House bill would boost freight, transportation funding with 1 percent shipping fee

| January 14, 2014

highway roadA bill reintroduced in the U.S. House last week would, if passed, take steps toward bolstering federal funding for freight movement projects in the U.S. by implementing a 1 percent shipping fee, to be paid by the entity paying for the shipment, per the bill. 

Funds from the 1 percent fee would be deposited directly into the National Freight Mobility Fund and would be used to issue grants for projects that would help increase the efficiency of freight movement in the U.S. 

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The bill, dubbed the Freight Infrastructure Reinvestment Act, was introduced by Rep. Adam Smith (D-Wash.). 

“Our nation’s freight transportation system plays a significant role in our ability to grow the economy and compete globally,” said Smith.  “With our nation’s freight expected to double by 2040, it is critical to start making investments in freight and transportation infrastructure now to keep America competitive internationally for years to come.”

The bill would also establish a National Freight Mobility Infrastructure Improvement Program, which would rely on planners to work with communities to find projects to help increase national or regional freight flow.

Those planners would then apply for grants, and the secretary of transportation would determine who gets the federal money, based on a project’s cost effectiveness, economic impact and its ability to help freight infrastructure. 

Click here to see text of the bill. 

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  • Keith Case

    One of the stupidest things I have ever heard. Tax the shippers, give the money to some professor or scam artist to turn around and tell the shipper how to do it more efficiently? The big shippers already pay millions to private firms for this and those private firms have show improvement in order to get paid. This would just be throwing money away. As for it going to the highways, if this Obama drone can get a 1% tax on shippers then this money should go to the Highway Trust fund and there MUST be an addendum in the bill saying that it can’t be stolen by the rest of his partners in idiocy in the House and Senate. Safe money bet on this is the tax revenue would go to “Think Tanks” and DOT for even more regulations to strangle the transportation industry more. In the long run, if the shipper has to pay an additional 1% tax, it will come out of truck companies revenue thus reducing rates even more.

  • Joshua Waterman

    What right does the government have to add a tax on ‘shipping’ freight? They tax it being processed, tested, sold 3 times over, all before going on the shelves and sold to the consumer. This is definitely a government scam to waste more money that they already “DON’T” have on jokes of politics. They should focus more on reducing the wastes they put into their offices than what they ‘think’ they can get away with. Why not make them pay for their own expenses out of their own pockets, like food, gas, electricity, IRS taxes, flying, water, trash, AND insurance. They get paid a lot. Make them pay their own expenses before going after American work dollars.

  • mousekiller

    Here we go . The govt wants to get involved in private enterprise AGAIN… It is not enough to be taxed nearly out of business but to add new taxes. 1 % is not a big figure but it will had up very fast to a huge amount. Lets see now.. 3 million CDL license drivers in the country and at least half under load at any one time.. Lets save the average rate $2000.per load. That is a huge amount of money from one entity in the whole work force. Every manufacturer that pays the freight bill is going to have to raise the price of the product they make.Trucking ,as it is truck that move it . This cost from the rate payer will eventually come out of the trucking companies pockets.It is the government and big business way and goal. It will not be used correctly but Congress will steal from it like all other funds the govt got involved in.
    This fund will pay for ventures and groups that want to take down the surface transportation as we know. It will in my opinion finance illegals to add competition that is unnecessarily. used for non trucking benefits. Hundreds of millions of dollars a year that will be used in the long run against the one that they claim to help. Good old government double speak.

  • Craig Hansen

    Another tax and spend “Dumbocrat”! With trucking as a whole suffering in this poor economy what we need is more strangling costs and regulation. I already pay 2290 HHUT, a tax simply since I operate a large truck that is intended to defray the damage to the infrastructure by said heavy truck! Then I pay a Unified carrier Registration, there is a load of BS, they use that money to train DOT officers who already hassle me and try and issue (many times bogus but unfightable) tickets. Oh yeah lets not forget IFTA fuel tax, God forbid I buy some cheaper (not cheap anymore) Missouri fuel but run some in Illinois on that fuel, oh crap Illinois needs another 20 some cents a gallon that I burn there to offset the cost of fixing the road too. Not to mention the Federal fuel taxes paid at the pump no matter where I get fuel. Let’s not even compare the plates (IRP) to the four wheelers we all know they are ripping us off and here we go again, some other bureauocrap who has likely never talked to a trucker let alone been diligent enough to check and see just how much f*%#ing tax we already pay. Just keep drinkin’ that democrat kool-aid baby! You idiots keep voting these dumb and dumber politicians in and you are very close to reaping your just rewards. Pretty soon we will all be taxed out of business, who will you tax then dipstick?

  • Ana

    Well said Craig! Totally agree with you!

  • Vrahnos

    No no no no,we don’t need government to impose any freight pay reg. at all for any reason.It would be a reg that keeps money flowing and it won’t stay at the 1% ether.It will grow and yep we will have to pay out even more.

  • dads39

    Contact your Congressman-today!-I did