Title 49TransportationRelease 119-73

§70204 Multi-State freight corridor planning

Title 49 › Subtitle SUBTITLE IX— - MULTIMODAL FREIGHT TRANSPORTATION › Chapter CHAPTER 702— - MULTIMODAL FREIGHT TRANSPORTATION PLANNING AND INFORMATION › § 70204

Last updated Apr 6, 2026|Official source

Summary

Allows states, cities, regional planning groups, federally recognized Indian Tribes, and local public authorities that share a major multi-State freight route to form multi-State compacts to make moving goods easier. Those compacts can pick projects that help more than one State, assemble needed land or rights-of-way, and do big construction or capital improvements. They may take money from State or local governments, use Federal or State freight funds and grants, borrow short-term and issue notes or bonds, and get other financing allowed by law. The compacts can set up an advisory committee with State transportation departments and a range of public and private freight interests (for example, ports, railroads, shippers, carriers, freight associations, logistics providers, workers, environmental and community groups, and local governments). The committee will advise on priorities, serve as a place to discuss multi-State freight issues, coordinate with other groups, share public–private information, and help with State freight plans. The Secretary of Transportation must run a grant program for compacts or States forming compacts on routes in the National Multimodal Freight Network. New compacts or States forming one may get up to $2,000,000 for operations during the initial 2-year period if they apply, provide at least a 25% non‑Federal match, and create the advisory committee. Other compacts may get up to $1,000,000 if they apply, provide a 50% non‑Federal match, and have an advisory committee. Congress authorized $5,000,000 per fiscal year for this program.

Full Legal Text

Title 49, §70204

Transportation — Source: USLM XML via OLRC

(a)Congress recognizes the right of States, cities, regional planning organizations, federally recognized Indian Tribes, and local public authorities (including public port authorities) that are regionally linked with an interest in a specific nationally or regionally significant multi-State freight corridor to enter into multi-State compacts to promote the improved mobility of goods, including—
(1)identifying projects along the corridor that benefit multiple States;
(2)assembling rights-of-way; and
(3)performing capital improvements.
(b)A multi-State freight compact established by entities under subsection (a) may provide that, in order to carry out the compact, the relevant States or other entities may—
(1)accept contributions from a unit of State or local government;
(2)use any Federal or State funds made available for freight mobility infrastructure planning or construction, including applying for grants;
(3)subject to such terms and conditions as the States consider to be advisable—
(A)borrow money on a short-term basis; and
(B)issue—
(i)notes for borrowing under subparagraph (A); and
(ii)bonds; and
(4)obtain financing by other means permitted under applicable Federal or State law.
(c)(1)A multi-State freight compact under this section may establish a multi-State freight corridor advisory committee, which shall include representatives of State departments of transportation and other public and private sector entities with an interest in freight mobility, such as—
(A)ports;
(B)freight railroads;
(C)shippers;
(D)carriers;
(E)freight-related associations;
(F)third-party logistics providers;
(G)the freight industry workforce;
(H)environmental organizations;
(I)community organizations; and
(J)units of local government.
(2)An advisory committee established under paragraph (1) may—
(A)advise the parties to the applicable multi-State freight compact with respect to freight-related priorities, issues, projects, and funding needs that impact multi-State—
(i)freight mobility; and
(ii)supply chains;
(B)serve as a forum for States, Indian Tribes, and other public entities to discuss decisions affecting freight mobility;
(C)communicate and coordinate multi-State freight priorities with other organizations;
(D)promote the sharing of information between the private and public sectors with respect to freight issues; and
(E)provide information for consideration in the development of State freight plans under section 70202.
(d)(1)The Secretary of Transportation (referred to in this section as the “Secretary”) shall establish a program under which the Secretary shall provide grants to multi-State freight compacts, or States seeking to form a multi-State freight compact, that seek to improve a route or corridor that is a part of the National Multimodal Freight Network established under section 70103.
(2)(A)To incentivize the establishment of multi-State freight compacts, the Secretary may award a grant for operations costs in an amount of not more than $2,000,000 to—
(i)a multi-State freight compact established under subsection (a) during the 2-year period beginning on the date of establishment of the multi-State freight compact; or
(ii)States seeking to form a multi-State freight compact described in that subsection.
(B)(i)A multi-State freight compact shall be eligible for a grant under this paragraph only during the initial 2 years of operation of the compact.
(ii)States seeking to form a multi-State freight compact shall be eligible for a grant under this paragraph during—
(I)the 2-year period beginning on the date on which an application for a grant under this paragraph with respect to the proposed compact is submitted to the Secretary; or
(II)if the compact is formed before the date on which a grant under this paragraph is awarded in accordance with subclause (I), the initial 2 years of operation of the compact.
(C)To be eligible to receive a grant under this paragraph, a multi-State freight compact or the applicable States seeking to form a multi-State freight compact shall—
(i)submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require;
(ii)provide a non-Federal match equal to not less than 25 percent of the operating costs of the multi-State freight compact; and
(iii)commit to establishing a multi-State freight corridor advisory committee under subsection (c)(1) during the initial 2-year period of operation of the compact.
(3)(A)The Secretary may award a grant to multi-State freight compacts that are not eligible to receive a grant under paragraph (2) for operations costs in an amount of not more than $1,000,000.
(B)To be eligible to receive a grant under this paragraph, a multi-State freight compact shall—
(i)submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require;
(ii)provide a non-Federal match of not less than 50 percent of the operating costs of the compact; and
(iii)demonstrate that the compact has established a multi-State freight corridor advisory committee under subsection (c)(1).
(4)There is authorized to be appropriated to the Secretary $5,000,000 for each fiscal year to carry out this subsection.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 70204 was renumbered section 70206 of this title.

Reference

Citations & Metadata

Citation

49 U.S.C. § 70204

Title 49Transportation

Last Updated

Apr 6, 2026

Release point: 119-73