	Introduction

Economic growth and expanded global trade have led to substantial increases in goods movement over the past few decades. The growth in freight transportation demand, along with growing passenger-side demand, has caused congestion in many parts of the transportation system, making freight movements slower and less reliable. Because the condition and performance of freight infrastructure play a considerable role in the efficiency of the freight system, federal support of freight infrastructure investment is likely to be of significant congressional concern in the reauthorization of the surface transportation program. The program is currently authorized by the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L. 112-141 ) as extended to May 31, 2015, in the Highway and Transportation Funding Act of 2014 ( P.L. There is significant disagreement about the best way to accomplish improvements in freight system infrastructure. Among the most important areas of disagreement are how to raise new funds for investment, the magnitude of the amounts required, how to set priorities, and the role of the federal government in the planning process. Current Federal Freight-Related Program Elements

		Grant Programs

There is no federal freight transportation program per se . Instead, the federal government promotes freight transportation through several programs that are designed to support both passenger and freight mobility. The most important of these are four of the five "core" programs of the federal-aid highway program, which collectively account for roughly 90% of highway spending authorized by MAP-21 and extension legislation. Although there is no discrete freight transportation program, there are certain programs and provisions within programs that specifically pertain to freight projects. Moreover, many types of freight infrastructure improvements are eligible uses of federal highway funds. Spending eligibilities could be written to narrowly circumscribe project selection by state departments of transportation and metropolitan planning organizations (MPOs). Historically, however, funding formulas for federal surface transportation projects have distributed funding widely and allowed these funds to be used on a broad array of projects at the discretion of states and localities. Freight Planning and Performance Management

The federal government can also influence project prioritization through the planning processes of state departments of transportation and MPOs. Greater federal funding for freight transportation infrastructure would require either reducing funding for other programs or generating new revenues.
Goods movement has increased substantially over the past few decades as the economy and global trade have expanded. Freight transportation demand in tandem with passenger-side demand has caused congestion in many parts of the transportation system, resulting in slower and less reliable freight movement. Also, the condition and performance of freight infrastructure play considerable roles in the efficiency of the freight system and, therefore, are likely to be of significant congressional concern in the reauthorization of the surface transportation program that is currently authorized through May 31, 2015.
There is no specific federal freight transportation program. Instead, the federal government supports freight infrastructure through several programs that promote both passenger and freight mobility. The most important of these are four of the five "core" programs of the federal-aid highway program, which together account for roughly 90% of highway spending. One of those five programs, the Surface Transportation Program, also provides limited support for freight rail projects. Federal assistance to ports and inland navigation, waterborne shipping, and air freight are beyond the scope of this report.
There is significant disagreement about the best way to accomplish improvements in freight system infrastructure. Among the most important points of contention are:
The magnitude of the investments required and related policies to manage demand for existing transportation infrastructure as an alternative to increasing capacity. How to cover the cost. Most federal freight investments are currently funded through the highway trust fund, whose main source of revenue is taxes on motor fuels. These taxes no longer raise sufficient revenue to fund existing federal surface transportation programs, and proposals to increase federal spending on freight infrastructure are often linked to other fees or taxes that have not gained support in Congress. How to set priorities. Most federal highway funding is distributed by formula to state departments of transportation, which determine spending priorities in cooperation with metropolitan planning organizations. This process forces freight projects to compete with passenger-oriented projects, which may have greater support—especially when a proposed freight project primarily benefits so-called through trucks (rather than trucks making local pick-ups and deliveries). Changes in the law to establish priority for freight infrastructure would run contrary to the trend in recent reauthorization acts to give states greater discretion over their spending of federal highway funds. The role of the federal government in the planning process. The 2012 surface transportation reauthorization, the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L. 112-141), established a performance measurement system for state departments of transportation and metropolitan planning organizations. However, these provisions have yet to be fully implemented. Eventually, they are intended to lead to federal evaluation of state and local decision-making, which is likely to prove controversial.