Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Economics

Transpo’s Losses in First Round of Spending Cuts Look Worse Than They Are

The two houses of Congress were so much at odds over the Republicans’ proposed spending cuts that they needed two more weeks to bicker about it. So last week, they pushed off a little longer final passage of the budget for a fiscal year that started five months ago. But in order to even pass that measly two-week extension, Democrats needed to accede to $4 billion in cuts.

About a quarter of those cuts were to transportation. But it’s not as bad as it sounds.

The biggest chunk is $650 million of general fund spending for transportation. But remember, the baseline budget that this money is being cut from is the FY2010 budget. No allocation from the general fund was ever requested for 2011, so this isn’t a real cut since it wouldn’t have been in the 2011 budget in any case. As the Appropriations Committee puts it, “Removing these funds will have no impact on the authorized, mandatory side of the highway program and its limitation of obligations.”

The two-week cuts also targeted unspent earmarks from 2010, including $22 million for HUD Neighborhood Initiatives, $173 million for HUD Economic Development Initiative, $293 million for surface transportation “priorities” and $25 million for rail line relocation.

That all adds up to $1.16 billion in cuts to transportation and urban development. But really, it’s a lesson that when members of Congress advertise to their fiscally-conservative constituencies that they’re cutting money from the budget, sometimes the money they’re “cutting” was never really there in the first place.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Trump’s Canada Bridge Tantrum Could Be Bad News For An International Bike Trail

A multi-use trail along the Gordie Howe Bridge would be a key component of an epic cross-continental trail route — if Trump doesn't prevent the entire structure from opening.

February 17, 2026

Disturbing Utah ‘Bikelash’ Bill Takes Aim at Salt Lake City Traffic Calming

Utah state legislators aren't traffic engineers — so why are they writing laws that would force the review of specific bike lanes already on the roads in their capitol, and preemptively stop Salt Lake from building more?

February 17, 2026

The Explainer: How Big Tech Push For Cheap Car Insurance Hurts Victims

In New York State, Gov. Kathy Hochul is distorting the notion of "affordability" to do Big Tech's bidding.

February 17, 2026

Tuesday’s Headlines Let Kids Be Kids

Cops should not be arresting parents for letting their kids walk or bike around the neighborhood.

February 17, 2026

Monday’s Headlines Slow Down

Cities have proven measures they can put into place to slow down speeding drivers and save lives.

February 16, 2026

The New Uber-Backed Car Insurance ‘Reform’ Push Is Actually A War On Crash Victims

New York State Gov. Kathy Hochul wants to limit payouts to crash victims under the guise of "affordability" and bogus claims about "staged crashes."

February 13, 2026
See all posts