KEY POINTS
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South Carolina now requires U.S.-made iron and steel on most state-funded public works projects.
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The law allows exceptions when domestic materials are unavailable, would raise total project costs by more than 25%, or conflict with the public interest.
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The act took effect immediately upon the governor’s approval, June 30, 2026, and the State Fiscal Accountability Authority is directed to develop rules and procedures to implement it.
South Carolina will require U.S.-made steel and iron on most taxpayer-funded public works projects after Gov. Henry McMaster signed H. 4709 into law on June 30, making the measure Act No. 256.
What the New SC Steel and Iron Law Requires
The new law requires public entities to include a provision in contracts for public works projects, and for the purchase of materials for those projects, that any iron or steel product permanently incorporated into the work be produced in the United States.
Under the statute, “produced in the United States” means all manufacturing processes for iron and steel, from initial melting through the application of coatings, must occur domestically, except for metallurgical processes used to refine steel additives.
The requirement applies to projects paid for with state-appropriated funds or state funds administered by a public entity, including the construction, maintenance, renovation, remodeling or improvement of buildings, roads, streets, sewers, water systems, site development and gas or electrical distribution facilities.
What are the Exceptions to the Mandate
The law also includes several exceptions. Emergency repairs affecting public health, safety, or property are excluded.
Furthermore, public entities may waive the requirement if U.S.-made iron or steel is not available in sufficient quantity or satisfactory quality. If using domestic material would raise the total project cost by more than 25%, or if compliance would be inconsistent with the public interest, an exception to the new law also exists.
In addition, the statute permits limited incidental use of foreign steel and iron materials, and exempts most electrical components, equipment and systems from the domestic-content mandate.
Contracts procured by the South Carolina Department of Transportation that are already subject to federal Buy America rules (BABA) are not covered by the new section.
What it Means for Construction
The act took effect immediately upon the governor’s approval, and the State Fiscal Accountability Authority is directed to develop rules and procedures to implement it.
For construction teams, that means contractors, owners, and suppliers on covered South Carolina public projects will need to verify the domestic origin of permanently incorporated steel and iron and document any exception claims during procurement.
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