Government Issues

Bill would ban use of fed funds for Chinese manufactured rolling stock

Posted on May 16, 2019 by Alex Roman, Managing Editor

The bill would prevent federal transit funds from being used by transit agencies to procure Chinese rail assets and ensure transit agencies develop and execute a cybersecurity plan.
CJ Stumpf
The bill would prevent federal transit funds from being used by transit agencies to procure Chinese rail assets and ensure transit agencies develop and execute a cybersecurity plan.CJ Stumpf

Rep. Harley Rouda (D-CA), along with a bipartisan group of lawmakers, introduced the Transportation Infrastructure Vehicle Security Act, a bill combatting Chinese efforts to “undermine the U.S. economy and national security.” The bill would prevent federal transit funds from being used by transit agencies to procure Chinese rail assets and ensure transit agencies develop and execute a cybersecurity plan.

“China’s ‘Made in China 2025’ initiative is an unmistakable effort to harm American manufacturers by subsidizing Chinese rail and bus industries,” said Rep. Rouda. “Chinese companies misrepresent themselves as benevolent actors, but let’s be clear: this is an attack on our economy and national security.”

According to a release from Rep. Rouda’s office Chinese state-owned and state-supported enterprises have used subsidized “bargain prices” well-below competitive market price to win contracts throughout the U.S. A number of large, metropolitan areas have recently awarded rail rolling stock procurements to a Chinese state-owned enterprise. There are a number of threats these procurements pose, the statement reads, including “impeding economic competitiveness and overtaking the supply chains that support U.S. public transportation agencies.”

Specifically, the Transit Infrastructure Vehicle Security Act would enact:

  • Limitation on Certain Rolling Stock Procurements: This legislation prevents federal transit dollars from being used to award a contract or subcontract for the procurement of passenger railcars or transit buses to Chinese state-owned, controlled, or subsidized enterprises. The bill would create a certification process for transit agencies to ensure their funds are not being used to purchase rolling stock from a covered manufacturer. A narrow exception would be made for transportation agencies with a pre-existing contract or subcontract with a covered rail rolling stock manufacturer executed prior to the date of enactment.
  • Cybersecurity Certification: Given the level of technology and growing complexity of rail rolling stock assets, it is important that proper cybersecurity standards are in place. This legislation would require any transit operator that operates rail transit service to develop and execute a plan for identifying and reducing cybersecurity risks. Recipients of federal transit assistance would be required to review best practices and to identify any hardware and software components of new rolling stock assets that should undergo third-party testing.
View comments or post a comment on this story. (1 Comment)

More News

FTA makes $9M available to improve rail transit, bus operator safety

Includes $7.3 million for new tech/designs for rail transit safety; and $2 million for projects that redesign transit bus operator compartment.

White House FY2021 budget request proposes $810B reauthorization

Will work with Congress to identify a solution to fill the $261 billion gap between HTF revenues and proposed spending levels.

L.A., London team up on transportation innovation

Cities will partner to encourage innovators and start-ups to find creative solutions to major transportation challenges.

NYPD investigated for alleged racial bias in subway fare enforcement

Between October 2017 and June 2019, black and Hispanic New Yorkers received almost 70% of all civil summonses for fare evasion.

U.S. DOT awards $900M in BUILD grant funding

For this round of BUILD grants, the maximum grant award is $25 million, and no more than $90 million can be awarded to a single state.

See More News

Post a Comment

Post Comment

Comments (1)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation