Letter to Rep. David Price, Chair of the Transportation, and Housing and Urban Development and Related Agencies Subcommittee of the House Appropriations Committee and Rep. Mario Diaz-Balart, Ranking Member of the Transportation, and Housing and Urban Development and Related Agencies Subcommittee of the House Appropriations Committee - Norton, Capital Region Members, Urge Appropriators to Prohibit the Purchase of Railcars from State-Owned Corporations

Letter

Dear Chairman Price and Ranking Member Diaz-Balart:

As you continue to draft the FY 2020 Transportation, Housing, and Urban Development and Related Agencies Appropriations bill, we urge you to include language making grants to the Washington Metropolitan Area Transit Authority (Metro) contingent upon Metro's certification that it will not award any contract or subcontract to state-owned corporations.

Critical infrastructure systems around the country have been increasingly targeted in recent years as part of coordinated hacking attempts and other forms of interference, often carried out by, or at the direction of, foreign governments. In the transportation sector, there has been increased interest from some of these same foreign governments, acting through state-owned intermediaries, to participate in state and local procurements, including those to manufacture and assemble railcars for transit agencies around the country. While other jurisdictions have welcomed this investment, as Metro moves forward with its procurement process for the 8000-series railcar, we have serious concerns about similar activity in the National Capital Region, particularly when it could involve foreign governments that have sought to undermine our country's economic competitiveness and national security.

Sustained federal funding for Metro is necessary for its survival, but it is not necessary to sacrifice our national security. Therefore, we request that the following language be included in the bill:

Sec. __. (a) None of the funds made available under the heading "GRANTS TO THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY" shall be available for grants unless the Washington Metropolitan Area Transit Authority certifies to the Secretary of Transportation that the Authority will not award any contract or subcontract for the procurement of rail rolling stock with a rail rolling stock manufacturer that-

"(1) is incorporated in or has manufacturing facilities in the United States; and

"(2) is owned or controlled by, is a subsidiary of, or is otherwise related legally or financially to a corporation based in a country that--

"(A) is identified as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of the date of enactment of this subsection;

"(B) was identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as a priority foreign country under subsection (a)(2) of that section; and

"(C) is subject to monitoring by the Trade Representative under section 306 of the Trade Act of 1974 (19 U.S.C. 2416).

(b) This section shall be applied in a manner consistent with the obligations of the United States under international agreements.

Thank you for considering our request.

Sincerely,