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The Trump administration has made history…as the first to not approve or advance a single transit capital project in their first year and a half in office. Considering what we heard directly from USDOT Secretary Duffy last week, no one should believe that’s a coincidence. 

For decades now, Congress has provided funding each year—more than $4.2 billion per year during each year of the IIJA—to cover half or less of the costs of the capital improvements involved in building new transit service or dramatically improving or expanding existing service in communities across the country, with locals picking up the larger share of the tab. If your community is building a new light rail line, bus rapid transit expansion, or commuter rail, they have likely tapped this program. But since taking office, the administration has held the program hostage, failing to sign a grant agreement for a single one of the transit projects currently in the development process. 

Earlier this week, the New York Times took note and spoke to T4America and others about this unprecedented slowdown: (Gift link, we hope)

But since President Trump returned to office, the Federal Transit Administration has not signed a single new agreement under the program, known as Capital Investment Grants. Large projects ready to enter the final phase of the program’s yearslong pipeline have stalled there. The administration also tried halting payments to the New York and Chicago projects, forcing courts to intervene. …“It’s hard to look at the last year and see anything other than a deliberate slowdown of these grants,” said Steve Davis, director of the advocacy group Transportation for America.

While Trump’s USDOT slowed down transit grants during his first term, a new wrinkle this time has been the Office of Management and Budget’s move to firewall the transit capital funds provided by Congress over the last two years and not “apportioning” them to USDOT so they can be spent.  “More than $7 billion hasn’t been obligated to any project,” wrote Emily Badger and Alicia Parlapiano for the Times. More than $5 billion of that total has been earmarked for next fiscal year, though that’s still no guarantee it would get spent—it would still have to be apportioned to USDOT once October 1 gets here.

The long and short of this move is that, even if USDOT wanted to sign a grant agreement for one of these transit projects and get it moving tomorrow, there’s a chance that they wouldn’t be able to because OMB is holding onto the money—USDOT simply doesn’t have the money in hand. Transit expert (and T4America alum) Sarah Kline told the Times just how shocking this new move is: “I have never seen a situation where the F.T.A. says, ‘Oh, we don’t need $5 billion because we’re not going to have projects ready for that.”

What’s the end goal here? 

A statement from FTA had the expected platitudes about these projects just working their way through the federal pipeline before being ready to sign grant agreements. But you don’t have to squint too hard to see the endgame: 

The first Trump administration proposed ending the program, and just last year, USDOT floated a proposal to end all federal funding for transit—which was quickly shot down by the top Republican on transportation in the House, who said “I’m just not interested.” And then just last week, USDOT Secretary Sean Duffy sent a letter to the Senate to put the administration’s transportation priorities to paper for a long-term replacement for the IIJA. Take a wild guess on one of their top priorities:

We propose eliminating the Mass Transit Account and consolidating all Federal fuel tax revenues into the Highway Account. This will re-establish a direct user-pays model and address the Fund’s looming structural deficit.

Considering all these data points, it’s not too hard to believe that they would like for Congress to end this program and shift the $2-4 billion in annual transit capital spending over to the highway side to “advance the president’s vision for a bold transportation future,” whatever that entails.

As we’ve noted before, if your primary goal is shoring up the Highway Trust Fund by eliminating all other spending in the federal program, you will completely erode the broad, bipartisan coalition required to pass a long-term transportation law. They could propose ending everything else other than highway formula programs, and you’d still need billions in deficit spending to cover a highway program that still wouldn’t be paying for itself.  Why support a deal when only the priorities of a small minority are included? And make no mistake, the support for transit is bipartisan. 

Whatever the reason these transit projects are frozen, the unfortunate reality is that it’s the people in local communities who are paying and will continue to pay the price:

And any unspent grant money is something tangible not built — a subway station without elevators for accessibility, a bus line without dedicated lanes for faster travel, a commuter rail that can’t carry enough trains.

H/t to Emily Badger and the New York Times for their work to spotlight this important story.