Federal Funding

The Republicans have retreated from their insistence on cutting transportation spending by 35 percent to match Highway Trust Fund revenues -- for now. But the problem is far from solved. As a reminder of the dangers such a policy presents, the Bipartisan Policy Center and the Eno Center for Transportation put out a new report yesterday on the potential consequences of a 35 percent cut in transportation spending.

The MAP-21 transportation bill was just signed two months ago, and its funding levels, agreed to by a difficult and fragile compromise between warring political parties, are already under attack.

“There’s an inverse proportion of the size of a transportation program to the amount of transparency,” says Deron Lovaas of the Natural Resources Defense Council. While anyone can easily find in granular detail anything they would ever want to know about where bike/ped money goes, and they can get a pretty good idea of what's going on with transit capital investments, highway spending is a black box -- and that's 80 percent of U.S. transportation dollars.

Friday was the Obama administration's reporting deadline on a slew of scheduled budget cuts set to take effect January 2. I guess the president was busy or something, because his administration blew this deadline. Now they're promising to have some answers this week.

The MAP-21 transportation bill in many ways made it tougher for cities and towns to provide safer streets for walking and biking. Projects to build bike lanes and sidewalks now have to compete harder for the tiny bit of funding they're eligible for. And right now, states are deciding whether or not to “opt out” of the Recreational Trails Program (RTP). Instead of spending RTP money on bicycle and pedestrian trails -- both urban and rural -- states can "opt" to spend it on something else.

Transit agencies can have a hard time finding the money to expand rail lines and busways. While federal grants for road projects require a 20 percent local match, transit projects need to get 50 percent or more from local funding sources. The byzantine federal funding bureaucracy creates high hurdles, especially for smaller agencies without on-staff expertise in applying for and managing these grants. Loans and private sources of funds are also difficult, since they need to be paid back, and transit tends not to make back its capital outlays from the farebox.

Transportation Secretary Ray LaHood announced today that the Notice of Funding Availability (NOFA) for the new, expanded TIFIA loan program is now available [PDF]. The recently-passed MAP-21 transportation reauthorization dramatically expanded TIFIA, bringing the program's funding up from $122 million to $750 million next year and $1 billion in 2014.

Bike and pedestrian funding got slashed. Federal assistance for transit operations was rejected. Even the performance measures – arguably the high point of the recently passed federal transportation bill – are too weak to be very meaningful. For Americans who want federal policy to support safe streets, sustainable transportation, and livable neighborhoods, there were few bright spots in the transportation bill Congress passed last month.

David Burwell is the director of the Energy and Climate Program at the Carnegie Endowment for International Peace. He was also co-founder and CEO of the Rails-to-Trails Conservancy, and a founding co-chair and president of the Surface Transportation Policy Project, a national transportation policy reform coalition.