“In 2014, federal investment in surface transportation — which is currently about $50 billion per year — will drop to $6 billion or $7 billion. In one year.”
Those were the dire words spoken by Rep. Peter DeFazio (D-OR) at the start of this morning’s Transportation & Infrastructure Committee hearing on MAP-21. What he meant was this: At the end of MAP-21, the Highway Trust Fund is expected to have a balance of almost zero and a $7.1 billion shortfall in 2015. Congress would have to radically reduce FY 2015 highway and transit investment levels to ensure that the trust fund remains solvent. According to AASHTO, federal highway investments would have to be cut from approximately $41 billion to $6 billion and transit investment from $11 billion to $3 billion.
“That is pathetic,” DeFazio said. “And we have to do something about it.”
Funding Cuts Force FTA to Break Agreements
T&I Chair Bill Shuster agreed. “That’s our biggest challenge moving forward,” he said. And Ranking Democrat Nick Rahall added that the sequester cuts and Congress’s inability to pass a real budget has compounded the funding crisis.
FTA Administrator Peter Rogoff warned that the cuts will have a profound impact on transit projects around the country:
Overall, the sequester struck $656 million from FTA’s budget. It reduced program funding for our [New Starts] capital investment grants program by almost $100 million. This will means that few, if any, New Starts construction projects will be fundable in the near term.