Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Federal Stimulus

Stimulus Bill Is a Step Forward for Pedestrians, Cyclists & Cities

Within the $27.5 billion allocated for "highways" in the stimulus bill signed by President Obama yesterday,
there is some good news for pedestrians, cyclists and cities.

I spoke with Michelle Ernst, staff analyst at the Tri-State Transportation Campaign, to get a sense of how the new legislation compares to the 2005 federal transportation bill, known as SAFETEA-LU. Ernst points out that federal highway money flows through the Surface Transportation
Program
, which is more flexible than the "highway" label lets on. Compared to SAFETEA-LU, the stimulus bill will nearly double the portion of "highway" funds going to bike and pedestrian projects while sending more money to cities.

Here are the changes Ernst spotted after crunching the numbers:

    • Double the money to bike and pedestrian projects: Under SAFETEA-LU, roughly 1.7 percent of total highway funding was authorized for the Transportation Enhancements program, most of which goes toward bicycle and pedestrian projects. In the stimulus package, that figure has nearly doubled to 3 percent. The new bill also requires states to spend the money on actual Transportation Enhancements, whereas previous transportation bills gave them wiggle room to shift it around to other programs.
    • More money going to cities: Under SAFETEA-LU, 6.5 percent of highway funding was "sub-allocated" directly to large urban areas, defined as metro regions with a population greater than 200,000. In the stimulus bill, large urban areas get 16 percent. This funding will go to agencies that, compared to state DOTs, are more likely to invest in progressive transportation projects.

While these changes represent improvements, even more money should be going to cities. As Brookings notes, the nation's 100 largest metro areas produce 75 percent of the nation's GDP. And the glaring omission of any "fix-it-first" language in the final bill will make it easier for some of those sub-allocated funds to be spent on road expansion.

But overall the revised formulas in the stimulus bill mean more money for transit, bike and pedestrian
projects and more funds piped directly to cities. The guaranteed funding for Transportation Enhancements is
something that bicycle advocates, especially, fought to include in the
final bill. Mayors and green transportation experts championed a bigger slice for urban areas, which frees up money for progressive projects. The final stimulus bill reflects these efforts and gives advocates something to build on as Congress gears up for the big transportation re-authorization coming later this year.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Confirmed: Non-Driving Infrastructure Creates ‘Induced Demand,’ Too

Widening a highway to cure congestion is like losing weight by buying bigger pants — but thanks to the same principle of "induced demand," adding bike paths and train lines to cure climate actually works.

January 9, 2026

Friday’s Headlines Are Unsustainably Expensive

To paraphrase former New York City mayoral candidate Jimmy McMillan, the car payment is too damn high.

January 9, 2026

Talking Headways Podcast: Poster Sessions at Mpact in Portland

Young professionals discuss the work they’ve been doing including designing new transportation hubs, rethinking parking and improving buses.

January 8, 2026

Exploding Costs Could Doom One of America’s Greatest Highway Boondoggles

The Interstate Bridge Replacement Project and highway expansion between Oregon and Washington was already a boondoggle. Then the costs ballooned to $17.7 billion.

January 8, 2026

Mayor Bowser Blasts U.S. DOT Talk of Eliminating Enforcement Cameras in DC

The federal Department of Transportation is exploring how to dismantle the 26-year-old enforcement camera system in Washington, D.C.

January 8, 2026

Thursday’s Headlines Are Making Progress

By Yonah Freemark's count, 19 North American transit projects opened last year, with another 19 coming in 2026.

January 8, 2026
See all posts