By Ron Thaniel
July 18, 2011

House Transportation and Infrastructure Committee Chairman John L. Mica (FL) outlined on July 7 his priorities for the long-delayed six-year federal surface transportation authorization for highway, transit, rail and safety programs with a focus on the National Highway System, which includes the Interstate Highway System.

The House Budget Resolution (H Con Res 34) limits the authorization to no more spending than the Highway Trust Fund can support, which is approximately $230 billion over six years. This represents a cut of approximately one-third from current funding levels. The proposal would severely underfund critical elements of the nation’s surface transportation program including a chilling effect on transit investment with a cut of more than 30 percent at a time of high gas prices and increasing ridership. No timeframe was provided for release of legislative text or markup.

The proposal significantly devolves authority back to states from cities and metropolitan areas by rejecting the Obama Administration’s TIGER and Livable Communities initiatives as well as cycling and pedestrian investments and the long'standing enhancements program. “States will no longer be required to spend highway funding on non-highway activities; but they will be permitted to fund those activities if they choose to,” as outlined in the proposal. “States will be provided flexibility to spend funding on projects they choose.”

Current law sub-allocation of Surface Transportation Program (STP) to metropolitan areas will continue. Congestion Mitigation and Air Quality program (CMAQ) will continue with states not being “required to spend a specific amount of funding on specific types of projects.” There are no additional details in the outline on these two important metropolitan focused programs.

The transit program will focus on suburban and rural areas. As transit is the backbone of mobility and the economy in cities, this is a statement of significant concern. The outline would streamline the New Starts and Small Starts process, stating that it would cut project development time in half. There are no additional details to these significant policy changes to the transit program. Conference of Mayors staff has requested a meeting with Mica’s staff to discuss these proposals. Transit will roughly retain its historic 20 percent share of the federal transportation program.

Amtrak and high-speed rail are included with no funding for high-speed rail projects and a 25 percent cut to Amtrak’s operating subsidy in FY 2012 and 2013. It also eliminates the intercity rail capital grant program, which cities have used these grants to promote community and economic development around their stations. The bill to privatize the Amtrak Northeast Corridor and national system will not be included in Mica’s surface transportation authorization.

The proposal rejects the Obama Administration’s proposal for a National Infrastructure Bank in favor of state Infrastructure Banks, which essentially eliminates future funding for the popular TIGER program and high-speed rail program. It also does not include Build America Bonds.

The bright spot in the proposal for cities and metropolitan areas is a significant increase in the Transportation Infrastructure Finance and Innovation Act (TIFIA). As proposed by The U.S. Conference of Mayors President Los Angeles Mayor Antonio R. Villaraigosa in his America Fast Forward initiative, the Mica bill would increase funding for the TIFIA loan program from $122 million annually to $1 billion resulting in $60 billion in loans to fund at least $120 billion in transportation projects. TIFIA provides secured loans, loan guarantees, and standby lines of credit for transportation projects of national and regional significance. The outline would allow half of the project cost to be funded through TIFIA and accelerate the application process. Villaraigosa said, “I want to extend my appreciation to Chairman Mica for expanding and enhancing the Transportation Infrastructure Finance and Innovation Act program.” He noted, “This is a key component of out America Fast Forward plan.”

Numerous questions remain regarding the details of this proposal. In a departure from the largely bipartisan endorsement of past surface transportation bills, it does not have the support of the Committee’s Ranking Democrats, which reflects the increasingly partisan climate in Washington.

Senator Barbara Boxer (CA), chair of the Environment and Public Works Committee, offered a two-year proposal on July 6 that would maintain current spending levels. Other than strong support for the TIFIA, there are few details on the Boxer authorization. Boxer has indicated that she plans a hearing on July 27.

The current SAFETEA-LU legislation expired on September 30, 2009. The current extension expires on September 30.