alternatives. Both paths involve capital investment, supplier development, and possible price adjustments.
Beyond the waiver reconsideration, federal policy direction suggests tighter scrutiny of which EV charging projects qualify for reimbursement under highway funding programs. Administrative actions indicate increased emphasis on documentation, certification, and verification of domestic content claims. This could lead to expanded reporting requirements for manufacturers and more detailed procurement oversight by state transportation agencies.
Stricter eligibility standards may influence vendor selection processes. Developers and state agencies could prioritize suppliers with vertically integrated U.S. manufacturing footprints to minimize compliance risk. In the short term, this may narrow the pool of eligible providers, particularly if smaller manufacturers face challenges meeting higher thresholds.
At the same time, stronger domestic sourcing requirements could catalyze new investment. According to industry data from recent years, U.S. based EV charger manufacturing capacity has grown, with several companies announcing new assembly plants and component facilities. If demand certainty remains strong under federal programs, manufacturers may accelerate localization strategies to secure market access. This dynamic illustrates how procurement policy can function as an industrial policy tool, shaping supply chain geography through funding conditions.
For state departments of transportation managing National Electric Vehicle Infrastructure funds, any modification to the waiver introduces planning complexity. The implications can be grouped into potential advantages and potential challenges.
Potential advantages:
Potential challenges:
Manufacturers face strategic decisions regarding capital allocation and sourcing partnerships. Those with existing U.S. production capacity may gain competitive advantage under stricter rules. Others may need to evaluate joint ventures, supplier diversification, or facility expansion to maintain eligibility. Utilities and commercial property owners participating in federally supported installations must also monitor compliance guidance to ensure reimbursement eligibility.
In the longer term, a more localized supply chain could enhance resilience against geopolitical disruptions and trade volatility. Domestic production may shorten lead times and improve transparency in component traceability. Whether these benefits outweigh short term deployment challenges will depend on how quickly the manufacturing ecosystem adapts and how flexibly regulators implement transitional provisions.
Federal EV charging policy is entering a phase where industrial development objectives are more tightly interwoven with infrastructure expansion goals. The reconsideration of the Buy America waiver by the Federal Highway Administration, combined with signals of stricter funding eligibility standards, reflects an effort to align transportation electrification with domestic manufacturing growth. This recalibration presents both opportunities and challenges. Stronger domestic sourcing requirements may stimulate investment and job creation, while also introducing near term cost and compliance pressures. As the public comment process unfolds and final rules are clarified, stakeholders across transportation, manufacturing, and energy sectors will need to balance deployment momentum with supply chain transformation. The outcome will shape not only the pace of EV charger rollout but also the structure of the U.S. clean transportation manufacturing landscape.
