The Good & Bad of the Grow America Highway Bill

Phil Cohen

Congress has until May 31st to pass new legislation to fund the American highway system. As it stands, it looks as if the bill proposed by the Obama Administration, called the Grow America Act, will be what is passed before the deadline.

Anthony Foxx, the Transportation Secretary, has recently resubmitted the White House’s bill to Congress. The legal proposition features numerous elements that will impact those in the trucking and shipping industry (if it is passed), both for better and for worse.

Here are the highlights of the bill.

The Good.

The bill brings forth a significant focus on reforming the ways in which drivers are paid. Most importantly, it mandates that drivers receive compensation for the time that they spend on the job while not behind the wheel.  Often times, truckers are only paid for their services on the road, when in reality, the occupation demands far more than merely driving. According to Overdrive, Grow America will require drivers to be paid for detention time at shippers, receivers, and other non-driving work periods in general. This is obviously great news for truckers, as they will now get paid more for their services. The Department of Transportation declares that drivers, if the bill passes, will be paid at least the federal minimum wage for non-driving work periods.

The Bad.

Stop Tolls Ahead sign

While the bill does champion the interests of drivers in certain regards, it has also stirred up notable controversy in the world of transportation, considering that it also calls for the removal of the current ban on tolling Interstate lanes.

Trucking lobbyists and interests groups are enraged at this idea, and are actively against such a measure. One such group is the Alliance for Toll-Free Interstates, who, according to Overdrive, issued this statement on the matter:

“The idea has already been rejected by lawmakers, the public, and community leaders in the few states with a federal exception to the tolling prohibition. Tolls also divert heavy highway traffic onto secondary streets, which lead to premature road breakdown that costs local taxpayers, and they endanger public safety when rescue workers are delayed in responding to emergencies. This plan would also let states redirect toll revenues to completely unrelated projects, abusing public trust and exploiting highway drivers with a tax on interstates to pay for trolleys, public transit, and unspecified environmental projects, all without solving the transportation funding problem.”

The Unclear.

Passage of the legislation would additionally entail a repeal of the self-insurance of mega motor carriers, according to Land Line. Carriers would be forced to go through insurance companies, a practice that has not been mandatory since 1996.

Similarly, the proposed law imposes penalties for violations committed in personal vehicles. If CDL holders infringe upon certain rules from their own vehicles, they could face suspensions or revocations of their rights to drive commercial motor vehicles, Land Line reports.

The Grow America Act has its ups and downs, and will no doubt have a strong impact on the realm of trucking and shipping if it is passed. It is expected to be a close call when voting comes around, as its polarizing language has left politicians divided on many of the issues in question.

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Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

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