Rolling Stock Protection Act

Floor Speech

Mr. Speaker, I, too, rise in support of this legislation which would prohibit all U.S. transit agencies from using Federal dollars on rail rolling stock from State-owned enterprises, or SOEs.

As of today, the U.S. doesn't have any domestic transit railcar manufacturers. Federal transit policies have been designed over the years to reflect that reality while still encouraging domestic manufacturing wherever possible.

While the U.S. remains, at least for now, dependent on global transit car manufacturers, we need to ensure fair competition among all manufacturers, including SOEs.

When one entity receives government support for artificially low bids, if that is left unchecked over time, other manufacturers will be driven out of business. This would make transit cars more expensive in the long run and leave systems across the country reliant upon just one manufacturer.

Congress recognized this concern after four U.S. transit agencies awarded rolling stock contracts to an SOE that submitted artificially low bids.

The 2020 National Defense Authorization Act first prohibited most U.S. transit agencies from using Federal transit funds to purchase rolling stock from SOEs. Transit car manufacturers that do not receive government subsidies, including manufacturers in South Korea, Japan, Spain, and other places, were not affected by this ban. Congress exempted the four transit agencies with the initial SOE contracts from the ban so as not to disrupt ongoing procurement.

The legislation that we are considering here today doesn't affect those initial contracts or any current options on those contracts, but it does prevent future contracts from being executed using Federal funds. The bill ensures that all U.S. transit agencies will operate under the same rules.

I would also note that nothing in this legislation impacts what transit agencies do with their local funding. It only affects funding from the Federal Government for transit railcars.

As transit agencies continue to receive the record funding provided by the Bipartisan Infrastructure Law, it is critical we ensure the market for rolling stock is fair and competitive.

Ultimately, that will yield the best outcome for transit agencies and will help them provide more reliable and effective service for their riders.

Mr. Speaker, I support this legislation, and I reserve the balance of my time.

BREAK IN TRANSCRIPT

Ms. TITUS. Mr. Speaker, in closing, I just want to say I support this legislation and encourage my colleagues to do the same.

BREAK IN TRANSCRIPT

Source