IIJA Reauthorization: House Transportation and Infrastructure Committee Bill: BUILD America 250 Act (H.R. 8870)

The House Transportation and Infrastructure Committee (T&I Committee) passed the bipartisan BUILD America 250 Act (H.R. 8870) on May 22 after an extensive review of proposed amendments by members of the committee.

The BUILD America 250 Act (H.R. 8870)

The BUILD America 250 Act focuses on modernizing infrastructure and finding new revenue streams.  The bill includes more contract authority funding than IIJA, but less in the advanced appropriations that made IIJA unique.  Highways and transit fare well in absolute terms in this bill compared to IIJA, but funding levels will still present challenges in real terms with the inflationary forces affecting transportation programs today.

IBTTA supports the BUILD America 250 Act’s efforts to establish new transportation revenue sources, recognizing that additional measures will be necessary to address the nation’s long-term infrastructure funding challenges.  Major provisions of the original bill include:

• Highway Trust Fund (HTF) Revenue: The bill establishes the first new stream of revenue in over thirty years by introducing annual fees on electric ($130) and plug-in hybrid ($35) vehicles, increasing biennially.  The proposed national vehicle registration fees represents an important step toward strengthening the solvency of the Highway Trust Fund. However, the amount of revenue that will added will be very small contribution to address a sizeable gap in the Highway Trust Fund that will exceed $120 billion over the life the bill. This suggests that federal policymakers and Congress have much more work to do to address transportation funding and finance in the long term.
• Mileage-Based User Fees (MBUF)/Road Usage Charging (RUC):  IBTTA supports continued federal investment in mileage-based user fee (MBUF) initiatives, which we view as critical to the long-term future of transportation funding.  The bill continues federal funding for state, regional, and local initiatives to advance distance-based road charges, but at the same levels as IIJA, reflecting a notable reduction in real terms because of today’s inflationary pressures.  At the national level, continued funding for the stalled IIJA provision for a National VMT Pilot Program is included in the new bill, with a decided and ambitious focus on implementation during the term of the bill.  The national provision also requires a national public outreach campaign, which will be an important opportunity to build public understanding and support for user-based transportation funding solutions.
• Elimination of the Congestion Relief Program:  Unfortunately, the BUILD America 250 Act eliminates IIJA’s Congestion Relief Program, which provides authority for up to ten urbanized areas to introduce tolling and road pricing on interstate highways and federal-aid roadways.  Road pricing initiatives are complex, long-term undertakings that require both policy flexibility and sustained federal support to move successfully from concept to implementation.  IBTTA encourages Congress to continue the Congestion Relief Program and maintain the federal authority and modest financial incentives necessary to help states and metropolitan regions explore innovative, user-based finance options to address highway capacity and efficiency.
• Technology and Digital Infrastructure:  The BUILD America 250 Act places significant emphasis on technology deployment through programs supporting Nontraditional and Emerging Transportation Technologies, Intelligent Transportation Systems (ITS), Technology Deployment, and Automated Driving Systems Safety Assurance.  IBTTA strongly supports federal transportation programs that prioritize applied research, demonstrations, and pilot projects that evaluate technologies in real-world operational settings and accelerate deployment, adoption, and innovation.
• Project Delivery & NEPA: The bill raises the threshold for “major projects” qualifying for Categorical Exclusions from $6 million to $12 million and shortens permitting time frames.
• Bridge & Highway Investments: The bill eliminates three climate-specific formula programs (Carbon Reduction, National Electric Vehicle Infrastructure, and PROTECT), which enables a shift of funding toward formula-based bridge repairs.
• Worker Safety: Broadens the Highway Safety Improvement Program (HSIP) to prioritize the safety of roadway workers and includes digital infrastructure technologies.

IBTTA Letter of Support to the Transportation & Infrastructure (T&I) Leadership: On May 19, IBTTA sent a letter of support for taking the first step toward timely reauthorization, also offering some advice.  The Committee reference to IBTTA’s comments is in its press release.

IBTTA staff will provide more information on amendments accepted in the T&I Committee markup at a later date.

Once the bill is officially reported out of the T&I Committee, which can take some time, the bill will go onto the U.S. House of Representatives calendar to be considered by the entire House.  While we do not have a date for this yet, IBTTA’s government affairs team will be flowing the progress closely and we will keep you posted as the BUILD America 250 Act continues to move through the legislative process.  If you have comments or questions, please do not hesitate to reach out to Mark Muriello.