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Quick Fix

THE INFRASTRUCTURE BLITZ: The Senate is moving full speed ahead on infrastructure, with Majority Leader Chuck Schumer confirming in recent days that his plan is for the chamber to vote in July on both a bipartisan infrastructure compromise and a budget resolution moving toward a larger reconciliation.

Schumer issued a perennial threat that hints at the scramble ahead: weekend work and cutting recess short. “Please be advised that time is of the essence and we have a lot of work to do,” he wrote in a letter to the caucus. “Senators should be prepared for the possibility of working long nights, weekends, and remaining in Washington into the previously-scheduled August state work period.”

Disarray? There remains plenty of disagreement about the best path forward among Democrats in Congress. “Some House moderates are urging party leaders to focus squarely on the bipartisan bill, while many liberals remain skeptical it will happen at all,” write POLITICO’s Burgess Everett and Sarah Ferris.

What it will take: “A successful July and August will require intense coordination by Schumer, Pelosi and committee leaders. They’ll need to make sure the bipartisan bill can pass both the Senate and the House and that its paired reconciliation bill has lockstep support in both chambers, a more complex dance than Democrats' swift passage of the $1.9 trillion coronavirus aid law in March.”

IT’S MONDAY: You’re reading Morning Transportation, your guide to Washington policy and politics on planes, trains, cars and everything that moves. Send your tips, pitches and feedback to [email protected] or @samjmintz.

“I am a passenger / And I ride, and I ride / I ride through the city's backsides / I see the stars come out of the sky.”

Around the Agencies

HOW BIDEN WANTS TO BOOST TRANSPORTATION COMPETITION: President Biden’s executive order on competition announced Friday takes aim at a number of transportation industries, and will create or expand key regulatory fights from rail to shipping to aviation. Here’s what you need to know:

In the air: Airlines are a large focus of Biden’s competition blitz. DOT will create a working group to “evaluate the effectiveness” of a wide range of aviation programs, rules and consumer protections. Among other things, the order directs DOT to review the system of takeoff and landing “slots” currently in place at three major airports — a source of frustration for low-cost carriers, which have argued that the system unfairly benefits the major airlines. Also among the changes expected was a new consumer protection rule that DOT deployed swiftly in the hours after Biden’s order, mandating that airlines refund checked-bag fees when luggage is delayed more than 12 hours for domestic flights and more than 25 hours for international flights. Airlines are currently required to refund fees in the case of lost bags, but not for delayed bags. Carriers would also be required to refund passengers when they fail to provide “ancillary services” that customers paid for, like advance seat selection or Wi-Fi.

On the rails: The order takes aim at freight railroads, calling on the independent Surface Transportation Board to consider a rulemaking strengthening regulations around reciprocal switching agreements. Here’s how our Tanya Snyder described that provision: “Reciprocal switching means that even if one railroad has exclusive physical access to a shipper’s facility, it will still need to compete on price and service with other railroads because the shipper could choose to switch the load to another carrier at the closest interchange point.” The order also encourages the STB to start other rulemakings to improve competitive access, reduce bottlenecks and delays, and improve on-time performance for passenger rail.

A big blow for massive merger? As your MT host reports, another huge impact of the order could be to help tip the scales against the merger between two freight rail giants, Canadian National and Kansas City Southern, which is under consideration at the STB. The two big takeaways from our story: The order tells agencies, even independent ones like the STB, to give substantial weight to the Justice Department’s opinion (DOJ has opposed the rail merger). And STB Chairman Martin Oberman, an outspoken new leader at the agency, came out in support of the order and reiterated strong worries he has expressed in the past about rail industry consolidation in general.

On the Hill

MORE MONEY, FEWER PROBLEMS: House appropriators are proposing a big boost to the Department of Transportation’s budget in 2022, with their draft spending bill released this weekend eclipsing both 2021 levels and the president’s request for next year. Your MT host has the details for Pro subscribers here.

Among the notable hikes: A big boost for passenger rail funding, with $4.1 billion total heading to the FRA, including for the new PRIME passenger rail grant program proposed by the Biden administration. Transit programs would also get $2 billion more than Biden’s budget in the House bill.

Earmarked: The legislation includes member-chosen projects as the House is returning to using earmarking for the first time in years. It includes $427.5 million in earmarked highway and transit projects, and about $80 million earmarked for airports.

What’s next: The Transportation-HUD subcommittee will mark up the bill today, and the full Appropriations Committee will do the same on Friday.

The Autobahn

— “Musk under fire again: CEO to testify over Tesla acquisition.” The Associated Press.

— “President Biden wants to pour money into infrastructure. Should you?” The New York Times.

— “Golf carts now run on the same batteries as your EV.” Bloomberg.

— “Richard Branson’s Virgin Galactic flight opens door to space tourism.” The Wall Street Journal.

— “How a perfect storm of shortages and rental car chaos sent used-car prices skyrocketing.” Business Insider.

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