Rule2026-09276

Rescinding Requirements Regarding Required Contract Provisions for Federal-Aid Construction Contracts (Other Than Appalachian Contracts)

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
May 11, 2026
Effective
June 10, 2026

Issuing agencies

Transportation DepartmentFederal Highway Administration

Abstract

FHWA is rescinding the rule and certain regulations issued on October 2, 1987, Required Contract Provisions, because they are no longer necessary.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 90 (Monday, May 11, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 90 (Monday, May 11, 2026)]
[Rules and Regulations]
[Pages 25492-25493]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09276]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

23 CFR Part 633

[Docket No. FHWA-2025-0012]
RIN 2125-AG19


Rescinding Requirements Regarding Required Contract Provisions 
for Federal-Aid Construction Contracts (Other Than Appalachian 
Contracts)

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: FHWA is rescinding the rule and certain regulations issued on 
October 2, 1987, Required Contract Provisions, because they are no 
longer necessary.

DATES: This final rule is effective June 10, 2026.

FOR FURTHER INFORMATION CONTACT: Mr. James DeSanto, Office of 
Infrastructure, (614) 357-8515, <a href="/cdn-cgi/l/email-protection#8ae0ebe7eff9a4eeeff9ebe4fee5caeee5fea4ede5fc"><span class="__cf_email__" data-cfemail="87ede6eae2f4a9e3e2f4e6e9f3e8c7e3e8f3a9e0e8f1">[email&#160;protected]</span></a>; or Mr. William 
Winne, Office of Chief Counsel, (202) 366-1397, <a href="/cdn-cgi/l/email-protection#f2859b9e9e9b939fdc859b9c9c97b2969d86dc959d84"><span class="__cf_email__" data-cfemail="88ffe1e4e4e1e9e5a6ffe1e6e6edc8ece7fca6efe7fe">[email&#160;protected]</span></a>, 
Federal Highway Administration, 1200 New Jersey Avenue SE, Washington, 
DC 20590. Office hours are from 8:00 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 portions of the rule issued on October 2, 1987, 
Required Contract Provisions for Federal-Aid Construction Contracts 
(Other than Appalachian Contracts), at 52 FR 36920, as amended on 
February 13, 2004, by 69 FR 7118, amending 23 CFR part 633 subpart A. 
The rule prescribed the method of inclusion of construction contract 
provisions required by existing statute and regulations. 23 CFR 
633.101. Under the regulation, FHWA required Form FHWA-1273, ``Required 
Contract Provisions, Federal-aid Construction Contracts'' be physically 
incorporated in each Federal-aid highway construction contract, other 
than Appalachian construction contracts (23 CFR 633.102(b)) and any 
lower tier subcontracts that may be made (23 CFR 633.102(e)).
    On May 30, 2025, at 90 FR 22876, FHWA published an NPRM to rescind 
the regulation requiring the use of Form FHWA-1273 and sought comments 
on all aspects of that proposal. FHWA received one comment in support 
of its proposal and now adopts the proposal without change.
    FHWA finds the requirement to include Form FHWA-1273 unnecessary. 
To the extent provisions under other statutes or regulations currently 
listed in Form FHWA-1273 are required to be included in a construction 
contract, those provisions still must be included in the contract. 
Further, FHWA is not eliminating Form FHWA-1273 and will continue to 
make updates as necessary due to changes in applicable statutes or 
regulations. To the extent recipients, subrecipients, and contractors 
elect to use Form FHWA-1273 to satisfy their obligations, FHWA intends 
allowing them to continue to do so. FHWA is merely eliminating the 
requirement that those entities must use Form FHWA-1273 to fulfill 
these obligations. Those entities may choose other ways, besides 
incorporating Form FHWA-1273, if they find such alternatives 
preferrable.

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 rule does not meet the criteria of a ``significant regulatory 
action'' under Executive Order (E.O.) 12866, as amended by E.O. 14215 
and 13563. Therefore, the Office of Management and Budget (OMB) has not 
reviewed this rule under those orders.
    This rule removes the requirement that Form FHWA-1273, which itself 
contains contract provisions required by statute and regulation, be 
physically incorporated into construction contracts. It does not remove 
the requirement for contract provisions within Form FHWA-1273 that are 
required by statute and regulation to be incorporated into construction 
contracts. As such, while FHWA is removing the requirement to use a 
single mechanism to ensure compliance, it is not removing the 
underlying requirements. For that reason, FHWA believes any monetary 
benefits or costs to this rule would be minimal.
    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 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 (RFA) (5 United States Code 
(U.S.C.) 601-612) (as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996; 5 U.S.C. 601 et seq.), Agencies must 
prepare and make available for public comment a regulatory flexibility 
analysis describing the effect of the rule on small entities (i.e., 
small businesses, small organizations, and small government 
jurisdictions). No regulatory flexibility analysis is required, 
however, if the head of an Agency or an appropriate designee certifies 
the rule will not have a significant economic impact on a substantial 
number of small entities. FHWA has concluded and hereby certifies 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 rescind the requirement to incorporate Form FHWA-
1273 in construction contracts. It does not add or remove any 
requirements referenced in Form FHWA-1273 that may continue to be 
applicable.

[[Page 25493]]

D. Unfunded Mandates Reform Act

    This rule 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 this action does 
not have sufficient federalism implications to warrant the preparation 
of a federalism assessment. FHWA has also determined this action would 
not preempt any State law or State regulation or affect the States' 
ability to discharge traditional State governmental functions.

F. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520), an 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 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 
removes the requirement to physically incorporate Form FHWA-1273 in 
construction contracts. It does not affect the requirements referenced 
in Form FHWA-1273 that may otherwise be applicable. 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 
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 this rule would not have tribal 
implications requiring 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

    Grant programs--transportation, Highways and roads, Reporting and 
recordkeeping requirements.

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

PART 633--[REMOVED AND RESERVED]

0
For the reasons stated in the preamble, under the authority of 23 
U.S.C. 114 and 315, 49 CFR 1.48, FHWA removes and reserves 23 Code of 
Federal Regulations part 633.

[FR Doc. 2026-09276 Filed 5-8-26; 8:45 am]
BILLING CODE 4910-22-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>
Indexed from Federal Register on May 11, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.