Build America Act of 2018

Summary: Build America Act of 2018 This bill directs the Department of Transportation (DOT) to carry out a national infrastructure investment grant program for capital investments in surface transportation infrastructure.   Projects eligible for funding under the program include, at a minimum, highway and bridge projects, public transportation projects, passenger and freight rail transportation projects, and port infrastructure investments. In distributing grants under the program, DOT shall ensure an equitable geographic distribution of funds, an appropriate balance in addressing the needs of urban and rural areas, and investment in a variety of transportation modes. At least 20% of grant funds must be set aside for projects in rural areas. The bill amends the Internal Revenue Code to: (1) establish a National Infrastructure Investment Trust Fund and a Fixed Guideway Capital Investment Trust Fund, and (2) increase the tax on small cigars and cigarettes and on gasoline other than aviation gasoline and on diesel fuel or kerosene.     

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Build America Act of 2018''.

SEC. 2. NATIONAL INFRASTRUCTURE INVESTMENT PROGRAM.

    (a) Establishment.--The Secretary of Transportation shall carry out 
a national infrastructure investment program (in this section referred 
to as the ``program'') for capital investments in surface 
transportation infrastructure in accordance with the requirements of 
this section.
    (b) Discretionary Grants.--The Secretary shall distribute funds 
made available to carry out the program as discretionary grants to be 
awarded to a State, local government, or transit agency, or a 
collaboration among such entities, on a competitive basis for projects 
that will have a significant impact on the Nation, a metropolitan area, 
or a region.
    (c) Eligible Projects.--Projects that are eligible for funding 
under the program include, at a minimum, the following:
            (1) Highway and bridge projects eligible under title 23, 
        United States Code.
            (2) Public transportation projects eligible under chapter 
        53 of title 49, United States Code.
            (3) Passenger and freight rail transportation projects.
            (4) Port infrastructure investments (including inland port 
        infrastructure and land ports of entry).
    (d) TIFIA.--The Secretary may use up to 20 percent of the funds 
made available to carry out the program for a fiscal year for the 
purpose of paying the subsidy and administrative costs of projects 
eligible for Federal credit assistance under chapter 6 of title 23, 
United States Code, if the Secretary finds that such use of the funds 
would advance the purposes of the program.
    (e) Distribution of Funds.--In distributing funds provided under 
the program, the Secretary shall take measures to ensure--
            (1) an equitable geographic distribution of funds;
            (2) an appropriate balance in addressing the needs of urban 
        and rural areas; and
            (3) investment in a variety of transportation modes.
    (f) Fair Consideration.--The Secretary shall ensure that--
            (1) eligible projects receive fair consideration under the 
        program; and
            (2) funds made available to carry out the program are used 
        to provide funding for eligible projects to the maximum extent 
        practicable.
    (g) Grant Amounts.--A grant funded under the program shall be not 
less than $5,000,000 and not greater than $45,000,000.
    (h) Awards in Single State.--Not more than 10 percent of the funds 
made available under the program for a fiscal year may be awarded to 
projects in a single State.
    (i) Federal Share.--The Federal share of the costs for which an 
expenditure is made under the program shall be, at the option of the 
recipient, up to 80 percent.
    (j) Priority Projects.--In carrying out the program, the Secretary 
shall give priority to projects that require a contribution of Federal 
funds in order to complete an overall financing package.
    (k) Rural Areas.--
            (1) Set aside.--Not less than 20 percent of the funds 
        provided under the program for a fiscal year shall be for 
        projects located in rural areas (as defined in section 101(a) 
        of title 23, United States Code).
            (2) Grant amounts; federal share.--For projects located in 
        rural areas--
                    (A) the minimum grant size under the program shall 
                be $1,000,000; and
                    (B) the Secretary may increase the Federal share of 
                costs above 80 percent.
    (l) Wage Rate Requirements.--Projects conducted using funds 
provided under the program must comply with the requirements of 
subchapter IV of chapter 31 of title 40, United States Code.
    (m) Annual Competitions.--For each fiscal year, the Secretary shall 
conduct a new competition to select projects for grants and credit 
assistance awarded under the program.
    (n) Administrative Expenses.--To fund the award and oversight of 
grants and credit assistance made under the program, the Secretary 
may--
            (1) retain up to $25,000,000 of the funds provided to carry 
        out the program for a fiscal year; and
            (2) transfer portions of those funds to the Administrators 
        of the Federal Highway Administration, the Federal Transit 
        Administration, the Federal Railroad Administration, and the 
        Maritime Administration.
    (o) Period for Obligation of Funds.--
            (1) In general.--Funds made available for a fiscal year to 
        carry out the program shall remain available to the Secretary 
        for obligation under the program for a period of 3 years after 
        the last day of the fiscal year for which the funds are 
        authorized.
            (2) Transfer of unobligated funds.--Any amounts made 
        available to carry out the program that remain unobligated at 
        the end of the 3-year period referred to in paragraph (1) shall 
        be transferred to the Highway Trust Fund.
    (p) Funding.--There shall be available, without further 
appropriation, from the National Infrastructure Investment Trust Fund 
for expenditure by the Secretary to carry out the program 
$3,000,000,000 for each fiscal year.

SEC. 3. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.

    (a) Funding.--There shall be available from the Fixed Guideway 
Capital Investment Trust Fund, without further appropriation, for 
expenditure by the Secretary of Transportation to carry out section 
5309 of title 49, United States Code, $9,000,000,000 for each fiscal 
year.
    (b) Administrative Expenses.--Of the amounts made available for a 
fiscal year under subsection (a) to carry out section 5309 of title 49, 
United States Code, the Secretary may retain not more than 1 percent of 
the total funds made available to carry out such section to administer 
the award and oversee grants made under the program.
    (c) Period for Obligation of Funds.--
            (1) In general.--Funds made available for a fiscal year 
        under subsection (a) to carry out section 5309 of title 49, 
        United States Code, shall remain available to the Secretary for 
        obligation under that section for a period of 4 years after the 
        last day of the fiscal year for which the funds are authorized.
            (2) Transfer of unobligated funds.--Any amounts made 
        available under subsection (a) to carry out section 5309 of 
        title 49, United States Code, that remain unobligated at the 
        end of the 4-year period referred to in paragraph (1) shall be 
        deposited in the Highway Trust Fund.

SEC. 4. ESTABLISHMENT OF TRUST FUNDS.

    (a) In General.--Subchapter A of chapter 28 of the Internal Revenue 
Code of 1986 (relating to the trust fund code) is amended by adding at 
the end thereof the following:

``SEC. 9512. NATIONAL INFRASTRUCTURE INVESTMENT TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `National 
Infrastructure Investment Trust Fund', consisting of such amounts as 
may be appropriated or credited to the National Infrastructure 
Investment Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfer to National Infrastructure Investment Trust Fund of 
Amounts Equivalent to Certain Taxes.--There are hereby appropriated to 
the National Infrastructure Investment Trust Fund amounts equivalent to 
the portion of the taxes received in the Treasury under subsections 
(a)(1) and (b) of section 5701 that are attributable to the increase in 
tax imposed by such subsections by reason of the amendments made by 
section 5 of the Build America Act of 2018.
    ``(c) Expenditures From National Infrastructure Investment Trust 
Fund.--Amounts in the National Infrastructure Investment Trust Fund 
shall be available, without further appropriation, to the Secretary of 
Transportation for making expenditures under the national 
infrastructure investment program authorized by section 2 of the Build 
America Act of 2018.

``SEC. 9513. FIXED GUIDEWAY CAPITAL INVESTMENT TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Fixed Guideway 
Capital Investment Trust Fund', consisting of such amounts as may be 
appropriated or credited to the Fixed Guideway Capital Investment Trust 
Fund as provided in this section or section 9602(b).
    ``(b) Transfer to Fixed Guideway Capital Investment Trust Fund of 
Amounts Equivalent to Certain Taxes.--There are hereby appropriated to 
the Fixed Guideway Capital Investment Trust Fund amounts equivalent to 
25 percent of the portion of the taxes received in the Treasury under 
the rates described in clauses (i) and (iii) of section 4081(a)(2)(A), 
and section 4081(a)(2)(D), but only to the extent such amounts are 
attributable to the increase in rates under such clauses, and such 
section, by reason of the amendments made by section 6 of the Build 
America Act of 2018. For purposes of the preceding sentence, taxes 
received under section 4041 and 4081 shall be determined without 
reduction for credits under section 6426.
    ``(c) Expenditures From Fixed Guideway Capital Investment Trust 
Fund.--Amounts in the Fixed Guideway Capital Investment Trust Fund 
shall be available, without further appropriation, to the Secretary of 
Transportation for making expenditures after October 1, 2019, under 
section 5309 of title 49, United States Code, pursuant to the 
authorization in section 3 of the Build America Act of 2018.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end thereof the following new items:

``Sec. 9512. National Infrastructure Investment Trust Fund.
``Sec. 9513. Fixed Guideway Capital Investment Trust Fund.''.

SEC. 5. INCREASE IN TAX ON CIGARETTES AND SMALL CIGARS.

    (a) Small Cigars.--Section 5701(a)(1) of the Internal Revenue Code 
of 1986 is amended by striking ``$50.33 per thousand'' and inserting 
``$75.30 per thousand''.
    (b) Cigarettes.--Section 5701(b) of such Code is amended--
            (1) by striking ``$50.33 per thousand'' in paragraph (1) 
        and inserting ``$75.30 per thousand''; and
            (2) by striking ``$105.69 per thousand'' in paragraph (2) 
        and inserting ``$130.69 per thousand''.

SEC. 6. INCREASE IN TAX ON MOTOR FUELS.

    (a) Gasoline Other Than Aviation Gasoline.--Section 
4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by 
striking ``18.3 cents'' and inserting ``53.3 cents''.
    (b) Diesel Fuel or Kerosene.--Section 4081(a)(2)(A)(iii) of such 
Code is amended by striking ``24.3 cents'' and inserting ``59.3 
cents''.
    (c) Increase for Inflation.--Section 4081(a)(2) of such Code is 
amended by adding at the end the following new subparagraph:
                    ``(E) Adjustment for inflation.--In the case of any 
                calendar year beginning after 2018, the rates of tax 
                contained in clauses (i) and (iii) of subparagraph (A) 
                shall each be increased by an amount equal to--
                            ``(i) such rate, multiplied by
                            ``(ii) the cost of living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2016' for `calendar year 1992' 
                        in subparagraph (B) thereof.
                Any increase under the preceding sentence shall be 
                rounded to the nearest 0.1 cents.''.
    (d) Diesel-Water Fuel Emulsion.--Section 4081(a)(2)(D) of such Code 
is amended by striking ``substituting `19.7 cents' for `24.3 cents'.'' 
and inserting ``substituting a rate equal to 81 percent of the rate in 
effect for the calendar year under such subparagraph.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to fuels removed, entered, or sold after October 1, 2018.

SEC. 7. HIGHWAY TRUST FUND.

    (a) Coordination With Fixed Guideway Capital Investment Trust 
Fund.--Section 9503(b)(4) of the Internal Revenue Code of 1986 is 
amended by striking ``or'' at the end of subparagraph (C), by striking 
the period at the end of subparagraph (D) and inserting ``, or'', and 
by adding at the end the following new subparagraph:
                    ``(E) clauses (i) and (iii) of section 
                4081(a)(2)(A), and section 4081(a)(2)(D), but only to 
                the extent of amounts equivalent to the portion of such 
                taxes as are appropriated to the Fixed Guideway Capital 
                Investment Trust Fund under section 9513(b).''.
    (b) Mass Transit Portion Adjusted.--Section 9503(e)(2)(A) of such 
Code is amended by striking ``2.86 cents'' and inserting ``6.25 
cents''.
    (c) Transfer of Unobligated National Infrastructure Investment and 
Fixed Guideway Capital Investment Amounts.--Section 9503(f) of the 
Internal Revenue Code of 1986 is amended by redesignating paragraph 
(10) as paragraph (11) and by inserting after paragraph (9) the 
following new paragraph:
            ``(10) Further transfers to trust fund.--
                    ``(A) In general.--There is hereby appropriated to 
                the Highway Trust Fund amounts to be transferred to the 
                Trust Fund pursuant to sections 2(o) and 3(c)(2) of the 
                Build America Act of 2018.
                    ``(B) Transfer of portion to mass transit 
                account.--From such amounts, the Secretary shall 
                transfer to the Mass Transit Account so much as bears 
                the same ratio to such amount as the mass transit 
                portion (as defined in subsection (e)(2)) bears to all 
                taxes imposed with respect to fuel by sections 4041 and 
                4081 and otherwise deposited into the Highway Trust 
                Fund.''.