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Posts from the "Federal Funding" Category

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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.

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“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.

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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.

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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.”

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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.”

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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.

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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.”

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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.

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Uh-Oh: Senate Finance Committee Draws a Blank on Transpo Funding

The Senate Environment and Public Works Committee is on the verge of releasing its proposal to reauthorize the federal transportation program until 2021. But it’s counting on the Senate Finance Committee to figure out how to pay for it. And that committee seems disturbingly far from an answer.

Sen. Barbara Boxer testified today before the Senate Finance Committee, asking members to come up with $18 billion a year for her spending plan.

Sen. Barbara Boxer testified today before the Senate Finance Committee, asking members to come up with $18 billion a year for her spending plan.

The Highway Trust Fund (yes, that’s still what it’s called) is projected to run out of money in August. U.S. DOT is planning to slow down reimbursements to states this summer and is hoping that Congress will act to prevent the agency from taking austerity measures in the next fiscal year. 

Without more cash, Joseph Kile of the Congressional Budget Office said, highway spending would have to decrease by more 30 percent over next decade and transit spending would drop by at least 65 percent.

The EPW Committee is getting ready to unveil its bill any day now, a six-year bill at current funding levels plus inflation. (That’s the same formula as the current bill, meaning transportation investment would be stuck at 2009 levels until 2021 without getting a raise, despite much angst over the nation’s diminishing performance in global infrastructure rankings.)

Current levels-plus-inflation is the middle ground between aligning spending with meager gas tax revenues and investing at the levels that would actually make a difference in the state of U.S. infrastructure. At least the committee is planning a long-term bill, which can give states and cities a little more assurance that they can plan around the federal contribution.

But as EPW Chair Barbara Boxer told the Senate Finance Committee this morning, her bill requires Finance to find $18 billion next year alone to fill the holes in the Highway Trust Fund. And the senators on the Finance Committee haven’t given any indication that they have any better idea than the rest of us where that money’s going to come from.

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How the GROW AMERICA Act Could Modernize Federal Transportation Policy

Yesterday, U.S. DOT did something it hadn’t done for a decade: submit a surface transportation authorization bill to Congress.

The Indianapolis Cultural Trail is one of many game-changing, innovative projects that the TIGER grant program has helped create. Under U.S. DOT's bill, TIGER would become a permanently authorized program with $5 billion to spend over four years. Photo: ##http://www.urbanindy.com/2010/11/18/pedestrianizing-downtown-indianapolis/##UrbanIndy##

The Indianapolis Cultural Trail is one of many game-changing, innovative projects that the TIGER grant program has helped create. Under U.S. DOT’s bill, TIGER would become a permanently authorized program with $5 billion to spend over four years. Photo: UrbanIndy

And what a bill it is. The $302 billion, four-year GROW AMERICA Act has several major reforms that would shift federal policy in a more multi-modal direction. One big change that we’ve noted before is that transit would get a bigger slice of the pie, but there are several other new proposals worth a look.

Before our overview, a caveat: President Obama’s funding plan — although it may align with that of the head tax man in the Republican House — has already been dismissed as a political non-starter. And Democratic Senator Barbara Boxer has indicated she’s not in the mood for major policy changes this go-round. So, take this bill for what it is: a blueprint of the administration’s vision and a menu of options that, in an ideal scenario, Congress would pick and choose from in crafting the bill.

Here’s some of the best of what the bill does:

  • Changes the Highway Trust Fund into a multi-modal Transportation Trust Fund. The bill would replace the current system’s highway-centric orientation, which shunts transit funding off to the side, with a truly multi-modal trust fund. It would include not just highways and transit but also intercity rail (which has long been marginalized in a separate bill and funded with unpredictable general funds) and the popular TIGER grant program (which has a history of funding innovative, multi-modal projects). The TTF would also include the New Starts/Small Starts transit grant program, which has historically been funded with general funds, separately from the trust fund.
  • Allows tolling — including congestion pricing — on existing Interstate lanes. For highways that are part of the Interstate system, the rule has always been that tolling is only allowed on road expansions, which is one reason you often see agencies widen highways when they implement HOT lanes, for instance. But upkeep of existing highways is expensive and states have struggled to find ways to pay for it. Some states, like Pennsylvania, have been seeking expanded tolling authority for years, to no avail. In this bill, the administration proposes to allow the tolling of Interstates for the purpose of reconstructing them or — and this is the really exciting part — “for the purpose of reducing or managing high levels of congestion.” Each case would still need the sign-off of the U.S. DOT secretary. The bill also explicitly says that toll revenue can be used for transit and for environmental improvements along the highway corridor. ”One criticism of congestion pricing has been that it hurts low-income people,” says Kevin DeGood of the Center for American Progress. “Using toll revenues to subsidize transit within the corridor ensures greater equity while also improving performance for drivers and freight carriers.”
  • Makes TIGER permanent and creates a new competitive grant program. TIGER would get $5 billion total over four years and no longer have to fight for its place in an appropriations bill every year. The GROW AMERICA Act also calls for a new program called FAST (Fixing and Accelerating Surface Transportation). FAST seeks to spread what U.S. DOT considers to be “best practices,” including the integration of transportation planning with land use and economic development, as well as funding mechanisms that “convey the full social cost of travel decisions to users” and giving local governments the authority to raise funding for transportation — which some cities have struggled with for years. Indianapolis, for instance, had to fight hard to get authority from the Indiana legislature to go directly to voters for more transportation funding. The FAST program would further these best practices and be funded at $1 billion annually.

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