---
kind: "section"
citation: "49 U.S.C. § 70204"
title: "49"
title_heading: "Transportation"
number: "70204"
heading: "Multi-State freight corridor planning"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/70204"
units:
  - "Subtitle IX — Multimodal Freight Transportation"
  - "Chapter 702 — Multimodal Freight Transportation Planning and Information"
---

# §70204. Multi-State freight corridor planning

- (a) **Consent to Multi-State Freight Mobility Compacts.—** 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) **Financing.—** A multi-State freight compact established by entities under [subsection (a)](#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)](#b-3-A); and
      - (ii) bonds; and
  - (4) obtain financing by other means permitted under applicable Federal or State law.
- (c) **Advisory Committees.—**
  - (1) **In general.—** 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) **Activities.—** An advisory committee established under [paragraph (1)](#c-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) **Grants.—**
  - (1) **Establishment.—** 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) **New compacts.—**
    - (A) **In general.—** 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)](#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) **Eligibility.—**
      - (i) **New multi-state freight compacts.—** 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 compact.—** 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)](#d-2-B-ii-I), the initial 2 years of operation of the compact.
    - (C) **Requirements.—** 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)](#c-1) during the initial 2-year period of operation of the compact.
  - (3) **Existing compacts.—**
    - (A) **In general.—** The Secretary may award a grant to multi-State freight compacts that are not eligible to receive a grant under [paragraph (2)](#d-2) for operations costs in an amount of not more than $1,000,000.
    - (B) **Requirements.—** 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)](#c-1).
  - (4) **Authorization of appropriations.—** There is authorized to be appropriated to the Secretary $5,000,000 for each fiscal year to carry out this subsection.

## Source credit

(Added Pub. L. 117–58, div. B, title I, § 21106(a)(2), Nov. 15, 2021, 135 Stat. 659.)

## Notes

### Editorial Notes

### Prior Provisions

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