Federal Funding

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. 

In the highly polarized and antagonistic transportation bill negotiations, dragged out over the course of almost a year, there was one thing that Democrats and Republicans could agree on: vastly expanding the TIFIA loan program. The Transportation Infrastructure Finance and Innovation Act (TIFIA) program has, since 1998, provided federal credit assistance at favorable interest rates to surface transportation projects of national and regional significance.

The House of Representatives approved the transportation bill conference report this afternoon by a vote of 373 to 52. [UPDATE 4:00 PM: The Senate has also approved the bill, 74-19.] This is a bill that’s been called “a death blow to mass transit” by the Amalgamated Transit Union, “a step backwards for America's transportation system” by the Rails-to-Trails Conservancy, “a retreat from the goals of sustainability and economic resiliency” by Reconnecting America, “a substantial capitulation” by Transportation for America, and “bad news for biking and walking” by America Bikes.

UPDATE: The final bill contained a $2.4 billion transfer from Leaking Underground Storage Tank Trust Fund to the Highway Trust Fund in June 2012 and three transfers from the General Fund to the Highway Trust Fund, totaling $18.8 billion. They were: $6.2 billion to the Highway Account of HTF in October 2012; $10.4 billion transfer to Highway Account of HTF in October 2013; and $2.2 billion transfer to Mass Transit Account of HTF in October 2013. They dropped the car tariffs change and the gas guzzler transfer. They replaced those smaller transfers and offsets with the pension provisions and a tiny bit from the roll-your-own-cigarettes change.