House Transportation & Infrastructure Committee releases bipartisan surface transportation reauthorization bill

The bulk of the funding in the BUILD America 250 Act comes through the formula funding programs under the Federal Highway Administration (FHWA).

• Bridge Formula Program: The BUILD America 250 Act continues a bridge-specific formula program that began in IIJA but grows the size of the program from $5.5 billion per year to $9 billion per year. Additionally, the BUILD America 250 Act grows the 15-percent set-aside for “off-system” bridges that was in IIJA to a 20-percent off-system bridge set-aside. Similarly, the bill requires a 25-percent set-aside for locally owned bridges. Locally owned bridges that are off-system bridges funded under the locally owned bridges set-aside will county towards the off-system bridge set-aside as well. This language is closely aligned with the BASICS Act, NACo’s top priority for reauthorization — making this provision a major win for counties.
• Eliminated Programs: The BUILD America 250 Act ends two formula programs that were stood up in the IIJA: the Carbon Reduction Program (CRP) and the Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) program.
• Surface Transportation Block Grant (STBG): The BUILD America 250 Act would grow the size of the STBG program from 28.74percent of HTF funding (after other takedowns) to 31 percent. The STBG program requires regional suballocation of funding and is the formula program that has historically benefitted counties the most. This language is in line with the BASICS Act, which had proposed growing STBG to 31.07 percent.

The BUILD America 250 includes fewer individual grant programs and less grant funding than the IIJA did. However, the bill extends the authorization for certain grant programs and authorizes funding out of the Highway Trust Fund (HTF) for several primary programs.

HTF-Funded Grant Programs

• Surface Transportation Accelerator Grant (STAG): The BUILD America 250 Act would consolidate several major grant programs, like the BUILD program, into a new grant program called the STAG program. The bill authorizes $2.4 billion per year out of the HTF for the STAG program. Twenty-five percent of funds are for a subprogram under STAG for projects in rural areas, 25 percent are for projects in urban areas and 50 percent are for local and regional projects.
• Safe Streets & Roads for All (SS4A): The SS4A program was originally stood up in the IIJA and makes funding available for planning and capital projects that improve safety. State DOTs are not eligible applicants for SS4A grants. Only local governments and regional planning organizations can pursue these funds. The BUILD America 250 Act would provide $3.75 billion over five years for SS4A, which is $1.25 billion less than was available under IIJA. This provision is in line with the bipartisan Safe Streets for All Reauthorization and Improvement Act (H.R. 5452), which NACo endorsed.
• The Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) Program: The BUILD America 250 Act would authorize $200 million per year from HTF for the PROTECT program.
• The Wildlife Crossings Pilot Program: The BUILD America 250 Act would authorize $80 million per year from HTF for the Wildlife Crossings Pilot Program.
• The Truck Parking Pilot Program: The BUILD America 250 Act would create a new discretionary grant program to fund projects that would expand the available of truck parking. The bill also authorizes $120 million per year from the HTF for the new program.

General Fund Programs

• Nationally Significant Multimodal Freight & Highway Projects (INFRA) Program: The BUILD America 250 Act authorizes $1.2 billion per year out of the General Fund for the INFRA program.
• Other Programs: The bill reauthorizes several programs at their authorization level from the IIJA, including the MEGA program, the BUILD program and the SMART program.

The legislation reauthorizes core Federal Transit Administration (FTA) programs and makes $87.5 billion available over five years for public transit programs, a robust level of funding that would ensure counties would continue to be able to provide transit services and operate transit programs for residents.

Transit-oriented development (TOD) can help counties in urban and suburban areas promote density, increase tax revenue and boost transit ridership. The BUILD America 250 Act would make it easier for developers to build TOD projects using the federal Transportation Infrastructure Financing and Innovation Act (TIFIA) program by clarifying that office-to-housing conversion projects and TOD projects on “land disturbed for transportation use” and “disturbed land adjacent to land disturbed for transportation use” are not subject to the National Environmental Policy Act (NEPA). The bill also allows for additional considerations of creditworthiness under TIFIA and the Railroad Rehabilitation and Improvement Financial (RRIF) program.

This language is based on language in the bipartisan Build HUBS Act (H.R. 7062/S. 3636), which NACo endorsed.

The BUILD America 250 Act includes reforms that streamline how the USDOT implements federal environmental review under the National Environmental Policy Act (NEPA). 

The bill expands eligibility for a categorical exclusion (CE) from NEPA for projects that receive federal funding. Projects receiving federal assistance up to $12 million and projects with up to a total cost of $70 million would be eligible for the CE, reducing compliance costs and expediting project delivery for county transportation projects that receive minimal federal funding.

The measure also proposes allowing the Federal Transit Administration (FTA) to reimburse transit operators for property acquisitions made prior to the completion of a federal environmental review, a county priority that reduces transit project development costs and expedites delivery. Extending this authority to transit projects creates parity with bridge and roadway projects funded by FHWA and is a county priority.

The BUILD America 250 Act makes only moderate changes to federal maximum truck size and weight (TSW) allowances. These are all small state- and industry-specific exemptions. However, NACo understands that there may will be votes during the likely Thursday markup on two amendments related to TSW: one would create a pilot program to allow states to raise maximum TSW on federal interstates in their jurisdictions to 91,000 lbs.; the other would increase federal TSW limits for auto haulers.

NACo is a member of the Coalition Against Bigger Trucks and would oppose both amendments.

Counties often rely on planning organizations like metropolitan planning organizations (MPOs) and regional transportation planning organizations (RTPOs) to access and implement federal dollars.

Metropolitan Planning Organizations (MPOs)

The BUILD America 250 Act would increase funding for MPOs (“PL” funds) by 18 percent above IIJA levels over the five-year lifespan of the bill. The bill would increase the federal cost-share for PL funds from 80 percent to 90 percent. Counties often help makeup the non-federal match for these PL funds, so this cost-share shift would reduce county obligations.

The BUILD America 250 Act would expand MPO authorities to allow them to do more holistic planning work, which could help counties develop more actionable projects for funding.

Regional Transportation Planning Organizations

The BUILD America 250 Act does not include any language on RTPOs. NACo had asked for guaranteed federal funding for RTPOs, akin to what MPOs receive with PL funds, in order to ensure that rural counties have equal access to planning resources as urban and suburban counties.

Project Selection

Similarly, the BUILD America 250 Act would make no changes to the project selection process for suballocated funding under the STBG program. NACo had asked for improved project selection authority for smaller MPOs and RTPOs, as well as enhanced coordination requirements with counties in rural areas. NACo had also asked for state associations of counties to be explicitly listed as conveners for facilitating consultation in rural areas.

The BUILD America 250 Act would require the Comptroller General to undertake a holistic study of the suballocation of funds through the STBG program, including “consultation processes established by States to consult with metropolitan planning organizations and regional transportation planning organizations for amounts required to be obligated in such areas based on population” and “state selection processes for projects funded by amounts required to be obligated in areas based on population.”

In the 62 percent of counties nationwide that are home to federal public lands, counties own and maintain roads, bridges and other infrastructure that provides access to residents and visitors alike. The BUILD America 250 Act provides strong funding levels for programs that support transportation on and adjacent to federal lands, reflecting the unique needs of public lands counties that rely on federally owned land for commerce and transportation.

The bill would make $1.63 billion available over five years for the Federal Lands Access Program (FLAP). FLAP is an important resource for public lands counties and helps fund projects that facilitate access to federal lands. The funding level reflects proposed increases in the NACo-endorsed FLAP Reauthorization Act (S. 4135).

The measure also provides robust funding for other federal lands transportation programs that benefit public lands counties, including $2.4 billion over five years for transportation projects on public land, $275 million over five years for the National Significant Federal Lands and Tribal Projects program and $400 million over five years for the Wildlife Crossings Pilot Program.

The main source of revenue for federal transportation programs is the Highway Trust Fund (HTF), which is largely funded through the 18.4-cents-per-gallon tax on gasoline and 24.4-cents-per-gallon tax on diesel fuel.

Since the early 2000s, however, receipts from these taxes have lagged behind federal transportation spending needs. This has required Congress to transfer funding from the Treasury’s General Fund into the HTF to cover expenses. The BUILD America 250 Act continues this practice, transferring several billion dollars from the General Fund into HTF programs.

In addition to these transfers, the bill introduces a new revenue source into the HTF for the first time in decades by introducing an annual registration fee of $130 on electric vehicles (EVs) and of $35 on plug-in hybrid electric vehicles (PHEVs). This fee will generate millions in new revenue for the HTF.

This language is aligned with the Fair SHARE Act (H.R. 1253/S. 536) which NACo endorsed.

The BUILD America 250 Act would establish a preliminary regulatory framework for autonomous commercial motor vehicles. The bill would require USDOT to issue regulations establishing minimum safety standards for autonomous commercial vehicles but would also preempt states from issuing safety regulations regarding autonomous commercial motor vehicles. NACo will continue to engage with congressional stakeholders to ensure that local expertise and authority is respected during the development of autonomous vehicle regulations.

It is important to note that the Transportation & Infrastructure Committee only has jurisdiction over autonomous commercial motor vehicles. Autonomous personal vehicles fall under the jurisdiction of the Energy & Commerce Committee. NACo will continue to monitor any legislation released by the Energy & Commerce Committee that would touch on autonomous vehicles.

The BUILD America 250 Act includes several provisions surrounding railroad safety that would benefit counties.

• Rail Bridges: The bill would make it easier for county officials to access rail bridge inspection reports from the Federal Railroad Administration (FRA) and would create a new way for county and other officials to report unsafe rail bridges.
• Blocked Crossings Portal: The BUILD America 250 Act would permanently authorize the blocked crossings portal created under the IIJA.
• Rail Crossing Elimination Funding: The bill would reauthorize the Railroad Crossing Elimination Program and rename it the “Railroad Crossing Safety Improvements and Elimination Program.”

The BUILD America 250 Act would reauthorize funding for Amtrak, as well as consolidate and reauthorize other funding programs that support intercity passenger rail projects, like the Corridor Identification & Development (Corridor ID) program.