The bill strengthens national-security protections for federally funded transportation projects by banning certain foreign-controlled LiDAR and blocking federal funds from buying it, but it increases compliance ambiguity, procurement costs, and business disruption for contractors and grantees, while allowing limited waivers for critical national-interest needs.
Taxpayers and state/local transportation systems: the bill reduces exposure of federal transportation infrastructure to potentially insecure or surveilling foreign-controlled LiDAR by prohibiting its use on federally funded projects.
Recipients of Department of Transportation grants and loans: DOT funds and financial assistance cannot be used to purchase prohibited LiDAR, preventing federal money from indirectly supporting suppliers deemed a security risk.
Secretary of Transportation and state governments: the Secretary may waive the prohibition for specific national‑interest activities, preserving flexibility for urgent or critical projects that require otherwise-prohibited equipment.
Vendors, contractors, and agencies: the bill's reliance on definitions in another statute creates uncertainty about which countries or companies are covered, increasing legal and compliance risk for bidders and grantees.
State and local governments and DOT grantees: replacing excluded LiDAR products may raise procurement costs and cause delays, potentially slowing transportation project timelines.
Small businesses and contractors: firms that use barred LiDAR may lose business or need to retool supply chains to comply, increasing costs and reducing competitiveness for DOT contracts.
Based on analysis of 2 sections of legislative text.
Prohibits the Secretary of Transportation from procuring, obtaining, using, or contracting for certain LiDAR technology that is tied to specified foreign companies or countries, and requires contractors to certify they will not use such covered LiDAR in contract performance. The Secretary may grant case-by-case national-interest waivers with advance notice to two congressional committees, and federal loans or grants must be conditioned so that funds are not used to obtain the prohibited LiDAR. The restriction applies to obligations, expenditures, and contracts on or after June 30, 2026, with narrow exceptions for certain vehicle safety waiver/exemption processes and for testing, research, evaluation, analysis, or training related to vehicle safety.
Introduced July 29, 2025 by Dustin Johnson · Last progress July 29, 2025