Skip to content

Posts from the "Federal Funding" Category

17 Comments

With No Transport Funding Fix, USDOT to Cut Payments to States Next Month

Click to enlarge. Next month, the Highway Trust Fund -- the funding mechanism for the nation's transportation system -- will become insolvent next month without Congressional action. Chart: FHWA

Click to enlarge. Next month, the Highway Trust Fund — the funding mechanism for the nation’s transportation system — will become insolvent unless Congress acts. Chart: FHWA

State transportation departments could see the federal funding they receive pared back as early as a few weeks from now if Congress doesn’t come up with a transportation funding solution.

A “cash management plan” to deal with the impending shortfall in the Highway Trust Fund — which actually pays for transit, biking, and walking projects in addition to roads — was outlined in a letter from U.S. DOT to state transportation officials yesterday [PDF]. U.S. Transportation Secretary Anthony Foxx wrote that “as we approach insolvency, the Department will be forced to limit payments to manage the reduced levels of cash.”

Federal transportation revenues have been faltering for a long time, primarily because inflation has eaten away at the gas tax, which hasn’t increased in more than 20 years. Congress and the White House have floated many possible solutions of varying merit — a gas tax increase, an excise tax on oil, “business tax reform,” even canceling Saturday mail service. Lacking an agreed-upon revenue source, the Highway Trust Fund has been propped up with general revenues over the last few years. It is unclear whether Congress will extend that stopgap before funding starts to run dry in the next few months.

In his letter, Foxx indicated that if the issue isn’t resolved by August 1, around the time when revenues are expected to dip below current spending levels, U.S. DOT will dole out the available money based on existing funding formulas. In other words, the funding cuts will be shared among all the states, based on population and other factors.

In a speech yesterday in Washington, President Obama urged Congressional action to ward off funding problems, saying inaction would put 700,000 jobs at risk — or about as many people as live in Denver or Boston. He blamed Congressional Republicans for failing to act to resolve the issue.

10 Comments

FHWA: Bike-Ped Investments Pay Off By Cutting Traffic and Improving Health

Marin County rebuilt an old railroad tunnel and created a 1.1-mile non-motorized path, expanding transit access and increasing biking by 95 percent. Photo: ##http://parisi-associates.com/projects/non-motorized-transportation-pilot-program/##Parisi Associates##

Marin County rebuilt an old railroad tunnel and created a 1.1-mile walking and biking path, improving access to transit and increasing biking 95 percent on the road leading to the tunnel. Photo: Parisi Associates

Nine years after launching a program to measure the impact of bike and pedestrian investments in four communities, the Federal Highway Administration credits the program with increasing walking trips by nearly a quarter and biking trips by nearly half, while averting 85 million miles of driving since its inception.

In 2005, the FHWA’s Nonmotorized Transportation Pilot Program (NTPP) set aside $100 million for pedestrian and bicycle programs in four communities: Columbia, Missouri; Marin County, California; Sheboygan County, Wisconsin; and the Minneapolis region in Minnesota.

Each community had $25 million to spend over four years, with most of the funding going toward on-street and off-street infrastructure. According to a progress report released this week, about $11 million of that remains unspent, though the communities also attracted $59 million in additional funds from other federal, state, local, and private sources.

“The main takeaway is, we’ve now answered indisputably that if you build a wisely-designed, safe system for walking and biking within the context of a community that is aware of and inspired by fact that it is becoming a more walkable, bikeable place, you can achieve dramatic mode shift with modest investment,” said Marianne Fowler of the Rails-to-Trails Conservancy and an architect of the pilot program.

Columbia reconfigured a key commuter intersection to making walking and biking easier and safer, resulting in a 51 percent jump in walking rates and a 98 percent jump in biking at that location. In Marin County, the reconstruction of the 1,100-foot Cal Park railroad tunnel and construction of a 1.1-mile walking and biking path provided direct access to commuter ferry service to downtown San Francisco and reduced bicycling time between the cities of San Rafael and Larkspur by 15 minutes. Biking along the corridor increased 95 percent, and a second phase of the project is still to come.

The program helped jump-start the Nice Ride bike-share system in Minneapolis, which grew to 170 stations and 1,556 bicycles by 2013, with 305,000 annual trips. And in Sheboygan County, the ReBike program distributed bicycles to more than 700 people and a new 1.7-mile multi-use path was built, following portions of an abandoned rail corridor through the heart of the city of Sheboygan. “Sixty percent of the population of Sheboygan County lives in close proximity to that corridor,” said Fowler. “And the trail gives them access to almost anything in Sheboygan.”

FHWA could see the impact: At locations where better infrastructure was installed, walking increased 56 percent and biking soared 115 percent. Using a peer-reviewed model, FHWA also estimated changes in walking and biking throughout the four communities. The program led to a 22.8 percent increase in walking trips and a 48.3 percent increase in biking trips. Without the interventions, residents would have driven 85 million more miles since the program launched, according to FHWA.

Read more…

4 Comments

Senator Pat Toomey Fights to Spare America From Safe Streets

You know the Senate is close to passing transportation legislation when someone introduces a hare-brained amendment to ban bike and pedestrian programs.

Sen. Pat Toomey's answer to the transportation funding crisis is to stop funding the most cost-effective projects. Photo: ##https://www.flickr.com/photos/gageskidmore/8565245671/##Flickr/gageskidmore##

Sen. Pat Toomey’s answer to the transportation funding crisis is to stop funding the most cost-effective projects. Photo: Flickr/gageskidmore

Sen. Ron Wyden, as promised, yesterday introduced a bill to extend MAP-21 and the Highway Trust Fund’s authority by three months. It also transfers some money from the general fund into the HTF to keep it afloat until December 31.

Pennsylvania Republican Pat Toomey saw that as his chance to attack bike and pedestrian programs. He inserted an amendment that he calls “To reserve federal transportation funds for national infrastructure priorities.” Those national priorities apparently don’t include safety, air quality, congestion reduction or public health. Here’s his amendment:

No funds distributed from the Highway Trust Fund established in Title 26, Sec. 9503 of the United States Code may be spent for the purpose of operating the Federal Transportation Alternatives Program.

The Transportation Alternatives Program is the tiny pot of money available for bike and pedestrian projects.

Toomey also introduced an amendment rescinding high-speed rail funds and another exempting infrastructure destroyed during a “declared emergency” from environmental reviews if they’re rebuilt in the same footprint.

Other amendments [PDF] include Wyden’s push for an expedited process to pass a long-term transportation bill (when the time comes) and a proposal from four Democratic senators to extend the transit commuter benefit at the same level as the parking benefit. 

Sen. Jay Rockefeller has an intriguing amendment to create an account within the Highway Trust Fund called the Multimodal Transportation Account. It would fund freight projects, intelligent transportation systems, and other works that don’t fit neatly into one modal silo or another.

Sen. Carper has his name on two amendments to raise the gas tax until it recoups the purchasing power it’s lost over the 21 years since it’s been set at 18.4 cents a gallon, and index it to inflation thereafter. There’s also an amendment to establish an Infrastructure Financing Authority and one to establish an American Infrastructure Fund.

1 Comment

“Rally for Roads” Demands Transportation Funding Fix

Finance Committee Chair promises: "Failure is not an option." Photo: ##https://twitter.com/RonWyden/status/476793885050802176##Twitter/Ron Wyden##

Finance Committee Chair Ron Wyden: “Failure is not an option.” Photo: Ron Wyden/Twitter

This morning, the road construction industry rallied in front of the U.S. Capitol to demand that Congress invest in infrastructure. But some of the best-known transportation reformers in Washington were also on hand for an event that didn’t focus on one mode over others.

The overriding message of the day was simple: Don’t let transportation funding dry up. While the list of sponsors included mostly construction groups that want more money for their industry, many of them would be just as happy to build transit as roads. Kerri Leininger of the National Ready-Mix Concrete Association, one of the main organizing groups, said limiting the Highway Trust Fund to only highways, as some have suggested, is not their message.

Rep. Earl Blumenauer pushed for his bill increasing the gas tax by 15 cents over three years and indexing it to inflation. Rep. Peter DeFazio unveiled his new plan to replace the gas tax entirely with a per-barrel levy on oil companies.

Sen. Ron Wyden intoned, “When it comes to funding transportation, failure is not an option!” As chair of the Senate Finance Committee, Wyden is the person tasked with actually finding a way to fund transportation — and get it through both houses of Congress. He’s as aware as anyone of the looming possibility of failure.

Read more…

21 Comments

Why the Senate Transportation Bill Will Devastate Transit

Transit officials lined up today to make clear that holding transit spending at current levels — as the Senate’s transportation authorization bill does — will put transit systems at risk of falling further into dangerous disrepair.

Beverly Scott of the MBTA warned that current funding levels, as continued by the proposed Senate transportation bill, are "woefully insufficient."

Beverly Scott of the MBTA warned that current funding levels, as continued by the proposed Senate transportation bill, are “woefully insufficient.”

The backlog for transit maintenance and replacement stands “conservatively” at $86 billion, according to the Federal Transit Administration. That backlog is expected to keep growing at a rate of $2.5 billion each year without a significant infusion of funds.

To put it another way, the country needs to spend $2.5 billion more per year – from federal, state and local sources – just to keep the state of the nation’s transit systems from getting even worse.

Sen. Bob Menendez (D-NJ) was determined to expose the shortcomings of the bill Sen. Barbara Boxer (D-CA) recently shepherded through the Environment and Public Works Committee. While the bill’s transit title hasn’t been written yet, EPW has been clear about its intentions to keep spending at current levels plus inflation. That means no help toward the $2.5 billion boost needed to keep things from getting worse.

Menendez chaired a hearing today of the Banking Committee — the very committee tasked with writing the transit title within the framework established by EPW — to demonstrate the problem with the bill’s funding levels.

“By a simple yes or no,” Menendez asked the transit officials before him, “does anyone on the panel believe that current funding levels are enough to help you achieve a state of good repair?”

“They are insufficient,” answered Joseph Casey, general manager of Philadelphia’s SEPTA.

“Woefully insufficient,” added Beverly Scott, head of Boston’s MBTA and a nationally respected transportation visionary.

“No sir,” said Gary Thomas of Dallas Area Rapid Transit.

Read more…

1 Comment

Sen. Bob Corker Sets Up for Gas Tax Increase, Yanks the Football

Last week — Infrastructure Week, as it happens — Sen. Bob Corker (R-TN) sent an urgent plea [PDF] to the leaders of the Environment and Public Works Committee the day before they unanimously approved the committee’s transportation reauthorization bill and sent it to the full Senate. Corker also sent his letter to the top members of the Finance Committee, who are actually in charge of finding funding for the bill, since the Highway Trust Fund alone comes $100 billion short.

Sen. Bob Corker can't quite get behind a gas tax hike, though his entire argument points in that direction. Photo: ##http://www.corker.senate.gov/public/index.cfm?FuseAction=Images.Display&ImageGallery_id=a36a3e1a-0103-b714-2285-f8fb90d613e1##Office of Sen. Corker##

Sen. Bob Corker can’t quite get behind a gas tax hike, though his entire argument points in that direction. Photo: Office of Sen. Corker

What Corker is calling for, in essence, is a pillaging of the U.S. budget to subsidize driving.

“In the last few years, Congress has allowed the [Highway Trust Fund] to become one of the largest budget gimmicks in the federal government,” he wrote.

So far so good — no one could argue with that. The gas tax is worth less than two-thirds of what it was worth in 1993, the last time it was raised, and Congress was forced to bail out the HTF three times between September 2008 and March 2010 — not to mention the $18.8 billion bailout in the form of MAP-21.

That’s a lot of taxpayer money spent on something that’s supposed to be funded with a user fee, which just about everyone in Washington holds as ideal. But when costs rise with inflation and revenues don’t, Congress has shoveled general funds into the HTF rather than buck up and raise the user fee.

Corker says these transfers make a mockery of the idea of “a self-sustaining ‘trust fund.’”

“These transfers are also causing highway program spending to look more and more like an appropriated discretionary program,” he wrote, “but without any of the budget oversight Congress can exercise over other spending bills.”

Read more…

No Comments

Senate Transportation Bill Moves Forward With a Few Key Changes

The Senate’s proposal for the next transportation reauthorization took another step forward today with the unanimous approval of the Environment and Public Works Committee. The bill the members sent to the full Senate was slightly different from the one that was unveiled Monday night.

EPW Committee Chair Barbara Boxer said she's proud of the bipartisan bill the committee passed unanimously this morning.

EPW Committee Chair Barbara Boxer said she’s proud of the bipartisan bill the committee passed unanimously this morning.

The changes include [PDF]:

  • An amendment introduced by Kirsten Gillibrand (D-NY) increasing the proportion of National Highway Performance Program funds that can be used for non-National Highway System bridges from 10 percent to 15 percent. That helps correct an error of MAP-21, in which all bridge funding went into NHPP but less than half the nation’s bridges went into that program, leaving the rest unfunded.
  • An amendment introduced by James Inhofe (R-OK) reducing the TIFIA loan program from $1 billion to $750 million a year and using the savings to fund research and development out of the Highway Trust Fund. Originally, the bill kicked research out of the HTF and left it to discretionary general funds, which left many worrying that it wouldn’t get funded at all. Inhofe’s amendment restores some certainty but also cuts funding levels for research almost in half.
  • An amendment agreed to by the top four members of the committee — Barbara Boxer, David Vitter, Tom Carper, and John Barrasso – weakened safety performance measures and reduced the consequences for worsening conditions.
  • An amendment introduced by Bernie Sanders (I-VT) that essentially classifies Vermont (and a handful of other states) as rural for the purposes of making it eligible for rural funds under the discretionary PNRS grant program.

All the senators present at the markup agreed with Boxer’s assertion that “this is truly a great day for our committee.” Many members specifically expressed their enthusiasm for the six-year duration of the bill after the disappointingly short two-year MAP-21.

“I’m proud we’ve stepped up in a bipartisan manner to develop and pass the legislation,” she said. “I hope it sends a powerful signal to our colleagues and to the public that we will address the looming funding crisis in the Highway Trust Fund.”

Read more…

9 Comments

How the Federal TIGER Program Revived a Cleveland Neighborhood

The "Uptown" development in Cleveland is part a way of construction that a TIGER grant helped catalyze in Cleveland. Photo: MRN

The “Uptown” development in Cleveland was catalyzed by a TIGER grant that helped relocate a rail station. Photo: MRN

Cleveland doesn’t look like a dying Rust Belt city these days in the Little Italy and University Circle neighborhoods. In fact, it looks like it’s thriving.

At the corner of Euclid and Mayfield, a new mixed-use development — MRN’s “Uptown” — is filling out, hosting a bookstore, a bakery, bars, and new apartments. Just across the street, the new home of the Museum of Contemporary Art sits gleaming, in the words of the New York Times, “like a lustrous black gem.” Another major office, retail, and residential project is planned a stone’s throw away.

biden_train

Vice President Joe Biden was in Cleveland Wednesday urging action to invest in infrastructure and preserve the TIGER program. Photo: Angie Schmitt

It’s hard to understate how remarkable this type of investment is in this area. Cleveland’s decades-long population decline has helped make it one of the weakest urban real estate markets in the country.

But this is a sweet spot in Cleveland. The Cleveland Clinic — Ohio’s largest employer — is less than a mile away. So are many of the city’s renowned cultural institutions — the Cleveland Museum of Art, the Cleveland Orchestra, and Case Western Reserve University. About 50,000 people work in the area.

Even so, the new developments in Little Italy might never have happened if not for the U.S. DOT’s TIGER program. Greater Cleveland’s Regional Transit Authority received a grant from the third round of TIGER funding in 2011, which provided about $12.5 million to rebuild and move a rail station from a dark, isolated location under a bridge about a third of a mile away to the middle of the neighborhood.

Local leaders in Cleveland had for years hoped to move the station to help build on the nearby assets. When the RTA applied for funding through TIGER, it was one of 828 projects seeking $517 million in funding. Just 46 of those applicants were awarded grants.

Despite the enormous demand for TIGER, it has been under the constant threat of elimination by the House GOP since the program was launched in 2009. A recent proposal put forward by House Republicans would turn TIGER from a multi-modal program that helps cities and metro areas directly access federal funds into a roads program. Meanwhile, the Senate has proposed a new transportation bill that fails to fund TIGER.

And that’s why Joe Biden was in Cleveland on Wednesday stumping for a new transportation bill that would preserve TIGER. ”This is what we should be doing all over the nation,” said Biden.

Read more…

20 Comments

President Obama’s Hollow Push for Infrastructure Investment

With the Tappan Zee Bridge behind him, President Obama made his case for more infrastructure spending. Photo: ##https://twitter.com/TheObamaDiary/status/466676032834387969/photo/1##TheObamaDiary/Twitter##

With an old highway bridge and the cranes building its replacement behind him, President Obama made his case for more infrastructure spending. Photo: TheObamaDiary/Twitter

This afternoon, President Obama stood by New York’s Tappan Zee Bridge and made a speech pressing Congress to do something about infrastructure investment. It’s part of his Infrastructure Week push for Congress to pass a fully funded transportation reauthorization bill. Many other groups are spending this week sounding the same horn.

“If they don’t act by end of summer, federal funding for transportation projects will run out. The cupboard will be bare,” Obama said today. “Nearly 700,000 jobs will be at risk.”

“So far, at least, the Republicans who run this Congress seem to have a different priority,” he said. “Not only have they prevented, so far, efforts to make sure funding is still in place for what we’ve already got, but their proposal would actually cut job-creating grant programs that funded high-priority transportation projects in all 50 states — they’d cut ‘em by about 80 percent.”

Indeed, Obama has submitted a bill to Congress calling to increase federal transportation investment to $302 billion over the next four years. The problem is, his plan to pay for it — using what he calls “pro-growth” business tax reform and the repatriation of offshore profits — is falling on deaf ears in Congress. Advocates criticize the plan as a one-time gimmick, not a long-term funding source.

The most obvious and simple method of raising more revenue in the long run is to increase the gas tax, which hasn’t been raised since 1993 and has lost an estimated 37 percent of its purchasing power. Experts say an increase of 10 to 15 cents per gallon is needed to fill the gap in the nation’s transportation funding.

But the Obama administration has been adamant in its refusal to raise the gas tax. Though former Transportation Secretary Ray LaHood came out in favor of a 10 cent hike almost as soon as he left office, he toed the official line while at U.S. DOT, insisting that a hike was a non-starter. At a Commerce Committee hearing last week, LaHood’s successor, Anthony Foxx, disappointed senators by dodging a question about increasing the gas tax, saying only that he would “listen to Congress.”

Read more…

16 Comments

GOP Appropriations Bill Would Turn TIGER Into a Roads Program

As the president’s transportation proposal fades from the news cycle and we eagerly await the Senate Environment and Public Works Committee’s six-year reauthorization bill, here comes the House Republicans’ proposed budget for transportation and housing for next year.

This is what the country's best innovative transportation grant program could become. Photo: ##http://t4america.org/2009/12/11/pew-self-sustaining-highways-are-increasingly-subsidized/##T4America##

This is what the country’s best innovative transportation grant program could become. Photo: T4America

Note: What the House GOP released yesterday wasn’t an authorization bill but an appropriations bill for 2015. So far, there is no authorization guiding transportation spending for 2015, and as such this appropriations bill says that its funding levels are “contingent on the enactment of new transportation authorization legislation.” Nothing can be appropriated that isn’t authorized.

While previous GOP appropriations proposals have eliminated TIGER grant funding altogether, this proposal allocates $100 million for TIGER, down from the $600 million the program got this year. More horrifically, the GOP proposes to limit TIGER grants to projects that “address critical transportation needs,” defined as roads and bridges, ports and freight rail.

And just to be clear about what they mean, the GOP adds, “The legislation does not allow these funds to be used for non-essential purposes, such as street-scaping, or bike and pedestrian paths.” Also ineligible are transit projects that would be eligible for New Starts or other FTA grants, carpool projects, ADA compliance for sidewalks, highway and transit safety improvements, planning, congestion mitigation, intelligent transportation systems, anything related to congestion pricing (including electric toll collection and travel demand management), or recreational trails.

Honestly, if that’s what TIGER would become, maybe it would be best to zero it out altogether.

President Obama’s proposal, released last week, would double the TIGER program. Historically, TIGER has been a way cities and metro areas can bypass their states to go directly to the federal government for funds for multi-modal programs. Transit, biking and walking projects — as well as freight projects that haven’t always had a natural home in other federal funding programs — have done very well with TIGER.

The rest of the GOP appropriations bill’s cuts are mostly notable in their restraint. The bill hews to the bipartisan two-year budget resolution for 2014 and 2015 and not Paul Ryan’s 2015 budget, which would have held transportation spending to the levels available in the Highway Trust Fund.

Read more…