Summary: The Intermodal Surface Transportation Efficiency Act set aside $155 billion to improve the nation's surface transportation system during a six-year period ending in fiscal year 1997. Although the act mainly authorized highway construction and improvements, it also encouraged intermodal connections as a way to enhance the transportation infrastructure. Intermodal connections link the various transportation modes--highways, rail, air, and maritime facilities. Economists and transportation planners believe that productivity and efficiency gains can be achieved by improving intermodal connections. This report reviews (1) the Transportation Department's efforts to track how states used funds made available by the act to facilitate intermodal transportation and the nature and extent of funds used by states for intermodal freight projects, (2) how some local and regional areas that handle a large volume of freight have considered intermodal freight transportation issues as part of their planning process, and (3) the impediments some areas face in improving freight transportation. GAO also provides information on intermodal freight transportation trends.