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

Krakow is a Polish Pedestrian Paradise

Check out how car drivers simply stop for pedestrians — and not just pedestrians in a crosswalk, but also pedestrians about to enter a crosswalk or even just thinking about maybe entering a crosswalk.

July 25, 2025

Friday Video: The Secret to Getting People Biking In a Hilly City

Steep streets don't have to put a stop to your city's cycling future.

July 25, 2025

Friday’s Headlines Look to the Future

Despite some minor reforms around the edges under President Biden, U.S. transportation remains a car-centric anachronism.

July 25, 2025

Talking Headways Podcast: Measuring Transportation System Success

Karel Martens on how transportation engineering is good at finding problems but not solving them — and a new tool to measure policy success.

July 24, 2025

What Will It Take to Automatically Brick Drivers’ Cell Phones Behind the Wheel?

The technology to stop cell phone use behind the wheel has existed for years. Why are so few drivers using it – and why aren't lawmakers making them?

July 24, 2025

Thursday’s Headlines See Mixed Results

It's easier to commit to Vision Zero as a concept than it is to actually implement its principles.

July 24, 2025
See all posts