senate Archives - Page 5 of 7 - Transportation For America

Three changes could dramatically improve the Senate’s draft transportation bill

Ahead of the looming July 31 deadline to pass a new bill (or extend the current law), the Senate Environment and Public Works Committee in late June introduced and marked up a full six-year transportation bill. While we think it’s a good starting point, there are some promising amendments that could improve the bill dramatically as it goes forward in the Senate.

Mayors and other local elected leaders are the ones who face the music from citizens when bridges need repair, when mounting congestion makes commutes unpredictable, and when families can’t safely walk their kids to school — yet those same leaders are too often left out of the discussions over what gets built and where.

Giving local communities of all sizes the resources they need to realize their ambitious plans to stay economically competitive should be a primary goal of this bill, and several Senators have prepared several amendments to help change that.

Several of these were discussed or offered and withdrawn during the markup, and will hopefully be debated on the floor of the Senate.

First, Senators Wicker (R-MS) and Booker (D-NJ) are offering their Innovation in Surface Transportation Act as an amendment, to create a competitive grant program in each state to give local communities more access to federal funds — but only for the smartest, most innovative projects judged on their merits. A second amendment from Senators Booker and Wicker would increase the amount of flexible transportation dollars directly provided to local communities by ten percent of the program’s share.

Lastly, an amendment from Senator Cardin (D-MD) would increase funding for the program that cities, towns and regions use to invest in projects to make biking and walking safer — restoring the Transportation Alternatives Program to its previous funding level before being slashed in the last reauthorization in 2012.

Can you urge your Senators to support these amendments that will help give local communities like yours more access to and control over transportation dollars?

With a new competitive grant program for local projects in each state, more communities could find success like Normal, IL, found with its Uptown Station. Normal used a grant from the competitive national TIGER program to complete the funding picture for a multimodal station and central plaza that brought new life and economic activity to its town’s core. But the TIGER program is one of the only ways local communities can directly access federal funds, and it’s wildly oversubscribed.

Though the bill has cleared committee, it will still have to be considered in the full Senate, so we need all Senators to hear your support for these amendments. Don’t delay — send a message to your Senators and urge them to support these key amendments to improve this bill.

Logged-in members can read our full summary of the EPW bill below.

[member_content] Feature graphic - epw drive act June 24, 2015 — The Senate Environment and Public Works Committee (EPW) released its six-year MAP-21 reauthorization proposal on June 22, 2015. The DRIVE Act is a start, but needs much more work to reform — and reinvigorate — the federal transportation program in ways that will boost today’s economy and ensure future prosperity. This memo provides an overview of the key provisions included in the proposal, as well as funding levels for key programs.

Read the full members-only memo here.[/member_content]

Senate Committee rolls forward with speedy markup of six-year transportation bill

In a committee markup where the phrase “doing the Lord’s work” was invoked by numerous members on both sides of the aisle, the Senate Environment and Public Works Committee sped through a markup of their draft six-year transportation bill in less than an hour this morning, approving it by a unanimous vote with no amendments, save for a manager’s package of amendments agreed to in advance.

One thing was abundantly clear from the beginning of this morning’s committee markup of the DRIVE Act: the EPW Committee members are eager to get their portion of the bill completed and moved forward as soon as possible.

Led by Chairman Jim Inhofe (R-OK) and Ranking Member Barbara Boxer (D-CA), the committee opened with remarks of praise from Senators. From our vantage point most committee members sounded delighted to support the six-year bill with slightly increased funding levels over MAP-21.

“There’s no reason we can’t do this now if it’s a priority. We need to prove it’s a priority by passing this full six-year bill,” said Senator David Vitter (R-LA).

Senator Tom Carper (D-DE) was one of the first to bring up the elephant in the room. “The next challenge is to figure out how to pay for it,” he said. While that issue is out of EPW’s hands (Senate Finance and House Ways and Means will address the funding question), they did briefly discuss some possibilities. “One of the ideas I’ve heard consistently is to find a way to fix our roads and bridges and transit systems in a more cost-effective way,” Sen. Carper added.

The head of the Senate Finance Committee is Sen. Orrin Hatch (R-UT). During his remarks in the markup, EPW Member Jeff Sessions (R-AL) said, “I saw Senator Hatch in the hallway on the way over, and I said, you gonna find our money? And he said ‘yes.'”

It was certainly encouraging that there was no vocal opposition to any of the positive improvements this bill makes over its predecessor: providing all Transportation Alternatives program (TAP) funding to local governments, considering the needs of all users when designing and constructing road projects, changing the cost thresholds to enable more local governments have access to low-cost federal loans, providing support to smart transit-oriented development, or allowing cities to use the innovative NACTO street design manual even if their state does not allow it, along with a few others.

Though some members, just like us at T4America, are still hoping to improve the bill further, especially in providing better access and a greater share of funds for local governments of all size.

A handful of members referenced amendments or provisions they hoped to incorporate into the bill, but none were formally offered or voted on. Senator Roger Wicker (R-MS) spoke briefly about the Innovation in Surface Transportation Act, sponsored by himself and Senator Cory Booker (D-NJ), which would create a small grant program in each state to give local communities of all size greater access to federal transportation funds to complete merit-based projects.

“It’s been something that local officials have been very excited about, very hopeful about, and I’m sure there will be some disappointment that it’s not in the manager’s mark,” Wicker said. “It’s a worthy suggestion and a worthy project not to increase one penny of the spending in this bill, but to set aside a small portion of this bill” for this program to award dollars to local communities based on a competitive process to judge them on the merits.

That manager’s mark (a single group of amendments) makes a few small improvements. A small program of demonstration grants to “accelerate the deployment and adoption of transportation research” was amended to ensure local communities and metropolitan planning organizations were eligible for them — not just states.

Another change in the manager’s amendment will ensure that 100 percent of the $850 million TAP funding that helps make walking and biking safer will be be distributed to and spent in local communities. A provision in the draft bill allowing states to “flex” 50 percent of that funding to other needs was struck — guaranteeing that all $850 million will be spent on local priority projects to improve biking and walking. And a small change was made to take safety into account when designing any projects on the National Highway System.

Senator Boxer was delighted at the unanimity from the Committee.

“I’m just so happy after hearing comments from everyone. Yes there will be struggles about how to pay, but Eisenhower said it well: we can’t be a secure nation unless we have an infrastructure that works.”

The Committee approved the bill by a unanimous vote, but the Senate Banking, Commerce and Finance Committees still have to draft and vote on their portions of the bill. With the July 31 expiration of MAP-21 (and the insolvency of the transportation trust fund) looming, it’ll be an uphill battle to get a full bill passed by the Senate before the deadline, but we will be watching closely.

Members can read our full summary of the EPW bill below.

Read the full members-only memo here.[/member_content]

Statement on the release of the Senate’s long-term transportation reauthorization proposal

Senate EPW bill represents progress toward passage of a long-term bill and a good starting point for debate and improvements.

James Corless, director of Transportation for America, issued this statement in response to today’s release of the Senate Environment and Public Works Committee’s Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act to reauthorize the federal transportation program:

“First, I want to thank Senator Inhofe (R-OK) and Senator Boxer (D-CA) for their work in getting a long-term transportation bill moving forward in Congress ahead of the July 31st expiration of the current program. Local communities desperately need the stable, dependable funding provided by a multi-year bill.

The DRIVE Act takes several important steps to address gaps and build on policies adopted in MAP-21. For one, it increases the share of funding directly provided to local communities through the Surface Transportation Program and the Transportation Alternatives Program. It takes steps to help communities become more resilient in the face of natural disasters and a changing climate. It opens up low-interest financing to support smart economic development along public transit lines, and lowers the cost thresholds to help local communities qualify for low-cost federal TIFIA loans. And it would ensure all modes of transportation are accounted for in the design of highway projects.

While this bill provides a positive starting point, there are other areas where Congress can and should do better.

The next surface transportation authorization should improve transparency and accountability, and focus on how we pick transportation projects and measure the success of those investments. The new freight program and the major projects competitive grant provision should be broadened to allow multimodal projects to be eligible. And more emphasis must be placed on investments that promote access to jobs and economic opportunity for working Americans, particularly those that are struggling the most to make ends meet.

The bill should also do more to provide communities of all sizes with greater access to the resources they need to support economic prosperity and competitiveness. The Innovation In Surface Transportation Act, introduced by Senators Wicker (R-MS) and Booker (D-NJ) earlier this year, would be a great place to start. That bill, to be considered as an amendment during committee markup, would create a competitive transportation grant program in each state, allowing communities to compete for a larger share of federal funding on the merits — incentivizing innovation and rewarding smart decision-making and efficiency.

We recognize that this legislation is just the first step in a longer process. The DRIVE Act serves as a positive beginning for further work as it progresses through the Senate and is joined by the work of the other Committees. We appreciate the efforts of Senators Inhofe and Boxer to advance a long-term transportation bill that begins addressing the need to strengthen local economies through smart investments in infrastructure. We applaud them for their work to advance a long-term transportation program, and we are committed to working with them toward that goal.”

Members can read our full summary of the EPW bill below.

Read the full members-only memo here.[/member_content]

Exclusive Member Summary – 6/18/15 Senate Finance Highway Funding Hearing

June 18, 2015 — US Senate Finance Committee — “Dead End, No Turn Around, Danger Ahead: Challenges to the Future of Highway Funding”

Witnesses:

Dr. Joseph Kile – Assisant Director for Microeconomic Studies Division, Congressional Budget Office

The Honorable Ray LaHood – Senior Policy Advisor, DLA Piper

Mr. Stephen Moore – Distinguished Visiting Fellow, The Heritage Foundation

At this hearing, Chairman Hatch (R-UT) looked to explore every possible option to address the long-term fiscal challenges of the Highway Trust Fund. However, at the hearing he mentioned that he does not see any large-scale gas tax increase as politically possible. That said, Hatch pressed the need remove the “highway cliff” by finding funding to do a multi-year authorization.

Senator Carper (D-DE) called upon Senator Hatch to ensure no options like the gas tax are taken off the table, and referred to T4A analysis that showed state legislators who vote for a gas tax increase were not punished. Carper mentioned that at a minimum we should be able to index the gasoline and diesel tax and then come up with other creative sources to fund infrastructure.

Witness Stephen Moore with Heritage Foundation floated the idea of devolution, but the proposal was very unpopular for a majority of committee members and was shot down by former Secretary Ray LaHood as an irresponsible notion. Senators Thune (R-SD), Heller (R-NV) and Menendez (D-NJ) all voiced devolving the program. Transit came under attack for receiving gas tax dollars, but Senator Thune mentioned kicking transit out of the program is a political non-starter after it failed in the House during debate for MAP-21, and Senator Menendez and former Secretary Ray LaHood both stood up strongly for the need for more robust transit investment, not less.

Senator Thune (R-SD) mentioned that we should be treating general fund transfers as adding debt to an already debt-burdened country, since those funds ultimately do account for part of the deficit. He said it is time we stop the easy solution of general fund transfers and find a way pay for it. Senator Hatch agreed that long-term action is absolutely needed, and mentioned it will be difficult, but that the Committee will be working to look at all the different options to come up with a solution that stops the country from kicking the can down the road.

House takes first step in process to keep the nation’s transportation fund solvent

For the first time since 2012, the House of Representatives held a hearing focused on funding the nation’s transportation system. Today’s hearing focused on the elephant in the room: how to adequately fund a transportation bill that’s longer than just a few months. While it’s a relief to see the funding issue finally getting airtime in the House, keeping the nation’s transportation fund solvent is only half of the problem — we also need to update the broken federal program that isn’t meeting our country’s needs.

Rep. Paul Ryan (R-WI), chairman of the House Ways and Means Committee tasked with finding the money to pay for a transportation bill, took the most obvious funding solution off the table — raising the federal gasoline excise tax — right at the start of the hearing as the gallery was still getting comfortable in their seats, deflating some members of the committee who were eager to at least discuss this option.

“We are not raising gas taxes‚ plain and simple,” he said, while adding later that the House “does need to find a real solution, a permanent solution. We are all ears.” Chairman Ryan suggested that repatriation of overseas profits (a one-time, non-transportation user fee fix) or giving states more authority could be possible solutions, but a gas tax increase is off the table.

Before the hearing, Rep. Earl Blumenauer (D-OR) held a press conference featuring a coalition of groups who support his bill to raise new revenue in the House by phasing in a 15-cent increase in the gas tax. Civil engineers, general contractors, roadbuilders, public transportation operators and T4America director James Corless spoke at the press conference to support Rep. Blumenauer’s case that Congress’ inaction is negatively impacting our nation’s economy and action is long overdue.

James corless blumenauer
T4America director James Corless speaking at this morning’s press conference

Rep. Blumenauer carried his momentum from the morning press conference into the hearing an hour later.

“We’re not keeping up our end of the bargain for the 50 percent of capital spending on big projects that comes from the federal government. We haven’t made any meaningful adjustment since 1993 to the gas tax, relying on short-term fixes, gimmicks – and no matter how you slice it, adding to the deficit,” Rep. Blumenauer said in his prepared remarks.

Rep. Lloyd Doggett (R-TX) concurred. “What is missing from our transportation policy is money – revenue. We cannot build these highways with fairy dust,” Rep. Doggett (R-TX) said.

Rep. Renacci (R-OH), who has put forward a separate plan to index the gas tax to inflation and set up a mechanism to provide long-term transportation funding, noted that “short-term fixes cost money in delay and uncertainty.” He shared a story about meeting with constituents, including some tea party members, on transportation issues. He said that they told him, “‘Quit going to the general fund and taking dollars…what you’re doing is passing it onto our children and grandchildren. What I’d be willing to do is pay a user fee as long as I get my roads and bridges fixed.’ We have to come up with a long-term solution, we can’t continue to go down this path,” he said.

As Rep. Bob Dold (R-IL) from the Chicago area noted on the topic of buying new railcars for the CTA and Metra, “Do we buy them one at a time or ten at a time? I can get a far better deal if I buy them ten at a time,” he said. When agencies can’t reliably put together a multi-year budget because they have no idea what to expect from the federal government, projects can begin to cost more than they should.

Following on the heels of today’s Ways & Means hearing, the Senate Finance Committee is holding a hearing of its own tomorrow on transportation funding.

We can hope that the newfound willingness to discuss the challenging revenue question will lead members of Congress to build consensus around a funding proposal suitable for the nation’s need. However, simply raising new funding to pour into a broken system isn’t going to get us where we need to go either — we need to fix the broken system and update it with the kinds of policies that ensure every dollar invested by taxpayers provides the greatest benefits for the economy and our communities. It’s not enough to simply raise money and spend it on the same processes that created the crisis we find ourselves in today. America can do better, and it’s important that the decisionmakers understand this fact.

On that policy question, eyes are quickly turning to the Senate Environment and Public Works (EPW) Committee, which is responsible for the highway title — the largest portion of the bill. They are planning to release and mark up their successor to MAP-21, a six-year bill, next Wednesday, June 24th.

We are counting on the Senate EPW Committee to release a bill that can maintain our current system, complete the transportation network, incentivize the strategic investments that can provide access to opportunity for all Americans and best improve connections within the cities and towns that drive our economy.

Continuing and improving a nascent process to measure the performance of our transportation investments would allow us to better ensure that our limited resources bring the best return. And a forward-looking plan to direct more of that money down to where it’s needed most would be a great companion to any plan to shore up the nation’s transportation funding.

We’re now looking to the Senate to make progress on finding a long-term funding solution, but also to make the policy changes we so urgently need to ensure those dollars are well spent.

House extends MAP-21 to July 31, aligning it with impending insolvency of nation’s transportation fund

After a short debate yesterday, The House of Representatives voted to extend MAP-21 for two months past its May 31st expiration to the end of July, aligning the end of the nation’s transportation law with the latest projection for the insolvency of the nation’s transportation fund. The Senate is expected to act before Friday to approve the bill before the Memorial Day recess begins.

Updated 5/26

The bill to extend MAP-21 two months was approved by a vote of 387-35. There was just one amendment considered, from Rep. Esty (D-CT), for $750M to passenger railroads to help them implement positive train control, but that amendment failed on party-line vote, 182-241.

It was a mostly uneventful debate, though a handful of legislators loudly decried yet another short-term extension of the nation’s transportation law. But most if not all of those legislators speaking against short-term extensions also know that May 31st is right around the corner, a long-term bill isn’t going to happen between now and then with recess next week, and would prefer to keep the program from shutting down entirely.

If the Senate does as expected and approves the bill and sends the extension to President Obama for his signature before the 31st, Congress will have officially kicked the can down the road another two months. This marks the 33^rd time Congress has passed a short-term extension over the last six years rather than do what Americans sent them to Congress to do: legislate and make the tough decisions to move America forward.

“While the certain disaster that would result from a shutdown of the federal transportation program has been avoided temporarily, legislators now have just have two months to put together the full multi-year authorization that we so desperately need,”said James Corless, T4America director. “Come July 31, we’ll once again face not only the expiration of our nation’s transportation policy, but also the insolvency of its funding source. With no consensus yet on how to fund a long-term bill, lawmakers have their work cut out for them.”

We’ll update this post as soon as the Senate takes action on the extension, which could come as early as Wednesday afternoon.

With MAP-21 extended an additional two months, the next immediate item of transportation business coming up in Congress will be next year’s transportation appropriations bill. Shortly after Congress returns from the Memorial Day recess on June 1st, the full House is expected to consider their version of the yearly spending bill for FY 2016 which features heavy cuts to TIGER, New Starts and Amtrak, with the Senate likely to begin their process sometime in June as well.

Update: The Senate passed the two-month extension of MAP-21 last weekend, extending the law until July 31st. The president is expected to sign the law by the May 31st deadline.

Former Amtrak chair (and our current chair) on the derailment and need for investment

As former Amtrak Board Chairman, my thoughts and prayers are with the crew, passengers and their families after last night’s derailment in Philadelphia.

John Robert Smith

I was chair in 1999, when a track circuit malfunction caused a train-truck collision in Bourbonnais, IL that killed 11. I well remember the shock and grief experienced by those on board, and the entire Amtrak family.

While we can’t yet be certain of the cause, the Philadelphia tragedy underscores the long ignored need to seriously invest in our nation’s passenger rail system and its supporting infrastructure. For decades we have starved our passenger rail network of the resources to build and maintain a world-class transportation asset for our people and the cities and towns connected by it.

Today, interest in passenger rail in America is witnessing a renaissance throughout the country. In the Northeast Corridor, where the Philadelphia crash occurred, ridership was up 8 percent over last year as of March 31. America’s national passenger rail system is integral to connecting people and economies, stimulating economic development in large and small communities, and providing transportation options in more than 500 communities throughout this country.

And yet the House this week is acting on a bill that would slash Amtrak’s capital dollars – money for track upkeep, for example – by $290 million. This is a penny wise, dollar foolish move that will only lead to worse delays, at best, and more tragedies like Tuesday’s at worst.

The Senate, meanwhile, is working to introduce a reauthorization proposal for the nation’s passenger rail system here soon, the Passenger Rail Investment and Improvement Act. That proposal, being fashioned by Senators Roger Wicker (R-MS) and Cory Booker (D-NJ), is sure to be more hopeful and forward-looking than current debate in the House. With those two taking the lead, it should bridge geographic and political divisions and begin to address our shared national needs for a safe, secure, efficient and reliable national passenger rail system.

I joined the Amtrak board when I was mayor of Meridian, MS, at a time when service to my town – and much of America – was threatened. We survived that dark period long enough to see the return of interest in passenger rail, including in the popular Northeast corridor, where Tuesday’s crash occurred. We should be rewarding our passengers, and our nation, with a more reliable, safe and pride-inducing rail system through more robust investment.

The Hon. John Robert Smith is the Chairman of T4America’s Advisory Board.

With GOP victories, SAFETEA-LU team in line to chair Senate committees

With last night’s election, both the Senate and House will see leadership changes in key transportation committees. With the nation’s transportation funding source running near empty and the current law, MAP-21, expiring in the spring, these new committee leaders will have an opportunity to make an impact in the very near term.

First, the Senate, where the Environment and Public Works Committee writes the largest portion of the transportation bill, the “highway title”. Chair Barbara Boxer (D-CA) is expected to yield the gavel to Sen. Jim Inhofe (R-OK). Though the two worked closely together on MAP-21, Inhofe has indicated that he plans to conduct EPW business differently than his predecessor, and it’s unclear at this point exactly how he would stray from the current course.

The next biggest piece of the Senate bill, the “transit title”, is written in the Banking Committee, where Richard Shelby (R-AL) is in line to become chair. The Inhofe-Shelby pairing also led negotiations on SAFETEA-LU – MAP-21’s predecessor – in 2005.

In the House Transportation and Infrastructure Committee, Ranking Member Nick Rahall (D-WV) — amazingly a member of this committee his entire time in Congress — lost re-election to his 20th term, which eliminates the top Democrat on the committee. Rep. Peter DeFazio (D-OR) is next in line for the top Democratic seat on the Committee, and is a familiar and vocal proponent of a strong federal role in transportation.

That covers the policy side of the equation. On the funding side, Utah Sen. Orrin Hatch (R-UT) is projected to take over the Finance Committee, swapping roles with Sen. Ron Wyden (D-OR). On the funding side in the House, Rep. Paul Ryan (R-WI) is expected to take over the Chair of the Ways & Means Committee for retiring Rep. Dave Camp (R-MI).

In the short-term, the biggest battles will come over annual appropriations, setting the spending levels for discretionary programs such as TIGER and Amtrak. The first order of business for Congress when it returns next week is extending the continuing resolution – a temporary funding measure – that expires in December long enough to allow appropriators to hammer out spending levels for the full fiscal year. That will now likely occur under the GOP-controlled Congress early in the next calendar year.

The 800-pound gorilla of questions marks though, is how Congress will fund the nation’s transportation system next year and beyond. Gas tax receipts are dropping, cars are getting more fuel-efficient and driving is leveling off – and most baby boomers haven’t even stopped commuting yet. Although a faction of Republicans has called for the feds to abandon their traditional role and devolve the lion’s share of responsibility and oversight to the states, that idea so far has not gained traction with the full caucus. Though yet another short-term fix was agreed to a few months ago to keep the program going into next year, that funding will be tapped out by Spring 2015, and the trust fund will be near insolvency yet again.

Raising the gas tax may be a non-starter in a GOP Congress, though that remains to be seen. Other revenue ideas have struggled to gain a foothold, including the House GOP proposal during the last reauthorization to boost revenue with fees from expanding oil and gas drilling into formerly protected areas. On the Democrat side, DeFazio has introduced legislation to replace the federal gas tax with a fee at the refinery level that would be indexed to inflation, potentially yielding a more stable funding source.

In all, Tuesday’s election results should make for a fascinating 2015.

Bipartisan Senate bill introduced today would give local communities greater access to federal funding

Five Senators from both parties just introduced a bill this afternoon that would give local communities more access to, and control over, a share of the federal transportation dollars that flow to their states.

Urge your Senators to sign on as a cosponsor of this bill by clicking here and sending them a message today.

The Innovation in Surface Transportation Act establishes a modest set-aside for merit-based grants to local communities, to help them realize homegrown visions for economic success and improved quality of life. Grants would be awarded by a panel of representatives from local and state jurisdictions, ensuring that funds go to well-conceived projects with strong local support and potential for high return on investment.

The Senate bill was introduced Thursday by lead sponsors Senator Cory Booker (D-NJ) and Senator Roger Wicker (R-MS), along with cosponsoring Senators Mark Begich (D-AK), Bob Casey (D-PA), and Thad Cochran (R-MS). This bill is a dramatic, bipartisan statement in the Senate, which now has a companion bill to one introduced in the House in June by Representatives Rodney Davis (R-IL) and Dina Titus (D-NV).

“On behalf of our alliance of local elected, business and civic leaders, I want to thank Senators Booker, Wicker, Begich, Casey and Cochran for their leadership in responding to the needs of local communities and taking a stand for their needs and priorities,” said James Corless, director of Transportation for America.

Transportation for America Chair John Robert Smith, a former mayor himself, said he hears a constant refrain from local elected officials that they have little to no say in how their state’s federal dollars are used.

“The local leaders I’ve talked are held directly accountable for their local transportation needs,” he said. “They’re absolutely willing to compete and be held accountable for results, but they need better access to resources to meet their communities’ needs. This proposal would give them a seat at the table and award the funds in a competitive process, with the state’s cooperation, to help steer investment toward projects with the greatest bang for the buck. It would take a major step toward restoring funding for local needs to ensure that those who know their communities’ needs best will be making decisions on how transportation dollars should be spent,” said Mayor John Robert Smith.

“As a former mayor, I understand local leaders are often in the best position to make sound, cost-effective investment decisions,” said Senator Cory Booker in today’s joint press release with Senator Roger Wicker. “This proposal will give New Jersey’s 565 municipalities a seat at the table and greater opportunities to fund innovative projects that will create jobs and boost the economy.”

“Local officials in Mississippi are on the front lines of America’s transportation challenges but often lack the resources to pay for critical improvements,” said Senator Wicker. “This measure would enable these local leaders to have a larger role in deciding which projects merit consideration. In doing so, leaders could implement the most targeted and cost-effective solutions to meet unique and urgent infrastructure needs.”

It’s telling to note that this bipartisan group of Senators represents highly urbanized states (New Jersey and Pennsylvania) as well as states with large numbers of rural and smaller towns (Mississippi and Alaska). But small town or big city, these Senators are responding to what they’ve been hearing from their local mayors and county officials. And putting more resources and control in the hands of local communities — usually left at the mercy of the state’s priorities each year — makes a lot of sense.

After all, it’s those same local mayors, county executives, or commissioners who catch the most flak from their constituents when commutes are too painful, when there aren’t good options for getting around, when crumbling infrastructure stalls traffic, when workers can’t connect to their jobs, when streets are unsafe, or when goods get stuck in congestion.

And often, all it takes is a relatively small boost to match the dollars and energy of local communities. The grant program envisioned in the Wicker-Booker bill would be something like the nationwide TIGER program, but offered within each state. With that program, a town like Normal, IL, was able to complete a $49.5 million multimodal station that revived their downtown and catalyzed $220 million in private investment.

Wouldn’t it be great to see that kind of story repeated in towns and cities of all sizes across the country?

This bill represents one of the best opportunities we’ve had in some time to ensure that more transportation dollars get used where they’re needed most; to be spent on the very best projects that local communities need.

Send a message to your Senators, urging them to support this important bill, or thanking them for introducing it today. With just a few days left in this Congress before they leave town for recess, it’s important that we create a lot of support for this bill over the next few weeks.

Budget battles leave a cloud over transportation funding as lame duck session looms

Same story, different year. Once again, we’re nearing the beginning of a new fiscal year on October 1, and Congress has failed to pass a budget to fund the government for the upcoming year. Even if Congress adopts a temporary budget to avert a shutdown —which is looking likely — important transportation programs could be left on hold on until lawmakers pass a full budget.

The House and the Senate never resolved their disagreement over the annual appropriations for transportation for the upcoming fiscal year — one of many budget issues that they couldn’t agree on this year. As in years past, the Senate provided more money for transportation programs in their appropriations bill than did the House. See the last column in the table below:

	FY14 USDOT actual	GROW AMERICA Act for FY15 (President's 4-year proposal)	HOUSE FY15 THUD Proposal ( & difference vs FY14 actual)	SENATE FY15 THUD Proposal (& difference vs FY14 actual)	DIFFERENCE between House & Senate FY15 proposals
Federal-Aid Highways	$40.26B	$48.062B	$40.26B	$40.3B (+$40M than FY14)	+$40M in Senate proposal
Transit Formula Grants	$8.6B	$13.914B	$8.6B	$8.6B	-
Transit 'New & 'Small Starts'	$1.943B	$2.5B	$1.691B (-$252M than FY14)	$2.163B (+$220M than FY14)	+$472M in Senate proposal
TIGER	$600M	$1.25B	$100M (-$500M than FY14)	$550M -($50M than FY14)	+$450M in Senate proposal
Amtrak Operating	$340M	Proposes to roll passenger rail into two new programs that total $4.775 billion*	$340M	$340M	-
Amtrak Capital	$1.05B	same as above	$850M (-$200M than FY14)	$1.04B (-$10M than FY14)	+$190M in Senate proposal
High speed rail	$0	same as above	$0	$0	-

*Up to $35 million is available for planning activities in the Senate FY15 THUD proposal.
**The FY15 Administration Budget (Grow America Act) consolidates existing rail programs into 2 new programs (Rail Service Improvement Program and Current Passenger Rail Service).

With no progress made toward passing individual appropriations bills, or an “omnibus” that includes them all together in one package, Congress is moving on to temporary measures.

Yesterday, the House introduced a “continuing resolution” to extend government funding through mid-December that, if adopted, is expected to pass the Senate shortly afterward. That would ensure that the government can continue operating at the same funding levels as this past year. But it means that negotiations on a full budget will have to take place during the “lame duck” session, after the November elections but before losing members leave and new members arrive. That, or punt once again again until the new Congress starts in January.

With the elections likely to change the political landscape of Capitol Hill, it’s hard to predict what might happen after November 4th with any certainty.

In any case, as long as the government is operating via a short-term budget, any programs that are discretionary at USDOT (i.e., not funded from the Highway Trust Fund) will likely face great uncertainty. That means the next round of TIGER grants, money for new transit expansion (New and Small Starts), and passenger rail funding might see delays in when they’re awarded — creating even more funding uncertainty for states, metro areas and transit agencies.

At least the Highway Trust Fund is on stable footing until May, right, since Congress managed to scrounge up $10.8 billion through all manner of accounting gimmicks to temporarily delay insolvency?

Well, perhaps.

You might remember that about a year ago, USDOT was predicting that the trust fund would go bankrupt sometime late in 2014. Once we got into 2014, however, the deadline started shifting earlier. September. August. Then the end of July. So, in truth, who knows whether $10.8 billion actually will get us to May? It wouldn’t be too surprising to see a report from USDOT sometime in January or February, much as last time, saying that the trust fund is likely to reach insolvency a little sooner than previously thought.

One way or another, we’ll know more soon. Provided a shutdown is averted, members of Congress are scheduled to leave Washington after next week until the elections.

T4America statement in response to Senate adoption of stopgap to avoid Highway Trust Fund insolvency

WASHINGTON, D.C. – The Senate today approved a House-passed measure to transfer $10.8 billion from the general fund to cover the looming shortfall in the Highway Trust Fund until next spring. The stopgap bill, which now heads to President Obama’s desk, comes one day before a deadline to avoid significant funding cuts during the height of construction season.

James Corless, director of Transportation for America, issued this statement in response:

“We are relieved that thousands of communities, more than a half-million workers and their families, and millions of commuters will be spared the pain of drastic cuts in promised federal funding to build and repair our bridges, roads and transit systems.

That said, Congress is rapidly running out of last-minute budget gimmicks to patch holes in America’s key infrastructure fund, and must immediately begin the task of replacing pretend dollars with the real money necessary to continue to call ourselves a first-world nation. Perhaps the most important outcome of this go-round is that members of both parties, in both chambers, have voiced a growing discomfort with hastily crafted, short-term fixes along with a desire to find a long-term funding solution.

In truth, they have bought themselves only a few short months to grapple with an issue they have delayed for years. We look forward to working with leaders in both houses as they make good on their promise to work in earnest on a long-term solution to fund the infrastructure our economy and daily lives depend on.”

Senate passes plan to postpone transportation insolvency to the end of the year, sends it to House

Late Tuesday evening, the Senate modified and approved a measure transferring about $8 billion from the general fund to keep the Highway Trust Fund solvent until the end of the year. But because two amendments were made, it’ll return to the House for further action before any final deal can be approved on postponing insolvency of the nation’s transportation program. The House will have to act fast: the long August recess is scheduled to begin in just three days.

Conventional wisdom had held that the Senate would adopt the House-passed bill as-is so they could finish up well before recess begins later this week. However, a strong bipartisan group supported amendments to eliminate the most controversial accounting gimmick and cut the length of the patch in half to keep the pressure on to find a long-term fix as soon as possible.

“Today’s votes held some positive signs for the future of our nation’s transportation system,” said James Corless in T4Amercia’s full statement after the vote tonight. “The Senate overwhelmingly rejected a move to dismantle our key infrastructure fund, and instead challenged themselves to take up a long-term funding solution this year.”

Two of the four amendments considered were approved before the final bill was passed. The first, from Senators Wyden and Hatch and approved 71-26, replaced the House revenue sources with the bipartisan ones agreed to by the Senate Finance Committee several weeks ago.

Once this first amendment passed, guaranteeing that the bill would return to the House, it might have made it easier for Senators on the fence to support the second amendment. That second amendment, from Senators Carper, Corker and Boxer, entirely eliminated the controversial “pension smoothing” provisions from the House bill, cutting about $2.9 billion from the patch and keeping up the urgency on finding a long-term funding solution.

The most passionate speech of the day came from Senator Bob Corker on that very topic. Senator Corker, who is also pushing an actual long-term funding plan with Senator Murphy to raise the gas tax — was incredulous at the idea that the Senate and specifically his Republican colleagues would support a plan to take ten years of funds from an accounting maneuver like pension smoothing to pay for ten months of an extension, calling it “generational theft.”

“We’re taking a finance gimmick out of this bill. … It forces us to deal with a long-term solution, which we should have done a long time ago,” he said.

An amendment from Sen. Mike Lee (R-UT) to dramatically defund the federal program by cutting the gas tax from 18.4 to 3.7 cents failed overwhelmingly, drawing only 28 votes. Lee argued, correctly, that the existing program is out-moded and fails to give local communities the resources and latitude to meet their needs, but we — and a large majority of the Senate, clearly— strongly disagree that the solution is to take the resources away altogether.

The solution — one that we would hope to see as part of any long-term funding discussion — is forward-looking policy reform that gives local leaders more of a say in how the money gets spent. Local results and accountability are what will win and keep support for the program among the American people.

We are pleased to see so many Senators take a principled stand in support of the highway trust fund and an ongoing federal role in supporting our communities and their economic future. We especially recognize the leadership of Senators Wyden, Hatch, Carper, Corker and Boxer in forging their plan and rallying support. We hope this can spur the conversation to find a long-term solution as soon as possible, and we look forward to working with the leaders in both chambers.

Action will move back to the House tomorrow in these last few days before recess begins, so stay tuned.

House proposes a trust fund Band-aid through May, 2015, with key differences from Senate

House Ways and Means Committee Dave Camp (R-MI)

A House proposal to shore up the transportation trust fund through May, 2015, is a good news, not-so-good news proposition.

Late yesterday, House Ways and Means Chairman Dave Camp (R-MI) proposed a $10.8 billion infusion to cover a looming deficit in the Highway Trust Fund. The money for the next few months would come mostly from an accounting maneuver called “pension smoothing” over the next 10 years. The remainder comes from extending some customs fees and transferring $1 billion from the fund for leaking underground storage tanks.

The good news is that both Houses are now moving to take seriously the increasingly urgent warnings of insolvency coming from the Congressional Budget Office and the U.S. Department of Transportation. Absent action to transfer money to the trust fund, the flow of dollars to the states will be curtailed as much as 28 percent after Aug. 1.

The not-so-good news is that the recent hope for a speedy, bicameral solution seems lost for the moment. The House is taking a different tack from the Senate, whose Finance Committee had delayed its own proposal in hopes of negotiation a bipartisan compromise within both chambers. The Camp proposal covers a different time period – through May 31 versus Dec. 31 in the Senate – and uses different “pay-fors”. The differences mean it will be that much harder to reach a solution before the long August recess.

The other less-than-good news is that the proposal to extend into May of next year would reduce the urgency to address a long-term solution, such as the bipartisan Murphy-Corker proposal to raise the gas tax and index it to inflation. By extending only through the end of this year, the Senate deadline raised the possibility that Congress might move immediately after the election, in a lame-duck session where members feel less political pressure.

“While it doesn’t provide as much funding as I would like – enough to get through the end of next year – it does give Congress and the tax-writing Committees ample time to consider a more long-term solution to the Highway Trust Fund,” Camp said in a statement. However, Camp also indicated he is opposed to tapping the most readily available revenue source, the federal gas tax, calling it “just about the worst tax increase Congress could hit hardworking Americans with.”

The House Ways and Means Committee is scheduled to consider the legislation Thursday at 10:00 a.m.

Senate Finance Committee considers a trust fund stopgap, with long-term funding unclear

The Senate Finance Committee Thursday will take up a proposal from Chairman Ron Wyden (D-OR) to keep the Highway Trust Fund solvent through Dec. 31 with a $9 billion transfer from the general budget. The needed revenue would be raised by increasing the allowable tax on heavy trucks and four accounting maneuvers unrelated to transportation.

Chairman Wyden’s stopgap proposal would prevent the projected August insolvency of the nation’s key infrastructure fund and buy time until after the November elections, when Congress could consider a longer-term fix to the beleaguered trust fund.

Unfortunately, the proposal does not have bipartisan support. The top Republican on Senate Finance, Senator Orrin Hatch (R-UT), has indicated he would like the trust fund fix to rely more on spending cuts. Senator Bob Corker (R-TN), who is co-sponsoring a proposal to raise the gas tax with Senator Chris Murphy (D-CT), called the proposal “a complete sham” .

However, with the clock ticking toward an end of promised federal payments to states for their transportation spending, it is the only proposed stopgap on the table that would avoid idling thousands of workers and stalling key projects throughout the country. Senator Barbara Boxer (D-CA), chair of the Senate Environment and Public Works Committee, urged her colleagues on the Finance Committee to pass Wyden’s proposal. “I’m here to send an SOS to Congress because we are facing a transportation government shutdown,” Boxer today said at a press event.

Wyden’s proposal relies on accounting changes over ten years to amass the “savings” that would be transferred immediately from the general fund to cover the next several months of the trust fund outlays. The largest change ($3.7 billion) would require faster disbursement – and collection of taxes owed – on retirement savings of deceased account holders.

The only transportation-related source comes from raising the cap on the surcharge placed on especially heavy trucks, from $550 a year to $1,100. Set to take effect June 30, 2015, it would be the first change to the so-called heavy vehicle use tax since 1984 and is expected to raise up to $1.4 billion over the next 10 years.

Wyden told Transport Topics that he expects Republicans to offer several amendments at the committee hearing, set for 10 a.m. Thursday. “They indicated informally some rough ideas but that’s why we have opened the process,” Wyden said.

In the House, Chairman Dave Camp (R-MI) of the Ways and Means Committee, with jurisdiction over the Highway Trust Fund, has said, “There is no way tax hikes to pay for more spending will fly in the House.” Camp plans to mark up an extension of the transportation program and Highway Trust Fund after the July 4 Congressional recess.

In an encouraging bipartisan move, Senators Corker and Murphy last week proposed raising the gas tax 12 cents over two years, and offsetting that increase by making some current tax breaks permanent. Corker has said the offsets could allow other Republicans to support the proposal because it would not violate Grover Norquist’s Americans for Tax Reform pledge.

Any such long-term solution for transportation funding – which we at Transportation for America certainly support – would have to come through Wyden’s Finance Committee, presumably after a stopgap such as that on the table for tomorrow’s hearing.

Raising the gas tax also would have to pass muster with the White House. In comments Monday, Administration officials did not rule out a gas tax hike but reiterated that corporate tax reform is their preferred pay-for.

“The Administration has not proposed and has no plans to propose an increase in the gas tax,” said White House spokesman Matt Lehrich. “It is critical that we pass a [transportation] bill that not only avoids a short-term funding crisis but provides certainty and lays the groundwork for sustained economic growth. So we appreciate that members on both sides of the aisle continue to recognize the need for a long-term infrastructure bill, and we look forward to continuing to [work] with Congress to get this done.”

Here, you can read a Description of the Chairman’s Mark, and the Joint Commission on Taxation’s Score (JCT Score) of the proposal.

Favorable responses and coverage for the bipartisan Senate plan to raise the gas tax

As soon as Senators Murphy and Corker introduced their bipartisan plan yesterday to raise the gas tax by 12 cents, supportive statements starting flowing in and media outlets quickly picked up the news.

The day before the news broke, USA Today’s full editorial board weighed in on the issue and offered their preferred solution for rescuing the nation’s transportation fund: “Raise the gas tax.” They couldn’t have thought they’d see action quite so soon, but the very next day, as we reported, Senator Murphy (D-CT) and Senator Corker (R-TN) responded with a proposal that would do exactly that, raising the gas tax 12 cents to help provide “the trust fund with the stable source of income it so desperately needs.” More from the editorial:

The best way to deal with declining gas tax revenue happens to be the simplest way: Raise the gas tax. … The days of higher fuel taxes being a “third rail” of politics (touch it and you die) are long gone. In recent years, seven states have either raised their own gas taxes or imposed other fees that raise revenue. The political fallout has been minimal.

The proposal quickly made headlines around the country, from the biggest papers down to local blogs. Here’s a quick look at just a few of the responses to the Senators’ leadership.

RollCall
Gas Tax Is Imperative to a Robust Highway Bill | Commentary
With federal highway funding about to run dry this summer, will Congress vote to increase the gasoline tax to refill the Highway Trust Fund? It seems a long shot, but a bipartisan agreement begins with two – and two senators have stepped forward.

The Business Journal
Ready for higher gasoline taxes? Road projects may come to a halt without it
The gasoline tax hasn’t been raised since 1993, so maybe it’s time for an update. Plus, it seems fair to make users of the nation’s road pay for improvements. Congress has violated this principle for the past couple of years, taking $50 billion from the federal government’s general fund — thereby raising deficits — to make up for shortfalls in the Highway Trust Fund.

Washington Post
Bump at the pump? Senators propose a 12-cent hike in federal gas tax
A bipartisan Senate proposal emerged Wednesday to rescue beleaguered federal transportation funding by raising the tax on gasoline by 12 cents a gallon.

Streetsblog USA
Senators Murphy (D) and Corker (R) Propose 12-Cent Gas Tax Increase
There are several proposals on the table to stave off the impending insolvency of the Highway Trust Fund (which pays for transit, biking, and walking projects too) in two months. Just now, two senators teamed up to announce one that might actually have a chance.

Associated Press
SENATORS PROPOSE 12-CENT GAS TAX INCREASE
Two senators unveiled a bipartisan plan Wednesday to raise federal gasoline and diesel taxes for the first time in more than two decades, pitching the proposal as a solution to Congress’ struggle to pay for highway and transit programs.

CBS News
A bipartisan push for higher gasoline taxes
The timing might seem a bit dubious, considering it’s the height of the U.S. driving season, and Americans are dealing with both geopolitical turmoil and the upcoming midterm elections.

MSNBC
A Republican who’s willing to raise the gas tax
To fix America’s crumbling roads and bridges, Tennessee GOP Sen. Bob Corker says he’s willing to do what’s become unthinkable for most congressional Republicans: raise taxes.

WBBJ Eyewitness News Channel 7 (Jackson, TN)
Corker proposes increase to gas tax
For the first time in more than two decades, federal taxes on gasoline and diesel could be raised.

Johnson City Press/Kingsport Time News (TN)
Corker proposes higher fuel tax to pay for repairs to highway infrastructure
U.S. Sen. Bob Corker pitched his legislation Wednesday to fix up the nation’s highway infrastructure by raising federal fuel taxes by six cents twice in the next two years and paying for the hike with provisions in the so-called “tax extenders” bill.

Chattanooga Times Free Press (TN)
Bob Corker eyes 12 cent gas tax to help shore up federal road funds
U.S. Sen. Bob Corker, R-Tenn., on Thursday proposed a bipartisan plan to raise federal gas and diesel taxes for the first time in more than two decades as an answer to long-standing funding woes threatening to stall the nation’s highway, bridge and transit programs.

The Daily Times (Blount County, TN)
Sen. Bob Corker pitches gas tax hike
Tennessee Sen. Bob Corker is part of a bipartisan plan to raise the federal gas tax by 12 cents over the next two years.

Laborers’ International Union of North America
“It’s Time to End the Pothole Penalty”
LIUNA applauds Sens. Murphy and Corker for their continued bi-partisan progress in the U.S. Senate to make our roads and bridges safer and strengthen our economy by addressing the failing Highway Trust Fund with a long-term, full-investment solution.

Senators unveil bipartisan plan to rescue the federal transportation program by raising the gas tax

Senators Chris Murphy (D-CT) and Bob Corker (R-TN) today announced their bipartisan plan to raise the nation’s gas tax by 12 cents over two years to rescue the nation’s Highway Trust Fund, which is headed for insolvency before the end of the summer.

Senators Murphy and Corker introduce their proposal to raise the gas tax by 12 cents and index it to inflation on Wednesday, June 18, 2014. Photo courtesy of Sen. Murphy’s office.

Unveiled at an event at the U.S. Capitol this morning, The Highway Funding and Tax Reduction Proposal would increase the federal gasoline and diesel taxes by 6 cents in each of the next two years for a total of a 12-cent increase. The taxes would then be indexed to inflation, so that transportation funding keeps in step with construction costs. (The federal gas tax has lost about a third of its purchasing power since it was last raised in1993.)

These two simple changes would provide funding to sustain current spending levels, plus inflation, over the next 10 years. The Murphy-Corker plan proposes to offset some of the increased costs to individuals by permanently extending a handful of tax breaks that benefit ordinary households.

Since 2008, Congress has transferred more than $50 billion in general funds into the Highway Trust Fund to maintain investment levels, and the fund’s spending is currently projected to outpace revenues by over $160 billion in the next decade. Just to have enough money to continue the program for next year would require finding an additional $18 billion before Oct. 1.

But now, for the first time in this Congress, a legitimate, bipartisan plan has been offered to solve the shortfall of the nation’s transportation trust fund. No temporary patches, no swapping funding between programs, no general fund transfer or accounting sleight-of-hand.

“Proposed short-term patches using accounting gimmicks have been all but shot down in both houses,” said T4America Director James Corless in our full statement released this morning. “Senators Murphy and Corker are showing real leadership – as well as concern for their constituents’ jobs and safety – by championing a long-term solution that recognizes the gravity of the situation and addresses it head-on. … The alternative is to allow our transportation system to crumble along with an economy hobbled by crapshoot commutes and clogged freight corridors.”

“By modestly raising the federal gas tax, we can address a crippling economic liability for this country—the inability to finance long-term improvements to our crumbling national infrastructure,” said Senator Murphy in the Senators’ joint statement this morning.

“I know raising the gas tax isn’t an easy choice, but we’re not elected to make easy decisions – we’re elected to make the hard ones. This modest increase will pay dividends in the long run and I encourage my colleagues to get behind this bipartisan proposal,” he said.

Senator Bob Corker, who certainly understands how important transportation investments are down at the local level as the former mayor of Chattanooga, TN, stated emphatically at the event that “if something is important enough to have, it’s important enough to pay for.”

“Congress should be embarrassed that it has played chicken with the Highway Trust Fund and allowed it to become one of the largest budgeting failures in the federal government,” he added in his official statement. “If Americans feel that having modern roads and bridges is important then Congress should have the courage to pay for it.”

As our recent post on support for gas tax increases at the state level shows, voters may be more accepting of higher transportation taxes than conventional wisdom suggests. And any move to stave off crisis and stabilize the federal program for the long term brings cheers from the local officials who represent home-state constituents.

“We certainly support Senator Murphy’s efforts to put our transportation trust fund on a sound footing,” said Lyle Wray, executive director of the Capitol Region (Hartford) Council of Governments in Murphy’s state of Connecticut. “We have seen two bridge closures in just the last two weeks on the Metro-North line, the busiest commuter line in the country. Repairing and replacing bridges is just the start of our communities’ needs. We have been doing all we can to stretch dollars and use debt financing, but we have gone as far as we can go without additional funding. Raising the gas tax is the best solution we see for stable funding for critical infrastructure in the near term.”

And in Franklin, TN, a southern suburb of Nashville, Mayor Ken Moore offered Sen. Corker — a prior mayor of Chattanooga — his support for the proposal.

As mayor of Franklin and chair of the mayors’ caucus of Middle Tennessee, I can say we have been supportive of raising the gas tax because we recognize this is what funds our highways and our transit, and we can’t allow our infrastructure to deteriorate. We have to stabilize the trust fund and provide consistent funding.

Middle Tennessee is the economic generator now for Tennessee, one of the fastest growing regions in terms of creating jobs. While that is a good problem, it creates a burden on our infrastructure. It’s important to make sure we have the certainty of funding so we can continue to support this economic development

As a mayor I can see the handwriting on the wall. Without this we will be tremendously challenged to avoid congestion and gridlock. The number one calls and emails I get are about traffic and congestion. I think voters will support it if they know it will go towards relief and supporting that economic growth.

So there you have it. The first legitimate, bipartisan transportation revenue proposal is on the table. Senators Murphy and Corker deserve great credit for their leadership and courage to propose a real fix to the transportation funding crisis.

We will have more on this proposal as we track its progress closely over the next few weeks and months, so stay tuned.

Transportation funding: summer’s biggest blockbuster

Suddenly, transportation funding is the topic de jour.

Last night, the House debated the measure that will set transportation spending levels for the coming fiscal year, the Transportation, Housing and Urban Development bill. Among other controversial provisions, the bill would cut the popular TIGER grant program from $600 million today to $100 million. (You can read our full summary of the bill here.)

The TIGER cuts drew opposing statements from 13 Democrats and from the Obama Administration, which has called for an increase of TIGER funds to $1.25 billion. The Administration Monday declared its opposition to the THUD measure, citing in part a TIGER funding cut that “would reduce an already highly competitive grant program and its ability to support innovative projects across the United States.”

Meanwhile, both the House and the Senate are scrambling to find new ways to keep the highway trust fund solvent. With tax increases off the table in an election year as an expected shut-off of funding for new projects looms, both houses appear to be searching for short-term measures to plug the gap between lagging gas tax receipts and current spending levels.

As you may have heard, House Republicans have proposed to find the money by eliminating Saturday postal service and applying the savings (potentially up to $2 billion a year) to help fund the Highway Trust Fund. Interestingly, Postmaster General Patrick Donahoe, who has himself pushed to cut Saturday service, told interviewed by the Washington Post earlier this week that he was delighted by the idea.

However, this plan is not widely supported by either party. More than three-dozen House Republicans have signed a letter stating their opposition to five-day delivery service, and House Democrats do not see this as a viable fix for the funding gap.

In the Senate, Senator Harry Reid (D-NV) and Senator Rand Paul (R-KY) have created a bipartisan plan that includes a one-time tax “holiday” for multinational corporations to bring profits home from overseas with a lucrative tax deduction. Such a move would yield a windfall of $20 billion to $30 billion over the next two years, they estimate.

While that would be enough to cover the projected trust-fund shortfall for a year or two, it would not solve the longterm problem. It also has drawn opposition from other key leaders who fear a longterm hit to the treasury if the profit repatriation is not tied to comprehensive corporate tax reform – changes that are far too complex to work through before the looming deadline.

Stay tuned. It’s going to an interesting summer.

Senate committee passes transportation appropriations bill; negotiations with House on the horizon

The annual transportation (and housing) appropriations bill adopted Thursday by Senate appropriators contains some good news for transportation. But as in years past, it provides more money than the House’s version, setting the stage for contentious negotiations that could erase gains for key programs — especially competitive grants and new transit construction. Senate appropriators also noted that if the trust fund goes bankrupt, as it is projected to do as soon as next month, there won’t be any money to appropriate.

Senate Appropriations Chairman Patty Murray (D-WA) wasted no time noting that elephant in the room during yesterday’s proceedings.

“To deal with the uncertainty [of the highway trust fund], states are already bracing for a worst case scenario and some states like Arkansas are already putting projects on hold,” she said. (We also noted, the same fact about Arkansas that we called out in our recent report on the impacts of trust fund insolvency.)

“This crisis could hurt workers in the construction industry who depend on jobs repairing our roads and bridges, and if Congress does not act, a shortfall in the highway trust fund will put at risk the funding we have put forth in the THUD bill.”

Because the appropriators in the House and Senate aren’t responsible for finding a revenue solution – that rests with the Senate Finance and House Ways and Means Committees – they have to go ahead and set funding levels for this year expecting the looming crisis does not unfold. The senators showed confidence that their colleagues in the finance committees will, at minimum, find a short-term fix to keep the trust fund solvent.

“Because we had a reasonable allocation, we were able to avoid the painful cuts the House bill would make to housing programs, transit, and Amtrak, as well as TIGER,” said Senator Murray.

Not only does the Senate provide slightly more overall funding for transportation for the next fiscal year (FY15 begins this October), their funding level stands in contrast to the House’s version in a few key areas. (See full funding chart below.)

“Our bill continues to support the TIGER program, an effective initiative that helps to advance transportation infrastructure projects,” said Senator Susan Collins (R-ME), ranking member of the Senate Appropriations transportation subcommittee. The Senate bill which provides $550 million for another round of TIGER discretionary grants, including up to $35 million for TIGER transportation planning activities which Transportation for America and our coalition of elected, chambers of commerce and businesses support.

“I know that a lot of us have seen how the TIGER projects create jobs and support economic growth in our home states and I wish we could have funded it at a higher level,” she added. The TIGER program is wildly popular and scores of Republicans and Democrats alike have written numerous letters to USDOT supporting various applications in their districts.

“Once again, we’re encouraged to see the commitment to provide reliable funding for transportation each year from the appropriators in the Senate, and especially the leadership from Chairwoman Murray to ensure that we continue funding transformative programs like TIGER and new transit construction,” said T4 America Chair John Robert Smith. “Our cities and towns and metro areas are facing huge challenges of connecting people to jobs and vice versa, and ensuring that we fund a range of transportation options and innovative locally-driven projects that will help these places address those challenges head-on.”

Senator Mikulski noted that Senate leadership is “in conversation to bring a clustered appropriations bill to the floor during the week of June 16,” and after that the House and the Senate will attempt to reconcile these two bills. The largest stumbling block may be the that the Senate has $2.4 billion (4.6 percent) more in total discretionary spending than their House counterparts. Time will tell, but we are encouraged by the Senate’s approach and leadership shown by Senators Murray and Collins.

	FY14 USDOT actual	GROW AMERICA Act for FY15 (President's 4-year proposal)	HOUSE FY15 THUD Proposal ( & difference vs FY14 actual)	SENATE FY15 THUD Proposal (& difference vs FY14 actual)	DIFFERENCE between House & Senate FY15 proposals
Federal-Aid Highways	$40.26B	$48.062B	$40.26B	$40.3B (+$40M than FY14)	+$40M in Senate proposal
Transit Formula Grants	$8.6B	$13.914B	$8.6B	$8.6B	-
Transit 'New & 'Small Starts'	$1.943B	$2.5B	$1.691B (-$252M than FY14)	$2.163B (+$220M than FY14)	+$472M in Senate proposal
TIGER	$600M	$1.25B	$100M (-$500M than FY14)	$550M -($50M than FY14)	+$450M in Senate proposal
Amtrak Operating	$340M	Proposes to roll passenger rail into two new programs that total $4.775 billion*	$340M	$340M	-
Amtrak Capital	$1.05B	same as above	$850M (-$200M than FY14)	$1.04B (-$10M than FY14)	+$190M in Senate proposal
High speed rail	$0	same as above	$0	$0	-

Finally, a bill to give locals more access to their federal transportation dollars

Normal, Illinois’ Uptown Station project represents what can happen when the local leaders behind an ambitious vision are able gain access to the resources needed to bring that vision to life.

Most taxpayers would agree that the level of government closest to the people should have more control over how transportation dollars get spent in their local communities. Yet local cities, towns and counties control less than 15 percent of all federal transportation dollars.

If you think that needs to change, then stop what you’re doing and ask your representatives to cosponsor this critical, bipartisan bill. It would give local communities more access to federal transportation funds that they can invest in homegrown transportation plans and projects that they control.

(You can read more in-depth about Representative Davis’ bill on our blog here or check out the Congress.gov page for H.R. 4726 here.)

Local leaders are the ones who feel the heat when crumbling infrastructure stalls traffic, when workers can’t connect to jobs, streets are unsafe or goods get stuck in congestion. But they lack the access to federal funds that could help them fix those problems and boost their economies, and they have little say in how their state’s federal allocation gets spent.

We have a golden opportunity to change that.

Thanks to the leadership of a bipartisan group of Representatives and Senators, this terrific proposal would set aside a small portion of each state’s federal allotment to create a grant program especially for local communities. The grants would be awarded on merit by a panel with representatives from state and local jurisdictions, ensuring that funds go to well-conceived projects with the most local support.

This program would make a tremendous impact by requiring that more transportation dollars flow to communities — a great way to make good on Congress’s promise of more local control in MAP-21, the current transportation law.

The grants could fund a wide variety of surface transportation projects — such as bridge repair or improvement, highway projects, freight movement, bike and pedestrian safety and transit, to name a few.

This bill represents one of the best opportunities we’ve had in some time to ensure that more transportation dollars get down to where they’re needed most, to be spent on the very best projects that communities need.

Please, send a letter to your representatives and urge them to support this important bill.

—

Did you already send your letters? Then help spread the word! Use the links to share on Twitter and Facebook below, OR, cut and paste the message in the box to send a message to your friends via email.

Shouldn’t the level of government closest to the people have more control over how transportation dollars get spent in their local communities? And shouldn’t they have more access to federal transportation funds?

I think so, and I asked my representatives to cosponsor this bipartisan bill that would give local communities more access to federal transportation funds that they can invest in homegrown transportation plans and projects, and more control over how those dollars get spent.

Will you join me and send a letter? It only takes a moment.

http://action.smartgrowthamerica.org/p/dia/action3/common/public/?action_KEY=18521

In Senate hearing, local officials stand up for greater access to federal funds

Now that the Environment and Public Works Committee has passed the highway title of the Senate’s next transportation bill, attention shifts to three other committees writing remaining portions of the bill. Last week the Commerce Committee held a hearing on “local perspectives on moving America”, including testimony from T4America’s John Robert Smith, the former mayor of Meridian, MS.

Testifying at the invitation of Senator Richard Blumenthal, Mayor Smith explained how Congress can help provide “the tools and resources to invest in innovative transportation solutions that are critical to [local communities’] economic competitiveness.”

Watch full Senate hearing here

“Every day, my constituents in Meridian would stop me and tell me — whether it was at the grocery store or church — about their transportation challenges,” said Mayor Smith.

“But as mayor, I was frustrated to see limited choices of where I could go to for funding to meet the challenges of the people I served. …In fact, local leaders had almost no access to federal dollars.”

During the Q&A that followed the testimony, Senator Roger Wicker (R-MS) echoed that sentiment that local leaders like Mayor Smith often have a better grasp on those needs. “It was interesting to me to hear a Democratic member of the United States Senate [Senator Cory Booker] from the Northeast,” Sen. Wicker noted, “saying the very sorts of things that a Republican member from the Southeast would say about the wisdom of local government and the officials that are closer to the people knowing the needs better.”

Accompanied by Mayor Sly James from Kansas City, MO, and Mayor David Martin from Stamford, CT, along with other local stakeholders, Smith recommended that Congress stabilize and increase revenues for the Highway Trust Fund to support all modes of transportation. He urged lawmakers to take advantage of the opportunity provided by reauthorization to make policy changes to allow local communities to compete for and control a larger share of the resources they need to succeed.

Noting the Commerce Committee’s jurisdiction over freight and rail policy, his full written remarks stressed the importance of maintaining and expanding the national intercity passenger rail system and providing it dedicated funding, as well as the need to make our freight system truly multimodal. (Read his full testimony here.)

But the most pressing issue before Congress right now is the looming insolvency of the trust fund — a problem that the Finance Committee will have to solve.

“If Congress does not act to provide additional revenues for the Highway Trust Fund, these plans and projects would be stopped in their tracks, with real — and likely lasting — effects on the nation’s economy,” said Smith.

T4America’s proposal to raise revenues has been endorsed by a number of local chambers of commerce, cities, and other organizations, including: MetroHartford Alliance (CT), the City of Gainesville, FL, and the Seattle Metropolitan Chamber of Commerce, among many others.

“The most important message I have to deliver today is that the status quo is not acceptable,” said Mayor Smith in his closing remarks.

“Mayors and local elected officials are doing everything they can to improve their transportation systems and keep their economies strong — which are the base of a strong national economy. But they need a federal partner. Too often, they’re shut out of this process. The federal government can and must do more to help local leaders meet the transportation needs that their citizens require.”