U.S. Offers States Millions for Transport Projects

This story appears in the Aug. 27 print edition of Transport Topics.

The Obama administration has offered states $472 million in federal funding for use toward any transportation construction that previously had been designated for specific projects.

Separately, the administration also issued a second list of major projects to be expedited by having the federal agencies involved speed the permitting and review process.

In an Aug. 17 announcement, President Obama said the federal funding being offered would create construction jobs and make critical infrastructure improvements in almost every state.

“My administration will continue to do everything we can to put Americans back to work,” Obama said in a statement. “We’re not going to let politics stand between construction workers and good jobs repairing our roads and bridges.”

The money comes from funds Congress had set aside to pay for “earmarks” from 2003 to 2006. Congress specified at that time that future presidents could give the funding to states if it were not used as planned.

The earmarked funds were never used for a wide variety of reasons, Transportation Secretary Ray LaHood told reporters. Sometimes states canceled or delayed the projects because of opposition or insufficient funding. Other projects were paid for through other funding mechanisms, he said.

“These idle earmarks have sat on the shelf as our infrastructure continued to age and construction workers stood on the sidelines,” LaHood said. “That ends today. These funds need to be put to use now so we can put people back to work. We can’t wait any longer.”

Each state that previously had money earmarked will have the same amount available for a current project. Forty-nine states, plus the District of Columbia and Puerto Rico, have funds available, the Department of Transportation said. Wyoming is the only state with no unspent money.

DOT linked the release of funds to Obama’s election-year push to take action to stimulate the economy without Congress’ participation, which the administration has referred to as its “we can’t wait” initiative.

“This stalled money will be put to use this year, putting people back to work on roads, bridges, railways and bus systems,” LaHood said.

State governments must decide how to use the funds by Oct. 1 to be eligible, LaHood said. DOT must approve states’ plans, but the agency will largely leave it up to states to choose how to use the money, he said. LaHood doubted any state would choose not to take the money.

“I’ve been to every state in the country,” he said. “I haven’t met a governor yet that doesn’t want to put people to work.”

The totals range from Washington, D.C.’s $56,867 balance, to Alabama’s $51.5 million. After identifying projects, states must commit the money by Dec. 31 in order to use it.

The top Republican overseeing transportation in the House criticized the “we can’t wait” mantra, saying the administration has been inconsistent. “The administration’s statement that ‘we can’t wait’ defies the reality that in fact they waited 3 and a half years to release these funds while projects and workers sat idle,” John Mica (R-Fla.), chairman of the House Transportation and Infrastructure Committee, said in a statement.

Meanwhile, the expedited projects announced Aug. 20 by the White House included the proposed Columbia River Crossing, a replacement for the Interstate 5 bridge connecting Portland, Ore., and Vancouver, Wash. The two states have spent years working on a proposed bridge, but have yet to identify funding sources other than tolls.

The second bridge on the list is a replacement for the moveable span across the Kennebec River in Maine that carries State Route 197 be-tween Richmond and Dresden. The new bridge won’t be moveable but will allow U.S. Coast Guard ice breakers to operate in winter.

The bridges are among 43 projects of national or regional significance that will receive streamlining following an executive order by Obama signed in March. The first list of projects, announced last month, focused mainly on ports along the Atlantic seaboard. The projects are designed to accommodate the larger cargo ships that will begin sailing through the newly widened Panama Canal in 2014 (7-30, p. 38).

Staff Reporter Michele Fuetsch contributed to this story.