To establish a National Magnetic Levitation Design Program, and for other purposes.

Establishes a National Magnetic Levitation Design Program to be managed jointly by the Secretary of Transportation (Secretary) and the Assistant Secretary of the Army for Civil Works (Assistant Secretary).

Directs the Secretary and the Assistant Secretary to establish a National Magnetic Levitation Joint Project Office (Maglev Project Office). Requires them to develop and transmit to specified congressional committees a national strategic plan (including consideration of high speed rail) for the design and construction of a national magnetic levitation surface transportation system.

Authorizes eligible participants to submit to the Maglev Project Office a proposal for research and development (R and D) of a conceptual design for a magnetic levitation system and an application for a grant to conduct such R and D.

Directs the Secretary and Assistant Secretary to: (1) award one-year phase-one R and D grants to no less than six applicants which must provide for the ten percent non-Federal share of the grant costs; (2) select not more than three participants to receive one-year phase-two grants for R and D leading to a final design for a magnetic levitation system if they agree to provide for the 20 percent non-Federal share of such grant costs; (3) select, after receiving such final design, one design for development into a full scale prototype magnetic levitation system; and (4) award, after selection of such design, one prototype construction grant to a State, local government, organization of State or local governments consortium of U.S. private businesses, or any combination of such entities to construct a prototype magnetic levitation system in accordance with such design.

Prohibits the disclosure of trade secrets or privileged or confidential commercial or financial information which is obtained from a U.S. business, research, or education entity as a result of activities under this Act.

Subjects the research, devleopment, and use of any technology developed pursuant to agreement under this Act, including the terms under which any technology may be licensed and resulting royalties distributed, to the provisions of the Stevenson-Wydler Technology Innovation Act of 1980. Authorizes the Secretary and Assistant Secretary to require grant recipients to assure that research and development be performed and that products embodying inventions made under such agreement be manufactured substantially in the United States.

Authorizes appropriations.

Requires the Secretary and Assistant Secretary to report periodically to specified congressional committees on progress made with regard to such systems.

Amends the Federal-Aid Highway Act of 1987 to require the Secretary (current law authorizes the Administrator of the Federal Highway Administration) to authorize States to make available with or without charge, to a publicly or privately owned authority or company, any lands and rights-of-way, where sufficient, within the publicly acquired rights-of-way of highways built with Federal funds in order to accommodate passenger, commuter, or high speed rail, magnetic levitation systems, and highway public mass transit facilities. Authorizes States to permit governmental use, use by public or private entities for passenger, commuter, or high speed rail, magnetic levitation systems, or other transit, utility use and occupancy of airspace rights-of-way, with or without charge, for transportation projects funded under such Act or this Act.