Opinion: Analysis and Thoughts on the BUILD America 250 Act

The Build America 250 Act is a major piece of bipartisan legislation. I cover some of its provisions and my thoughts on them.

One of the most high-profile bills introduced in the 119th Congress is the bipartisan Building Unrivaled Infrastructure and Long-term Development (BUILD) America 250 Act. The bill was introduced by the House of Representatives’ Committee on Transportation and Infrastructure Chairman Sam Graves (R-MO) and Ranking Member Rick Larson (D-WA). Chairman Graves had this to say:

I’m proud to introduce what I believe will be the most important surface transportation bill in decades – the BUILD America 250 Act. This bill provides the largest investment in America’s bridges in our history, begins shoring up the Highway Trust Fund, cuts federal red tape, promotes transportation innovation and safety, and allows states the flexibility to address their unique infrastructure challenges. I look forward to a healthy debate on the bill in Committee this week, and to moving it forward in the House.

If it passes, it will be one of the biggest investments in critical infrastructure in the nation’s history. I’ll cover what the bill does, some of the most important provisions, and then give my final thoughts.

I won’t be able to cover every section of this bill. It’s massive, spanning over one thousand pages. If I were to cover the entire bill, we’d be here all day. You can read the full text HERE and a briefing on it HERE.

The BUILD America 250 Act is a sequel bill to the Infrastructure Investment and Jobs Act (IIJA) of 2021. While the bill does not allocate as much money to infrastructure as the IIJA, with $580 billion compared to the $1.2 trillion in the first bill, it is still a substantial investment. The money from the IIJA is set to expire on September 30, 2026. If this bill is not passed in time, there will be no federal funding for infrastructure projects.

It should also be noted that this is only meant for surface transportation. There are no major investments in the nation’s airports and seaports in the current form of this legislation. Future markups may add funding for air and sea transportation.

The bill has received mixed reactions in its current form. Praise for it comes from organizations such as the Alliance for American Manufacturing, the American Council of Engineering Companies, and the American Public Transportation Association. It has received criticism from other actors such as Transportation for America and the Union of Concerned Scientists. This sets the bill up for a heated argument around its viability.

Before we delve into the most important provisions, one of the most controversial aspects of the bill is section 1129. This is meant to establish the first annual fee on electric vehicles and hybrids. It sets the tax for electric vehicles at $130 annually and $35 for hybrids. The fee will take effect in 2027 and increase by five dollars every two years starting in 2029 until it reaches the limit of $150 and $50, respectively. It is estimated that this tax would raise $30 billion over the course of ten years. I’m torn on this provision. In my opinion, the government should be encouraging people to buy electric vehicles to reduce pollution. However, if more EV’s and hybrids are on the road, it will mean less revenue collected from the gas tax. The gas tax is the main source of revenue for the Highway Trust Fund, which is the main funding source for the nation’s highways and bridges, though it is also used to fund railways and other forms of mass transit. While I do agree that the Highway Transit Fund needs revenue, I don’t believe that taxing EV’s and hybrids should be the main way to do it. Establishing a carbon tax would be a better source of funding and speed up the transition to EV’s.

With that controversy out of the way, let’s get to the meat of this bill. An important provision is section 1201, which attempts to streamline permitting and exempts some projects from National Environmental Policy Act review. It increases the cost threshold for value engineering major projects to $1 billion from $500 million. This means that the time needed to evaluate whether a smaller project is deemed worth constructing is shortened. It also increases the threshold for National Highway System projects to $100 million, meaning that highway infrastructure will be permitted more quickly.

Next, section 2004 will require the Secretary of Transportation to enter into an agreement with the National Academies of Science, Engineering, and Medicine to research the establishment of the U.S.’s first infrastructure bank. The report will have to report the findings of the study to Congress within two years. This measure is important because having an infrastructure bank will allow private and public projects to be funded through low-cost loans. China already has its own infrastructure bank called the Asia Infrastructure Investment Bank. This has allowed them to finance projects not just in mainland China but around East Asia. Having a similar bank in the U.S. will allow for more projects to be financed quickly. A standalone bill to establish an infrastructure bank introduced by Representative Daniel Webster (R-FL) has also been introduced, but no vote has been taken on it. I believe having this provision in the omnibus bill will ensure it has a much better chance of passing than in a standalone bill.

Another important provision is section 5403, which provides the first framework for how autonomous vehicles should be regulated. While it does not give specific advice, it does require the Department of Transportation to establish a performance-based safety standard for autonomous vehicles within two years. I am supportive of this measure because autonomous vehicles are starting deployment. There is a danger that autonomous vehicles will be subjected to malfunctions and hacks, so having a framework will enable manufacturers of these vehicles to ensure that they are ready for use.

Finally, the most important provision and the main purpose of this legislation is to continue to fund America’s roadways. Over half of this bill’s funding is meant for the highway system at $376 billion. This is the largest investment in America’s highways since the interstate highway system was initially constructed. I support this funding because even though I would like to see further investment in other forms of transportation, such as rail, the highway system is still integral to America’s economy and transportation. Having an aging highway system starved for funding would create dysfunction and bottlenecks.

The bill also allocates $50 billion to repair America’s bridges. This is the largest investment in bridges in America’s history. With America’s bridges aging and being worn down from use, a large investment must be made to repair and maintain them.

Unfortunately, one piece of infrastructure that I feel is not given enough attention in this legislation is America’s rail system. America lags behind in reliable rail transportation compared to Europe and China, particularly in the area of high-speed rail. While there is funding for rail at $63.9 billion, it pales in comparison to the amount given to highway projects. This amount is simply not enough to build a more robust rail network.

The legislation also has virtually no funding for trails and other on-foot pathways. I believe investing in forms of walkable streets would be of great help to building communities that are more closely connected. Investing in just roads creates communities that are more spread out and thus feel less connected.

I am still supportive of this legislation and believe it should be passed, though not in its current form. It is missing provisions that will allow for an expansion of America’s transportation system beyond merely automobiles. The bill will be marked up, meaning that there is still time to change its most controversial aspects. I would urge Congress to invest greater resources into expanding America’s rail, sea, and airport systems rather than solely focusing on highways. Even in its current form, it will be one of the largest infrastructure investments in America’s history if passed and a major bipartisan achievement.