obama Archives - Transportation For America

President Obama releases robust final budget; summary included

Today, the White House released President Obama’s fiscal year 2017 (FY17) budget proposal, the final of his presidency. This budget adheres to the $1.07 trillion spending cap that resulted from the bipartisan two-year budget deal agreed to last November. The President’s budget proposal either falls in line with or exceeds FAST Act funding levels, increases transit and rail funding, and funds TIGER (the FAST Act does not authorize the program), among other programs. The budget also calls for the creation of a 21st Century Regions program, a clean communities competitive grant program and funds the President’s 21st Century Clean Transportation Plan.

Speaker Ryan (R-WI) has asked congressman to maintain the funding levels agreed to last November, though there are signals that some may seek additional cuts.

Read a more detailed analysis here.

A broke Highway Trust Fund means job losses equal to Denver’s population, President Obama warns

Speaking today at the Key Bridge in Washington, DC, President Obama called on Congress to save the Highway Trust Fund from its pending insolvency, and to adopt a long-term transportation bill on the scale of his proposed four-year, $302 billion program. [Full text here.]

In doing so, he retraced the bipartisan history of transportation funding in the U.S.:

Soon, construction workers will be on the job making the Key Bridge safer for commuters and for families, and even for members of Congress to cross. (Laughter.) This is made possible by something called the Highway Trust Fund, which Congress established back in the 1950s, and which helps states repair and rebuild our infrastructure all across the country. It’s an example of what can happen when Washington just functions the way it was supposed to.

Back then, you had Eisenhower, a Republican President; over time you would have Democratic Presidents, Democratic and Republican members of Congress all recognizing building bridges and roads and levees and ports and airports — that none of that is a partisan issue. That’s making sure that America continues to progress.

Now, here is the problem. Here is the reason we’re here in the heat. If this Congress does not act by the end of the summer, the Highway Trust Fund will run out. There won’t be any money there. All told, nearly 700,000 jobs could be at risk next year. That would be like Congress threatening to lay off the entire population of Denver, or Seattle, or Boston.

That’s a lot of people. It would be a bad idea. Right now, there are more than 100,000 active projects across the country where workers are paving roads, and rebuilding bridges, and modernizing our transit systems. And soon, states may have to choose which projects to continue and which ones to put the brakes on because they’re running out of money. Some have already done just that, just because they’re worried that Congress will not get its act together in time.

We spend significantly less as a portion of our economy than China does, than Germany does, than just about every other advanced country. They know something that I guess we don’t, which is that’s the path to growth, that’s the path to competitiveness.

We share the President’s frustration at the lack of progress, but we are encouraged by recent glimmers of bipartisan interest in a solution. Just last week we saw a bipartisan proposal for a long-term solution in the form of a 12-cent gas tax increase over two years. To us, that is far preferable to a last-minute accounting trick to get us through the election, which seems to be the betting of conventional wisdom at the moment. And it strikes us more sustainable than the one-time infusion from a tax holiday for offshore profits the Administration has proposed.

Still, we are glad to see the President use his bully pulpit to call attention to an issue that remains something of a sleeper for a public largely unaware that the trust fund that their safety, convenience and economy depend on is seriously threatened.

U.S. DOT offers great proposals, but the program needs more money to make them real

The Obama Administration last week unveiled its bid to save the federal transportation program with only months to spare before most states and metro areas lose the majority of their funding to maintain and improve transportation networks – unless Congress acts.

While the Administration foreshadowed its priorities in its March budget request, the proposal – dubbed GROW AMERICA – marks the first time since the mid-2000’s that an Administration has submitted a full reauthorization bill to Congress. [See our summary of the provisions here.] While it stops short in some respects, the Administration bill is an important acknowledgement that we need not only to shore up the funding, but also to update the program goals and structure to support today’s economy.

In one sense, the $302 billion, four-year GROW AMERICA Act was drawn up by the people most intimately familiar with what is working, or not, in the current program – the DOT leaders who must interact with communities every day as they work to implement it.

Reading between the lines, they found that rigid adherence to funding silos for each mode does not work for today’s needs. They learned from the TIGER program that there were countless projects that could solve multiple problems for communities, businesses and freight handlers, but that existing, single-mode programs did not allow them to happen.

The first, critical, change the U.S. DOT suggests is to put all dollars for transportation infrastructure into a unified trust fund and shield it from budget fights such as the recent sequestration. During that budgetary debacle, some transportation programs – such as transit construction – were slashed while others were unhurt. Communities that are investing to preserve and improve the infrastructure our economy depends on deserve to know that all their promised funding is safe, not just some of it.

The GROW AMERICA Act would begin to infuse the federal transportation program with the promising ideas of competition and incentive-based funding. While most funding under MAP-21 is distributed automatically by formula, the GROW AMERICA Act would establish several new competitive and incentive grant programs. One, modeled after the highly successful TIGER program but more than twice as large, would provide $5 billion over four years for competitive grants to fund projects with a mix of modes, including highways, bridges, transit, passenger and freight rail, and ports.

Another program – Fixing and Accelerating Surface Transportation, or FAST – is modeled after the Department of Education’s Race to the Top. It would allocate $4 billion to support incentive grants to states or metropolitan planning organizations (MPOs) that adopt innovative strategies and best practices in transportation, such as creating their own multimodal trust funds or giving local governments more latitude to raise their resources.

The biggest problems with the bill come down to money. The Administration proposes $87 billion to rescue the highway trust fund and provide new resources, but has said only that the money would come from unspecified corporate tax reforms. While that one-time infusion would be welcome, it does not address the ongoing shortfall resulting from declining gas tax revenue. Worse, without the additional increment of funding, very little about the current program would change, because the most exciting proposals are layered on top of the basic structure of MAP-21. Meanwhile, the bill makes no provisions even to study or pilot future revenue sources, such as vehicle miles traveled fees.

These are just a few highlights of the GROW AMERICA bill. Read our summary for more details, and watch this space over the next couple of weeks as we take a closer look at some of the individual proposals in the bill.

Summary of the President’s budget for transportation

The transportation budget proposal President Obama released yesterday went well beyond setting spending levels for fiscal year 2015, outlining a vision for rebooting our nation’s transportation program. While the dollar figures may be considered moot by the two-year bipartisan budget that passed the Congress in December, the principles that he and his Administration put forward are substantially in line with what we’ve been hearing from business, elected and civic leaders across the country.

“The budget clearly recognizes that investment in infrastructure is essential in laying the groundwork for our future prosperity over many years,” said T4America director James Corless in our official statement yesterday. “Many of the priorities expressed in the budget clearly point in the right direction: keeping our system in good repair, supporting local efforts to promote economic development, spurring innovation through competitive grants and eliminating freight bottlenecks.”

For a breakdown of the key changes the Administration is proposing, see our analysis here. (PDF)

Step one, of course, is to figure out how to raise the money for transportation to shore up the transportation fund and make the investments necessary to ensure a prosperous economy.

Just to extend MAP-21 at the same funding levels, the trust fund requires an infusion of $19 billion next year or $100 billion over 6 years. We know that finding that sort of money won’t be an easy task, but having that conversation is the first crucial step. The President and House Ways and Means Chairman Camp both deserve recognition for presenting their preferred approach of using corporate tax reform to plug the funding gap.

The President’s budget proposes a 4-year, $302 billion surface transportation reauthorization, which is an $87 billion increase over the current spending levels.

To ensure the money is invested well, the Administration proposes several key policy moves: The first would be bringing all the programs and modes together in a unified transportation trust fund. The budget sets a priority on “fixing it first” and creates a program dedicated to repairing our most worrisome needs. It would strengthen competitive grant programs that foster innovation, local control and transparency, and create incentives for projects that deliver strong economic benefits. Freight choke points in our busiest economic centers would get special attention, regardless of mode. Acknowledging the tremendous surge in demand, public transportation projects would get a 70 percent boost.

The Administration’s priorities should inform the reauthorization of the federal program as Congress takes up the matter later this year. We at T4America look forward to seeing the details of how the Administration proposes to accomplish these goals in the President’s promised four-year reauthorization proposal.

As for what’s likely to happen next, because the bipartisan budget passed by Congress in December also set top-line budget amounts for the year (FY15) to come, it’s uncertain if the House or Senate will introduce or pass their own budget resolutions this year. Still, whether the ultimate legislative vehicle is the reauthorization of MAP-21 or appropriations bills later this year, it’s essential that Congress and the President come to agreement on a way to continue supporting communities’ efforts to maintain their transportation infrastructure and prepare for the future.

	FY13 USDOT Appropriations (post sequestration)	FY14 USDOT Appropriations	President's FY15 Proposed Budget	Difference between FY14 Approps and President's FY15 budget proposal
Federal-Aid Highways	$39.62B	$40.26B	$47.32B	+$7.06B
Transit Formula Grants	$8.46B	$8.6B	$13.914B	+$5.314B
Transit 'New Starts'	$1.86B	$2.13B	$2.5B	+$370M
TIGER	$475M	$600M	$1.25B	+$650M
High Speed Rail/High Performance Passenger Rail	$0	$0	0*	-
Amtrak Capital	$902M	$1.05B	0*	-
Amtrak Operating	$441M	$340M	0*	-
Current Passenger Rail Service	-	-	$2.45B	+$1.06B**
Rail Service Improvement Program	-	-	$2.325B	+$2.325B
Freight Program	-	-	$1.0B	+$1.0B
Critical Immediate Investments	-	-	$4.85B	+4.85B
Fixing and Accelerating Surface Transportation (FAST)	-	-	$1.0B	+$1.0B
Rapid Growth Area Transit Program	-	-	$500M	+$500M

*The FY15 Budget consolidates existing rail programs into 2 new programs.
**Compared to FY14 Appropriations for Amtrak Capital and Operations

SOTU followup: Does transportation offer a glimmer of bipartisan hope?

As we noted in our statement after the State of the Union address Tuesday night, it was good to hear the President again cite the need to steer new revenue toward “rebuilding our roads, upgrading our ports, unclogging our commutes”. He didn’t say much beyond that, of course, but given other developments in the background, we have reason to be somewhat encouraged.

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Though his transportation remarks were limited, what he did propose was a bit more concrete than past references to diverting billions saved from winding down various wars. This time, he called for making changes to corporate taxes – moves with at least some support in both parties – that could yield a temporary infusion for infrastructure investment.

It would be a welcome near-term boost, but as his transportation secretary has repeatedly pointed out, we need a long-term fix for the ongoing shortfall in our beleaguered transportation trust fund. The U.S. DOT will run out of money to reimburse states before the end of the fiscal year, with deep cuts likely in following years. Simply put, rising construction costs and falling gas tax revenues from an increasingly efficient vehicle fleet have us on course for a “transportation fiscal cliff”.

As the President surely knows, this bodes ill for much of the strategy he outlined for easing the burden for work-a-day Americans. It won’t do much good, for example, to train a low-wage worker for a job in the suburbs if he or she can’t get to it. Efforts to revive manufacturing will falter if producers can’t move their goods through bottlenecks on overburdened and deteriorating urban highways.

As the expiration of MAP-21 nears this fall, we are hoping the Administration will put forward a transportation bill that lines up with Obama’s economic strategy. But when it comes to raising the revenue to boost the trust fund to levels sufficient to repair and modernize our infrastructure, the President cannot go it alone.

The good news is he may not have to. In recent days, the chairs of two key infrastructure committees, Rep. Bill Shuster (R-PA) and Sen. Barbara Boxer (D-CA) – representing both chambers and both parties – have sounded the call to save our transportation fund from insolvency and make smart investments for America’s future.

Chairman Barbara Boxer, Senate Environment and Public Works Committee

Chairman Bill Shuster, House Transportation and Infrastructure Committee

“This problem must be addressed in this Congress,” said Senator Boxer, who chairs the Environment and Public Works committee. “A strong transportation system is vital to ensuring our nation’s economic competitiveness, and this requires maintaining federal investments in our infrastructure.”

Rep. Shuster, chair of the House Transportation and Infrastructure Committee, also has been bold and articulate on the need for a “strong federal role” in creating the infrastructure to sustain our economy and quality of life, and the need for local leaders to speak up for it. In opening a hearing this month on “Building the Foundation for Surface Transportation Reauthorization”, he said: “We can’t afford to be stuck in the past or we’ll be left behind. We should encourage our federal partners to think outside the box on how to address our transportation challenges [and] promote innovation.”

We couldn’t agree more, and we can’t imagine that his Democratic counterparts would disagree. We recognize that finding agreement on the revenue source will be a steep climb. We have suggested several possible sources. Perhaps tax reform offers another vehicle to find new revenue for transportation needs.

Meanwhile, “We need your help in educating members of Congress,” Chairman Shuster told the U.S. Conference of Mayors this month. Those members need to hear from elected, business and civic leaders from around the country that there is support – and a demand – for congressional action to provide the infrastructure funding our economy relies on. That’s our mission at T4America: to rally those voices across the country and bring them to their members of Congress. If you can help – either by speaking yourself or by reaching out to a community leader – please let us know!

White House launches advisory group on rural issues that includes transportation officials

President Obama signed an executive order today creating an advisory group for rural issues. The group will be tasked with developing recommendations for boosting economic growth, job opportunities and quality of life in rural communities.

The Executive Order notes that sixteen percent of the population lives in rural counties and that these areas are essential to future economic competitiveness.

“Though rural communities face numerous challenges, they also present enormous economic potential,” according to the order. “The Federal Government has an important role to play in order to expand access to the capital necessary for economic growth, promote innovation, improve access to health care and education, and expand outdoor recreational activities on public lands

Tom Vilsack, the Secretary of Agriculture, will serve as chairman and will be joined Transportation Secretary Ray LaHood, Housing and Urban Development Secretary Shaun Donovan, Environmental Protection Agency Administrator Lisa Jackson and dozens of other Cabinet and administration officials. Including these voices will ensure cross-jurisdiction solutions are considered.

The transportation challenges of rural areas are well-known, yet cannot be overstated.

More than 1.6 million rural households in America lack access to a personal vehicle, and rural areas and small towns tend to have higher concentrations of older adults and low-income families, precisely the groups that are less likely to drive or be able to afford a car. The need for increased travel options in these communities was outlined in our Dangerous by Design 2011 report, which found that while only 24 percent of Americans live in rural areas, the areas account for more than 27 percent of pedestrian fatalities.

As Congress continues its deliberations over the next transportation bill, rural transit needs have finally begun to receive more of the attention they deserve. Senator Tim Johnson, a South Dakota Democrat who chairs the Banking Committee that oversees transit, has called for additional resources to help small providers maintain service levels. And, Representative Shelley Moore Capito, a Republican member of the House Transportation and Infrastructure Committee whose West Virginia district contains a number of rural counties, has said she will “certainly remain a strong voice for making roads safer for pedestrians” as the next bill is crafted.

Rural transportation needs were also the subject of recent report from the Rural Policy Research Institute, or RUPRI. You can read their full report, which includes a number of recommendations for the next transportation bill, here.

Photo courtesy of Huron County Transit.

Government shutdown averted in last-minute budget deal, with some cuts to transportation

Down-to-the-wire negotiations late last night between President Obama, House Speaker John Boehner and Senate Majority Leader Harry Reid resulted in a budget deal containing about $38 billion in reductions from current spending levels and the prevention of a government shutdown.

With the Federal Government slated to close at midnight, the House and Senate passed a final one week stop-gap measure to allow the details of the agreement to be ironed out. The continuing resolution itself contains $2 billion in cuts that largely hit the U.S. Department of Transportation and Department of Housing and Urban Development.

By next week, Congress is expected to finalize its fiscal year 2011 budget — which runs through September — at the agreed-upon funding levels. President Obama made brief remarks on the budget compromise at the White House shortly after 11pm last night.

The cuts to transportation and housing passed last night were deemed largely non-controversial because they matched closely with the funding levels requested in President Obama’s fiscal year 2012 budget.

The High Speed and Intercity Passenger Rail program will receive $1 billion, a reduction of $1.5 billion from the previous year, and the New Starts program — a key revenue source for transit projects throughout the country — loses $280 million, though the resulting figure is reportedly sufficient to fund projects that have already received grants from USDOT. Other cuts include:

$6.3 million from the Transportation Planning, Research, and Development account
$2.5 million from the Federal Railroad Administration’s Research and Development; and
The Transit Research and University Research Centers Program budget is reduced to $64.2 million.

Details on the remainder of the fiscal year cuts and how they will affect transportation are not yet available, although Politico has early information on a few items:

One of the toughest fights, casting the White House as the budget cutter against reluctant Republicans, was in highway and transportation spending. But here the administration succeeded in cutting about $630 million in so-called orphan earmarks and $2.5 billion in unexpended contract authority.

We expect to hear more about the final package soon.

UPDATE: A White House blog post confirms that the fiscal year 2011 cuts include $630 million in earmarked transportation projects and $2.5 billion in funding that was slated for transportation projects.

Photo courtesy of the Washington Post.

President Obama proposes $556 billion, six-year federal transportation program

President Obama released a budget for the 2012 fiscal year this morning that includes a significant investment in our nation’s infrastructure and a long-overdue emphasis on options and accountability.

The $556 billion, six-year proposal for transportation reauthorization included in the budget is an ambitious standout in a largely sober blueprint. However, persistent unemployment — particularly in the construction industry — makes the case for forgoing infrastructure cuts in favor of investment. When more Americans are working, paying taxes and putting their dollars back into their communities, the deficit goes down too.

Yonah Freemark from the Transport Politic pointed out that the President’s budget continues the expansion of transportation options.

Though the Administration would increase funding for roads construction from $41 billion in the previous budget to $70 billion, that increase is dwarfed in percentage by proposed spending on transit, which would more than double from $8 billion annually currently to $22 billion. Over six years, spending on capital improvements for public transportation would add up to $119 billion.

Tanya Snyder at Streetsblog Capitol Hill also offered some initial reactions.

As promised, the budget also includes the $53 billion for high-speed rail over six years previewed by Vice President Biden in a speech last week.

True to the overall theme of cuts coupled with smarter investment, the plan consolidates 55 programs into just five and invests $30 billion in a National Infrastructure Bank to provide loans and grants to projects of regional and national significance that promote economic growth. The plan contains no earmarks and cancels a number of them still on the books.

The administration is also highlighting a new $32 billion competitive grant program modeled after the successful Race to the Top program in the U.S. Department of Education. This new approach would create incentives for states and regions to pursue their own innovations that reduce congestion, improve quality of life, make it easier for residents to get to work and recreation and enhance economic prosperity. Details about that program should be forthcoming at the U.S. DOT briefing about the budget this afternoon.

In addition, a “Fix-it-first” policy for highways and transit grants would make repair and maintenance of existing infrastructure a higher priority, a reform that would save lives and save money.

The plan does not specify a revenue source for the increases but “commits to work with Congress to ensure that the funding increases for surface transportation do not increase the deficit.”

The U.S. Department of Transportation is hosting a briefing at 2pm at which point many of these details will be further illuminated. T4 America will be releasing a formal statement early this afternoon.

Photo: AFP/Getty Images

More infrastructure investment will create jobs, boost economy, according to Treasury Sec. Geithner

U.S. Treasury Secretary Tim Geithner hammered on the job-creation and economy-boosting effects of the Obama administration’s plan for infrastructure investment in a blog post on the department’s website.

Writing the same day Vice President Biden and Transportation Secretary Ray LaHood were in Philadelphia promoting a $53 billion, 6-year passenger rail package, Geithner argued that investing in our nation’s roads, bridges, rail and transit systems creates “both immediate and long-term economic benefits.”

Treasury Department analysis reveals an unemployment rate among American workers building infrastructure at 15 percent, significantly higher than the national average. Investing in infrastructure would create jobs in construction, manufacturing and retail trade, all sectors hard hit by the economic downturn, and nine out of ten jobs created would pay middle-class wages.

Geithner emphasized the administration’s commitment to spending federal dollars in a targeted and fiscally responsible way, writing: “our strategy is designed to make crucial investments in infrastructure while bringing our deficits down to sustainable levels.”

Simply increasing spending levels is unacceptable, Geither wrote, adding “we must also reform the ways in which we invest.” He continued:

Not all infrastructure investments are good investments, and too often we have seen transportation projects exemplify the worst of Washington – the bridges to nowhere that rightly make American taxpayers cringe. The President’s Budget recognizes this and will make some difficult choices, proposing significant spending cuts, including to some programs we would preserve in better times.

President Obama’s plan includes a National Infrastructure Bank, which would “select projects on the basis of rigorous analysis,” Geithner explained. The Bank would evaluate and fund projects that generate the best return on investment, leverage private capital to do it and promote increased transportation options along the way. House Transportation and Infrastructure Committee chairman John Mica, a key player in Congress, has cited securing private capital for projects as a key priority for federal transportation spending.

Infrastructure investment benefits all Americans, even in ways we do not always think about. Upgrades and additions to the New York City subway system allow millions to “get to work faster, increasing their productivity and quality of life by decreasing the amount of time lost to commuting,” Geithner notes. But it also means that “the far-away Kawasaki plant in Lincoln, Nebraska that manufactures the subway cars will increase production, putting Nebraskans to work.”

You can read Secretary Geithner’s entire post here.

Photo: Washington Post

Vice President Biden makes the case for rail, cites T4 America co-chair’s hometown as an example

Vice President Joe Biden made an emphatic case for high-speed rail in Philadelphia today as the Obama administration kicks off a series of events this week to highlight the need for infrastructure investment.

Biden, who was joined by Transportation Secretary Ray LaHood and other officials, is a fitting messenger for rail’s benefits. Dubbed “Amtrak Joe,” he was a regular commuter on the Acela line during his 36 years as a U.S. Senator from Delaware. While campaigning in 2008, he told the New York Times, “If we get elected, it will be the most train-friendly administration ever.”

The Vice President announced a six-year, $53 billion investment in national high-speed and intercity passenger rail during remarks at Philadelphia’s historic 30th Street Station. Passengers traveling on Amtrak’s Keystone Corridor from Pittsburgh and Harrisburg use the station to connect to the popular and speedy Acela line, which runs through New York City, Boston and Washington, DC.

While the Obama administration has made clear that responsible deficit reduction is a priority, Biden emphasized there are some areas where it would be irresponsible to scale back.

“As President Obama said in his State of the Union, there are key places where we cannot afford to sacrifice as a nation – one of which is infrastructure,” the Vice President said, adding: “If you shut down Amtrak’s Northeast Corridor, you’d have to add seven new lanes to I-95 to accommodate the traffic.”

The Vice President singled out Meridian, Mississippi mayor and T4 America co-chair John Robert Smith, who served his hometown for four terms. Biden hailed Mayor Smith for using passenger rail to revitalize the economy, bring jobs to the region and improve quality of life. Meridian’s restored Union Station serves 300,000 passengers, hosts over 250 events every year and has leveraged millions in downtown investment.

The need for increased travel options to accommodate expected population growth was also a theme in the Vice President’s address, along with the fact that simply widening highways and building new ones will not suffice.

“In the next 40 years, the United States is expected to increase in population by 100 million people,” he said. “Seventy percent of all people in America now live within 50 miles of the Atlantic Ocean or the Pacific Ocean. You know how congested we are now. What happens with 100 million more?

“When you talk about the investments we’re making in rail, they pale in comparison to investment you’d have to make in runways or highways,” he added. “And that’s before you factor in the environmental benefit of taking cars off the road.”

With this long-term commitment, cities and states now have the certainty to pursue longer-term plans for rail, and businesses can move forward putting more Americans to work making this vision possible. The administration has also made strides on streamlining existing programs in USDOT. Now, for the first time, all high-speed and passenger rail programs are consolidated into just two new accounts.

As Streetsblog already noted, the politics of transportation spending remain muddled, but today’s announcement was a key step toward laying the foundation for a 21st century system.

Photo: CNN

President Obama calls for fixing 20th century infrastructure while building for the 21st

The theme of President Obama’s State of the Union address last night was winning the future, and investing in America’s infrastructure was an integral part of it.

“The third step in winning the future is rebuilding America,” the President said, after discussing his vision for innovation and education. Other nations have outpaced our investment in roads and railways, and our own engineers have graded our infrastructure a “D,” he noted.

President Obama rightly emphasized the need for a 21st century transportation system on top of fixing what we built in the 20th. He also pointed out that we create more jobs and greater opportunity when we embrace an array of transportation options. The transcontinental railroad, rural electrification and the Interstate Highway System did not just put Americans to work in construction, he said. Jobs also came from “businesses that opened near a town’s new train station or the new off-ramp.”

“We were thrilled to hear the President come right out and say that investment in transportation and other infrastructure is central to rebuilding and growing our economy,” said Transportation for America Director James Corless. “An upfront investment in the most needed, clean transportation projects is a great opportunity to create near-term jobs and lay the groundwork for the future economy.”

The President also reiterated his strong support for high-speed rail, with the goal of giving 80 percent of Americans access to the system within 25 years. “This could allow you to go places in half the time it takes to travel by car,” he said.

“For some trips, it will be faster than flying –- without the pat-down,” he added, to laughter.

Although he did not identify the program by name, President Obama endorsed the principles behind an infrastructure bank, saying we ought to “pick projects based (on) what’s best for the economy, not politicians.” And he vowed to harness private capital to help pay for new projects, a goal shared by House Transportation and Infrastructure Committee Chairman John Mica, a Florida Republican.

A number of groups, including business and labor, hailed the President’s focus on investing in the future. U.S. Chamber of Commerce President Tom Donohue echoed Obama’s call for “a world class infrastructure” and called for “common ground to ensure America’s greatness into the 21st century.” ALF-CIO’s Richard Trumka said, “We strongly support the President’s vision on infrastructure to create good jobs and succeed in a global economy, and working people are ready to work with him and hold him to his promises.”

AASHTO, the trade group representing state departments of transportation, was “encouraged that President Obama supports investing in America’s transportation infrastructure – recognizing the role it plays in creating jobs, growing the national economy and balancing the federal deficit,” according to Executive Director John Horsley, who added that he looks forward to working with the Administration and Congress on a reauthorization bill.

The Equity Caucus at Transportation for America said that “smarter transportation investments can unleash the under-realized economic power of communities across America.”

T4 America echoes these sentiments, and we are especially pleased with the President’s dual commitment to job creation today and economic prosperity tomorrow.

“The President’s vision for infrastructure is not just about near-term construction jobs,” Corless said. “It is, as he said, about growing new businesses, livable neighborhoods and dynamic regions that can attract a young and mobile workforce and compete internationally.

“It’s about jobs associated with new transportation technologies and manufacturing modern transit vehicles, everything from real time information systems to make our highways and transit corridors smarter, to the new rail cars being built today by United Streetcar in Oregon that can breathe new life into our cities and suburbs,” he added.

You can read T4 America’s entire statement here. You can learn more about the Equity Caucus at Transportation for America and read their entire statement here.

Photo: AP

DOT poised to move on a long-term transportation bill in 2011?

When President Obama made his announcement on Labor Day about investing in infrastructure, most media outlets focused in directly on the $50 billion amount that would be spent up front to jumpstart infrastructure investment — something we already noted last week. But he also talked about the need for a reformed long-term transportation reauthorization, the full six-year bill that would provide certainty for job creation and the economy.

Here’s a quote from the release that accompanied the President’s speech:

The President proposes to pair this with a long-term framework to reform and expand our nation’s investment in transportation infrastructure. Since the end of last year, when the last long-term surface transportation legislation expired, these investments have been continued on a temporary basis, even as the trust fund to finance them has fallen into insolvency. If we are to enjoy the benefits that come from a world-class transportation system, Congress must enact a long-term reauthorization that expands and reforms our infrastructure investments and returns the transportation trust fund to solvency.

So the million dollar question has been, when will we see this bill? With Congress unlikely to pass anything of substance between now and the election and an already full docket for the likely lame duck session to follow, what is the administration or USDOT saying about moving a bill forward?

As much progress as has been made by the House transportation committee thus far, introducing a full bill proposal all the way back in July of 2009, both chambers have been waiting for the White House to declare the transportation bill a priority and to put their significant weight behind it. Now it sounds like that day could be just a few months away.

In a meeting with advocates this week, Secretary LaHood said that they have the go-ahead from the White House to move a six year bill in 2011, with a full proposal accompanying the President’s budget request for FY12 in February, according to USDOT sources.

The question remains as to whether or not that will be a full bill, or merely the administration’s principles for a bill, but in either case, this is at least a glimmer of light at the end of the tunnel for our long wait for a transformational transportation bill. Which, we remind you, expired one year ago in just a few days. (See the clock above on our web site.)

Innovation and competition make the housing-transportation connection work

A map of the Chicago Transit Authority system.

Note: a version of this post was also published on the National Journal’s Transportation Experts blog.

This country is in desperate need of innovation. We are still mired in a recession triggered by a collapse in real estate that was driven in no small part by the exhaustion of the “drive-til-you-qualify” housing market. The housing market was showing profound signs of change before the real estate-triggered financial meltdown halted all development, with surging demand for more conveniently located, walkable neighborhoods. As just one example, the city of Atlanta added nearly 120,000 new residents since 2000, a population increase of 28 percent, after decades of serious population loss.

Two summers after the devastating run of soaring gas prices in 2008, we are again suffering from anxiety over our over-reliance on petroleum as oil gushes into the Gulf of Mexico. Just yesterday, the House Livable Communities Task Force sent House leadership an urgent letter arguing that Americans must be given new options for where they live and how they get around as part of the long-term solution to this potentially crippling vulnerability. As they noted:

The transportation sector accounts for almost three-quarters of U.S. oil consumption, and Americans consume over 10 percent of the world’s oil just driving around. … Livable communities offer a safer, cleaner and more economical approach to reducing our nation’s energy consumption … .

“Livability” has become the administration’s catch-all term for providing communities the resources and expertise they need to give their citizens the living and travel options they are looking for, while sustaining a high quality of life. With the old model gasping its last breaths, our local communities and metro areas are the laboratories for emerging innovations in building the next America. The best way to sort out the most promising new ideas is through the tried-and-true American way: Competition.

The principles articulated by the three-agency partnership are an excellent prism through which to evaluate grant applications from local communities. The trick will be holding themselves and their grant recipients accountable for collecting and evaluating data on the success of these projects. Did that new neighborhood near a rail transit station draw the expected customers? Did residents and visitors drive less, walk and use transit more? Are residents satisfied, and if not, what would they change? There won’t be a one-size solution, but we should all be able to learn lessons about what works in a given region of the country or in certain types of communities.

This is an unsettling time for many of us, but it also could be an exciting time of positive change and new discoveries. The Obama administration deserves a lot of credit both for recognizing the link between housing, transportation, economic development and environmental stewardship and initiating a bold partnership to make sure this coordination happens. We should support their impulse to prod innovation, even as we hold their feet to the fire in evaluating results.

President Obama hails high-speed rail as “the infrastructure of tomorrow”

John Robert Smith is co-chair of the Transportation for America campaign and former mayor of Meridian, Mississippi.

Hearing President Obama call high-speed rail “the infrastructure of tomorrow” gave me great hope. Very rarely has transportation investment made the final cut in a presidential State of the Union address. The fact that it did make the cut this time really speaks to the president’s commitment to making high-speed rail a reality.

I’ve heard critics say over the years that the U.S. is too big for high-speed rail. China is the biggest country in the world and they built over the Himalayas and are now committing an additional $500 billion over the next 20 years. Saudi Arabia too is investing in high-speed rail in preparation for that certain day when oil reserves will no longer sustain the country. If they can do it, we can do it.

High-speed rail investment is about jobs, and not just temporary jobs, but long-term American jobs that cannot be outsourced. These jobs will employ Americans to build both rail networks and passenger rail equipment. This could be a real lifeline for unemployed automotive workers struggling to get and keep a new job. And these Americans will be going to work building a cleaner environment and more sustainable future for all of our children.

I have seen first-hand what investment in rail infrastructure and transit-oriented development can do to lift a mid-sized city like Meridian, Mississippi. Now there are people living in downtown, there’s entertainment downtown and a conference center has been built. It all started with a public sector investment done right. The vibrancy that returns to smaller communities as a result of rail service has improved the quality of life for millions of Americans. This is not about big city versus small, or urban versus rural. Chicago and Los Angeles will surely benefit from rail investment, but so too will places like Minot, North Dakota and Whitefish, Montana. This addresses the needs of our entire country and should be embraced by our representatives in Washington from all corners.

Of all the issues facing Congress, surely high-speed rail investment can transcend partisanship. As a Republican, I have worked with some the most liberal and conservative members of the United States Senate to protect Amtrak for people who depend on it. I see the potential for similar partnerships today and am heartened that we have a president who is leading the way.

Mayor John Robert Smith is co-chair of the T4 America Campaign, president of Reconnecting America, and former mayor of Meridian, Mississippi.

High speed rail grantees awarded, was your state included?

As you may have heard by now, President Obama is following up his favorable mention of high speed rail in last night’s State of the Union address with a Tampa event to announce the winners of federal grants for high speed rail service. (In case you missed our official statement about the announcement, read that here.)

The President is due to make his announcement this afternoon, but the list of awardees has already been released. So who were the big winners? Certainly Florida and California, who got the biggest grants, netting $1.25 and $2.3 billion respectively. Although the lion’s share of funding is going toward a handful of corridors, 31 states will receive some portion of funding or benefit from new or improved rail service, according to reporting on the proposal. A few notable bloggers have already done superb analysis of the recipients of the $8 billion, starting with Yonah Freemark’s excellent corridor by corridor breakdown on the Transport Politic:

After months of speculation about which states will get funding from the Federal Railroad Administration to begin construction on new high-speed corridors, the news is in. As has been expected, California, Florida, and Illinois are the big winners, with more than one billion in spending proposed for each. But other states with less visible projects, including Wisconsin, North Carolina, and Washington will also get huge grants and begin offering relatively fast trains on their respective corridors within five years. The distribution of dollars is well thought-out and reasonable: it provides money to regions across the nation and prioritizes states that have made a commitment of their own to a fast train program.

Elana Schor at Streetsblog DC included a quote from Chairman Oberstar, who was certainly delighted at the first small step toward a true nationwide high speed rail network.

House infrastructure committee chairman Jim Oberstar (D-MN) hailed today’s first rail grants as “a transformational moment,” adding: “The development of high-speed rail in the United States is an historic opportunity to create jobs, develop a new domestic manufacturing base, and provide an environmentally-friendly and competitive transportation alternative to the traveling public.”

Information about all the corridors can be found in the White House briefing room online. We hope to post additional reaction and analysis later today or tomorrow.

Administration releases their principles for an 18-month transportation bill

When DOT Secretary LaHood was on Capitol Hill a few weeks ago discussing the Obama Administration’s plan for a transitional transportation bill, he mentioned that their plan for an 18-month extension would “enact critical reforms” while stopping short of a fundamental overhaul of the program — leaving that for the full six-year bill.

A lot of transportation advocates were left wondering what sort of reforms the administration would propose. Today we got a first look at their general proposal (via Transportation Weekly.) Update: Elana Schor @ Streetsblog has the details on the National Infrastructure Bank.

As you may remember, Chairman James Oberstar and his House Transportation and Infrastructure Committee are at odds over the timing of the authorization bill. Oberstar and company want to pass a full six-year authorization bill by September, while the Administration favors an 18-month transitional bill to patch the soon-to-be insolvent Highway Trust Fund.

At the forefront of the administration proposal is a $20 billion transfer from the general fund to keep the Highway and Mass Transit Accounts in the Highway Trust Fund from going bankrupt, keeping them solvent until March 2011. They propose to return the money to the general fund over 10 years.

In a section titled “Downpayment on Reform,” the administration outlines three proposals, including $310 million to help states and metropolitan planning organizations (MPOs) voluntarily improve their project evaluation process, helping them choose worthy projects based on data , preparing them “for improved accountability standards and merit criteria in the long-term reauthorization.”

The second proposal would provide $10 million for “USDOT to develop performance goals and establish guidelines for states and localities on project evaluation.” And in language that sounds similar to the stimulus spending, the third proposal aims to improve the transparency and accountability in transportation spending, to “lay the groundwork for further accountability reforms in the long-term reauthorization.”

Lastly is a section on livable communities and improving regional access:

Livability: developing guidelines for community plans and providing funding for approved projects with special emphasis on convenience of transportation options, reductions in travel times, smart growth, preservation of open space, and more integrated responses to land use and transportation needs.

Chairman Oberstar is still opposed to any extension and it’s worth noting that any 18-month proposal would have to pass through his committee in the House. Read the full memo to Congress below. (more…)

More on today’s high speed rail announcement

President Obama’s remarks from the press conference this morning have been posted on the White House blog. In his remarks, joined by Vice President Biden and Transportation Secretary LaHood, Obama appealed to our national pride and pointed to the benefits that high-speed rail would bring to all Americans:

There’s no reason why we can’t do this. This is America. There’s no reason why the future of travel should lie somewhere else beyond our borders. Building a new system of high-speed rail in America will be faster, cheaper and easier than building more freeways or adding to an already overburdened aviation system — and everybody stands to benefit.

They also posted some details about the corridors eligible for funding, including this map below, which is very similar to an older Department of Transportation map from several years ago.

According to the information from the White House site, the potential corridors eligible for funding are:

California: San Francisco Bay Area, Sacramento, Los Angeles, San Diego
Pacific Northwest: Eugene, Portland, Tacoma, Seattle, Vancouver, B.C.
South Central: Tulsa, Oklahoma City, Dallas/Fort Worth, Austin, San Antonio, Little Rock
Gulf Coast Corridor: Houston, New Orleans, Mobile, Birmingham, Atlanta
Chicago Hub Network: Chicago, Milwaukee, Minneapolis-St. Paul, St. Louis, Kansas City, Detroit, Toledo, Cleveland, Columbus, Cincinnati, Indianapolis, Louisville
Florida: Orlando, Tampa, Miami
Southeast: Washington, Richmond, Raleigh, Charlotte, Atlanta, Macon, Columbia, Savannah, Jacksonville
Keystone: Philadelphia, Harrisburg, Pittsburgh
Empire: New York, Albany, Buffalo
Northern New England: Boston, Montreal, Portland, Springfield, New Haven, Albany

Transportation for America released a statement this morning from Campaign Director James Corless in support of the President’s initiative:

We applaud President Obama’s leadership, and look forward to working with him to help shape the sustainable transportation solutions that will bring our system into the 21st Century. It is clear that President Obama and his administration are ready to move America in a new direction. Transportation systems have enormous impacts on the lives of the American people – from our pocket books to climate change, from our household expenses to the global economy.

Americans are increasingly rejecting the status quo in favor of more transportation options that will make our communities more walkable, more energy efficient, more equitable and healthier. The President’s commitment to high speed rail is an important piece of what must be a bold new vision for our national transportation program.

You can watch video of the press conference here, via Politico.com

President Obama: “I would like to see some long-term reforms in how transportation dollars flow…”

President Obama gave an interview to five columnists aboard Air Force One last week en route to Chicago, and he talked at length about infrastructure, transportation, and the need to make serious reforms in transportation spending this year when the five-year transportation bill is reauthorized. He hinted at how proper investments in transportation and infrastructure can help boost the economy and meet other national goals like reducing energy usage — all while making a downpayment on a 21st Century transportation system we’re all hoping for.

President Obama with his Transportation Secretary Ray LaHood. From the Obama-Biden Transition Project’s Flickr stream (Creative Commons)

An excerpt from the very long interview:

Q. Mr. President, if I could ask you about infrastructure, You’ve got infrastructure spending in the stimulus package. The need is much faster than that and the money is tight. Do you anticipate any significant further additions in federal infrastructure spending in the reasonably near future, and are you making plans to establish an infrastructure bank?

President Obama: Well, number one, we’ve got the transportation reauthorization bill that’s going to be coming up. So one thing to keep some perspective about on the recovery package is this is supposed to provide a jolt to the economy above and beyond what we’re doing already in the federal budget. And so I expect that Secretary LaHood, working with the various transportation committees are going to be moving forward on a transportation bill. I would like to see some long-term reforms in how transportation dollars flow, and I’ll give you just a couple of examples. I think right now we don’t do a lot of effective planning at the regional level when it comes to transportation. That’s hugely inefficient. Not only does it probably consume more money in terms of getting projects done, but it also ends up creating traffic patterns, for example, that are really hugely wasteful when it comes to energy use.

If we can start building in more incentives for more effective planning at the local level, that’s not just good transportation policy, it’s good energy policy. So we’ll be working with transportation committees to see if we can move in that direction.

The idea of an infrastructure bank I think make sense — the idea that we get engineers, and not just elected officials, involved in thinking about and planning how we’re spending these dollars. I may get some objections from my colleagues, Democrat and Republican, on the Hill about that, but I think there should be some way for us to — just think how can we rationalize the process to get the most bang for the buck, because the needs are massive and we can’t do everything, and if it’s estimated that just on infrastructure alone it would cost a couple trillion dollars to get our roads, bridges, sewer systems, et cetera, up to snuff, and we know we’re not going to have that money, then it would be nice if we said here are the 10 most important projects and let’s do those first, instead of maybe doing the 10 least important projects but the ones that have the most political pull.