A bipartisan five-year surface transportation reauthorization bill moving through the House Transportation and Infrastructure Committee could shape federal transit, highway, and motorcoach policy for years to come. Simultaneously, the bill sets up debate over electric vehicle fees, infrastructure spending priorities, and transportation innovation.

Committee Chairman Sam Graves (R-Missouri) and Ranking Member Rick Larsen (D-Washington) recently introduced the BUILD America 250 Act, a sweeping reauthorization package that would invest in roads, bridges, transit, rail transportation, and highway and motor carrier safety programs through 2031, though it could be a rough year for railroads overall. The bill is scheduled for committee markup on May 21.

According to committee leaders, the legislation includes the “largest ever investment in America’s bridges,” the potential to strengthen the Highway Trust Fund with a new revenue stream, and the establishment of what lawmakers describe as the nation’s first autonomous commercial motor vehicle framework.

For the public transit industry, the proposal maintains many existing formula and grant programs while highlighting investments in “safe, accessible transit and bike infrastructure,” according to Larsen. However, there is greater emphasis on formula programs than on competitive grants. The legislation also includes provisions to streamline project delivery, reduce permitting delays, and increase state flexibility in infrastructure planning and spending.

“You can’t have a big-league economy with little-league infrastructure,” Larsen said. “The BUILD America 250 Act makes key investments in the nation’s transportation — from restoring aging bridges and repairing crumbling roads to building out safe, accessible transit and bike infrastructure.”

APTA Backs Faster Project Delivery, Seeks More Funding

The American Public Transportation Association (APTA) voiced support for several elements of the legislation while also raising concerns about funding levels and new mandates affecting transit agencies. In a letter to congressional leaders, APTA President and CEO Paul P. Skoutelas called the bill “a great first step.”

“We look forward to working with you and the Committee on Appropriations to ensure that the BUILD America 250 Act, when considered by the House of Representatives, builds upon current investment levels (including guaranteed funding) for public transit and passenger rail to drive job creation, innovation, and our economy,” Skoutelas wrote. “Every $1 invested in public transportation generates $5 in long-term economic returns.”

APTA’s recommendations call for Congress to invest $138 billion in public transit and $130 billion in passenger rail over five years to help address what the association says is a backlog of more than $150 billion in state-of-good-repair needs.

The association also praised several provisions, including reforms to the Federal Transit Administration’s Capital Investment Grants program and expanded environmental review flexibilities.

APTA “greatly appreciates the BUILD America 250 Act’s many policy initiatives to accelerate project delivery by eliminating statutory and regulatory barriers to advancing public transit and passenger rail projects,” Skoutelas wrote.

Among the reforms highlighted by APTA are provisions authorizing advance acquisition of property for transit and passenger rail projects, expanding National Environmental Policy Act categorical exclusions, and allowing large transit agencies to assume responsibility for certain NEPA actions.

Motorcoach Operators Score Early Wins as EV Fees Draw Fire

The bill also proposes a new annual fee on electric vehicles and plug-in hybrids to help shore up the Highway Trust Fund, a move that immediately drew criticism from environmental organizations. Otherwise, there is no comprehensive fix to the federal funding source.

The Natural Resources Defense Council said the legislation “would place a new $130 annual fee on electric vehicles, eliminate key programs to cut emissions and trim overall transportation spending, including on EV chargers.”

“This legislation is a punch in the gut to the millions of Americans struggling to pay higher prices at the pump,” said Shruti Vaidyanathan, director of federal and state transportation advocacy at NRDC.

For the motorcoach industry, early reactions from the United Motorcoach Association (UMA) focused on several provisions viewed as favorable to private bus operators.

UMA Vice President of Industry Relations and COO Ken Presley noted that UMA is pleased to see clarification that charter buses are included in toll parity. Presley also noted the bill currently contains “no provisions to increase financial responsibility (insurance) limits and no adverse changes to the Charter Service Rule,” two longstanding priorities for the association.

Toll parity, proposed increases to motorcoach insurance minimums, and potential revisions to the Federal Transit Administration’s Charter Service Rule have remained central lobbying issues for private bus operators in recent years. UMA President and CEO Scott Michael credited member advocacy efforts, including the association’s annual legislative fly-in, for helping shape the current language.

Michael added that the association’s legislative team is still reviewing the 1,000+ page text, but noted they are "off to a good start."

New Requirements Could Create Cost Pressures for Transit Agencies

APTA also identified several areas of concern for public transit agencies, including provisions establishing a Consolidated State Block Grant Program, limiting the federal contribution for bus procurements, and imposing new mandates on transit systems.

The association specifically warned against a “one-size-fits-all approach” to mandated bus safety technologies, including a requirement that all new buses include fully enclosed operator workstations.

“H.R. 8870 also establishes a Working Group to consider requiring the retrofit of existing buses with workstation barriers, which could lead to mandating new bus enclosures on more than 62,000 buses in transit agency fleets today,” Skoutelas wrote.

Beyond highways and transit, the legislation includes passenger rail reforms, rail safety provisions, and policies intended to improve freight movement and supply chain efficiency. Committee leaders also highlighted investments in innovation and new transportation technologies.

Chairman Graves called the proposal “the most important surface transportation bill since President Eisenhower built the Interstate Highway System.”

“I’m extremely proud of the historic level of investment in America’s bridges – at more than $50 billion, it’s the largest such investment in our history,” Graves said. “The bill also makes smart and targeted reforms to our surface transportation programs, focuses on strengthening our core infrastructure system, drives innovation, bolsters safety, ensures states have the flexibility they need, and cuts red tape to get projects built faster.”

The BUILD America 250 Act is intended to replace the current federal surface transportation authorization, which expires September 30, 2026.