The House Transportation and Infrastructure Committee passed a five-year surface transportation reauthorization bill after a marathon 15-hour legislative markup session that began on May 21 and ended in the early morning of May 22. The committee adopted the bill by a vote of 62-2 with three members not voting. Existing highway and transit authorizations are set to expire Sept. 30.
The BUILD America 250 Act (HR 8870) authorizes roughly $580 billion over fiscal year 2027 through FY 2031 for surface transportation programs. Highway funds were included at 3 percent over current levels, with slight yearly increases in the out years. In a change from where the program has been heading in the past several years, more than 90 percent of the proposed funding is directed at the core formula programs rather than through discretionary grants. The legislation modifies or eliminates several discretionary grant programs and, in some cases, rolls that money into formula programs. Remaining grant programs would not be funded out of the Highway Trust Fund but rather be subject to annual appropriations. A new discretionary grant program called the Surface Transportation Accelerator Grants (STAG) program would be created to provide $2.4 billion annually, with 50 percent of funding reserved for local and regional grants, 25 percent for rural grants, and 25 percent for urban grants.
The measure would create new revenue for the Highway Trust Fund, the first revenue enhancement since 1993. The bill requires states to collect $130 in annual registration fees on electric vehicles and $35 per year from plug-in hybrids, escalating biennially starting in 2029 and capped at $150 and $50 per year. These new user fees would raiser just under $10 billion in the first five years and $29 billion over the first 10 years.
The proposed legislation also establishes a revised bridge formula program funded at $9.2 billion per year from the HTF and authorizes $2 billion per year for the “Bridge Completion Program” from the General Fund, subject to future appropriations.
The bill focuses attention on highway worker safety by defining highway work zones as hazardous locations and requiring the collection of data on accidents in these areas. An interagency working group, with input from industry groups, would be established to develop recommendations for work zone protections.
Two other committees in the House need to take actions on portions of the bill before it can be brought to the floor. The Senate Environment and Public Works Committee is also drafting its version of the reauthorization.