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

New Analysis: 59% of Road Stimulus Went to Repair, 33% to New Capacity

Shovel_ready.jpg(Photo: DMI Blog)

In the first year of the Obama administration's economic stimulus law, 59 percent of its $27 billion in transportation formula funds went to projects that preserve existing roads, while 33 percent was used to build new pavement, according to an analysis by the advocacy group Smart Growth America (SGA).

The new data, unveiled today by SGA state policy director Will Schroeer at a green jobs conference in Washington, brings a measure of good news to clean transport advocates who had viewed the stimulus as somewhat of a disappointment for its failure to fund roads and transit on a more equal footing.

The SGA analysis does not include the law's $8.4 billion in transit aid, looking solely at the formula funding that is often depicted as dedicated to highways and bridges.

In fact, states were allowed to redirect some of that larger pot to transit, though not all took advantage of that flexibility. "Some states were really, I have to say, dishonest with the public about what the money could be spent on," Schroeer said today.

Here's how SGA's one-year analysis of the $27 billion in stimulus money shook out:

59% spent on road system repair/preservation
33% spent on new road capacity
3.9% spent on non-motorized transport (e.g. bike-ped)
1.7% spent on transit and related projects
2% spent on other uses

Several other speakers at the green jobs conference emphasized rules that allowed only 10 percent of federal transit stimulus aid to go towards operating budgets that ensure trains and buses can keep running. The lion's share of the transit spending went to capital projects, such as extending rail lines or purchasing new equipment.

Brian Turner, director of the Transportation Learning Center, a transit-training group, lamented that federal spending is weighted towards "physical capital ... Any economist who went to class knows that there is another class [of investment] that's equally important: That's human capital."

The debate over how to free up more federal transit funds for operating has split the transit industry, with its biggest lobbying force viewing the change as a short-term response to the recession while unions and other transit agencies push for a permanent shift.

Nonetheless, SGA's past work on the job-creation performance of transit relative to roads has appeared to make some headway with Democratic lawmakers. House Speaker Nancy Pelosi (D-CA) told conference attendees today that her colleagues “have stood strong in the drive for good, green jobs. ... We’ve said all along that clean energy is about four things:
jobs, jobs, jobs, jobs."

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Bus Rapid Transit Can Work … If Cities Follow the Formula

It sure beats the current method of guessing or simply basing the route on how strongly a given neighborhood opposes or supports it.

August 1, 2025

Friday Video: We’re All Paying For ‘Free’ Parking, Whether Or Not We Drive

Parking mandates aren't the only reason why your city has so much asphalt. Check out the hidden reason why so many businesses build way more parking than they need.

August 1, 2025

Friday’s Headlines Take It Back

Apparently transportation can be too "woke." Plus, only cities can save us from climate change now, and more headlines.

August 1, 2025

Opinion: Ohio is the Poster Child for Why We Need a Stronger Federal Approach to Passenger Rail

Ohio's reluctance to build new passenger rail has made them a bottleneck in the national network, and an emblem of bigger national problem.

August 1, 2025

Talking Headways Podcast: Measuring Emissions Reduction for Bike Commutes

Mark Kabbash on his new system for measuring and verifying bike commuting to obtain carbon avoidance credits.

July 31, 2025

Cities Matter More Than Ever After Trump Officially Denies Climate Change

We're entering a new era of federal climate denial, and it's time to use a different set of tools to fight back.

July 31, 2025
See all posts