$281 Billion Freight Bill Signed into U.S. Law
President Obama signed H.R. 22, the Fixing America’s Surface Transportation (FAST) Act, in to law on Friday. The act is a $281 billion, five-year surface transportation bill with, for the first time, dedicated freight infrastructure funding.
Over its five-year duration, the legislation will distribute $4.5 billion, through a freight-specific competitive grant program and $6.3 billion through a freight formula program. These investments come at a critical time, as freight movements across all modes are expected to increase 42 percent by 2040.
“The FAST Act reflects many of the Coalition for America’s Gateways and Trade Corridors (CAGTC)’s long-held positions, including a minimum annual investment of $2 billion dedicated to freight infrastructure,” said Elaine Nessle, CAGTC Executive Director. “In passing the FAST Act, Congress showed a commitment to manufacturers, retailers, and farmers, all of whom rely on the multimodal freight network to get goods to market.”
The FAST Act includes a modified version of the dual formula and competitive grant investment strategy that first appeared in the Administration’s GROW AMERICA Act. Like the Administration’s bill, which recognizes that freight does not move on highways alone and called for the creation of a federal, multimodal freight policy, the FAST Act requires the U.S. Department of Transportation (USDOT) to designate a multimodal freight network to help direct state and private company investment decisions.
The investments provided by the FAST Act will support over 44 million jobs that depend directly on freight transportation. Historically, freight projects have had difficulty securing funds through traditional mechanisms, such as existing formula distributions, because they are often large-in-scale and frequently multimodal.
Kurt Nagle, president and CEO of the American Association of Port Authorities (AAPA) applauded the government’s actions. “The FAST Act is a major achievement, and not just for seaports and the freight community. Passenger mobility will also be improved through congestion relief with the FAST Act provisions that fund and promote more efficient goods movement mobility. These provisions will enhance our international competitiveness in the global economy.
The act provides $6.3 billion for the new National Highway Freight Program (NHFP), which for the first time provides dedicated formula funding to states for freight projects, including the 1,400 miles of connections with ports and other intermodal facilities. It also funds $4.5 billion for the Nationally and Significant Freight and Highway Projects program, which includes $500 million for multi-modal freight projects and a $450 million (10 percent) ‘carve-out’ for projects ranging from $5 million to $100 million.
“We also advocated for the Congestion Mitigation and Air Quality (CMAQ) Improvement Program in which lawmakers agreed to legislate port eligibility and include a section on port-related equipment and vehicles that are eligible for funding,” said Nagle.
“We’re happy that lawmakers authorized more than $1.4 billion for TIFIA (Transportation Infrastructure Finance and Innovation Act) to help finance major infrastructure projects, including those at ports like bridges, overpasses, tunnels and rail systems. In short, this bill recognizes that ports and their connections are integral parts of our nation’s economy and surface transportation network.”