Building Unrivaled Infrastructure and Long-term Development for America’s 250th Act (BUILD America 250 Act) Has Been Released

On Monday, House Transportation & Infrastructure Committee Chairman Sam Graves (R-MO) and Ranking Member Rick Larsen (D-WA) released their long-awaited surface transportation reauthorization bill.

The Building Unrivaled Infrastructure and Long-term Development for America’s 250th Act (BUILD America 250 Act) totals approximately $580 billion over five years in funding authorizations. This includes $475 billion in spending out of the Highway Trust Fund for highway, transit, and safety programs – a roughly 4% increase over the IIJA – along with additional authorizations for future General Fund appropriations for rail programs.

The committee press release is here. The bill text is here. A section-by-section summary is here.

The committee is expected to debate and vote on amendments and passage of the bill this Thursday, May 21. It would then be combined with provisions from other committees and considered for a vote in the full House, hopefully sometime in June.

ACEC National’s Policy Team is still reviewing and analyzing the bill. Here are a few highlights:

Highway Programs

• $375 billion over five years for FHWA programs, including:
• $9.2 billion per year for bridges, plus an additional $2 billion authorization subject to future appropriations.
• $3.75 billion for Safe Streets and Roads for All, starting at $500 million in FY’27 and growing to $1 billion in FY’31.
• $2.4 billion annually for a new Surface Transportation Accelerator Grant program, which combines a variety of discretionary grants created under the IIJA into one funding pot, with allocations for local, regional, rural, and urban areas.
• According to a briefing by committee staff, every State DOT will see an increase in their highway formula apportionments. Early estimates show a 3.4% increase in average state highway funding versus FY26.
• The bill eliminates the carbon reduction program, electric vehicle charging station program, and resilience grants created in the IIJA, but it makes those projects eligible for funding in other accounts.

Transit Programs

• $87 billion over five years from the Highway Trust Fund for transit formula programs. This is roughly equivalent to what transit agencies were receiving in formula funds under the IIJA.
• An additional $3 billion per year authorized from the General Fund for Capital Investment Grants, consistent with current law.

Rail Programs

• Authorizes a total of $65 billion from the General Fund, including:
• $31 billion for Amtrak over five years – $10.3 billion for the Northeast Corridor and $20.7 billion for the National Network.
• $9 billion over five years for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program grants.
• $18.5 billion over five years for a consolidated National Intercity Passenger Rail Partnership program.
• Note that these are not guaranteed funds and are subject to the annual appropriations process.

Engineering and Design Services

• Authorizes FHWA to provide technical assistance, guidance and best practices to State DOTs on lump sum contracting, as requested by ACEC.
• Eliminates the exemption for the State of Minnesota from the prohibition on overhead caps and compliance with the FAR cost principles, as requested by ACEC Minnesota.
• Requires FHWA to develop a list of categorial design exceptions from standards for the National Highway System for categories of multimodal projects and features on Federal-aid highways.

Disadvantaged Business Enterprise Program

• Reauthorizes the DBE program, replacing the terms “minority- and women-owned business” with “socially and economically disadvantaged individuals”.
• Sets a “national, aspirational goal” of at least 10% of federal funding to be set for expenditure through good faith efforts by recipients through small businesses owned and operated by socially and economically disadvantaged individuals.
• Tasks U.S. DOT with developing objective criteria for how state certifying agencies will evaluate whether an individual qualifies as socially and economically disadvantaged, including the ability of individuals to submit evidence of discrimination and instances of economic hardship, systemic barriers, and denied opportunities.

Technology

• Reauthorizes and consolidates funding for the SMART grant program.
• Reauthorizes and modifies the Advanced Digital Construction Management System (ADCMS) grant program.

New User Fees

• Creates a new registration fee for electric and plug-in hybrid vehicles:
• $130 annual fee for EVs, increasing to $150 over five years.
• $35 annual fee for plug-in hybrids, increasing to $50.
• This will not address the Highway Trust Fund deficit, but it would be the first new transportation user fees enacted in 33 years.
• Reauthorizes the national pilot program for mileage-based user fees (which was created in the IIJA but not implemented).

Lastly, the bill includes a variety of project delivery reforms. These provisions are still being reviewed and analyzed, so keep an eye out for updates.

Please let me know if you have questions, comments, or concerns.

I will circulate additional information and analysis in the coming days.

Thank you!
Jess Eskeland, Executive Director

ACEC-NH