Federal Transpo Policy Entering New Era, Say NYC Officials. Now What?

The shift in driving habits has exposed the inadequacy of the federal gas tax to fund national transportation programs, and the need to shift away from road building. Graph adapted from the FHWA
It’s a new era for federal transportation policy, say the top New York City Department of Transportation officials tracking action on Capitol Hill. We just don’t know what kind of era it’s going to be.
“If this was 1996 or 1985 it would be pretty clear where we would go with federal transportation policy, with a few tweaks,” said DOT Director of Policy Jon Orcutt during a presentation at NYU’s Wagner School last night. “That’s not true today.”
Two changes are forcing a shift in transportation politics and policy at the federal level. The amount Americans drive has started to stall out. And earmarks have been transformed from political windfalls for powerful Congressmen to untouchable liabilities.
Linda Bailey, the federal programs advisor for NYC DOT, said that working for New York City has given her a new appreciation for the policy drawbacks of transportation earmarks for the localities receiving them. “You typically get $1 million for a $10 million project,” she said. “Somehow now you’re supposed to come up with $9 million to fund the rest of the project.” The city still has earmarked money from the last transportation bill, passed in 2005, sitting on the table, Bailey said.
But at the same time, the lack of a new transportation bill — Congress recently passed its ninth extension of that 2005 law, which expired in 2009 — is in part due to Congress members’ newfound opposition to directing federal dollars back to their districts.
“It’s thrown the whole formula out of the window, in terms of what you do politically,” said Orcutt. In particular, the end of earmarks has forced federal transportation policy to become more sharply ideological, whereas horse trading could paper over divides in the past. This year, for example, suburban Republicans helped kill the House of Representatives’ radical transportation bill, which would have eliminated dedicated funding for transit entirely. With earmarks, argued Orcutt, those same representatives might have been able to bring big projects to their districts even while cutting transit in the rest of their regions, and safely voted yes on the overall bill.







