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Posts from the Barack Obama Category

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White House: Make Cities Affordable By Building for Walkability, Not Parking

The Obama administration is taking on the crisis of rising rents in American cities, releasing a series of recommendations today to spur the construction of more affordable housing. Among the many ideas the White House endorses: allowing more multi-family housing near transit and getting rid of parking minimums.

Rising rents are putting pressure on American families. Graph: White House

Rising rents and stagnant incomes are putting pressure on American families. Graph: White House

Since 1960, the share of renters paying more than 30 percent of their income for housing — the baseline for what is considered “affordable” — has risen from 24 percent to 49 percent, the White House reports in its new Housing Development Toolkit [PDF]. There are now 7.7 million severely rent-burdened households, defined as those paying more than 50 percent of their income for rent — an increase of about 2.5 million in just the past 10 years.

In the toolkit, the Obama administration acknowledges the links between housing and transportation, saying that “smart housing regulation optimizes transportation system use, reduces commute times, and increases use of public transit, biking and walking.”

The toolkit is full of policy recommendations to make it easier to build multi-family housing, incentivize the construction of subsidized housing, and shift away from the single-family/large lot development paradigm.

The document is merely advisory — federal officials don’t have the power to supersede most local zoning laws. But the White House does say that U.S. DOT will evaluate cities’ approaches to new housing development when it considers awarding major grants for new transit projects.

Here are a few of the highlights from the recommendations.

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Obama’s Last Budget Lays Out a Smart Vision for American Transportation

The White House released its 2017 budget [PDF] this morning, which includes more detail about the exciting but politically doomed transportation proposal President Obama outlined last week. Obama’s plan doesn’t have a chance in the current Congress, but it shows what national transportation policy centered on reducing greenhouse gas emissions might look like.

Obama had an awesome transportation budget in him all along. Photo: Iowapolitics.com via Flickr

If only candidate Obama had campaigned on this transportation plan in 2008. Photo: Iowapolitics.com/Flickr

Last week’s release sketched out a $10 per barrel tax on oil to fund a $30 billion increase in annual transportation spending. The budget gives us a closer look at what that $30 billion would fund.

In total, $20 billion of it would go toward programs to reduce GHG emissions and give people better options to get around without driving. Here are the details — keep in mind that with the GOP firmly in control of Congress, this is more of an aspirational document than a politically feasible spending plan.

Transit

The budget calls for an $8 billion increase in annual capital funds for transit, bringing the total to about $20 billion. Of that, about $16 billion would be divvied up to metro regions by formula to support maintenance and expansion projects, about 60 percent. Another $3.5 billion would boost competitive grant programs for expansion projects. The budget recommends funding in FY 2017 for Los Angeles’s Westside Subway, Southwest Light Rail in Minneapolis, Albuquerque Bus Rapid Transit, and Honolulu commuter rail, among other projects.

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Obama’s Politically Impossible Transpo Plan Is Just What America Needs

Even with a tax on oil, the U.S.'s effective gas tax rate would be the lowest in the industrialized world. Graph: Tony Dutzik via FHWA

Even with a tax on oil, the U.S.’s effective gas tax rate would be the lowest in the industrialized world. Graph: Tony Dutzik via FHWA

It may be “seven years too late,” as tactical urbanist Mike Lydon put it, but President Obama has released a transportation proposal that calls for big shifts in the country’s spending priorities.

Obama’s proposal would generate $30 billion annually from a $10-per-barrel surcharge assessed on oil companies. More importantly, the revenue is linked to a substantial shift in what transportation projects get funded. It’s the kind of thorough proposal, on both the revenue and spending sides of the equation, that Obama shied away from for most of his presidency. (It would only have stood a chance during his first two years in office.) While this Congress would never pass it, the proposal does lay down a marker for what smart federal transportation policy could be.

In a rough sketch laid out by the White House yesterday of the upcoming proposal, Obama calls for major increases in transit funding and investing in a network of efficient high-speed rail. Perhaps even more innovative is a $10 billion program to reduce carbon emissions from the transportation sector. This program, among other things, would fund states to better coordinate housing and job development with transportation. Obama’s proposal also calls for $2 billion to support research and development and the implementation of autonomous vehicles.

Not surprisingly, what has gotten the most press is the oil tax, which even Obama admits would likely be passed on to consumers through higher gas prices. Already, Republican Congressional leaders have called the proposal “DOA.”

Obama’s people have acknowledged the bill faces long odds in Congress, describing it as a conversation starter. An unnamed administration official told Politico the plan would help shift the nation’s transportation policy out of the Eisenhower era.

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It’s “Transit Christmas” for These Bus and Train Projects in Obama’s Budget

LA Metro's expansion plans would get a boost with Obama's $100 million endorsement of the Purple Line extension. Photo: Wikipedia

LA Metro’s expansion plans would get a boost with $100 million for the Purple Line extension. Photo: Wikipedia

In addition to the broad strokes of transportation policy outlined by the White House yesterday, the Obama administration also put out a much more specific proposal: the list of transit expansion projects recommended for funding in fiscal year 2016. Jeff Wood of The Overhead Wire and Talking Headways fame called it “Transit Christmas.”

Though the budget enacted by Congress will no doubt differ from the administration’s budget, these recommendations from the Federal Transit Administration are significant. Many of the projects on last year’s list are now under construction.

Here’s a look at what’s in line for federal funding, starting with the list of grants for large expansion projects from the FTA’s “New Starts” program.

Major projects recommended for funding:

  • Los Angeles’ Westside Subway Extension, Section 2 — $100 million
  • San Diego’s Midcoast Corridor — $150 million
  • Denver’s Southeast Extension –$92 million
  • Baltimore Red Line — $100 million
  • Maryland Purple Line (Suburban D.C.) — $100 million
  • Minneapolis’ Southwest Light Rail — $150 million
  • Fort Worth’s TEX commuter Rail — $100 million

The big drama right now surrounds the Purple and Red line projects in Maryland, where newly elected Republican Governor Larry Hogan has threatened to cut off state support for the new transit lines if private partners don’t cover enough of the construction costs.

A second list of smaller projects in mid-sized cities are in line for funding from the FTA’s “Small Starts” program.

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Obama’s New Transportation Budget: The Good, the Bad, and the Ugly

With federal transportation funding on track to run dry by May 31, Washington lawmakers are gearing up again to reset national transportation policy… or, if that doesn’t work out, to limp along indefinitely under the status quo.

Unlike the U.S., China is opening high-capacity transit lines left and right. Photo of Beijing metro: Xinhua

Today President Obama unveiled his opening bid in this process. The $478-billion, six-year plan from the White House includes many of the proposals the administration unveiled last year. Congress didn’t advance those ideas then, and with the GOP now controlling both houses, chances remain slim for reforming highway-centric federal transportation policy.

But the White House budget document remains the best summary of the Obama team’s transportation policy agenda. The ideas are intriguing even if they’re politically improbable.

Here’s a look at the highlights [PDF].

The Good

Boosts Transit Funding: Obama proposes a large increase in transit funding, budgeting $23 billion in 2016 and a total of $123 billion to transit over six years. That would represent a 75 percent increase over current levels. The would go toward both expansions and the maintenance and improvement of light rail, BRT, subway, and commuter rail networks.

Promotes State DOT Reform: The Fixing and Accelerating Surface Transportation program would “create incentives” for state DOTs and other transportation agencies to reform how they approach road safety and congestion management. Funded at $1 billion annually, the program would fund initiatives like “distracted driving (safety) requirements or modifying transportation plans to include mass transit, bike, and pedestrian options,” the White House says.

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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.

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Is Obama Opposed to the Bipartisan Gas Tax Proposal or Just Noncommittal?

Yesterday, The Huffington Post ran this headline: “White House Appears More Open To A Gas Tax Hike.” Minutes later, The Hill published this one: “White House opposes gas tax hike to fix transportation funding.” So, which is it?

Josh Earnest, on his first day as White House press secretary, said the president "would not support" a gas tax hike. But other officials have softpedaled the question. Photo: ##https://www.facebook.com/topic/White-House-Press-Secretary/108184749201716##Tamara Keith/Facebook##

Josh Earnest, on his first day as White House press secretary, said the president “would not support” a gas tax hike. But other officials have softpedaled the question. Photo: Tamara Keith/Facebook

The Hill’s headline was based on a statement by new White House press secretary Josh Earnest, who said about a gas tax increase: “That’s something that we’ve said a couple of times that we wouldn’t support.” But HuffPo got a different quote, which gave them a different perspective.

“The Administration has not proposed and has no plans to propose an increase in the gas tax,” White House spokesman Matt Lehrich told HuffPo. “It is critical that we pass a bill that not only avoids a short-term funding crisis but provides certainty and lays the groundwork for sustained economic growth. So we appreciate that members on both sides of the aisle continue to recognize the need for a long-term infrastructure bill, and we look forward to continuing to [work] with Congress to get this done.”

HuffPo also reports that Ryan Daniels, a Department of Transportation spokesman, said that while the “Department has outlined a plan involving pro-growth business tax reform,” it was “open to ideas that Congress comes up with.”

Non-committal at best. But, it’s a far cry from Earnest’s claim that the administration “wouldn’t support” a gas tax increase. Earnest made that statement on his first day on the job — perhaps he overstated the case.

President Obama has come out in support of a convoluted plan to close corporate tax loopholes and repatriate some offshore profits as a means of paying for transportation — though such a scheme would upend the “user pays” ethic that has undergirded transportation policy for decades and would only pay for a four-year bill.

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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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In Obama Budget, a Glimpse of What Beefed-Up Transit Funding Could Do

Nashville BRT is among the transit upgrades in line for funding in 2015. Image: Nashville Public Radio

The budget proposal released by President Obama yesterday fleshes out the transportation ideas put out by the White House last week and includes specific grants for transit upgrades and expansions in 2015, but many of them won’t be part of this budget unless Congress agrees to increase funding for transportation.

The White House budget proposes $17.6 billion for the Federal Transit Administration, an increase of about $7 billion from current levels. This would give transit agencies significantly more resources to rehab existing infrastructure and build rail and bus expansions.

Most of the additional funding — more than $5 billion — would come in the form of bigger distributions to transit agencies by formula. On top of that, money for transit expansion projects would grow by more than $500 million, a new $500 million program would help fund bus rapid transit projects, and $500 million would be set aside for “a new competitive grant program that will encourage innovative solutions to our most pressing transportation challenges.”

Enacting these changes is unlikely, because Obama will have to win Congressional support for funding transportation with corporate tax reform. But a look at the FTA budget provides a sense of how much more can be done for transit each year, given new resources.

The increased funding for transit expansion would go toward light rail in Baltimore, an extension of Boston’s Green Line, and commuter rail in Orlando, among other projects. Portland’s Columbia River Crossing — the sprawl bridge/light rail project that apparently just won’t die — is also on the list.

A round of smaller grants that also need Congressional approval would fund bus rapid transit projects in Nashville, Oakland, El Paso, Eugene, and Vancouver, as well as $50 million to advance Fort Lauderdale’s streetcar plans.

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Inside Obama’s Transpo Budget: “Historic Increase” in Transit Funding

A few more details about the Obama administration’s proposal for a new transportation bill surfaced today when the president unveiled his 2015 budget proposal.

The topline numbers came out last week and look good for transit, biking, and walkability. The White House’s four-year, $302 billion surface transportation plan proposes an “historic increase” in transit funding — from $12.3 billion to $22.3 billion annually. The budget also proposes $600 million in annual TIGER spending, a new program with $4 billion annually to help modernize state departments of transportation, and $19.1 billion for intercity rail spread over the next four years.

The President's budget proposal calls for significant increases in funding for passenger rail. Image: Flickr

The White House budget proposal calls for significant increases in funding for transit. Photo: Trimet/Flickr

While White House transportation proposals have gone nowhere with Obama at odds with House Republicans, there’s a slim chance that the administration and the GOP will align this time over how to pay for the program.

The budget document released today offers more information on the White House’s plan to keep wasteful highway expansion in check. The budget introduces a new program that appears to be aimed at reforming old-fashioned state DOTs. The administration proposes $4 billion annually for a new program it calls “Fixing and Accelerating Surface Transportation,” which is “designed to create incentives for state and local partners to adopt critical reforms.” The administration says this funding would be intended to be spent on “modifying transportation plans to include mass transit, bike, and pedestrian options,” and “peak travel demand management,” such as tolling or congestion pricing programs.

The budget document also promises “a fix-it-first approach for highway and transit grants”:

States and localities have incentives to emphasize new investments over improving the condition of the existing infrastructure. The Administration’s reauthorization proposal will underscore the importance of preserving and improving existing assets.

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