H.R. 8870

BUILD America 250 Act

Official summary

Written by the Congressional Research Service.

Building Unrivaled Infrastructure and Long-term Development for America's 250th Act or the BUILD America 250 Act

This bill authorizes federal surface transportation (highway, public transportation, and rail) programs and activities through FY2031. The bill also establishes or modifies Department of Transportation (DOT) programs and policies that are a part of the federal-aid highway, transit, highway safety, motor carrier, research, hazardous materials, and rail programs. 

For example, the bill authorizes appropriations through FY2031 out of the Highway Trust Fund for the federal-aid highway program, the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, highway safety programs, and bridge programs. The bill also authorizes funding through FY2031 for Amtrak. Current authorization for these programs expires on September 30, 2026.

Among other provisions, the bill

  • establishes a Surface Transportation Accelerator Grant (STAG) discretionary program to fund surface transportation projects in rural, urban, local, and regional communities;
  • requires the Federal Highway Administration to impose a new annual electric vehicle (EV) registration fee, starting at $130 for a covered EV and $35 for a covered plug-in hybrid vehicle;
  • exempts automated driving system technology and equipment from vehicle width requirements;
  • establishes a consolidated state block grant program that allows DOT to allocate a lump sum to participating states to fund public transportation services in rural and urbanized areas;
  • allows state rail safety inspectors to conduct railroad bridge inspections; and
  • establishes a system for state, local, and tribal governments to report safety concerns about the condition of railroad bridges.

Text of the bill

Expand all

I Federal-Aid Highways

A Authorizations and Programs

B Improved Project Delivery and Environmental Streamlining

C Miscellaneous

II Transportation Infrastructure Finance and Innovation

III Public Transportation

A Reforms

B Miscellaneous

C Reorganization and Consolidation of Chapter 53

IV Highway Safety

V Motor Carriers

A General Provisions

B Commercial Motor Vehicle Operators

C Commercial Motor Vehicle Safety

D Household Goods Shipping Consumer Protection Reform

E Safe Integration of Autonomous Commercial Motor Vehicles

VI Innovation

VII Freight and Multimodal Transportation Programs

A Freight Policy

B Multimodal Policy and Programs

VIII Miscellaneous

IX Sport Fishing and Recreational Boating Safety

X Railroads and Hazardous Materials

A Authorization of Appropriations and Grant Reforms

B Amtrak Reforms

C Passenger Rail Policy

D Rail Safety and Innovation

E Project Delivery

Sec. 10506. Direct loans and loan guarantees

(a) In general. Section 22402 of title 49, United States Code, is further amended—

(1) in subsection (a)—

(A) in paragraph (5) by striking or (6) and inserting (6), or (7); and

(B) by striking paragraph (6) and inserting the following:

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(6) freight shippers that own or operate a plant or other facility, solely for the purpose of constructing or enhancing a rail connection between a plant or facility and a railroad or a project eligible under subsection (b)(1)(I); and

(2) in subsection (b)(1)—

(A) in subparagraph (D) by striking or (C) and inserting (C), or (I);

(B) in subparagraph (E) by striking or (C); or and inserting (C), (F), or (I);;

(C) by adding at the end the following:

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(I) to construct, enhance, or relocate a freight shipper plant or facility to increase capacity for freight rail traffic, including a facility for storage, transloading, production, manufacturing, or assembly, and related infrastructure and activities, served by the railroad if the borrower confirms the willingness and ability of a rail carrier to serve the facility.

; and

(3) in subsection (d)—

(A) by striking $35,000,000,000 and inserting $50,000,0000,000;

(B) by striking Extent of authority.—The aggregate unpaid and insert —

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Limitation.—

(1) In general. The aggregate unpaid

; and

(C) by adding at the end the following:

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(2) Special limitation. Assistance granted under this section shall not exceed—

(A) $10,000,000,000 in total aggregate lending for projects described in subsection (b)(1)(I), of which not less than $2,000,000,000 shall be reserved for shipper projects served by freight railroads other than Class I rail carriers; and

(B) $10,000,000,000 in total aggregate lending for projects described in subsection (b)(1)(F).

(b) Definitions. Section 22401 of title 49, United States Code, is amended by adding at the end the following:

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(16) Transportation-oriented development project. The term transportation-oriented development project means a project—

(A) located within ½ mile walking distance of a fixed guideway transit facility, bus rapid transit facility, passenger rail station, or multimodal facility provided that the location includes service by a passenger railroad;

(B) that consists entirely of or includes residential, commercial, public infrastructure, or mixed-use development or other related infrastructure, including public or community space;

(C) that incorporates private investment;

(D) that—

(i) enhances the effectiveness of passenger rail transportation and is related physically or functionally to passenger rail service; or

(ii) establishes new or enhanced coordination between passenger rail transportation and other transportation;

(E) for which the project sponsor demonstrates the ability to generate new revenue for the relevant passenger rail station, facility, or service, including by increasing ridership, increasing tenant lease payments, providing a fair share of revenue that will be used for passenger rail transportation, or carrying out other activities that generate revenue exceeding costs; and

(F) based on the application for which, the Secretary determines that an appropriate value of the project will be reinvested in the relevant passenger rail station or service.

(c) Priority projects. Section 22402 of title 49, United States Code, is amended—

(1) in subsection (c)—

(A) in paragraph (8) by striking or at the end;

(B) in paragraph (9) by striking the period at the end and inserting ; or; and

(C) by adding at the end the following:

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(10) are transportation-oriented development projects that incorporate housing and that the Secretary determines, based on evidence submitted by the project sponsor—

(A) will result in development appropriate to expected housing demand in the project area; or

(B) is located in an area for which local policies promote housing development in locations accessible by passenger rail facilities.

(2) in subsection (f)(3) by adding at the end the following:

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(E) Revenue projected from a transportation-oriented development project.

; and

(3) by adding at the end the following:

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(o) Housing coordination. The Secretary shall coordinate with the Secretary of Housing and Urban Development in evaluating local policies promoting housing development for purposes of determining whether to prioritize an application for a project described under subsection (c)(10).

(d) Administration of direct loans and guarantees. Section 22403 of title 49, United States Code, is amended by striking subsection (m) and inserting the following:

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(m) Fees and charges

(1) In general. Except as provided in this chapter, the Secretary may not assess any fees, including user fees, or charges in connection with a direct loan or loan guarantee provided under section 22402.

(2) Disclosure. The Secretary shall develop and make publicly available a straightforward, scalable, and reasonable fee structure with respect to any fees that may apply under this section.

(n) Guidance on eligibility requirements. The Secretary shall develop and make publicly available guidance on requirements for a project described in section 22402(b)(1)(F) to be eligible for assistance under such section, including guidance relating to the following:

(1) Factors commonly assessed when determining lender risk, including debt-service coverage ratio.

(2) Financial thresholds commonly evaluated.

(3) Contractual obligations and restrictions associated with the loan.

(o) Compatibility with local plans and coordination with metropolitan planning organizations. An applicant for a project described under section 22402(b)(1)(F) may—

(1) coordinate with the relevant metropolitan planning organization, including by—

(A) providing timely notification to the metropolitan planning organization during the planning or entitlement process; and

(B) sharing information on project details, transportation impacts, and mitigation measures; and

(2)

(A) provide evidence of a significant nexus with a project on the applicable transportation improvement program developed by a metropolitan planning organization under section 134(j) of title 23 or section 5331(j) of this title, and the applicable statewide transportation improvement program developed by a State under section 135(g) of title 23 or section 5332(g) of this title; or

(B) demonstrate compatibility with the long-range transportation plan developed by the applicable metropolitan planning organization under section 134(i) of title 23 or section 5331(i) of this title.

(p) Application of the National Environmental Policy Act of 1969

(1) In general. The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall not apply to land acquisition activities with respect to a transportation-oriented development project, except for components of the project located within the geographic boundaries of the parcel of land acquired that will be owned, in full or in part, by a public entity for the majority of the loan term.

(2) Categorical exclusions

(A) In general. A transportation-oriented development project that involves an activity described in subparagraph (B) shall be categorically excluded from the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(B) Activities described. An activity described in this subparagraph is any of the following:

(i) Rehabilitation or conversion of an existing office building to residential or mixed use within substantially the same footprint.

(ii) Reconstruction or construction of a new commercial building primarily using land disturbed for transportation use as described in section 771.118(c)(9) of title 23, Code of Federal Regulations (or successor regulations) or disturbed land adjacent to land disturbed for transportation use.

F Hazardous Materials Transportation