Rule2025-21780

Rescinding Requirements Regarding Federal-Aid Contracts for Appalachian Contracts

Primary source

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Published
December 3, 2025
Effective
January 2, 2026

Issuing agencies

Transportation DepartmentFederal Highway Administration

Abstract

FHWA rescinds the regulations related to Federal-Aid Contracts (Appalachian Contracts), issued on September 30, 1974 because they are unnecessary, outdated, and duplicative of other statutory and regulatory requirements.

Full Text

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<title>Federal Register, Volume 90 Issue 230 (Wednesday, December 3, 2025)</title>
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[Federal Register Volume 90, Number 230 (Wednesday, December 3, 2025)]
[Rules and Regulations]
[Pages 55648-55649]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21780]



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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

23 CFR Part 633

[Docket No. FHWA-2025-0013]
RIN 2125-AG11


Rescinding Requirements Regarding Federal-Aid Contracts for 
Appalachian Contracts

AGENCY: Federal Highway Administration (FHWA), U.S. Department of 
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: FHWA rescinds the regulations related to Federal-Aid Contracts 
(Appalachian Contracts), issued on September 30, 1974 because they are 
unnecessary, outdated, and duplicative of other statutory and 
regulatory requirements.

DATES: This final rule is effective January 2, 2026.

FOR FURTHER INFORMATION CONTACT: Mr. Anthony DeSimone, Office of 
Infrastructure, (317) 226-5307, <a href="/cdn-cgi/l/email-protection#f1909f85999e9f88df959482989c9e9f94b1959e85df969e87"><span class="__cf_email__" data-cfemail="abcac5dfc3c4c5d285cfced8c2c6c4c5ceebcfc4df85ccc4dd">[email&#160;protected]</span></a>; or Mr. 
Michael Harkins, Office of Chief Counsel, (202) 366-1523, 
<a href="/cdn-cgi/l/email-protection#88c5e1ebe0e9ede4a6e0e9fae3e1e6fbc8ece7fca6efe7fe"><span class="__cf_email__" data-cfemail="a9e4c0cac1c8ccc587c1c8dbc2c0c7dae9cdc6dd87cec6df">[email&#160;protected]</span></a>, Federal Highway Administration, 1200 New 
Jersey Avenue SE, Washington, DC 20590. Office hours are from 8 a.m. to 
4:30 p.m., E.T., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access and Filing

    This document, as well as the notice of proposed rulemaking (NPRM), 
and all comments received, may be viewed online through the Federal 
eRulemaking portal at <a href="http://www.regulations.gov">www.regulations.gov</a>. The website is available 24 
hours each day, 365 days each year. An electronic copy of this document 
may also be downloaded by accessing the Office of the Federal 
Register's home page at: <a href="http://www.federalregister.gov">www.federalregister.gov</a> and the U.S. 
Government Publishing Office's website at <a href="http://www.GovInfo.gov">www.GovInfo.gov</a>.

Background

    FHWA is rescinding the rule issued on September 30, 1974, Federal-
Aid Contracts (Appalachian Contracts), at 39 FR 35146, as amended on 
October 21, 1975, by 40 FR 49084 and on March 1, 1976, by 41 FR 8769, 
amending 23 CFR part 633, subpart B. The rule being rescinded provided 
policies and procedures for administering projects and funds for the 
Appalachian Development Highway System (ADHS) and Appalachian local 
access roads. 23 CFR 633.201. FHWA rescinds the entire subpart B of 
part 633.
    This subpart concerns projects for the ADHS and Appalachian local 
access roads. Under section 14501 of title 40 of the United States Code 
(U.S.C.), the Secretary of Transportation may assist in the 
construction of the ADHS and local access roads serving the Appalachian 
region, and Congress has appropriated funds for this purpose. While 
such Appalachian projects have been, are being, and likely will 
continue to be constructed, FHWA does not find it necessary to maintain 
the current regulations to administer such construction. This subpart 
is being rescinded because it is substantially outdated and duplicative 
of other statutory and regulatory sections.
    Further, the rescission of this rule does not affect the 
application of the use of special preference to materials and products 
indigenous to the region, or the use of coal derivatives as provided in 
40 U.S.C. 14501(d), implementation of Executive Order (E.O.) 14261 
(April 8, 2025), ``Reinvigorating America's Beautiful Clean Coal 
Industry and Amending E.O. 14241,'' and applicable wage rates as 
required under 40 U.S.C. 14701.
    On May 30, 2025, at 90 FR 22878, FHWA published an NPRM proposing 
to rescind 23 CFR part 633, subpart B, and sought comments on all 
aspects of that proposal. FHWA received one comment on its NPRM 
expressing general disagreement with deregulation but no substantive 
comment on the proposal. As such, FHWA now adopts the proposal without 
change.

Rulemaking Analyses and Notices

A. Executive Orders 12866 (Regulatory Planning and Review), Executive 
Order 13563 (Improving Regulation and Regulatory Review), and DOT 
Regulatory Policies and Procedures

    This final rule does not meet the criteria of a ``significant 
regulatory action'' under E.O. 12866, as amended by E.O. 14215 and 
13563. Therefore, the Office of Management and Budget (OMB) has not 
reviewed this rulemaking under those orders.
    This rescission removes regulations that FHWA believes are 
outdated, duplicative, and unnecessary. FHWA believes there may be some 
cost savings from this rescission, such as cost savings from not having 
to include unnecessary contract provisions. FHWA, however, does not 
have data on the extent of those savings. FHWA sought comments on any 
impacts that could result from removing the provisions identified in 
this final rule but did not receive any additional information.
    These changes would not adversely affect, in a material way, any 
sector of the economy. In addition, these changes would not interfere 
with any action taken or planned by another Federal Agency and would 
not materially alter the budgetary impact of any entitlements, grants, 
user fees, or loan programs. Consequently, a full regulatory evaluation 
is not required.

B. Executive Order 14192 (Unleashing Prosperity Through Deregulation)

    This final rule is an E.O. 14192 deregulatory action. Cost-savings 
are not quantified.

C. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612) (as amended 
by the Small Business Regulatory Enforcement Fairness Act of 1996; 5 
U.S.C. 601 et seq.), Federal Agencies must prepare and make available 
for public comment a regulatory flexibility analysis that describes the 
effect of the rulemaking on small entities (i.e., small businesses, 
small organizations, and small government jurisdictions). No regulatory 
flexibility analysis is required, however, if the head of a Federal 
Agency or an appropriate designee certifies that the rulemaking will 
not have a significant economic impact on a substantial number of small 
entities. FHWA has concluded and hereby certifies that this rule would 
not have a significant economic impact on a substantial number of small 
entities; therefore, an analysis is not included. This rescission would 
only remove requirements that FHWA believes are outdated and 
unnecessary.

D. Unfunded Mandates Reform Act

    This rulemaking does not impose unfunded mandates as defined by the 
Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. L. 104-4, 109 Stat. 
48) for State, local and Tribal governments, or the private sector of 
$100 million or more in any one year. Thus, the rule is not subject to 
the requirements of sections 202 and 205 of the UMRA.

E. Executive Order 13132 (Federalism Assessment)

    This action has been analyzed in accordance with the principles and 
criteria contained in E.O. 13132. FHWA has determined that this action 
does not have sufficient federalism implications to warrant the 
preparation of a federalism assessment. FHWA has also determined that 
this action would not preempt any State law or State regulation or 
affect the States' ability to

[[Page 55649]]

discharge traditional State governmental functions.

F. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520), a Federal Agency may not conduct or sponsor, and a person 
is not required to respond to, a collection of information, unless the 
collection displays a currently valid OMB control number. This rule is 
deregulatory and so would not impose any additional information 
collection requirements.

G. National Environmental Policy Act

    FHWA has analyzed this rule pursuant to the National Environmental 
Policy Act (NEPA) and has determined that it is categorically excluded 
under 23 CFR 771.117(c)(2), which applies to the promulgation of rules, 
regulations, and directives. Categorically excluded actions meet the 
criteria for categorical exclusions under 23 CFR 771.117(a) and 
normally do not require any further NEPA approvals by FHWA. This rule 
rescinds an outdated regulation and does not require any new Federal 
actions or procedures. FHWA does not anticipate any adverse 
environmental impacts from this rule, and no unusual circumstances are 
present under 23 CFR 771.117(b).

H. Executive Order 13175 (Tribal Consultation)

    E.O. 13175 requires Federal Agencies to consult and coordinate with 
Tribes on a government-to-government basis on policies that have Tribal 
implications, including regulations, legislative comments or proposed 
legislation, and other policy statements or actions that have 
substantial direct effects on one or more Indian Tribes, on the 
relationship between the Federal Government and Indian Tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian Tribes. FHWA has assessed the impact of this rule 
on Indian Tribes and determined that this rule would not have Tribal 
implications that require consultation under E.O. 13175.

I. Regulation Identifier Number

    A Regulation Identifier Number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
the spring and fall of each year. The RIN contained in the heading of 
this document can be used to cross reference this action with the 
Unified Agenda.

J. Rulemaking Summary, 5 U.S.C. 553(b)(4)

    As required by 5 U.S.C. 553(b)(4), a summary of this rule can be 
found at <a href="http://www.regulations.gov">www.regulations.gov</a>, under the docket number.

List of Subjects in 23 CFR Part 633

    Appalachia contracts bidding and implementation, Construction labor 
and materials, Maintenance, Project agreements, Project funding 
allocation and obligation.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.85.
Sean McMaster,
Administrator, Federal Highway Administration.

    For the reasons stated in the preamble, under the authority of 23 
U.S.C. 315, 49 CFR 1.81, and 1.85, FHWA amends 23 CFR part 633 as set 
forth below:

PART 633--REQUIRED CONTRACT PROVISIONS

0
1. Add an authority citation for part 633 to read as follows:

    Authority:  23 U.S.C. 114 and 315; 49 CFR 1.48.

Subpart B--[Removed and Reserved]

0
2. Remove and reserve subpart B, consisting of Sec. Sec.  633.201 
through 633.211 and appendices A through D.

[FR Doc. 2025-21780 Filed 12-2-25; 8:45 am]
BILLING CODE 4910-22-P


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Indexed from Federal Register on December 3, 2025.

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