White House Says Overhaul of Transportation System Must Wait
After rejecting criticism that it is taking on too much, the Obama administration has identified one area where ambitious reforms will have to wait: overhauling the nation's aging, congested and carbon-emitting transportation system.
The current six-year, $286 billion transportation spending plan expires in October, and House members have worked for months to produce a 775-page, $500 billion bill that would create a new fund for road repairs, increase funding for rail and public transit and include reforms meant to wean the country from fossil fuels.
But it became clear at a contentious Senate hearing yesterday that the half-trillion-dollar question is how to pay for the bill. The 18.4-cent federal gas tax has not been raised since 1993, and revenue from it falls increasingly short every year because of inflation and the shift to more fuel-efficient cars.
LaHood Accepts Transportation Secretary Job
Rep. Ray LaHood (R-Ill.) last night accepted an offer to become President-elect Barack Obama's transportation secretary and the nomination will be made official in coming days, two senior Democratic officials said.
LaHood, 63, who is retiring after representing a rural downstate district in Congress since 1995, becomes the second Republican tapped for Obama's Cabinet. In recent years, LaHood developed a close relationship with Obama and the man who will become his White House chief of staff, Rahm Emanuel, becoming a key player on the House Appropriations Committee on behalf of the Illinois delegation. A moderate Republican, LaHood has not shied away from criticizing the Bush administration and has a reputation for working with leaders of both political parties.
Highway Trust Fund Is Nearly Out of Gas: Transportation Chief Calls for $8 Billion
U.S. Transportation Secretary Mary Peters said the nation's highway trust fund will run out of money this month, which means that federal payments to states for construction projects could be cut.
Yesterday, Peters asked Congress to come up with an $8 billion infusion for the trust, a federal account used to help pay for highway and bridge projects. The House has already passed such legislation.
A Mass Transit Mess: The Bush administration shouldn't borrow money from public transportation to pay for highways
For the first time in 28 years, Americans are driving less, a happy development for proponents of public transportation. But as people shift to buses and subways, they are encountering transit systems that are crowded and outdated. Transportation Secretary Mary Peters has put forth a plan that would make those problems worse.
Ms. Peters has proposed borrowing money from the Highway Trust Fund's mass transit account to cover a projected $3.1 billion shortfall in highway maintenance and construction. It is unclear, though, whether Ms. Peters could borrow the money without harming mass transit capital projects such as the purchase of subway cars and construction of bus garages. Transportation groups also worry that repaying the money could be difficult if gas tax revenue continues to decline. The proposal is a shortsighted solution that would take money away from mass transit at the wrong time.