Senate Bill No. 525 mandates that state contracting agencies prioritize manufacturers, fabricators, and erectors located within the state when awarding contracts for public works projects, including construction, renovation, and demolition of public buildings. If no in-state contractors are available, preference must then be given to those located in the United States. This requirement overrides existing laws that typically necessitate competitive bidding to select the lowest responsible qualified bidder. The bill defines "contracting agency" in accordance with section 4e-1 of the general statutes and is set to take effect on October 1, 2025.

The bill also entails a potential fiscal impact, with an estimated cost of $227,000 in FY 26 and FY 27 for the Department of Administrative Services to cover salary expenses, along with an additional $92,412 for fringe benefits to hire a bidding specialist and a staff attorney to assist with the new bidding process. While existing law allows for a preference for in-state contractors when all other factors are equal, this bill expands that preference significantly, which could lead to higher costs for the state if more expensive contracts are awarded. The bill does not specify the method or extent of the preference, raising potential concerns regarding compliance with the U.S. Constitution's Commerce Clause.