(i) a detailed explanation of how the 
project satisfied grant criteria and consid-
erations; 
(ii) the amount of the proposed grant 
award; and 
(iii) an executive summary of the 
project application submitted for funding. 
(2) DISAPPROVAL.—The Secretary may not 
make a grant or any other obligation or commitment 
to fund a project under the program if a joint reso-
lution is enacted disapproving funding for the 
project before the last day of the 60-day period de-
scribed in paragraph (1)(A). 
(e) REPORTS.— 
(1) ANNUAL
REPORT.—The Secretary shall 
make available on the internet website of the De-
partment of Transportation at the end of each fiscal 
year an annual report that lists each project for 
which a grant has been provided under the program 
during that fiscal year. 
(2) COMPTROLLER GENERAL.— 
(A) ASSESSMENT.—The Comptroller Gen-
eral of the United States shall conduct an as-
sessment of the administrative establishment, 
solicitation, selection, and justification process 
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with respect to the funding of grants under the 
program. 
(B) REPORT.—Not later than 1 year after 
the initial awarding of grants under the pro-
gram, the Comptroller General shall submit to 
the Committee on Transportation and Infra-
structure of the House of Representatives and 
the Committee on Environment and Public 
Works and the Committee on Commerce, 
Science, and Transportation of the Senate a re-
port that describes— 
(i) the adequacy and fairness of the 
process by which each project was selected, 
if applicable; and 
(ii) the justification and criteria used 
for the selection of each project, if applica-
ble. 
(f) FUNDING.—The Secretary shall carry out the pro-
gram using amounts made available to the Secretary from 
the National Freight Mobility Infrastructure Fund estab-
lished under section 9512 of the Internal Revenue Code 
of 1986. 
(g) LIMITATION
ON GRANT DISTRIBUTION.—Not 
more than 10 percent of the amounts available during a 
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fiscal year for grants under the program may be used for 
projects located in a single State. 
(h) FULL FUNDING GRANT AGREEMENTS.—The 
Secretary may enter into a grant under the program that 
provides funding for a project in more than 1 fiscal year. 
An agreement for such a grant shall— 
(1) establish the maximum amount of Federal 
financial assistance for the project; 
(2) establish the time period for Federal finan-
cial assistance for the project; 
(3) provide grant funds for the fiscal year in 
which the grant is made; and 
(4) include a commitment, that is not an obli-
gation of the Federal Government and that is con-
tingent on the availability of funds, for grant 
amounts to be provided in fiscal years following the 
fiscal year in which the grant is made. 
(i) NON-FEDERAL FINANCIAL COMMITMENTS.— 
(1) FEDERAL SHARE.—The Federal share of 
the cost of a project for which a grant is made 
under the program, as estimated by the Secretary, 
shall be not more than 80 percent. 
(2) CONSIDERATIONS.—In assessing the sta-
bility, reliability, and availability of proposed sources 
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of non-Federal financing for purposes of subsection 
(c)(2)(F)(ii), the Secretary shall consider— 
(A) existing financial commitments; 
(B) the degree to which financing sources 
are dedicated to the purposes proposed; 
(C) any debt obligation that exists or is 
proposed by the grant recipient for the pro-
posed project; and 
(D) the extent to which the project has a 
non-Federal financial commitment that exceeds 
the required non-Federal share of the cost of 
the project. 
(j) HIGHWAY CONSTRUCTION.—A grant made to as-
sist the construction of a highway under the program shall 
be subject to the requirements relating to such construc-
tion under title 23, United States Code. 
(k) OTHER TERMS
AND CONDITIONS.—The Sec-
retary shall ensure that all grants made under the pro-
gram are subject to terms, conditions, and requirements 
that the Secretary decides are necessary or appropriate 
for purposes of this section, including requirements for the 
disposition of net increases in the value of real property 
resulting from the project assisted under the program. 
(l) ADMINISTRATIVE COSTS.—In carrying out the 
program, the Secretary shall seek to minimize administra-
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tive costs, including overhead, enforcement, and auditing 
costs related to the program. 
(m) ANNUAL REPORT.—Not later than 1 year after 
the date of enactment of this Act, and annually thereafter, 
the Secretary shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transpor-
tation of the Senate a report on the activities of the Sec-
retary under the program. 
(n) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall issue 
regulations to carry out this section. 
(o) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) DESIGNATED
ENTITY.—The term ‘‘des-
ignated entity’’ means— 
(A) A State or a group of States. 
(B) A metropolitan planning organization 
that serves an urbanized area (as defined by 
the Bureau of the Census) with a population of 
more than 200,000 individuals. 
(C) A unit of local government or a group 
of local governments. 
(D) A political subdivision of a State or 
local government. 
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(E) A special purpose district or public au-
thority with a transportation function, including 
a port authority. 
(F) A Tribal government or a consortium 
of Tribal governments. 
(G) A multistate or multijurisdictional 
group of entities described in this paragraph. 
(2) ELIGIBLE
COSTS.—The term ‘‘eligible 
costs’’ means the costs of a project with respect to— 
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, preliminary engi-
neering and design work, and other precon-
struction activities; and 
(B) construction, reconstruction, rehabili-
tation, acquisition of real property (including 
land related to a project and improvements to 
land), environmental mitigation, construction 
contingencies, acquisition of equipment, and 
operational improvements. 
(3) PROGRAM.—The term ‘‘program’’ means 
the National Freight Mobility Infrastructure Im-
provement Program established under subsection 
(a). 
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(4) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 101(a) of title 23, 
United States Code. 
SEC. 3. FREIGHT MOBILITY INFRASTRUCTURE TAX. 
(a) IMPOSITION OF TAX.—Chapter 33 of the Internal 
Revenue Code of 1986 is amended by adding after sub-
chapter C the following new subchapter: 
‘‘Subchapter D—Transportation By Freight 
And Highway 
‘‘Sec. 4286. Imposition of tax. 
‘‘SEC. 4286. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed upon 
taxable ground transportation of property within the 
United States a tax equal to 1 percent of the amount paid 
for such transportation. 
‘‘(b) BY WHOM PAID.— 
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), the tax imposed by subsection (a) 
shall be paid— 
‘‘(A) by the person making the payment 
subject to tax, or 
‘‘(B) in the case of transportation by a re-
lated person, by the person for whom such 
transportation is made. 
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‘‘(2) PAYMENTS MADE OUTSIDE THE UNITED 
STATES.—If a payment subject to tax under sub-
section (a) is made outside the United States and 
the person making such payment does not pay such 
tax, such tax— 
‘‘(A) shall be paid by the person to whom 
the property is delivered in the United States 
after the final segment of transportation in the 
United States, and 
‘‘(B) shall be collected by the person fur-
nishing the last segment of such transportation. 
‘‘(3) DETERMINATIONS OF AMOUNTS PAID IN 
CERTAIN CASES.—For purposes of this section, rules 
similar to the rules of section 4271(c) shall apply. 
‘‘(c) TRANSPORTATION BY RELATED PERSONS.—In 
the case of transportation of property by the taxpayer or 
a person related to the taxpayer, the fair market value 
of such transportation shall be the amount which would 
be paid for transporting such property if such property 
were transported by an unrelated person, determined on 
an arms’ length basis. 
‘‘(d) DEFINITIONS.—For purposes of this sub-
chapter— 
‘‘(1) TAXABLE GROUND TRANSPORTATION.— 
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‘‘(A) IN
GENERAL.—The term ‘taxable 
ground transportation’ means transportation of 
property by— 
‘‘(i) freight rail, or 
‘‘(ii) commercial motor vehicle (as de-
fined in section 31101(1) of title 49, 
United States Code) for a distance of more 
than 50 miles. 
‘‘(B) PASSENGER BAGGAGE EXCLUDED.— 
For purposes of subparagraph (A), the term 
‘property’ does not include baggage accom-
panying a passenger traveling on an established 
line. 
‘‘(2) RELATED PERSON.—A person (hereinafter 
in this paragraph referred to as the ‘related person’) 
is related to any person if— 
‘‘(A) the related person bears a relation-
ship to such person specified in section 267(b) 
or 707(b)(1), or 
‘‘(B) the related person and such person 
are engaged in trades or businesses under com-
mon control (within the meaning of subsections 
(a) and (b) of section 52). 
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For purposes of the preceding sentence, in applying 
sections 267(b) and 707(b)(1), ‘10 percent’ shall be 
substituted for ‘50 percent’. 
‘‘(e) EXEMPTION FOR UNITED STATES AND POSSES-
SIONS AND STATE AND LOCAL GOVERNMENTS.—The tax 
imposed by subsection (a) shall not apply to the transpor-
tation of property purchased for the exclusive use of the 
United States, or any State or political subdivision there-
of.’’. 
(b) CREDITS OR REFUNDS TO PERSONS WHO COL-
LECTED CERTAIN TAXES.—Section 6415 of such Code is 
amended by striking ‘‘or 4271’’ each place it appears and 
inserting ‘‘4271, or 4286’’. 
(c) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury shall issue regulations to carry out the 
amendments made by this section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transportation beginning on or 
after the last day of the 180-day period beginning on the 
date of the issuance of regulations under subsection (c). 
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SEC. 4. NATIONAL FREIGHT MOBILITY INFRASTRUCTURE 
FUND. 
Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 9512. NATIONAL FREIGHT MOBILITY INFRASTRUC-
TURE FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘National Freight Mobility Infrastruc-
ture Fund’ (hereinafter in this section referred to as the 
‘Fund’) consisting of such amounts as may be appro-
priated or credited to such Fund as provided in this sec-
tion or section 9602(b). 
‘‘(b) TRANSFERS TO THE FUND.—There are hereby 
appropriated to the Fund amounts equivalent to taxes re-
ceived in the Treasury under section 4286. 
‘‘(c) EXPENDITURES FROM FUND.—Amounts in the 
Fund shall be made available to the Secretary of Trans-
portation for each of the fiscal years 2017 to 2042, with-
out further appropriation, for making expenditures to 
meet the obligations of the United States to carry out sec-
tion 2 of the Freight Infrastructure Reinvestment Act of 
2017, not more than 4 percent of which for any fiscal year 
may be used for administrative expenses.’’. 
Æ 
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