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

Report: States Used $6.6B in Stimulus Cash on New Roads, Not Repair

Today is the deadline for state DOTs to allocate at least half of the transportation money they received under the economic stimulus law, and Smart Growth America marked the occasion with a study of what types of projects are getting that cash.

234824_0_0_1.jpgNorth Carolina spent $5.7 million in stimulus cash repaving I-540, pictured above, along with $4.4 million on bike-ped in the same county. (Photo: Triangle Biz Journal)

Distressingly -- but unsurprisingly -- quite a lot is going to new roads rather than repair of existing ones. Of the $26.6 billion sent to states under a flexible transportation mandate, SGA found that $6.6 billion has gone towards building new highway capacity.

Only $185 million of the flexible stimulus aid has been used on transit and non-motorized transportation, which was given about $8 billion in separate funding as well.

One culprit behind this questionable use of taxpayer money, as SGA reports, is a theme at risk of repeating itself during the upcoming debate over broad transportation reform: the lack of accountability.

Most states and localities reported the projects they selected for stimulus aid only after the fact, allowing a privately run website to monitor the process much faster than the Obama administration.

But inconsistent reporting is just the beginning of the problem, as SGA points out in its report:  

Most states failed to educate, engage, and seek input from the public before making decisions. ... There is not a clear articulation of what project portfolios should accomplish, no methods identified for evaluating projects against these goals or against one another, and few repercussions for achieving or failing to achieve these goals.

SGA mined the stimulus itself, as well as comments by administration officials, to produce a list of nine goals that can be used to evaluate its transportation spending. But the lack of tangible consequences for not meeting those goals has left states free to spend at will, often focusing more on the report's No. 1 objective ("create and save jobs") than Nos. 5 ("improve public transportation"), 7 ("cut greenhouse gas emissions"), and 8 ("not contribute to additional sprawl").

Like the stimulus law, the House transportation bill introduced earlier this month by Rep. Jim Oberstar (D-MN) outlines broad goals rather than specific performance targets for projects -- leaving the latter to be drafted by individual states. Rep. Russ Carnahan (D-MO), by contrast, has offered a bill that would set hard targets for national policy.

It's easy to see how the lack of unified standards to govern project choice could leave smarter states, such as Delaware and Iowa, using more than 90 percent of their stimulus money on repair of existing roads, while Arkansas, Kansas, and Kentucky spend more than 80 percent of their aid on new roads.

Will the Obama administration learn from its stimulus experience and move to set stronger priorities for future transportation spending? If its rush to demonstrate an economic turnaround is any guide -- not to mention the lack of support for a "fix-it-first" requirement in the stimulus -- the answer is, not without serious public pressure.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Agenda 2026: Will Zohran Mamdani’s Left-Progressive Backers Mobilize for Faster Buses?

New York's new mayor must mobilize the coalition that got him elected if he wants to avoid his recent predecessors' failure to speed up buses.

December 2, 2025

Opinion: One Less Lane Ought To Fix It

Federal inaction means states must lead on reducing emissions — but their reluctance to reallocate road space for cars may doom climate goals.

December 2, 2025

Tuesday’s Headlines Fight Fire With Fire

Berkeley, Calif., is far from the only city where the fire department dictates transportation policy.

December 2, 2025

Investigation: How Trump’s U.S. DOT Is Loosening Safety Rules Meant to Protect the Public

In Trump’s second term, the agency opened 50-percent fewer investigations into vehicle safety defects, concluded 83-percent fewer enforcement cases against trucking and bus companies and started 58-percent fewer pipeline enforcement cases compared with the same period in the Biden administration.

December 1, 2025

Monday’s Headlines Go Cold Turkey

Life is a highway, and Congress is going to ride it all night long.

December 1, 2025

OPINION: Where Cities are Investing, Vision Zero is Working 

As the Vision Zero Network turns 10, it's time to look at what works and what is achievable (a lot!).

November 28, 2025
See all posts