Skip to main content

Congressional appropriations proposals miss the mark

The appropriations process for 2023 determines funding levels for key infrastructure projects set up under the new infrastructure law. Congress’s proposals and the president’s budget aren’t lining up with the administration’s stated goals to improve safety, reduce emissions, and expand the national rail network.

Wikimedia photo by Jorge Gallo

The appropriations process

In 2021, the Infrastructure Investment and Jobs Act (IIJA or “infrastructure law”) reauthorized the federal transportation program, creating several new programs and increasing funding for many others. The IIJA guaranteed the funding of certain programs for five years through advanced appropriations, but the rest are subject to the annual appropriations process. On March 28, 2022 the Biden administration’s Office of Management and Budget (OMB) sent the president’s proposed budget for fiscal year 2023 (FY23) to Congress. On June 22, 2022, the House Appropriations Committee released its FY23 Transportation, Housing, and Urban Development (THUD) appropriations funding bill, followed by the Senate version on July 28.

T4A has been following the rollout of the IIJA, but much of our analysis depends on whether Congress chooses to fully fund it. Since 2023 will be the first full fiscal year since the IIJA was passed, this spending bill is the federal government’s first opportunity to set new funding levels since the law was passed. However, the current proposals spell trouble for the administration’s priorities.

Forgetting the promise of the IIJA

In many cases, both the House and Senate failed to fund programs at their IIJA-authorized levels. For example, the IIJA authorizes funding for key safety programs like the Safe Streets and Roads for All Program (SS4A) and Healthy Streets Program at much higher levels than what’s outlined in these proposals. The president’s budget provided $200 million for the SS4A, which can fund needed safety plans and projects, but nothing for Healthy Streets or the Active Transportation Investment Program (ATIIP), which could aid in the creation of active transportation networks. 

The Senate zeroed out SS4A and Healthy Streets, while providing only $25 million to ATIIP.​​ (The Senate bill instead prioritized the more flexible RAISE and PROTECT programs, both of which can be used to construct dangerous roads.) The House bill delivers slightly better on safety and active transportation by allocating $100 million to ATIIP, $250 million to SS4A, and $55 million to the Healthy Streets Program, but even their plan funds SS4A at only 8 percent of the level authorized by the IIJA.

Additionally, the Senate allocated $2.5 billion for the Capital Investment Grants (CIG) program, the main competitive grant program available for transit capital projects. This number is about $250 million less than the administration requested and about $500 million less than the House version (granted the House version exceeded the authorized level in the IIJA). CIG is the main competitive grant program available for transit capital projects. 

Both proposed bills increase funding levels for Amtrak over FY22 levels, but not in a regionally equitable manner. In particular, the Senate bill allocates almost 40 percent of Amtrak’s funding to the Northeast Corridor, a small portion of Amtrak’s domain, while underfunding Amtrak’s National Network by about 35 percent, denying most of the nation’s rail service over $700 million in needed funding. These uneven investments will further exacerbate the already widespread belief that the Northeast Corridor is economically competitive with the transportation market, when in reality, the Northeast Corridor relies on federal funding just as much as other rail corridors—it simply has historically benefited from more federal funds. 

Both bills also stripped the crucial Federal-State Partnership for Intercity Passenger Rails, a key source of funds for expanding passenger rail service across the country and establishing a national network, of over $1 billion in IIJA-authorized funding. This is all despite a stated commitment in the proposed Senate bill to sustain long-distance passenger rail services and “ensure connectivity throughout the National Network.”

Notably, the House and Senate were able to come to a consensus on one thing: fully funding the Highway Formula Program (Highway Trust Fund) at IIJA levels—$58.765 billion. These funds can be used for a range of projects, but more often than not, they’re used to back highway expansions or other costly infrastructure projects that undermine efforts to improve safety and advance climate goals.

The takeaway

These appropriations proposals were Congress’s first chance to fund programs since the IIJA passed. Though they couldn’t change the authorized funding levels set up in the infrastructure law, which invested a great deal of money into highways and set aside much smaller amounts for safety, transit, and rail, Congress did have the chance to ensure that even these smaller investments could receive their fair share. The decision to cut these programs will undermine the administration’s goals for the transportation system and will make it even harder for the IIJA to achieve its full potential.

The states will still be left with a tremendous amount of control over the safety of our streets and the level of our transportation emissions. The highway programs Congress chose to back are highly flexible, and states can use that flexibility to fund needed projects to boost connectivity, encourage active transportation, and create a better transportation system for all.

Three things to know about the Senate’s FY21 appropriations for transportation

Last month, the Senate Appropriations Subcommittee on Transportation, Housing, and Urban Development released a proposal for fiscal year 2021 that cuts funding for important transit and passenger rail grant programs. With only 10 days until the government runs out of funding, the clock is ticking for the House and Senate to reach an agreement on their two very different appropriations bills. 

An empty Amtrak station. Photo of Buffalo Exchange Street Station by Adam Moss on Flickr’s Creative Commons.

During this year of tumult, it came as no surprise that Congress failed to reach an agreement on fiscal year 2021 appropriations in September. With 10 days until the continuing resolution passed to keep the government open expires on December 11th, Congress needs to move quickly to reach an agreement. 

Problem: The Senate’s transportation appropriations and the House’s transportation appropriations are very different. 

Last week, the Senate Appropriations Subcommittee on Transportation, Housing, and Urban Development released its dismal proposal for fiscal year 2021 appropriations. This bill provides significantly less funding than the House-passed FY21 appropriations, and it doesn’t include any supplemental emergency appropriations for COVID relief.

Here are the three most important things to know about the Senate’s transportation appropriations. 

1. No emergency relief for transit or passenger rail grant programs

COVID-19 has hit U.S. public transportation and passenger rail hard. Transit agencies are in desperate need of at least $32 billion in emergency operating relief to maintain base levels of service, and Amtrak has repeatedly requested at least $4.9 billion from Congress to avoid further cuts to jobs and service. But it’s not just operations that need a boost: transit and passenger grant programs, like the Capital Investment Grants program, need supplemental emergency funding too. There are $23 billion worth of projects in the CIG pipeline, demonstrating the demand for additional public transit across the country. 

But there’s no emergency funding for either transit or passenger rail grant programs in the Senate’s appropriations bill. The Senate has also failed to pass a separate relief bill (like the House’s HEROES Act), and are missing a chance to appropriate any emergency money—be it operating support or emergency funding for discretionary programs, as the House included in its appropriations bill—in this proposal. 

2. Capital Investment Grants program takes a beating

The Senate bill cuts funding for the Capital Investment Grants (CIG) program, the federal government’s primary discretionary program for new transit projects. The Senate proposes $1.889 billion, which is less than the House-proposed level of $7.175 billion—$5 billion of which is supplemental emergency funding. With COVID-19 shutdowns and the ensuing economic slowdown throwing off the financial calculus of these large infrastructure projects, this emergency funding will ensure that critical CIG projects can proceed without delay. 

3. Passenger rail funding slashed

The Consolidated Rail Infrastructure and Safety Improvements (CRISI) program provides funding for capital projects to invest in rail infrastructure. This is the key program supporting new and expanded passenger rail service across the country. We have this program to thank for successful projects such as the upcoming return of passenger rail to the Gulf Coast

Yet the Senate bill undercuts the House’s proposal for this critical program, proposing $340 million where the House appropriated $500 million. In addition, the Senate bill requires that 25 percent of CRISI appropriations be reserved for rural areas. 

Robust and consistent appropriations are critical to supporting transit and rail projects across the country. As the House and Senate negotiate a final FY21 appropriations bill, we hope lawmakers remember how essential these programs are to our communities—especially as COVID-19 continues to demonstrate that essential workers, and therefore all of us, are reliant on public transit. We must invest in these systems to support our economy today, and recovery tomorrow.

U.S. Senate passes transportation appropriations bill with robust funding for transit, rail programs

press release

Washington, DC—Today, the United States Senate again rejected the Trump administration’s proposal to eliminate or severely cut vital transportation programs that local communities rely on by adopting its FY19 Transportation Housing and Urban Development (THUD) appropriations bill. In perhaps their strongest rebuke of the president’s disdain for transit, the bill language specifically requests that USDOT manage the BUILD program (formerly TIGER) as it did during the Obama administration.

“Today the United States Senate reaffirmed the importance of investing in transportation and in particular public transit. The Senate’s vote signals that funding public transit is and should remain a federal priority, despite the objections of the current administration,” said Kevin F. Thompson, director of Transportation for America. “Millions of Americans are counting on new or improved transit service to provide options for reaching jobs and opportunity, and local governments are counting on federal funds to leverage local taxpayer revenue and bring these projects to fruition.”

President Trump has twice sent recommended budgets to Capitol Hill that have eliminated most or all funding for public transit.

The Senate THUD appropriations bill funds:

  • The BUILD (Better Utilizing Investments to Leverage Development) Grants program at $1 billion. The bill language specifically directs USDOT to administer this program as it was in 2016 (under Obama’s DOT) in response to changes the agency has tried to impose which would have added greater financial and administrative burdens on local communities. The BUILD program is one of the most popular programs administered by the federal government, providing grants directly to local communities across the country for all manner of transportation systems from biking and walking infrastructure to port projects to transit systems. Communities can continue to rely on BUILD to help make upgrades to their ports (like in Mobile, Alabama) or shared-use trail systems (like in northwest Arkansas).
  • The Capital Investment Grants (CIG) Program at $2.5 billion, a $1.6 billion increase over the administration’s FY19 request but $92 million below FY18. This funding will allow projects like the Indianapolis Purple Bus Rapid transit (BRT) line, the Raleigh-Durham light rail line and the Tempe, Arizona Streetcar to move forward. Each of these communities raised tens or hundreds of millions of local dollars based on the promise of federal matching funds. The Senate, through this bill, keeps that promise.

The Senate strongly endorsed continuing Amtrak’s long-distance service, despite objections of the Trump administration, by virtually prohibiting Amtrak from reducing or eliminating rail service on the Southwest Chief line as Amtrak proposed. The Senate also adopted an amendment supported by Transportation for America that expressly prohibits the Federal Transit Administration (FTA) from changing its federal loan policy that would have raised costs for local taxpayers (see FTA’s “Dear Colleague” letter). The letter sowed confusion about FTA’s standards and we’re pleased the Senate rebuked the agency’s actions. The Senate sent a clear message that FTA should continue carrying out the CIG program as Congress intended.

We applaud the Senate for taking a firm stand in support of these programs and the communities that rely on them; we hope the U.S. House of Representatives will do the same.

On May 23, 2018, the House Appropriations Committee approved their THUD bill. Like the Senate bill, the House bill rejects the president’s proposal to eliminate or severely cut vital transportation programs that local communities rely on. We encourage Speaker Ryan to bring the bill expeditiously to the full House of Representatives for a vote.

208 local leaders and organizations urge Congress not to back down from federal commitment to transportation

press release

208 local leaders and organizations—including 72 local elected officials—sent a letter to House and Senate appropriators today urging them to continue rejecting the administration’s proposed cuts to transit and passenger rail programs, and the BUILD competitive grant program.

This group of elected officials and organizations, spanning 36 states, urged Congress to continue their commitment to invest in these small but vital programs that help move goods, move people and support the local economies upon which our nation’s prosperity is built.

“This impressive group of 208 signatories are sending a clear message to Congress and the administration: The opportunities provided by these relatively small federal transportation programs are crucial to the long-term vitality of communities across the country,” said Kevin F. Thompson, director of T4America. “Local voters and leaders have been approving billions in tax increases at the ballot box to invest in meeting the growing demand for well-connected communities served by transit. But they’re counting on the federal government to continue its historic role as a reliable funding partner to support these bottom-up efforts to invest in transit.”

As Congress continues working to finalize the 2019 budget, the letter’s signers urge appropriators to “recognize the power transportation investments can and continue to have on making our communities dynamic, livable, and connected places while strengthening our country’s position in the global marketplace.”

The letter continues: 

We want all American communities, large and small, across the country to benefit from a multimodal transportation network. We want to rebuild and improve our transportation infrastructure and that begins by ensuring that projects and programs in the Fixing America’s Surface Transportation (FAST) Act are fully funded and that the administration’s proposed cuts to key federal transportation programs—including the BUILD (previously TIGER) program, the Federal Transit Administration’s (FTA) Capital Investment Grants (CIG), and long-distance passenger rail programs—are defeated and funding for these programs are secured or enhanced.

As you consider funding levels for fiscal year (FY) 2019, we urge you to prioritize federal investments in our national transportation system, specifically for public transportation and passenger rail service.

 The full letter, including the list of all 208 signatories from 36 states, can be found here.

###

Senate appropriators reject administration proposals to eliminate transit investment

press release

On Thursday, June 7, the Senate Appropriations Committee marked up and approved the FY19 Transportation, Housing, and Urban Development (THUD) Appropriations Act. Kevin F. Thompson, Director of T4America, offered this statement in response:

“Millions of Americans are counting on new or improved transit service to provide options for reaching jobs and opportunity, and local governments are counting on federal funds to leverage local taxpayer revenue and bring these projects to fruition. The Senate Appropriations Committee recognized that need today. By unanimously approving $2.6 billion to fully fund all transit projects in the federal pipeline, Congress is signaling its intent to make local communities stronger and rejecting the Trump administration’s proposal to eliminate funding for transit and leaving every community to fend for itself.  

“While the committee members ignored the administration’s requests to deeply cut or eliminate passenger rail programs and the Better Utilizing Investments to Leverage Development (BUILD) grant program, formerly TIGER, they did provide less funding for next year than was approved in the FY18 appropriations bill. They did so despite the fact that last February’s two-year budget deal allows for greater investment in infrastructure, a stated priority of Congress and the administration. We hope the full Senate will use this bill as a foundation to fund transportation programs at or above FY18 levels to benefit all Americans and truly improve access to opportunity.”

###

Elected officials and local organizations: Support TIGER & public transit funding

Facing the prospect of severe cuts from the Trump administration and Congress, T4America is looking for elected officials and organizations to show their support for investing in smart projects to move goods, move people and support the local economies that our nation’s prosperity is built on.

Updated 9/6/2017 9:00 a.m. The letter is closed. We’ll publish the final letter and share the signatories soon. Thanks!

Calling all elected officials, local, civic and business leaders, and local, regional or state organizations! Sign a letter urging those currently assembling the federal transportation budget for the upcoming year (FY 2018) to prioritize funding for TIGER competitive grants, new transit construction, and passenger rail programs.

Read the full letter and sign it today — we’re aiming to deliver it before the end of August. Ed note: This letter is intended for organizations and is not open for individuals, other than elected officials at any level.

(letter is closed)

Where do we stand in the budget process?

For these three programs, this simple chart below shows four things: the current funding levels for this year, what the President proposed in his budget earlier this year, and what was recently approved by appropriations committees in the House and the Senate.

Enacted 2017 levelsPresident Trump's request for 2018House 2018 AppropriationsSenate 2018 Appropriations
TIGER Grants$500 million$0$0$550 million
Transit Capital Grants$2.4 billion$0$1.75 billion$2.133 billion
Amtrak & passenger rail$1.495 billion$795 million

(All cuts come from eliminating federal funding for all long-distance routes)
$1.4 billion$1.6 billion
TOTAL THUD FUNDING$57.65 billion$47.4 billion$56.5 billion$60.058 billion

As you can see, while committees in the Senate ignored the president’s call to eliminate TIGER and funding for new transit construction outright, those final decisions will be made by Congress as they debate the budget on the floor and then try to reconcile their different versions. (Worth noting: The House proposed eliminating TIGER funding and a barebones budget for keeping in-progress transit projects moving, which means that’s their starting point on negotiations.)

What we’re asking for is for Congress to approve a budget that fully funds the FAST Act, the current transportation authorization, already agreed to by Congress and approved by a bipartisan vote back in 2015.

More background is below:

TIGER

The majority of all federal transportation dollars are awarded to states and metro areas in a way to ensure everyone gets a share, regardless of how they’re going to spend those dollars or how well-conceived their projects are. TIGER operates differently.

The TIGER program has illustrated a productive way to use a small amount of money (about $500 million annually since 2009) to incentivize smarter projects based on their merits. This fiercely competitive program is one of the few ways that local communities of almost any size can directly receive federal dollars for their priority transportation projects. Projects vying for funding compete against each other on their merits to spend the dollars more effectively. They also bring more private, local, or state dollars to the table. Through the first seven rounds, each TIGER dollar brought in 3.5 non-federal dollars, in contrast to federal money for building new roads, for example, which only bring in about 20 state/local cents for each 80 federal cents.

Transit Capital Investment Grants

The Transit Capital Investment Grants program (often broadly referred to as New Starts) supports metro areas of all sizes that are investing their own money in building or expanding transit service.

While making the case for eliminating the program, the Trump Administration recently stated that “localities should fund these localized projects,” but local voters and leaders are doing that already, putting their own skin in the game to meet the growing demand for well-connected locations served by transit. At the ballot box last November alone, voters approved more than $200 billion dollars in tax increases to invest in these projects. But cities of all sizes are counting on the federal government to continue supporting these bottom-up efforts, as they’ve done for decades. Eliminating this program or even just reducing its funding will threaten their economic prospects and their ability to satisfy the booming demand from residents and employers alike for well-connected locations served by transit.

Passenger rail

President Trump proposed cutting Amtrak’s budget nearly in half, with nearly all cuts coming from eliminating long-distance passenger rail service. Funding for the Northeast Corridor would survive, as would the funding for state-supported routes.

But neither chamber heeded this call from the administration: the House approved slightly less funding compared to last year, while the Senate provided the full amount outlined in the FAST Act, allocating competitive funds for safety, state of good repair for the Northeast Corridor, and operating and capital support for restored or new passenger service throughout the rest of the country.

House & Senate reject president’s request to end all federally supported transit construction

Over the last week, House and Senate committees have both passed transportation budget bills for the upcoming year. While the House made a few cuts, the Senate flatly rejected President Trump’s requests to eliminate the TIGER grant program, halt all new federally supported transit construction, and slash passenger rail service.

After a budget deal was struck in May that avoided most cuts for the rest of this year, negotiations begun on the budget for the 2018 fiscal year which starts this October. This means appropriations committees in both the House and Senate setting funding levels for transportation programs for next year, including the discretionary programs that the Trump administration has targeted for cuts (i.e., those not funded by the Highway Trust Fund.)

In the span of the last week, House and Senate appropriations committees & subcommittees have finalized and voted to approve spending bills for the upcoming year. And while the House did make some cuts, the Senate appropriators unanimously repudiated many of the president’s budget requests for transportation and even made an interesting change when it comes to selecting the best TIGER grant applications.

But first, how does each committee’s bill stack up to what the president requested in his budget outline from earlier this year?

Comparing House & Senate 2018 appropriations

Enacted 2017 levelsPresident Trump's request for 2018House 2018 AppropriationsSenate 2018 Appropriations
TIGER Grants$500 million$0$0$550 million
Transit Capital Grants$2.4 billion$0$1.75 billion$2.133 billion
Amtrak & passenger rail$1.495 billion$795 million

(All cuts come from eliminating federal funding for all long-distance routes)
$1.4 billion$1.6 billion
TOTAL THUD FUNDING$57.65 billion$47.4 billion$56.5 billion$60.058 billion

Logged-in T4 members can read our House appropriations summary below.

[member_content]T4A members, you can find the full House appropriations summary here. (pdf)[/member_content]

When it comes to the popular TIGER grant program that the Trump administration had targeted for outright elimination, the Senate actually proposed increasing its funding by $50 million.

And they didn’t stop there.

While the new administration at USDOT had produced their own criteria for how to choose winners for the competitive TIGER grants, the Senate appropriators apparently didn’t approve of them. This language directs USDOT to continue using criteria developed under the last administration to select the winners, the same used for the last eight rounds of TIGER grants. (The Senate Appropriations bill was approved by a bipartisan 31-0 vote, it’s worth noting.)

Though the House did eliminate all funding for TIGER, this is likely unrelated to the president’s request. This has been the norm for the last several years. The House eliminates the funding, the Senate preserves it, and then the Senate number for TIGER has been taken during conference as the House and Senate hammers out the differences. But this doesn’t happen automatically. When/if the appropriations process moves forward, your representatives will need to hear once again your support for TIGER.

Neither House nor Senate appropriators heeded the president’s call to eliminate the federal funding for building shovel-ready transit projects; funding that always gets paired with local or state dollars to make those projects a reality. While the House’s version did make cuts, the Senate provided exactly what’s required to support all of the projects that currently have full-funding grant agreements and are ready to break ground (or are already underway), though the amount is indeed slightly less than the current year’s funding level ($2.13 billion vs $2.4 billion.)

While the House didn’t follow the president’s request to eliminate the program, under no circumstances should a 27 percent cut to transit funding be received as good news.

This cut would result in a handful of transit projects that have local or state dollars already in hand not receiving the full funding they were promised to proceed. And it would delay every other transit project in line behind them waiting for their turn to get a share of this tiny annual amount of federal funding.

We all need to be prepared to continue fighting these cuts to the transit capital grants program. (Get more info on the threats to transit funding here below)

About that infrastructure package

Lastly, the appropriations bill included some interesting language about President Trump’s so-called $200 billion infrastructure package. Does the Senate Appropriations Committee know anything about it, and do they believe the stated goals are the right ones?

To date, no such proposal has been submitted to the Committee. While the Committee fully supports additional spending for our nation’s infrastructure, it strongly disagrees with the administration’s assertion that providing federal dollars for infrastructure has created, “an unhealthy dynamic in which state and local governments delay projects in the hope of receiving federal funds.” Without federal investment in infrastructure, particularly in our nation’s highway network and transit systems, the ability to move freight across the country and the free movement of people between states with vastly differing abilities to fund infrastructure would be compromised.

The budget process will continue moving forward, though as with the last several years, Congress is not expected to complete any of these individual FY 2018 appropriation bills before the fiscal year begins on October 1. In all likelihood, they’ll once again have to resort to an omnibus budget or continuing resolution to just keep things moving forward without any agreement to be had on the individual bills.

Stories You May Have Missed – Week of July 3rd – July 7th

Stories You May Have Missed

As a valued member, Transportation for America is dedicated to providing you pertinent information. This includes news articles to inform your work. Check out a list of stories you may have missed last week.

  • Congressional Republican disagreement over a plan to private the air traffic control system could mean trouble for President Trump’s broader infrastructure plan. (Washington Examiner)
  • The House Appropriations subcommittee on Transportation, Housing and Urban Development will mark up the FY18 “THUD” bill on Tuesday evening. T4America will have more coverage of the markup and the bill when it is released. (House Appropriations Committee)
  • The Senate Appropriations subcommittee on Transportation, Housing and Urban Development will hear U.S. DOT secretary Elaine Chao testify on Thursday about U.S. DOT’s FY18 budget request. T4America will have more coverage of that hearing later this week. (Senate Appropriations Committee)
  • “House Republicans stymied in their efforts to adopt a budget.” (Fox News)