Freight investment is an emerging transportation need across the United States. The federal government should enact a national sales tax of 0.3 percent on the cost of shipping freight. These revenues should be disbursed to states based on their freight needs through a formula program, competitive program, or both. Such funding for freight improvements could benefit the region because it is North America’s freight hub and has significant freight-related transportation needs. A cost-of-freight service fee has a user-fee nexus to the freight system, and could be collected from shippers using any mode to move goods, including truck, rail, and water. A similar approach is currently used for air-freight shipments. Administration of a cost-of-freight service fee could be challenging and would require new rules and practices to accurately and efficiently collect the fee.