Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
2009 Transportation Bill

As Minneapolis Joins NACTO, Oberstar Backs Shift on Transit Operating Aid

At an event in Minneapolis today, House transportation committee chairman Jim Oberstar (D-MN) announced his support for giving urban transit agencies more flexibility to spend federal transportation formula money on operating -- a change in the current law that has already won the backing of Transportation Secretary Ray LaHood but has split the transit industry.

transit_oberstar_3_30_10.jpgOberstar (center) joined New York City transport chief Janette Sadik-Khan (right) at today's event. (Photo: B.Clements, Finance & Commerce)

Oberstar appeared at an event marking Minneapolis' move to join the National Association of City Transportation Officials (NACTO), founded 14 years ago by then-New York City Transportation Commissioner Elliot Sander to counterbalance the influence of state DOTs' voice in D.C., the American Association of State Highway and Transportation Officials (AASHTO).

Oberstar's specific remarks on transit operating aid were unavailable as of press time. But transport committee spokesman Jim Berard said the Minnesotan supported "in principle" the concept of allowing transit agencies from areas with populations greater than 200,000 to use their federal transportation formula grants on operating expenses.

Under current law, urban transit agencies are restricted to spending federal formula money on capital expenses, such as purchasing new rail cars or laying track for an expanded line.

Congress agreed last year to give transit officials the freedom to redirect 10 percent of their federal stimulus aid to operating budgets, underscoring that the change was a temporary response to the recession.

The American Public Transportation Association (APTA), the transit industry's chief lobbying group for more than a century, has opposed the use of formula grants for transit operating, preferring that already-scarce highway trust fund dollars be reserved for capital spending on rail and buses. APTA did not return a request for comment by press time on the growing support for changing the existing rules governing transit operating funds.

It's worth noting that the change Oberstar and LaHood have endorsed would not come until lawmakers take up a new long-term federal transportation bill, which may not occur until next year. Also left undetermined is the share of formula funds that would be made available for transit operating costs if the proposal becomes law; legislation offered by Sen. Sherrod Brown (D-OH) and Rep. Russ Carnahan (D-MO) would okay the use of between 30 percent and one-half of federal formula grants.

(ed. note: The post above has been edited to clarify the distinction between capital and operating expenses.)

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

America’s Kids Deserve Better Than a Waymo Subscription

What do America's young people lose when they have to buy independence from a corporation that rents out driverless cars?

July 15, 2025

Tuesday’s Headlines Aren’t Falling Fast Enough

Pedestrian deaths dropped by 4 percent last year, but remain well above pre-pandemic figures.

July 15, 2025

Monday’s Headlines Are Dragging Their Feet

The Trump administration claims the Biden administration left them with a backlog — but they've actually been far slower at getting transportation money to states than their predecessors, a new analysis finds.

July 14, 2025

These U.S. Communities’ So-Called ‘Complete Streets’ Policies Don’t Even Deserve the Name

Any city can call itself a "Complete Streets" champion. But not all of them are walking the walk — and if they don't, a top organization says they'll no longer give them a platform on its esteemed "best of" ranking.

July 14, 2025

Communities Rally To Reclaim Streets From ICE Terror

"This is an attack on Los Angeles. This is an attack on California. On all of us."

July 11, 2025

Friday Video: The London Neighborhood Where Bikes Outnumber Cars

...and how they got to that impressive milestone.

July 11, 2025
See all posts