House Passes Rolling Stock Protection Act (UPDATED, 5/23)

U.S. Rep. Rick Crawford (U.S. House of Representatives)

The U.S. House of Representatives on May 21 passed H.R. 3317, the Rolling Stock Protection Act, “closing a loophole” allowing taxpayer dollars from being used to purchase railcars made by CRRC (China Railway Rolling Stock Corp.).

The bill was introduced last year by U.S. Rep. Rick Crawford (R-AR-01) and was recommended on May 15 by the House Transportation and Infrastructure Committee for a full vote under suspension. The House passed the bill late Tuesday by a two-thirds vote.

In a February hearing of the Highways and Transit Subcommittee, Rep. Crawford—in his role as chair—said the importance of the Rolling Stock Protection Act is that it “firmly and finally put[s] an end to the practice of sending American taxpayer dollars to Chinese-based manufacturers of rail cars and buses.”

H.R. 3317 builds on the Transit Infrastructure Vehicle Security Act (TIVSA), which was included in the National Defense Authorization Act of 2020. This law also prohibits using federal funds to purchase rolling stock from Chinese-owned manufacturers. Still, a provision allowed by the Federal Transit Administration (FTA) “gives a lifetime exemption to state-owned entities that had secured contracts before December 2019—CRRC included.”

In the U.S., “CRRC made quick inroads in the domestic passenger rail market by underbidding on railcar manufacturing contracts for transit agencies from Los Angeles to Boston, reaping $2.6 billion in contracts and undisclosed millions in subsidies from the Chinese Communist Party; abroad, the European Commission has called CRRC to account for anticompetitive railcar bids that threaten European manufacturers,” according to the House of Representatives.

“Rep. Crawford has been instrumental in promoting policies that protect America’s transportation infrastructure from foreign adversaries while securing family-wage jobs in the domestic railcar manufacturing and supply industry—jobs that China no doubt has set its sights on,” RSA Executive Director Erik Olson said. “We are grateful for Rep. Crawford’s leadership on H.R. 3317 as it shuts the door on this particular threat.”

Along with Rep. Crawford, Reps. Scott Perry (R-PA-10), Kay Granger (R-TX-12), Tim Ryan (D-OH-13), Eleanor Holmes Norton (D-DC), Randy Weber (R-TX-14) and John Garamendi (D-CA-03) are bill co-sponsors. On TIVSA, U.S. Senators John Cornyn (R-TX); Tammy Baldwin (D-WI); Mike Crapo (R-ID); and Sherrod Brown (D-OH) introduced the bill, which received support from 48 bipartisan cosponsors.

The Railway Supply Institute (RSI) commended this decisive move, highlighting its “critical importance for both economic and national security.” Upon passage, RSI President Patty Long made the following statement:

“The passage of H.R. 3317 builds on the pivotal TIVSA provision by removing any opportunity for Chinese SOEs to infiltrate the U.S. rail supply industry and the U.S. rail system. Lawmakers not only recognize the importance of leveling the playing field for domestic manufacturers but also the gravity of safeguarding our nation’s infrastructure from potential security threats.”