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Tag: transit funding

Transit is a public good—let’s treat it that way


Across the country, transit agencies are urging people to stay home to protect public health. The steep decline in ridership over the past week due to the COVID-19 outbreak has caused transit to enter an unprecedented fiscal crisis. But Congress refuses to recognize how urgently transit needs support.

Send a message to your representatives in Congress: we must save transit before it’s too late.

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Public transit is just that—public. It’s a public service and a public good that millions of Americans rely on to access jobs, healthcare, pharmacies, and groceries. And right now, transit agencies across the country are taking a huge hit from dramatic decline in ridership due to COVID-19.

The amount of money transit agencies large and small are losing is staggering. Ridership on Washington, DC’s Metro dropped 85 percent, and the agency projects an unprecedented loss of $52 million a month. Chicago’s transit system saw rail ridership down 75 percent and bus use down 59 percent. BART in San Francisco says a sustained ridership loss of 85 percent and a 50 percent reduction of economic activity could reduce BART’s monthly revenues by $55 million. And New York City’s MTA is requesting $4 billion to stay afloat.

The stories of small transit agencies suspending service are also beginning to emerge. Greater Glens Falls Transit in Upstate New York plans to suspend all service in a few days. Green Bay Metro Transit in Wisconsin stopped regular public transportation service on March 16. Macatawa Area Express, which serves Holland, MI, suspended all bus routes March 18. And this is just the beginning.

Even as their ridership plummets and their ability to survive is in question, transit agencies and public officials are urging people not to take transit. It’s the right thing to do to slow the spread of the pandemic. But while public transit takes a hit for the common good, airlines are trying to entice customers with cheap airfares.

Transit is a public service and deserves support from Congress right now, not in some later stimulus package. By then—whenever “then” is—it could be too late. Senate Republicans unveiled their latest economic relief package on March 19, and not a single dollar is dedicated to supporting transit.

For transit, short-term financial losses now could easily damage the level of service transit agencies are able to provide in the long-term. It’s not as simple as turning on a spigot and starting up transit service again. It could take years for transit agencies to recover from the loss of fares and tax revenue and provide frequent service again. Robust transit service demands skilled staff—drivers, operators, mechanics, engineers, and numerous others—who need to be retained for the future.

The transit system is an extension of the healthcare system and part of the healthcare response to COVID-19. Healthcare and other essential workers need the system to get to their jobs and we need to support transit to ensure that it can provide robust service in the future. We need Congress to act and treat transit like a public good.

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BUILDing Complete Streets

By now it’s well known that the Trump administration is no friend to transit funding. (If this is news to you, see here, here, and here). Even the BUILD grant program—which was originally designed to fund complex, multimodal projects—has been warped by the administration’s focus on roads. Traditional roads and highways have received the most grant dollars since the Trump administration took control of the program in 2017.

Our Taming the TIGER analysis showed how the BUILD program changed after two years with the Trump administration in charge.

The administration recently announced the latest round of BUILD grant recipients (which would be BUILD II if added to the graph above) and the story is much of the same: traditional road projects received the largest share of funding, while transit saw a further decrease—from around 10 percent of funding in 2018 to less than 7 percent. Freight held steady at just under 20 percent.

But there is a bit of a silver lining: Complete Streets & other multimodal projects racked up almost a third of the BUILD funding, the highest percentage such projects have received under the Trump administration. This is also particularly notable given the worrying rise in pedestrian and bicycle fatalities across the country, attributable in large part to the lack of safe infrastructure on our roadways for people without cars.

Among the Complete Streets grants this year is $20 million for the Orange County Local Alternative Mobility Network Project outside Orlando. The project will upgrade existing pedestrian and bicycle paths while constructing “shared mobility lanes,” shelter and naturally shaded environments, new wayfinding, and a transit hub. It will also fund “autonomous vehicle infrastructure facilitating local adoption of AVs.” Another multimodal project, The Underpass Project at Uptown Station in Normal, IL, received a $13 million grant and builds on one of the first projects ever funded through the TIGER program. In 2009, Normal, IL received a grant to build a new Amtrak station and civic space that has been a boon for the entire city. A decade later, this new grant will excavate a path for pedestrians, bicyclists, and passengers under the train tracks and allow a second boarding platform to be constructed.

And while transit only received a tiny sliver of the overall funding, some important projects got a nod, like a new BRT line in Memphis, TN that received $12 million for 28 new stations, nine electric buses, and charging equipment.

The BUILD program is one of the only funding options for innovative, complex, or multi-jurisdictional projects that can be difficult to fund with traditional federal transportation programs. But the Trump administration has made it harder for those projects to receive funding by favoring roads over everything else. Read our full analysis—Taming the TIGER—to see how Congress can help ensure BUILD lives up to its full potential.

Is this flurry of transit grants a blip or a trend?

A First Coast Flyer BRT bus in Jacksonville. USDOT recently finalized a grant for another line of this service.

The U.S. Department of Transportation has finalized five grants to expand and build new transit lines. It’s a stark departure from USDOT’s history of stonewalling grants under Trump. This surge of grants could signal a shift in the agency’s stance, but the whole mess definitely underscores both how our federal transportation system makes transit hard to fund and why Congress should increase funding and certainty for transit in new, long-term transportation policy. Transportation policy principles released in the House suggest that could be possible.

Five federal grants for transit projects around the country were announced over the last two weeks. If that sounds like a lot, that’s because it is and it’s a stark departure from the delays and obstruction that have characterized this administration’s approach to public transportation funding over the last three years. Those preventable delays have resulted in a transit backlog, with dozens of projects currently waiting for federal grants to be finalized so they can get off the ground. 

But this new flurry of activity offers some hope that perhaps the administration is changing its tune on transit funding. Albany, NY, Jacksonville, FL, Portland, OR, and Spokane, WA all received smaller (<$100 million1), one-time grants to build bus rapid transit lines. The Federal Way Link Extension received a larger, multi-year grant to extend the light rail system in the Puget Sound region.

Unfortunately, many other transit projects are still waiting for federal grants to come through. The final phase of the Purple Line subway extension in Los Angeles has been in limbo for more than 14 months—the U.S. Department of Transportation (USDOT) has made two “allocations” to the project but inexplicably hasn’t finalized an actual grant. Minneapolis is another community facing an extraordinary delay on a federal grant for their Green Line light rail extension. Projects in Phoenix, Milwaukee, Kansas City, and other communities are all still waiting. These delays aren’t merely inconveniences: construction costs have gone up and timelines pushed back; people and businesses will have to wait longer to benefit from more transportation options.

It’s unfortunate that federal funding to build and expand public transportation has been at the mercy of a hostile administration. But this is a product of Congress treating transit like a second-class mode of transportation for decades.

A system designed to fail

The vast majority of transportation funding in the U.S. is dedicated to roads. Over $40 billion a year is automatically divvied up among states primarily to build new highways and make them wider. (In theory, this is also supposed to fund maintenance, but most states don’t.) By contrast, only about $2.6 billion is available for new public transit capital projects each year, and this funding is not guaranteed. And while the federal government will cover 80 percent of the cost of a highway project, it will only pay for up to 50 percent of the cost of a transit project. 

In essence, capital funding for transit is orphaned, kept largely separate from other federal transportation funds, while roads are treated to a geyser of funding (that includes billions in general tax revenues because the gas tax no longer brings in enough to pay what goes out). The Trump administration has been able to play games with transit funding because Congress treats it like an orphaned child, putting it in the hands of whoever happens to occupy the White House. 

While the current administration has been openly hostile to transit, even under administrations more amenable to transit, this second-class treatment has hampered its uptake. Fortunately, Congress has an opportunity to reform the federal program right now as they begin rewriting federal transportation policy. The next reauthorization should make transit a priority by funding transit at the same levels as highways, providing a higher federal cost-share for transit projects, and making operating support available. Future federal legislation should make transit safe, reliable, and convenient. 

It appears that some of this could be possible based on principles released by the House majority on the Transportation & Infrastructure Committee, but time will tell.

Cautious optimism

Building transit one grant at a time clearly isn’t working, but for right now, this is the system that we have and we’ll work to ensure it functions as intended. When it became clear that USDOT wasn’t executing grants in 2018, we sounded the alarm: our Stuck in the Station resource was born and media headlines brought the obstruction in this obscure program to light. Our advocacy on Capitol Hill resulted in an oversight hearing in the U.S. House, which did its own investigation into delays.

But in light of these five new grant announcements, we’d like to believe that the administration is done blatantly obstructing transit grants. For one, all the misleading terminology about “allocating” grants (but not actually awarding them) is gone from these recent press releases—and hopefully future press releases will only be about finalized grants and not meaningless allocations. Second, USDOT approved more grants in the past two weeks than in the first 18 months of Trump’s term. Third, as the administration begins its fourth year and priorities change, perhaps the hard-working career employees are being allowed to go about their jobs without interference from political appointees who don’t like the idea of funding transit.

That’s the optimistic view, but it’s also possible that this is only a temporary reprieve. The administration has been asking Congress to eliminate transit funding (grants or otherwise) altogether since taking office, and last year Congress made a $500 million cut to transit grants—a direct result of USDOT slow walking these funds. Rewarding a bully only emboldens them, and that cut was a reward for the Trump administration. 

So we’ll keep watching to see if USDOT is ready to get back to work helping build sorely needed transit infrastructure. If that’s the case, we may be able to retire Stuck in the Station and focus our efforts on reforming federal transportation policy in Congress instead of babysitting a federal agency.

Business groups urge Congressional support for transit funding

The business community gets it—public transportation is critical for the strength and growth of local economies and federal funding for transit is needed to get projects off the ground. In a letter to Congress, members of the Chambers for Transit coalition called for fully funding the nation’s largest grant program for public transit and reorienting the entire federal transportation program around clear goals and priorities.

Ahead of striking a deal to fund the government for the next year, the business community spoke out about the need to fund transit. A letter from members of Chambers for Transit, a coalition of chambers of commerce, economic development groups, business districts, and other business groups, laid out the case for robust federal support for public transportation:

“Public transit is critically important to the economic competitiveness and vitality of our local communities. Transit provides affordable access to jobs for many workers. For businesses, transit provides access to employees on a day-to-day basis.

“Over the long-term, investing in public transit is part of an integral strategy for creating the kinds of communities where many people want to live, with vibrant walkable neighborhoods and a diversity of transportation and housing options. This is critically important to our economic competitiveness because these are the places where businesses choose to locate so they can attract and retain a talented workforce.”

Their ask was twofold. Most immediately, they called for fully funding the transit Capital Investment Grant program in the next year, a program with bipartisan support that funds the construction and expansion of bus rapid transit, light rail, commuter rail, and other forms of public transportation. The U.S. Department of Transportation—the executive agency in charge of administering the program—has also been engaged in a well-documented attempt to undermine the program and delay the signing of grants. Therefore, these business groups also urged Congress to exercise their full authority to hold the agency accountable and ensure USDOT executes the program as intended.

Unfortunately, Congress made a $500 million cut to transit funding in this program for next year. The cut is a result of the diligent work by USDOT to slow-walk transit grants and make it appear as if the program was overfunded.

Beyond the immediate policy concerns is a long-term vision for federal transportation policy. The current 5-year federal transportation policy is set to expire in 2020 and Congress has barely begun to rewrite it. The signatories wrote:

“Nearly seven decades ago the federal transportation program set out with a clear purpose: connect our cities and rural areas and states with high-speed interstates and highways for cars and trucks and make travel all about speed. These brand new highways made things like cross-country and inter-state travel easier than we ever imagined possible. We connected places that weren’t well-connected before, and many Americans reaped the economic benefits. With the interstate system now complete, we’ve never really updated those broad goals from 1956 in a meaningful way despite diminishing returns and a lack of clearly defined priorities for this century.”

Despite the clear need for an updated vision and new policy goals, what Congress has produced so far is disappointing. Instead of a more fundamental rewrite that acknowledges how dramatically transportation has changed in the last few decades, legislators are largely tweaking policy around the edges.

These business leaders asked Congress to define new goals and priorities and write policy to support those priorities in the next long-term transportation authorization. The Chambers joined Transportation for America’s call to support the following three core principles for federal transportation investment:

  1. Prioritize maintenance
  2. Design for safety over speed
  3. Connect people to jobs and services

With new federal policy structured around those principles and robust federal funding for transit in the next year, communities around the country will be better positioned to become more economically vibrant.

You can find the full letter and the signatories here and learn more about each of the three principles proposed here.

Congrats USDOT, for a job poorly done

Congress required USDOT to spend its 2018 transit funds by the end of this year, and USDOT was poised to fail. But at the last minute, Congress bailed them out by easing the requirement. As the deadline approaches, USDOT is still sitting on hundreds of millions of dollars in grants that it refuses to award, unnecessarily delaying critical new transit projects.

The U.S. Department of Transportation is approaching an important deadline. After the agency proved that it couldn’t be trusted to execute transit grants in good faith, Congress imposed a December 31, 2019 deadline for “obligating,” or awarding, 85 percent of the $2.6 billion dedicated to the Capital Investment Grant program in 2018. That was 22 months ago. With only a couple weeks left in the year, USDOT has failed to hit that mark, but earlier this year, Congress blinked and bailed USDOT out by lowering the bar for them.

When initially passed last year, the deadline was an important, bipartisan signal that Congress was unhappy about USDOT ignoring the law, flouting congressional intent, and purposefully sabotaging transit expansion.

But Congress watered down this requirement recently to say USDOT only has to “allocate” funding—a relatively toothless standard. Allocation is not the same thing as obligation and just means that USDOT has made room in a spreadsheet for eventually spending the money on a particular project. It results in zero dollars actually going to build or improve new transit without additional approvals and action by USDOT.

In total, USDOT has failed to obligate more than $2.2 billion in funding for new transit projects since the Trump administration took office.

When it comes to FY18 dollars, though Congress threw them a lifeline, USDOT is still sitting on more than $668 million that it hasn’t obligated to transit projects. One of those allocations was made as far back as November 2018. These perplexing and avoidable federal delays seriously disrupt local project timelines and budgets.

As of publication, USDOT has only awarded (i.e. obligated) about 77 percent of the 2018 dollars Congress dedicated to transit grants that could be used to get new transit projects started across the country. But USDOT has “allocated” 98 percent of the 2018 grant funding available. That’s small consolation to the communities that have been waiting for up to nine months since they received an allocation on a USDOT spreadsheet for their shovel-ready transit projects to receive funding they can actually use.

Given the new standard, we should congratulate USDOT. They have successfully ignored Congress in order to push an anti-transit agenda that is broadly opposed on Capitol Hill and in the public—and they are going to get away with it. The bar has been lowered so much that USDOT can step over it without actually doing its job. Perhaps in the new year, the U.S. Department of Transportation will finally find its sense of purpose and start funding these critical transportation projects, and Congress will be able to find a way to hold USDOT’s feet to the fire. USDOT has already allocated the funding; it’s time to start spending it.

For more information about USDOT’s transit funding delays and how we got here, take a look back through our Stuck in the Station blog. and explore the Stuck in the Station resource.

Shutdown averted; another crisis created

people waiting for a train

The U.S. Department of Transportation (USDOT) is refusing to obey the rules and Congress has so far been powerless to stop them. At stake are billions in federal funding for new and expanded transit systems that USDOT doesn’t want to award. But a policy change that attempts to reign in USDOT and make it obey the law could just be making matters worse.

Congress today has done its part to avert a government shutdown by passing a continuing resolution (CR) that will fund the federal government through November 21. The president has until Monday night to sign it. While a CR is generally just a continuation of existing policy, this one tweaks a key, but very wonky, policy for the Capital Investment Grant (CIG) program—the main source of federal funding for building new and expanding existing transit systems.

The CIG program has been under attack by the Trump administration, which is ideologically opposed to funding transit, since day one. Because Congress has continued to fund the program, USDOT has instead sought to sabotage the grant-making process by delaying grants, shutting down lines of communication, and making the whole process more opaque and confusing to everyone involved: Congress, project sponsors, and the public.

Now here’s where it gets wonky. In fiscal years (FY) 2018 & 2019, Congress tried to hold USDOT accountable by adding new language to their appropriations bills that required the agency to actually award (i.e. “obligate”) at least 85 percent of the funds for that fiscal year by the end of the following calendar year (so 85 percent of FY18 dollars would need to be spent by December 31, 2019 and FY19 dollars spent by the end of 2020).

The CR that Congress just passed changes that language to say that USDOT must “allocate,” rather than “obligate,” at least 85 percent of those funds. Allocation is not the same thing as obligation and results in zero dollars actually going to project sponsors.

The original “obligation” language was designed to force USDOT to advance projects through the CIG pipeline and actually award funding by signing grant agreements. The change comes from a concern that USDOT will simply ignore the law—let that statement sink in—which would result in Congress clawing back the CIG funding through a lengthy legal process.

In essence, USDOT doesn’t want the money even though Congress gave it to them anyway and ordered them to spend it because they know local communities are counting on it for their transit projects. But USDOT is ignoring the law and spending as little of the funding as they can get away with. To date, USDOT has only spent about a third of what Congress has authorized over the past three years. It’s understandable that Congress would seek another solution to get grants out the door—we agree more is needed—but focusing on “allocating” funds could create a new problem while failing to solve the original one.

Creating a new problem

Changing the requirement for “obligation” to “allocation” through the CR ignores the new realities on the ground. It used to be that an “allocation” meant something. USDOT would allocate funds to projects that were almost finalized and ready for construction to signal that a grant was to follow shortly. Under previous administrations, allocations would inform how much money Congress would provide in the budget for the CIG program and signal an imminent grant. But this administration has broken from precedent. “Allocations” from this USDOT are a big old nothingburger.

As we have previously described, an “allocation” is simply an internal accounting in the ledgers at USDOT. It doesn’t mean funding has been awarded nor does it guarantee that funding will ever arrive. In at least nine cases, communities have been waiting for months without funding despite receiving an allocation. One of those projects—the Purple Line subway extension in Los Angeles—has received two separate allocations without receiving a dime of federal money.

A table of nine nine unfunded transit projects with allocations and the date of the allocations

Congress’s new rules in the CR would unfortunately do nothing to ensure these communities receive funds and would give undue credit to USDOT for “allocating” these funds, regardless of whether that allocation eventually results in a formal grant.

Instead of simply swapping “obligate” for “allocate,” we’ve proposed that Congress requires a strict timeline for DOT between making an allocation and an obligation, along with requirements for the DOT to regularly communicate with Congress and project sponsors about the status of all projects that are seeking CIG funding. While Congress can’t do USDOT’s work for them, it can exercise aggressive oversight that would make it much harder for the agency to just sit on its hands. USDOT’s actions (or lack thereof) to date have more than justified such an approach.

Congress’s heart is in the right place; they’re trying to make USDOT obey the law and administer the CIG program as intended. The fact that Congress is even in this position speaks to the sordid state of affairs at USDOT. But their proposed remedy to this problem—changing policy in the CR to focus on tracking internal accounting (“allocations”) instead of executed grants—could just end up making things a whole lot worse.

Federal transit funding delays cause real harm

USDOT has been slow-walking federal transit funding since the Trump administration took office and the U.S. House is finally undertaking an oversight hearing to hold them accountable. Here’s a look at one major way USDOT is misleading the public about their lack of progress and some of the impact it’s had on local communities.

Today at 10 a.m., the U.S. House is holding its first oversight hearing on the US Department of Transportation’s (USDOT) efforts to undermine federal transit funding. (Live stream available at the above link.) Since taking office, the administration has inexplicably delayed federal grants for major transit projects, become less responsive, helpful and timely in shepherding projects through the application process, and radically scaled back the amount of information it releases publicly. And the information USDOT does release regarding capital transit grants is often very misleading, designed to make it look like the agency is doing its job when it’s actually not.

Decrypting USDOT

To understand how USDOT is misleading the public it’s important to understand how these capital grant works.

Under previous administrations, USDOT would publish a list of projects it anticipated funding in the following year (it’s a multi-year grant process) and then Congress would fund the program with the requisite amount intended for those projects. As grant applications were tweaked and finalized, USDOT would allocate funding to particular projects before a final grant agreement was signed—which usually happened soon afterward—and money was officially out the door to the project.

Under the current administration, USDOT has stopped publishing a list of projects it anticipates funding next year because they’re ideologically opposed to funding any transit projects. But the transit capital program has bipartisan support and Congress has continued to appropriate funds for it—three times during this administration. Now USDOT—specifically the Federal Transit Administration (FTA) within USDOT—”allocates” funding to projects, they put out a press release lauding their work, newspapers announce USDOT has funded a project (they haven’t), yet no money has changed hands. Getting an “allocation” today just means USDOT moved numbers around on internal spreadsheet, nothing more.

Communities experience real harm

The whole application process is designed to insulate the federal government from losses. Before signing a grant agreement everything has to be in order: local funding must be secured, land acquired, project design finalized, etc. But what happens when communities get their ducks in a row, have put out bids for construction, and then wait…and wait…and wait for a federal agency that doesn’t want to do its job? Materials don’t get less expensive with time (they get more expensive) and bids come with expiration dates; when they expire, the whole bidding process which can take multiple months has to be repeated. While dozens of projects are still waiting for federal funding, here is the impact on three different transit projects, each of which USDOT has “allocated” funds for but which have not received a grant agreement.

The Bay Area
The Transbay Core Capacity Project is a $3.5 billion package of improvements that will help purchase new rail cars for BART and increase capacity in the transbay tube that connects San Francisco and Oakland. According to Railway Age:

BART is ready to move the Transbay Corridor Core Capacity Project into the Engineering phase, and [BART General Manager Grace] Crunican said the agency cannot proceed without FTA funding. She said the project has been delayed by FTA for more than a year, and every year of delay will cost taxpayers an estimated $120 million. BART had been anticipating FTA approval for entry into the Engineering phase by late 2018.

FTA has recently “allocated” $300 million for the Transbay Core Capacity Project from 2018 funds—an unusually high amount—but this does not supply the agency with any funding. Annual grants usually top out at around $100 million (this is a multi-year grant), but FTA has broken with that practice, likely to avoid having to fund other transit projects with the other $200 million.

Los Angeles
The Purple Line Subway Extension, Phase III is the final extension of this subway line that is planned to be completed in time for the 2028 Olympics in Los Angeles. It will connect the Veterans Administration Medical Center and UCLA (which will host the Olympic Village) to the rest of the Los Angeles rail system. According to an editorial in the Los Angeles Times, the LA Metro was up against a clock last year with construction bids set to expire:

The construction bid expires Oct. 3 [2018]. If Metro doesn’t get the funding commitment by then, the agency will have to rebid the contract. That could delay the project by nearly two years and increase the cost by $200 million, Metro officials say.

LA Metro did not receive a construction agreement by October 3, but they did get what’s known as a Letter of No Prejudice (or LONP) just before the deadline that allowed them to begin construction using local funds (and with no guarantee of future federal funding). The project has since received two separate “allocation” of $100 million, one from FY 2018 funding and one from FY 2019 funding. While construction has begun, there is still no funding agreement in place.

Twin Cities
The Southwest Light Rail Extension will extend the Green Line—which connects downtown St. Paul & Minneapolis—from downtown Minneapolis to the southeast suburbs, connecting some major employment centers. After unexplained delays and approaching deadlines, the Star Tribune penned an editorial urging USDOT to act:

The Met Council pleaded for Federal Transit Administration (FTA) action before Sept. 30 [2018], when two key civil contractor bids were set to expire and while sufficient time remained in the current construction season for preliminary work to begin. Those pleas went unheeded, with no explanation. This week, Met Council officials asked bidders for a 45-day extension. Only the low bidder, Lunda/C.S. McCrossan at $799 million, agreed. That leaves Ames/Kraemer, which had bid $812 million, out of contention.

Due to federal delays, Minneapolis was left with only one bidder willing to build its light rail line. But USDOT still failed to act. With only days left before the bid expired—after the extension— Minneapolis received a Letter of No Prejudice and was able to begin construction. Like Los Angeles, there is still no grant agreement in place, which means zero guarantee of federal funding.

These are just three examples of how USDOT is harming communities and undermining their progress on the ground. While many others have experienced similar frustrations and unexplained delays, they are reluctant to speak out publicly for fear of drawing the administration’s ire and further jeopardizing their funding.

These unexpected, unexplained, and unnecessary delays from USDOT are inexcusable and it’s heartening that the U.S. House is holding an oversight hearing. Unfortunately, the hearing won’t feature agency heads from any of those three cities or any other city that has been measurably harmed by these delays. It will feature a representative from the American Public Transportation Association, which represents agencies that must work with the USDOT, a representative from a road builders’ association, and the director of the Kansas City Streetcar Authority, which has not experienced any delays from this administration (yet).

While we’re hopeful that members of Congress will ask probing questions and hold USDOT accountable, the witnesses and their prepared testimony do not inspire confidence.

Try as Trump might, transit grants are here to stay


The Trump administration has repeatedly tried to eliminate a critical transit grant program and Congress has repeatedly parried those attempts. The new transportation funding bill from the U.S. House is only the latest evidence that those transit grants are here to stay.

The House of Representatives’ Appropriations Committee recently released a funding bill that covers transportation funding—everything from passenger rail, to highways, to various grant programs like BUILD. One program in particular—the Capital Investment Grant (CIG) program that funds new transit and system expansions—has been a target in this administration’s crusade against transit, as we catalogue in Stuck in the Station.

But despite the administration’s repeated requests to eliminate or cut funding for this program, the new Democratic majority preserved funding for this program—just as the Republicans did when they controlled the House. While there are some proposed changes to the program that help illuminate some of what’s happening behind the scenes, here’s the bottom line:

The administration is still very actively trying to kill the program, Congress is doing as much as they can to ensure the program is executed as intended, and every indication is that this program is here to stay.

Let’s talk funding

All the talk in Washington is about money, so let’s just get this out of the way. Transit grants saw a small ($251 million) decrease over last year’s funding, but that’s only because last year’s was $251 million higher than authorized. So nothing new here.

By our calculations, there are more than enough transit projects making their way through the pipeline that are eager for a slice of this funding. That said, the administration is trying to paint a different picture. By failing to sign new grant agreements, adding additional and unclear requirements, releasing less information publicly, and requesting $0 (or massive cuts) for the program, the Trump administration is trying to undermine this transit funding and discourage local transit agencies from even applying. But Congress has stepped up their oversight of the program to make sure good projects continue to apply and get the funding they deserve.

Congress beefs up oversight

In an attempt to force the U.S. Department of Transportation (USDOT) to actually award grants, sign grant agreements, and fund new transit projects, Congress added unprecedented language last year’s funding bill requiring 80 percent of funding be distributed to projects by the end of 2019. Stuck in the Station tracks USDOT’s progress toward this requirement.An achievement bar measuring what percentage of federal transit funding has been awarded. In order to preserve funding levels, 80 percent of authorized levels have to be awarded by the end of 2019; as of June 4, 2019, 71 percent of funding has been awarded.

In response, to avoid signing new grant agreements, USDOT has taken the unusual step of doubling awards to projects they’re already obligated to fund to try and hit that mark. And they’ve misled the public about their intentions to sign new grant agreements with some serious verbal gymnastics.

This year, the House has upped the ante. The same 80 percent requirement exists (USDOT will have to distribute 80 percent of this funding by the end of 2020), but any unspent funds would now be automatically awarded to projects in the pipeline, even if the administration has refused to sign a grant agreement. USDOT either needs to do its job and advance these projects or Congress will do it for them.

Federal transit grants aren’t going away

As communities attempt to manage inexorable growth and change, transit investment is critical. Public transportation is and integral part of retaining a talented workforce, attracting businesses and jobs (and getting workers to those jobs), providing affordable transportation and reducing inequities in our communities, reducing greenhouse gas emissions and other dangerous pollutants, improving safety, and reducing congestion.

Undermining federal transit funding doesn’t change those facts; communities are and will continue to invest in transit and the federal government should be a partner in those efforts, not an obstacle. But regardless of USDOT’s actions, there is no indication that grants for new and expanded transit are going anywhere anytime soon. This House appropriations bill is just the latest example.

Local business groups fight for public transit

Twenty-five chambers of commerce and other organizations representing local business interests across the country have formed Chambers for Transit, a coalition facilitated by Transportation for America to fight for more federal support for transit.

The importance of robust public transit for local economies is clear. Core Values: Why American Companies are Moving Downtown showed that walkability and transit access were key to attracting businesses and talent in 2015. The Amazon HQ2 search was just the latest example: “access to mass transit” was one of the core preferences in Amazon’s request for proposals. From Kansas City where the business community rallied around the downtown streetcar to Indianapolis where the business community led the effort to build out a network of bus rapid transit lines, local business groups are keenly aware of how important transit is to economic success.

“I believe transit is a powerful catalyst for inclusion, connecting people to employment, education, and daily necessities,” said Mark Fisher, Chief Policy Officer of the Indy Chamber. “And it’s not just helping people leave their neighborhoods for these things, but bringing new investment to the areas that desperately need it. Knowing that transit means empowerment for my neighbors across Indianapolis is a daily motivation.”

However, many in Washington, DC haven’t gotten the memo. The Trump administration proposed eliminating funding for transit grants in its first two budgets. This year, President Trump proposed a draconian, $1 billion cut in his budget instead. While Congress has so far rejected those requests, it remains to be seen whether legislators will give transit a more equitable split of overall federal transportation funding as they draft long-term federal transportation policy (current policy expires in September 2020).

That’s why Transportation for America is bringing the voices of local business groups that are clamoring for transit investment to lawmakers on Capitol Hill. These groups understand that transit is critical to improve access to jobs, spark new development, and create the kinds of vibrant communities that can attract a talented workforce.

Congress should fully fund federal transit programs and strengthen its role supporting transit in the coming reauthorization. Chambers for Transit will bring that message to Washington.

“As Utah’s population continues to grow, transit is more important than ever,” said Derek Miller, President & CEO of the Salt Lake Chamber. “The availability of high quality transit in our communities directly correlates with Utah’s economic success, business-friendly climate and high quality of life.”

Visit the Chambers for Transit page to learn more and see which organizations are all aboard for more public transportation.

If verbal gymnastics was an Olympic sport, USDOT would take a medal

A deceptive announcement by USDOT two weeks ago resulted in mistaken headlines across the country giving credit to USDOT and the Federal Transit Administration (FTA) for “awarding” funding to a number of transit projects. A closer read reveals that USDOT didn’t actually distribute or award a single dime to advance new transit projects.

In a self-congratulatory press release on April 9, USDOT Secretary Elaine Chao touted the agency’s efforts to “strengthen our country’s transit infrastructure and improve mobility” and “announced a total of $1.36 billion in federal funding allocations to 16 new and existing transit projects.” [italics ours]

In reality, no dollars for new transit projects were awarded or obligated. No new grant agreements were signed to allow projects to proceed. No new shovel-ready transit projects got a check in the mail from FTA. Why is that? Because FTA is just announcing “funding allocations.”

A “funding allocation” is just fancy language for an internal plan to award money…eventually

Here’s a way to understand “funding allocations.” Let’s say you’re planning to buy a new roof for your house. To prepare, you “allocate” some money to yourself by moving it from your savings account into your checking account so that when the time comes, you can cut a roofer a check. But you still haven’t actually hired a roofer, written them a check, and you certainly haven’t started replacing your roof yet. Should the roofer you haven’t yet hired be celebrating?

In other words, USDOT put out a press release that’s mostly about them moving some numbers around on a spreadsheet and posting it on their website. Congrats? It’s an extraordinary display of verbal gymnastics by USDOT to make it appear that they’re doing much more to fund transit than they actually are—notably released just the day before Secretary Chao testified before the House Appropriations Committee about USDOT’s budget.

And they are succeeding at misleading the public— look no further than the resulting media coverage thus far.

Want to know what’s actually happening with federal transit funding? See Stuck in the Station >>

But this press release has—perhaps inadvertently—also helped illuminate some troubling developments from an agency that has become much less transparent under the Trump administration. Here are five things we found:

1) USDOT wildly overstates how much money they’ve spent

The press release says, “with this announcement, FTA has advanced funding for 22 new [transit Capital Investment Grant] projects throughout the nation under this administration since January 20, 2017, totaling approximately $5.06 billion in funding commitments.”

In fact, FTA has only actually spent a fraction of that $5.06 billion, and if you define advancing funding as actually awarding (i.e., spending) it, FTA has only advanced 10 new projects with money from 2017 or later, far short of the 22 as they claim.

They take credit for providing more than $3.3 billion to 13 ongoing projects (including the canceled Wave streetcar in Ft. Lauderdale, more on that later), three of which are multi-year projects. Though FTA is legally required to continue funding such multi-year projects under binding “full funding grant agreements,” those transit projects have not yet received the full amount. And FTA is also counting more than $1.7 billion in funding for nine projects that they have not actually signed agreements to fund or advance.

2) USDOT is claiming progress by allocating more FY 2018 funding to two projects that already received 2018 funding

At first glance this sounds like good news: Two large-scale projects with grant agreements that were signed during the Obama administration will get an extra dose of money to perhaps speed them along. The Peninsula Corridor Electrification Project in San Carlos, CA and the Red and Purple Modernization Project in Chicago, IL are scheduled to receive an extra $100 million dollars each on top of the $100 million FTA had previously allocated to each project this year. That’s $200 million each for the 2018 fiscal year.

This is highly unusual, and it could also be a way for USDOT to do an end-around of requirements from Congress. FTA usually allocates no more than $100 million to a single project in a given year. The fact that FTA is doubling up on 2018 dollars is most interesting in light of new requirements that Congress imposed requiring USDOT to spend at least 80 percent of their FY 2018 funding by the end of this calendar year. Stuck in the Station now tracks USDOT progress towards that benchmark.

Double dipping in 2018 funds to expedite funding for existing projects allows USDOT to come closer to meeting Congress’ requirements without actually funding any new transit projects.

3) No new projects are being funded

The major development at first glance is that FTA is “allocating” money to five new transit projects. But none of these projects were actually approved or awarded money, even though local media fell for FTA’s misdirection. These five projects will join four other projects that FTA announced “allocations” for months ago. None of these nine “allocated” projects have a funding agreement in place yet, nor are we aware of FTA notifying Congress of their intent to sign any grant agreements (which is legally required).

4) USDOT wants credit for allocating money to a canceled project

The Wave streetcar in Fort Lauderdale is an unfortunate story. It was set to receive $60.66 million from USDOT in October of 2017 but local politics intervened at the last second and torpedoed the project. The streetcar was canceled and no federal money was spent. But FTA still claims credit for allocating that $60.66 million to the now defunct project and counts The Wave as one of the 13 projects they’ve advanced.

5) Minneapolis is left in limbo, and Los Angeles is still awaiting a final guarantee of funding

Late last year, FTA made news by sending what’s known as a letter of no prejudice to both Los Angeles and Minneapolis for their Purple Line and Green Line extensions, respectively. Such letters don’t guarantee future funding but they are generally seen as an implicit approval giving localities permission to begin work on a project with their own money.

Los Angeles’ Purple Line extension is included in the list of nine future projects that FTA anticipates funding (but still hasn’t yet). But Minneapolis’ Green Line extension is notably absent from this list, even though they have the same letter as LA. This could just be an egregious error on the part of the agency, but it’s more likely that FTA has no intention of signing a grant agreement with Minneapolis this year.

Delay, mislead, misdirect

FTA chose its words very carefully in this press release. They never say that they’re “funding” or “approving” new projects. They use the words “allocation” and “advancing” repeatedly. While all of this makes it sound like they’re spending lots of money and advancing lots of projects, that’s simply not true. Stuck in the Station tracks how much funding has been actually obligated to new transit projects, which projects are currently eligible and waiting for funding, and how close USDOT is to meeting congressional requirements for its 2018 funding.

USDOT is still working diligently to hinder predictable and stable federal funding for transit. We’ll keep holding them accountable. When USDOT finally moves beyond creating new spreadsheets and does advance new projects, we’ll be the first to commend them for it. But for now, it appears that USDOT is more interested in looking like it’s doing its job than actually doing its job.

View Stuck in the Station

President’s budget dramatically cuts transit grants while USDOT sits on billions of unobligated funds.

President Trump’s just-released 2020 budget would cut federal transit capital grants by $1 billion. Although this is a slight improvement from the administration’s past efforts to eliminate all funding for new transit projects, it comes after a backlash against USDOT—stoked by Transportation for America’s ‘Stuck in the Station’ resource—for failing to administer the grant program in good faith and in a timely fashion.

Specifically, the 2020 budget requests just $500 million for new transit grants, a 64 percent cut from the $1.4 billion Congress appropriated explicitly for new projects in 2019 earlier this year. (The president’s budget includes $1 billion for projects already underway that the administration is legally required to continue funding.)

The U.S. Department of Transportation (USDOT) under Secretary Elaine Chao’s leadership has empowered President Trump’s strange crusade against transit funding. When Congress ignored the president’s previous budget requests to eliminate the program and made bipartisan moves to allocate billions in funding for improving and expanding transit, USDOT neglected to award grants.

Even after responding to the backlash by advancing several projects in 2018, USDOT is still sitting on more than $2.77 billion in available funds for new transit projects, as Transportation for America shows with Stuck in the Station.

“USDOT and the president are responding to the backlash to their past efforts to eliminate this popular program that provides transportation options, offers alternatives to soul-sucking congestion, and supports manufacturing jobs across the country,” said Beth Osborne, director of Transportation for America. “Unfortunately they are still proposing a massive cut in funding for building or improving transit systems. And while they are calling for cuts, USDOT is still sitting on billions intended to advance projects across the country.”

Following the release of Stuck in the Station last summer, USDOT picked up the pace of its grant awards slightly as public pressure mounted, funding nine more transit projects and bringing the total up to 10—just 10 projects in two years. That pace is wholly inadequate, and they are failing to keep up with the money that Congress continues to provide each year to advance new projects. They’ve awarded less than 30 percent of the more than $3.8 billion Congress has appropriated since 2017.

Combined with less transparency from the department about where projects stand in the grant process and what money is being used, it leaves communities, advocates, and even Congress guessing.

Congress has not taken kindly to USDOT’s blatant attempts to hamstring transit funding nor its disregard for congressional intent. In both the 2018 and 2019 appropriations bills, Congress inserted unprecedented language requiring USDOT to award at least 80 percent of each year’s funds by the end of the following calendar year—a direct rebuke of USDOT’s intransigence. USDOT now has until the end of 2019 to award at least 80 percent of their 2018 funds to the more than two dozen projects awaiting funding. Stuck in the Station now counts down to the Congressional deadlines and tracks how far USDOT has to go to meet that minimum requirement.

It’s important to note that even if USDOT reaches their 80 percent benchmark—which is an open question—that’s only a ‘B-‘ grade. Satisfactory.

USDOT’s unnecessary funding delays are increasing project costs, hindering construction in places with small fair-weather construction windows, and potentially jeopardizing projects altogether, leaving local communities on the hook as bureaucrats play politics in Washington. And this isn’t just happening in theory; according to reporting from Indy Midtown Magazine, “Federal delays in making appropriated funds available to [Indianapolis’ transit provider] IndyGo added approximately six months to the construction schedule.” Construction on the Indianapolis Red Line bus rapid transit project is now being accelerated to make up for federal delays.

Transit projects like the Indianapolis Red Line and the other two dozen projects in the pipeline for federal funding help spur local investment, support high-paying manufacturing jobs around the country, and provide the foundation for robust regional, state, and national economies. This budget is clearly out of step with what Americans need and want as communities across the country are trying to address looming crises like climate change and burgeoning inequity in our communities, and boost economic activity.

Policy Memo: THUD Conference Agreement

This information was supplied to members via email on January 22, 2019. We are posting it here today so members can use this option to find it.

On January 17, the House of Representatives released the full conference agreement between the House and Senate for the remaining six appropriations bills that have not been signed into law. The Transportation, Housing and Urban Development (THUD) FY19 appropriations bill conference report is included in this package. If Congress passes a full year FY19 appropriations bill this year, it is extremely likely that these are the final THUD funding levels and provisions.

T4A’s policy team has provided this memo exclusively for members. In addition, here is a brief power point slide deck that puts funding levels for various programs in context.

116th Congress Begins

This information was supplied to members via email on January 4, 2019. We are posting it here today so members can use this option to find it.

There are a lot of issues in play as the 116th Congress starts this week: a continuing government shutdown, new leadership in the House of Representatives, a new FY19 Appropriations bill from the Democratic-led House, committee leadership decisions, and discussions on an infrastructure package, reauthorization of the FAST Act, and the beginnings of FY20 appropriations discussions looming in the next few months. To keep you informed and prepare you for what almost certainly will be an interesting year, our policy team has provided what you need to know in this memo.

For those of you who like charts, and to help place the Democratic House FY19 Appropriations bill funding levels in context, check out this slide deck.

Also, not on the memo linked above because it just happened a a few hours ago ago: Senate Republicans finalized their committee memberships. As a reminder, committee assignments for Senate Democrats are here.

A new countdown for USDOT transit funding

As Congress enters negotiations for the next long-term transportation bill and works to pass a new annual budget, our Stuck in the Station resource has been updated to provide a complete list of transit projects awaiting funding in 2019 and track USDOT’s progress towards meeting hard and fast deadlines imposed by an impatient Congress.

Last August, we launched Stuck in the Station to catalogue the Trump administration’s efforts to hamstring federal transit funding. From day one, the administration has proposed to defund the largest federal grant program for new transit projects and system expansions. Congress said “no” and gave them more than $2.3 billion dedicated to getting new projects off the ground, and the political appointees over at the U.S. Department of Transportation (USDOT) decided they just wouldn’t spend any of that money. Maybe they thought no one would notice. Except we did, and we called out their foot dragging with Stuck in the Station.

That was six months ago, at which point the administration had not signed a single new full funding grant agreement in a year, despite being flush with funds appropriated by Congress. Now, after months of increasing pressure from Congress, the public, and inquisitive media outlets in scores of metro areas, USDOT has signed 10 grants, accounting for about 45 percent of their available funds.

That’s progress, but it’s still woefully inadequate. After updating Stuck in the Station to add additional projects in the transit pipeline that have been rated “medium” or higher and are therefore eligible for funding, there are at least 26 projects in 20 communities that are waiting for a piece of the $1.1 billion available right now. And once a new transportation appropriations bill is signed (it’s among the funding bills being held up in the current government shutdown/funding standoff), USDOT will likely receive even more money to get these project rolling—perhaps another $2 billion or more.

Update: a new government spending bill signed by the president on Friday, February 15 adds another $1,491,505,856 in funding for new transportation projects. The new total is reflected in Stuck in the Station.

Every delay means that bulldozers and heavy machinery are sitting idle. Steel and other materials are getting more expensive. Potential construction workers are still waiting to hear about jobs that should have materialized yesterday. And everyday travelers counting on improved transit service are left wondering if their government will ever start doing its job.

Congress took unprecedented steps to require USDOT to act

The administration’s previous actions to slow roll transit funding proved that it couldn’t be trusted to execute transit grants in good faith, so Congress made a bipartisan move to add strings. In the 2018 transportation funding bill, Congress specified that USDOT must spend at least 80 percent of these transit capital funds by the end of the (calendar year) 2019. While USDOT has made progress as they advanced some projects in 2018, they still have hundreds of millions of dollars left to obligate to meet that statutory requirement.

Our updated Stuck in the Station resource now includes a countdown to the end of 2019 and a tracker showing how much USDOT still needs to award before the clock strikes zero, based on the most up-to-date information available about USDOT’s progress.

View Stuck in the Station

It’s important to note that even if USDOT reaches their 80 percent benchmark—which is an open question—that’s only a ‘B-‘ grade. Satisfactory. Whether the administration is willing to believe it or not, transit is a critical solution for looming crises like climate change and burgeoning inequity in our communities.

Failing to use the funds at their disposal would be a dangerous abdication of responsibility by USDOT leaders to carry out the agency’s mission: “ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future.”

Federal transit funding delays grab headlines across the country

President Donald Trump reportedly consumes a lot of media, so what better way to get the administration’s attention than by going to the media. Since we launched Stuck in the Station this summer—which catalogues the egregious (and wholly avoidable) delays in transit funding under this administration—dozens of media outlets across the country have covered the news.

Some of the outlets are those you might expect, which regularly cover transportation and urbanism issues. Streetsblog USA declared that the Federal Transit Administration has “gone rogue.” CityLab cited the “splashy countdown clock” in cataloguing the inexplicable delays to major transit projects.

Understandably, reporters and editorial boards in cities with transit projects on the “awaiting funding” list also are taking a strong interest. News outlets in Tampa, FL, Tempe, AZ, Sacramento, CA, Atlanta, GA, and New York, NY all questioned how the delays will ultimately affect long-awaited projects in their cities, and the taxpayers who are already committed to footing half or more of the bill in most cases. In an editorial, the Los Angeles Times highlighted the central role of the Purple Line Subway extension in the 2028 Olympics. The line will eventually connect athletes housed at UCLA with sporting venues across the city, if it’s completed on time. But due to funding delays, “whether the project meets its deadlines is in the hands of the Trump administration.”

“But local and state dollars cannot replace federal funding. Nor should they. The federal government has a shared national interest in a country that’s safe and well-connected, and where people and goods move efficiently. The Purple Line subway is the perfect example. It will help move people through one of the country’s most congested corridors.”

–The Los Angeles Times.

Similarly, the Star Tribune editorial board (in Minneapolis, MN) pleaded with the Trump administration to approve funding for a major light rail extension before civil contractor bids were set to expire. At this point, according to the paper, the only thing holding back the project is the lack of expected federal funding. “A longer delay would almost certainly mean higher costs and could unravel the project’s painstakingly woven funding arrangements, achieved through years of arduous political exertion by jurisdictions along the proposed 14.5-mile line,” the editorial board notes.

None of the cities mentioned here have received grant agreements from the USDOT as of this writing, leaving the future of their projects (and years of hard work) in limbo. Los Angeles and Minneapolis both received Letters of No Prejudice—though such letters do not guarantee any future federal funding—and have begun construction. In essence, these two cities are taking multibillion-dollar gambles, though ones predicated on the expectation that USDOT will continue approving transit grants as they always have through the last decade or two.

President Trump has been in office for almost two years now, but the administration has only spent a measly 23 percent of the $2.3 billion that Congress appropriated to fund new transit capital projects since 2017. (Though USDOT has reportedly approved the Lynwood light rail project in the Seattle region, no final funding agreement has yet to be signed or money sent out the door. That could happen before the end of the year and would represent the first multi-year, big-ticket full funding grant agreement advanced solely by this administration.)

While the president himself hasn’t responded to any of this media coverage—based on his tweets at least—USDOT definitely has. During a recent speaking engagement, Jane Williams, the top administrator for the department that oversees the transit grant program, seemed irritated by all the coverage the funding delays have been getting. “It seems to occupy 80 percent of the attention,” Williams said, “it is the elephant in the room.”

But when you’re failing to do your job, people, including the media, tend to notice. So get to work.

Mixed messages on transportation at the ballot box this week

With a range of notable ballot measures for transportation considered by voters Tuesday, how did the issue fare at the ballot box? Did the recent trends for transportation-related measures continue?

Metropolitan Transit System, Trolley # 4014

Compared with two years ago when there were a number of major, big-ticket ballot measures to raise billions in new local revenue for transit on the ballot, there were relatively few local ballot measures raising new money for ambitious bus or rail transit projects in 2018. We’ll get into what actually happened at the local level, but this year, one of the more interesting trends emerged at the state level.

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T4America members: We’ve produced a more detailed post-election analysis for you. You can download that short document here. Reach out to us if you have any questions.

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Statewide

The biggest question on the ballot was Proposition 6 in California, which would have undone the state’s 2017 legislation that increased fuel taxes to raise more than $50 billion to prioritize repair and pledge billions toward transit, safe streets for walking and biking, and an overall multimodal approach to solving the state’s transportation challenges. The legislation also gave money directly to California localities to spend on their greatest needs, allowing for a strong measure of local control.

Proposition 6 was defeated—preserving 2017’s tax increase—with just 45 percent in favor. Of all the states that have raised new transportation revenues since 2012, California was one of the few that raised new money that could be used on a diverse range of needs. Voters just signaled their approval for this approach a year later.

By contrast, statewide proposals to raise new revenues for transportation—almost all for only roads—failed in Missouri and Colorado, as well as a non-binding advisory measure in Utah that went down by a wide margin. While a portion of Colorado’s gas tax dollars (those directed to localities) can be used on any transportation purpose, both Missouri and Utah have constitutional prohibitions on 100% of their gas tax dollars, preventing them from being spent on any other transportation needs.

What’s the trend to extrapolate from these four measures? The latter three measures were essentially status quo referenda on whether or not voters want to put more money into the existing state system for transportation. The taxpayers resoundingly answered “no.” In Missouri’s case, this was their second run at raising state fuel taxes for only roads, and like in 2014, voters in the state’s metro areas widely rejected the measure, viewing the taxes as regressive and a way to funnel money out of their metro area to pay for needs elsewhere in the state. All three contrast with California’s new system to devote new taxes toward a range of multimodal projects that was reaffirmed by voters.

This will be the most pressing question of 2019 as Congress ramps up to work on reauthorization. Do the American taxpayers believe that the federal transportation system works for them? Will they be supportive of federal legislators raising their taxes or creating new revenues to put into the same old system?

Local

At the local level, there were notable measures approved in Broward County (north of Miami) and Hillsborough County (Tampa). Broward’s penny sales tax increase would raise $15.6 billion over 30 years, largely for transit with about $9 billion earmarked for new light rail lines. In Tampa’s case, after a few failed attempts, they finally passed a measure with money for transit that raises the sales tax by a penny to raise about $275 million annually for transportation. (Revenues are split 45/55 between transit and roads/other projects.)

Federal

Many want to know how the changeover in House leadership will impact transportation, and particularly transit funding. It’s worth noting, however, that it’s been a bipartisan effort in Congress to press on USDOT to keep these transit projects moving. It was a Republican House and Senate that approved an unprecedented provision to the 2018 appropriations bill requiring USDOT to obligate all of their 2018 transit capital grants before the end of 2019. And it was a Republican move in the Senate to require Trump’s USDOT to use President Obama’s TIGER grant qualifications for the last round of TIGER grants.

Will much else change with the House’s leadership transition? The top Democrat on the House Transportation and Infrastructure Committee—the committee charged with writing policy for the 2020 reauthorization—went on the record today saying that federal transportation policy is just fine as it is. All we need is more money.

We’ll have more on the federal angle in the coming days. View our tracker for 2018 state and local ballot measures for transportation here.

Cities eager to receive transit dollars from USDOT are receiving letters instead

Instead of approving projects and providing the money cities have applied for, USDOT is “allowing” cities to move ahead with construction on transit capital projects and incur costs that might one day be reimbursed by USDOT.

A few weeks ago, Streetsblog LA reported that Metro in Los Angeles had received a letter from USDOT that allows them to proceed with construction on their Purple Line subway westward toward the beach. (Bold type ours):

At this morning’s Metro Construction Committee, CEO Phil Washington announced that Metro had received a federal letter of no prejudice (LONP) for construction to proceed on the third phase of the Westside Purple Line. Washington aptly described this as a “big deal,” as this was the first major transit project that this administration has approved to proceed to the federal New Starts engineering phase. The federal letter of no prejudice covers an initial $491 million, nearly all for tunnel construction. The LONP guarantees that the feds will reimburse the local expenditures under a forthcoming full-funding grant agreement (FFGA).

Guarantees? Not quite. Los Angeles is right to treat this as a positive development, but these types of letters do not guarantee any federal money for transit projects.

Here’s what Obama’s USDOT said about these types of letters in a batch of policy guidance from early 2017, just before the transition:

Pre-award authority is not a legal or implied commitment that the subject project will be approved for FTA assistance or that FTA will obligate Federal funds. Furthermore, it is not a legal or implied commitment that all items undertaken by the applicant will be eligible for inclusion in the project. …Federal funding…is not implied or guaranteed by an [Letter of No Prejudice.] (pp 20, 22.)

By starting construction on this project without the full guarantee of funding, LA Metro is taking a risk, but they are still making a pretty rational decision. Just like the other cities with transit projects in the pipeline, Los Angeles is fully expecting that USDOT will do their job as required by law—something they’ve always done—and approve projects in a timely matter in order to obligate the $2.3 billion Congress provided in 2017 and 2018.

LA has a project with expiring construction bids due to USDOT’s delays up to this point, is on a tight timeline to have service running in time for the 2028 Olympics, and has already raised billions in local funds to pay their share.

Under previous administrations, whenever a city received one of these letters, their project was typically approved. So why should anyone be skeptical when this USDOT provides these letters? Here are two reasons:

  • This particular administration at USDOT has no established track record of advancing multi-year transit projects. If they were sending out these letters at the same time as they were routinely signing other grant agreements and obligating dollars to other multi-year transit projects, there would certainly be a level of trust established, as has been the case with previous administrations.
  • This administration has gone on the record multiple times asking Congress to provide them with zero dollars for multi-year transit projects that don’t yet have signed funding agreements — projects just like those in Los Angeles and Minneapolis, a region that is also awaiting final approval.

Cities are only in this difficult position because USDOT has failed to advance transit projects through the process in a clear, transparent, and timely manner.

While USDOT will hopefully approve LA’s project and award them funding, possibly before the end of this year, what about the other cities who are a little further behind in the process?

On the one hand, you can get a letter from USDOT that says you’re free to proceed and spend your own dollars on a big-ticket transit project, and that they won’t “prejudice” the eventual review of your application with the fact that you started building a project that wasn’t yet fully approved.

On the other hand, this administration at FTA and USDOT has twice asked Congress to eliminate all transit capital dollars, save for the money they’re already on the hook to provide for the projects that have pre-existing funding agreements.

Los Angeles is in a position where they can spend their own money to get started, counting on USDOT to (eventually) follow the law and award the money Congress appropriated. But other smaller cities or cities with more tenuous local funding might not be able to spend millions with the non-binding promise that they’ll eventually be reimbursed.

USDOT is creating an unnecessarily risky situation for cities. If you are one of the cities that’s ready or nearly ready but awaiting funding from USDOT, why trust a non-binding letter from an administration that’s already asked Congress to appropriate zero dollars for your project in the budget?

We’re eager to give credit to FTA when it’s due and they get these projects moving, but that time hasn’t yet arrived.

Cities left in the dark by an agency that once partnered with them to build new transit

Many local transit project sponsors are in the dark about the status of their applications for federal transit funds, left to wonder why the Federal Transit Administration (FTA) has not granted funding to their projects. But these cities have remained publicly quiet about it for fear of harming their chances of eventually receiving funding, taking the pressure off the administration to fund and support transit projects.

As we have previously identified, the Trump administration is sitting on almost $1.8 billion to build and expand new public transit projects. What was once a collaborative process with clear communication and milestones between FTA and project sponsors has become opaque, murky, and unclear.

For this reason, over the last few months, we at T4America have spent some time interviewing the majority of these communities. While each community’s story is unique and none wanted to go on the record, several common themes emerged:

  1. A lack of transparency
  2. Unexplained delays from FTA over processing final paperwork, most often connected to political offices within USDOT
  3. FTA’s poor communication and slowed-down process is leading to potential delays and cost increases for local taxpayers
  4. Not all projects have faced delays

1) A lack of transparency

Both of President Trump’s budget proposals so far have asked Congress to provide zero dollars for new transit projects. FTA has cited these budget requests (twice rejected by Congress) as a rationale for breaking with precedent and no longer providing Congress (and the public) with annual reports clearly detailing which new projects would receive funding that year, if Congress appropriates the dollars (which Congress has done.) This lack of transparency has eliminated local project sponsors’ ability to point to their project in these annual reports and, therefore, hold FTA accountable for keeping to their timeline.

In addition, FTA has privately told some project sponsors that the failure of the Wave Streetcar project in Ft. Lauderdale, FL, required them to delay other projects, ostensibly to evaluate the risk of cost increases. According to a number of communities, FTA staff communicated that they would not sign new grant agreements for a period of months after the Wave Streetcar failure. But FTA has done nothing to explain (to the public or sponsors) precisely how the failure of a single project in Florida has any bearing on other projects in other states that have been advancing through the pipeline. Further, while the Wave Streetcar is certainly a failure in that it is not being built, the federal government never lost a dime on the project—a win for the process from their standpoint.

2) Unexplained delays from FTA over processing final paperwork, most often connected to political offices within USDOT

Several local project sponsors we spoke to described many months of bizarre hurdles and unexplained delays. In virtually all instances, project sponsors described helpful and productive conversations with the career FTA staff, which were subsequently undermined by kafkaesque levels of bureaucracy within the offices of the Secretary and Deputy Secretary at USDOT. One community described regional FTA career staff informing them that they just didn’t know why their project was delayed. Ultimately, it took personal inquiries from their House and Senate delegations before FTA provided information and ultimately advanced the project.  

Another community described productive conversations with regional career staff until the project was elevated to the USDOT Secretary’s office, at which point communication stalled, and the project was inexplicably delayed for months. Again, personal involvement by their House and Senate delegation was required to get the project moving again.

Ultimately, it appears that high-level political influence is the only surefire method for finally advancing a project, as happened with the Caltrain electrification project approved early last year, where members of the California congressional delegation wrote to Sec. Elaine Chao, and/or set up meetings with her or her staff.

Still other sponsors described situations where FTA staff who would highlight flaws in an application without providing instructions or a timeline for addressing them. Imagine taking your car to the mechanic and being told only that the car is broken, leaving you on your own to guess what’s wrong with it. This has resulted in countless wasted hours attempting to understand the flaw, guessing at what FTA would consider an acceptable solution, and having multiple conversations with FTA staff to present updated applications. Under previous administrations, the FTA was a partner, cooperating with cities to both put together the best possible projects and help actively shepherd them through the process toward receiving funding and getting built.

That is clearly no longer the case.

3) FTA’s poor communication and slowed-down process is leading to potential delays and cost increases for local taxpayers

The two major construction bids for the SW light rail project in Minneapolis expired at the end of September while the agency waited for word from USDOT & FTA.

For many localities, the delays described above have affected project sponsors’ contracting schedule, either jeopardizing their ability to pay contractors or delaying their ability to award contracts (leading to cost increases). In Los Angeles, some construction bids were set to expire in early October. In Minneapolis, where they were hoping to begin construction this fall on the SW light rail extension before the weather gets harsh, their biggest construction bids expired at the end of September as they awaited word from FTA. (One bidder has given an extension, the other has not.) Both cities are still waiting for approval from FTA to fund their projects.

Several localities described cost increases associated with these delays. And one community described a prime contractor that was turning away work because it was committed to working on their project, yet the locality was unable to pay the contractor because its grant was delayed.

To address this issue, some localities have requested something called letters of no prejudice which allows them to begin spending their own money on a project and later receive reimbursement from FTA (if they are awarded a grant). But these letters are really a formality, providing zero guarantees from FTA that their projects will ever be approved. In this scenario, these communities are spending more local money up front for aspects of a project that should have been funded by a federal grant. By delaying and refusing to sign grant agreements, FTA is putting the onus on locals to spend more money to keep these projects alive while waiting for FTA. This is occuring all while FTA is often unable to articulate what is standing in the way of their approval.

4) Not all projects have faced delays

Finally, in the interest of fairness, we note that not all projects have been delayed. A small number of localities we spoke to have described a consistently productive relationship with FTA, and this is indeed good news. Unfortunately, the overwhelming majority of communities are either waiting or are unclear about the status of their projects.

And this is also true: USDOT has yet to approve a major multi-year full-funding grant agreement for a larger rail transit project, after signing two early in 2017 that were largely processed by the previous administration. All of the other approvals thus far have been small or single-year projects that don’t come with future fiscal obligations for FTA — an important distinction considering the fact that they’re likely to (once again) only ask Congress for enough money to fund the in-progress projects for which FTA is legally required to continue funding.

And the numbers do not lie. FTA is sitting on almost $1.8 billion dollars. How much longer must communities wait?

Alex Beckmann and Stephen Lee Davis contributed to this post.

FY19 THUD Continuing Resolution and Bus Grants

On September 28, President Trump signed H.R. 6157, the FY19 Department of Defense and Labor, Health and Human Services (HHS), Education appropriations bill, which also includes a Continuing Resolution (CR) to extend government funding at FY18 levels through December 7th. The CR covers any appropriations bills not enacted before October 1, 2018, which includes the Transportation, Housing and Urban Development (THUD) bill that funds federal transportation programs.

Also, on September 25th 2018, the Federal Transit Administration announced it was awarding $366.2 million in Bus and Bus Facilities grants to a total of 107 projects in 50 states and territories.

Download T4A’s more detailed policy memo here for more in depth information and analysis.