House T&I closes TIVSA loophole

Today, the Rail Security Alliance (RSA) applauded the passage of H.R. 3317 by the U.S. House Transportation and Infrastructure Committee.

The bill was introduced by Highways & Transit Subcommittee Chair Rick Crawford (R-AR) and provides additional security around the nation’s procurement and manufacturing of rolling stock.

The Transportation Infrastructure Vehicle Security Act (TIVSA), which was signed into law as part of the FY2020 National Defense Authorization Act, bans Federal Transit Administration (FTA) funds from being used to purchase rolling stock — rail cars or buses — from foreign state-owned or controlled companies.

However, TIVSA exempted transit agencies already under contract with Communist China controlled CRRC. That exemption meant agencies could continue to use FTA dollars, in perpetuity, for Chinese rolling stock.

Before TIVSA’s passage, CRRC had won more than $2.6 billion worth of contracts to assemble passenger railcars in four of America’s largest cities (Boston, Chicago, Los Angeles, and Philadelphia), raising both national and economic security concerns — and in turn costing the U.S. thousands of good-paying manufacturing jobs.

H.R. 3117 closes this critical loophole that exempted transit agencies already under contract with state owned enterprises.

“This legislation protects American jobs and ensures U.S. taxpayer dollars are not directly subsidizing companies controlled by the Chinese Communist Party,” said Erik Olson, executive director of the Rail Security Alliance. “We are grateful that Chair Crawford and the T&I committee is committed to protecting American jobs and our national security.”