The bill strengthens national‑security protections and supply‑chain transparency by banning high‑risk foreign LiDAR in federal transportation procurement, but it shifts costs, administrative burdens, and potential deployment delays onto state/local governments, vendors, and transportation projects while creating some legal ambiguity.
Federal, state, and local transportation procurement and DOT grant recipients will be barred from using LiDAR from designated high‑risk foreign sources, reducing the risk of data exfiltration and other national‑security threats.
Contractors on DOT projects must certify they do not use covered LiDAR, increasing supply‑chain transparency and making it clearer which vendors and products meet federal procurement rules.
Federal agencies can grant case‑by‑case waivers for covered LiDAR when a use is in the national interest, preserving flexibility for critical or urgent projects.
State and local governments and grant recipients may face higher procurement costs and delays if commonly used LiDAR suppliers are prohibited, increasing expenses for infrastructure and safety projects.
Prohibiting many LiDAR products could slow deployment of vehicle and infrastructure safety systems that rely on LiDAR, delaying safety and service improvements for drivers, transit users, and transportation workers.
Requiring contractor certifications and monitoring compliance creates additional administrative burdens for vendors and DOT contracting officials, increasing workload and compliance costs.
Based on analysis of 4 sections of legislative text.
Introduced March 5, 2026 by Theodore Paul Budd · Last progress March 5, 2026
Prohibits the Secretary of Transportation from buying, using, or contracting for certain LiDAR systems that are identified as covered technology, produced by covered companies, or linked to specified foreign countries, as defined by an existing national defense law. Contractors must certify they do not use such LiDAR to win or renew DOT contracts; DOT loans and grants cannot be used to obtain the prohibited equipment. The Secretary may grant narrow, case‑by‑case waivers with advance congressional notification. The rule applies to obligations, expenditures, and contracts on or after June 30, 2026, and excludes certain vehicle‑safety and research/testing activities.