Why It Matters

A recent Congressional Research Service (CRS) report examines the BUILD America 250 Act (H.R. 8870), a surface transportation reauthorization bill that would reshape federal highway funding and programming as Congress prepares for an authorization expiration. The federal surface transportation authorization is set to expire on September 30, and the proposed BUILD America 250 Act would extend it through fiscal 2031. The bill's approach signals a fundamental shift in transportation priorities, one that carries implications for how infrastructure dollars flow and which initiatives receive federal backing.

The current administration has already moved to reshape transportation policy. On January 20, 2025, executive orders were issued requiring federal agencies to terminate or pause programs related to climate change, electric vehicles (EVs), and diversity, equity, and inclusion (DEI). The Federal Highway Administration subsequently removed guidance for the Carbon Reduction Program from its website and canceled guidance for the National Electric Vehicle Infrastructure Program while suspending obligations. In September 2025, the Office of the Secretary reportedly terminated grant agreements under multiple competitive discretionary programs.

The BUILD America 250 Act would institutionalize these shifts through legislation. It passed the House Transportation Committee 62-2 on May 22, 2026.

The Big Picture

The bill would authorize $580 billion over five years, providing $474.4 billion guaranteed from the Highway Trust Fund and $106 billion from the General Fund, subject to future appropriations.

Yet the purchasing power picture is more complicated. When adjusted for inflation, the purchasing power of fiscal 2025 highway funding was less than the purchasing power of funding in fiscal 2005. Fuel excise tax rates have not been raised since fiscal 1993, and inflation has caused a 74 percent decline in the purchasing power of fuel taxes since then.

The BUILD America 250 Act would eliminate the Carbon Reduction Program and the PROTECT Formula Program, while creating a new bridge formula program and a competitive Surface Transportation Accelerator Program. It would establish annual registration fees for electric vehicles at $130 per year, rising to $150 by fiscal 2032, and for plug-in hybrid electric vehicles at $35 per year, rising to $50 by fiscal 2031.

According to the Blue Green Road and Development Coalition, the BUILD America 250 Act shifts away from climate, equity, and community-oriented transportation initiatives back toward traditional highway and freight infrastructure.

The Bottom Line

The bill represents a departure from the programming expansion of recent years. The IIJA added four new formula programs and many competitive discretionary grant programs, and it was the first time multiyear advance appropriations were used to fund highway programs. The BUILD America 250 Act would eliminate certain programs. Whether Congress passes this version, modifies it substantially, or allows the authorization to lapse remains uncertain, but the stakes for program continuity and funding direction are substantial.

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