This bill directs the Department of Transportation (DOT) to publish a national strategic action plan to reduce greenhouse gas emissions in the transportation sector to the emissions target by the year 2040. (The emissions target is a level of greenhouse gas emissions from the transportation sector that does not exceed 20 percent of the level of greenhouse gas emissions in the United States for the year 2005, as determined by the Environmental Protection Agency.)

The plan may include criteria such as (1) strategies that increase the usage of passenger rail, public transportation systems, walking, cycling, and other low-carbon modes of transportation; (2) strategies and policies that reduce Vehicle Miles Traveled; (3) recommendations for tax incentives for the adoption of technology that produces low levels of greenhouse gas emissions; and (4) the development of transportation technology that dramatically reduces existing greenhouse gas emissions or produces low levels of greenhouse gas emissions.

The bill requires each state to develop a strategic action plan. DOT may withhold funding from states beginning in FY2023 until it determines that the state's strategic plan complies with criteria under the national plan.