New infrastructure bill may raise costs through added regulatory burdens

The BUILD America 250 Act proposes significant spending on physical infrastructure while simultaneously introducing new regulatory requirements, including a mandated two-person crew for major freight trains. Analysis shows that incremental federal rules can increase unit costs between 0.8% and 2.3% and reduce shipment volumes by 1.4% to 4.1%, effectively acting as a concealed tax on movement. Existing oversight already involves multiple agencies, and additional mandates tend to pile on rather than replace older rules, inflating compliance expenses.

Historical evidence from the 1980 Staggers Rail Act suggests that giving railroads flexibility spurred productivity, investment and lower shipping costs while maintaining safety. The author recommends shifting to outcome-focused, performance-based regulations that let firms meet safety goals efficiently. While the bill contains valuable investments in bridges and ports, its regulatory approach could offset those gains by raising costs for manufacturers, retailers and consumers.