Title 49, TransportationRelease 119-110

§305 Transportation Investment Standards and Criteria

Title 49 › SUBTITLE I — DEPARTMENT OF TRANSPORTATION › CHAPTER 3 — GENERAL DUTIES AND POWERS › SUBCHAPTER I — DUTIES OF THE SECRETARY OF TRANSPORTATION › § 305

Last updated Sep 23, 2026|Official source

Summary

The Transportation Secretary must create rules to shape and economically evaluate any federal proposal to invest U.S. government money in transportation facilities or equipment. The Secretary must update those rules as experience shows and put them into effect once Congress approves them. The rules do not apply to six kinds of actions: federal agencies buying transport for their own use; an inter‑oceanic canal outside the 48 contiguous States; defense features added by the Department of Defense to civil transport projects; foreign assistance programs; water resources projects; or grant‑in‑aid programs. When a federal department or agency makes a survey, plan, or report that includes a proposal covered by those rules, it must use the Secretary’s rules and the Secretary’s data on projected growth of transportation and traffic, the efficiency of different transport modes, available services, and the likely effect on existing modes and on the regional and national economy. The agency must coordinate the work with the Secretary (and include the Secretary’s comments), coordinate as needed with other federal, state, and local governments (and include their comments), and then send the study to the President for action under applicable law and procedures.

Full Legal Text

Title 49, §305

Transportation, Source: USLM XML via OLRC

(a)Subject to section 301–304 of this title, the Secretary of Transportation shall develop standards and criteria to formulate and economically evaluate all proposals for investing amounts of the United States Government in transportation facilities and equipment. Based on experience, the Secretary shall revise the standards and criteria. When approved by Congress, the Secretary shall prescribe standards and criteria developed or revised under this subsection. This subsection does not apply to—
(1)the acquisition of transportation facilities or equipment by a department, agency, or instrumentality of the Government to provide transportation for its use;
(2)an inter-oceanic canal located outside the 48 contiguous States;
(3)defense features included at the direction of the Department of Defense in designing and constructing civil air, sea, or land transportation;
(4)foreign assistance programs;
(5)water resources projects; or
(6)grant-in-aid programs authorized by law.
(b)A department, agency, or instrumentality of the Government preparing a survey, plan, or report that includes a proposal about which the Secretary has prescribed standards and criteria under subsection (a) of this section shall—
(1)prepare the survey, plan, or report under those standards and criteria and on the basis of information provided by the Secretary on the—
(A)projected growth of transportation needs and traffic in the affected area;
(B)the relative efficiency of various modes of transportation;
(C)the available transportation services in the area; and
(D)the general effect of the proposed investment on existing modes of transportation and on the regional and national economy;
(2)coordinate the survey, plan, or report—
(A)with the Secretary and include the views and comments of the Secretary; and
(B)as appropriate, with other departments, agencies, and instrumentalities of the Government, States, and local governments, and include their views and comments; and
(3)send the survey, plan, or report to the President for disposition under law and procedure established by the President.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 305(a)49:1656(a) (less next-to-last par.).Oct. 15, 1966, Pub. L. 89–670, § 7 (less (a) next-to-last par.), 80 Stat. 941. 305(b)49:1656 (less (a)). In subsection (a), before clause (1), the words “consistent with national transportation policies” after “develop standards and criteria” are omitted as unnecessary because of section 302 of the revised title. The words “Based on experience” are substituted for “in the light of experience”, and the words “shall prescribe” are substituted for “be promulgated by the”, to conform to other sections of the revised title. The words “from time to time” after “shall revise” are omitted as unnecessary. The words “This subsection does not apply to” are substituted for “except such proposals as are concerned with” for clarity. In clause (1), the words “a department, agency, or instrumentality of the Government” are substituted for “Federal agencies” for clarity and consistency. Similar conforming changes are made throughout the section. The word “services” after “provide transportation” is omitted as unnecessary. In clause (2), the words “48 contiguous States” are substituted for “contiguous United States” for clarity. The text of 49:1656(a) (last par.) that provided that the Secretary of Transportation was a member of the Water Resources Council on matters pertaining to navigation features of water resource projects is omitted as superseded because 42:1962(a) gave the Secretary membership on the Council without limitation. In subsection (b)(2), the words “unit of” before “governments” are omitted as surplus. In clause (3), the word “thereafter” after “send” is omitted as surplus.

Editorial Notes

References in Text

section 304 of this title, referred to in subsec. (a), was amended generally by Pub. L. 112–141, div. A, title I, § 1314(a), July 6, 2012, 126 Stat. 547.

Reference

Citations & Metadata

Citation

49 U.S.C. § 305

Title 49, Transportation

Last Updated

Sep 23, 2026

Release point: 119-110