The Obama administration sent a half-trillion dollar transportation bill to fund surface transportation repairs and call for automotive safety reforms for the next six years to Congress.
Department of Transportation Secretary Anthony Foxx unveiled the $478 billion proposal Monday, titled Grow America Act, which comes less than two months before federal highway funding is set to run out in May.
“As lawmakers try to fund transportation beyond May 31, Grow America provides members of the House and Senate with the option of increasing investment in surface transportation by 45%, and supporting millions of jobs repairing and modernizing roads, bridges, railroads and transit systems in urban, suburban, and rural communities,” Foxx stated in a press release.
Not only would the proposal fund surface transportation repairs if passed, it would also call for automotive safety reforms by giving the NHTSA the authority “to take immediate action to respond to any condition of a motor vehicle or motor vehicle equipment that creates the likelihood of death or serious injury to the public if not discontinued immediately, without prior notice or hearing.” This proposal will nearly triple the budget of NHTSA’s automobile defects office.
The proposal would also establish a two-year pilot grant program to determine if state motor vehicle departments could notify owners of uncompleted recalls at the time they were registering or renewing a vehicle registration. It would also hike the maximum daily fine for failing to comply with NHTSA rules from $7,000 to $25,000, according to media reports.
On the tire side, the Grow America Act proposes a requirement that tire purchases be registered with the manufacturer, according to The Detroit News. The bill would also increase the time tire manufacturers offer owners a free replacement tire for a recall to six months, instead of the current 60 days.
Additionally, the DOT stated that it proposes to establish an $18 billion freight program; raise transit investment by 76%; put in place a “transparent and clear” permitting process; strengthen the Transportation Infrastructure Finance and Innovation Act and Railroad Rehabilitation and Improvement Financing loan programs; double the funding for the U.S. TIGER grant program; and provide more funding to “high-performing” Metropolitan Planning Organizations.
The bill would be paid for with a 14% transition tax on an estimated $2 trillion of untaxed foreign earning accumulated by U.S. companies.
Over the last six years, Congress has not been able to reach an agreement on a long-term highway funding bill, passing a series of short-term extensions instead.
“Our proposal provides a level of funding and also funding certainty that our partners need and deserve,” Secretary Foxx said. “This is an opportunity to break away from 10 years of flat funding, not to mention these past six years in which Congress has funded transportation by passing 32 short-term measures.”
The current $11 billion extension of federal highway funding ends May 31.
