Transportation and Infrastructure Committee Chairman Sam Graves (R-MO) today released the Committee’s budget reconciliation proposal that combines critical investments to support President Trump’s border and national security agenda and improve America’s air traffic control system, with cuts in wasteful spending and other deficit reducing provisions that will provide a net reduction of more than $10 billion to the nation’s deficit.
The proposal will provide investments to bolster the U.S. Coast Guard’s missions to stop the flow of illegal drugs and migrants into the country and protect our national security, and to replace the nation’s air traffic control technology. These investments will be more than offset by the elimination of funding for several Green New Deal style programs, a requirement that electric vehicles (EVs) begin paying for their use of the highway system just like other highway users, and other deficit reduction measures.
“With this proposal, the Committee is doing its part to ensure that Republicans fulfill our promise to the American people and the promise of the President’s America First agenda,” Graves said. “This proposal directly supports the President’s border security agenda by providing historic funding to the United States Coast Guard in the Service’s mission to keep illegal drugs and migrants out of our country. This measure also protects our national security by projecting American sovereignty in the Arctic, where China and Russia are aggressively increasing their activities. President Trump and Secretary Duffy are committed to the long-delayed modernization of our antiquated air traffic control system to strengthen American aviation safety, and this proposal begins the work of meeting that goal.”
Graves continued, “Importantly, our proposal more than offsets these historic investments and reduces the deficit with rescissions of wasteful Green New Deal style spending from the Inflation Reduction Act and ensuring that electric vehicles begin paying their share for their use of the nation’s highways. It’s only fair that EVs pay these user fees like other motorists. In fact, the new user fees provision addresses the broken Highway Trust Fund revenue stream in a substantial manner for the first time in over 30 years.”
Chairman Graves released a “committee print” of the proposal, which the Committee will mark up at 10:00 a.m. on Wednesday, April 30, 2025. The proposal conforms with the Transportation and Infrastructure Committee’s reconciliation instructions from the fiscal year 2025 budget resolution to recommend changes that reduce the deficit by not less than $10 billion over the next ten years.
Highlights of the proposal’s investment provisions:
Investments in U.S. Coast Guard missions to protect our national security and to stop illegal drugs and migrants from crossing our maritime borders.
Nearly $23 billion is appropriated to the Coast Guard for investing in assets like Offshore Patrol Cutters, Fast Response Cutters, Polar Security Cutters, fixed and rotary wing aircraft, shoreside infrastructure, and depot maintenance.
The Coast Guard is one of the nation’s six armed services and is the nation’s chief maritime safety and security guardian, but due to chronic underinvestment, the men and women of the Coast Guard have been forced to carry out their critical missions with ships, helicopters, airplanes, and other assets that should have been retired long ago.
This proposal gives the Service the tools it needs to better protect our borders, interdict illegal drugs and migrants, and protect our national and economic security in the Arctic, where competitors such as China and Russia are aggressively expanding their activities.
A large coalition of maritime transportation stakeholders wrote in support of this provision. Read their letter here, as well as this additional coalition letter.
Investments in improved safety and reliability of America’s air traffic control (ATC) system.
$15 billion is appropriated to the Federal Aviation Administration (FAA) for the modernization of ATC technology.
The President and DOT Secretary have prioritized replacing our outdated ATC technology, modernizing the ATC system, and enhancing the hiring of air traffic controllers following several aviation tragedies in recent months.
ATC modernization has been a goal for both Democrats and Republicans for decades, but the Trump Administration is now prioritizing this long-neglected problem to give the American people the modern aviation system they deserve.
A broad coalition of aviation industry and labor stakeholders wrote in support of this provision. Read their letter here. Read additional letters of support from aviation stakeholders here.
Highlights of the provisions that will reduce federal spending and deficits:
Rescinds unobligated funds and eliminates seven unnecessary Green New Deal style programs created in the Inflation Reduction Act (IRA).
This includes Neighborhood Access and Equity Grants, Environmental Review Implementation Funds, and Low-Carbon Transportation Materials Grants under the Federal Highway Administration: progressive priorities that are either duplicative, are projects that states and other entities may pursue if they prioritize them, or are efforts that should be driven by the industry and not mandated by the federal government.
The rescissions also include the Assistance for Federal Buildings, Use of Low-Carbon Materials, and Emerging Technologies funding under the General Services Administration (GSA): programs that target green projects that have little to do with addressing deferred maintenance and ensuring federal facilities operate more efficiently.
The Federal Aviation Administration’s (FAA’s) Alternative Fuel and Low-Emission Aviation Technology Program is also rescinded, given that the agency’s role and purpose is ensuring aviation safety – not developing sustainable fuels.
These rescissions are estimated to reduce federal spending by nearly $4.6 billion.
Ends free rides for electric vehicles (EVs) and ensures they begin paying into the Highway Trust Fund (HTF) for their use of the nation’s highways.
The HTF is the main funding source for federal surface transportation programs and is funded by user-fees. Drivers help pay for their use of the nation’s roads when they pay this user fee through an excise tax on gasoline. Since EVs do not use gas, they do not pay this user fee, and this inequity contributes to a growing shortfall in the HTF.
Working to close the shortfall will help ensure that the HTF reduces the need for future bailouts from the general fund to make up the shortfall.
By leveraging states’ existing registration systems, the bill assesses an annual registration fee of $200 on EVs and $100 on hybrids (which currently pay a lesser share into the HTF) to ensure they pay for their use of the nation’s roads and bridges.
39 states currently assess electric vehicle registration fees and 28 states also assess fees on hybrids.
The bill will also assess a $20 annual registration fee on all other passenger vehicles beginning in 2031. This is the first step towards House Republicans’ surface transportation reauthorization goal of repealing and replacing the broken gas tax and federal excise tax structure that has left the HTF bankrupt.
Together, these new user fees are expected to increase federal revenues by a conservative estimate of approximately $50 billion over ten years, all of which will be deposited into the HTF.
Numerous stakeholders have written in support of these user fees, including a large coalition of transportation industry and labor stakeholders and a large coalition of agriculture stakeholders. Read additional letters of support here.
Click here to read the full legislative text of the proposal.
