House Transportation and Infrastructure Committee Chair James Oberstar (D‑MN) has released more than 100 pages of documents describing how he wants to run federal transportation programs over the next six years. He proposes to spend $500 billion on highways and transit, which is a huge increase over the $338 billion authorized for the last six years.
Congress authorizes federal transportation spending in six-year cycles. In 1956, when Congress created the Interstate Highway System, it dedicated gas taxes and other highway user fees exclusively to highways. But in the 1982 reauthorization, it began diverting a small amount of gas taxes to transit.
Today, about 20 percent of the federal gas taxes you pay go to subsidize transit, while the other 80 percent supposedly go for highways — though much of that is wasted in planning and earmarks. Nationally, highway subsidies — mostly at the local level — average about a penny per passenger mile, while transit subsidies — much from your federal gas tax — average more than 60 cents per passenger mile.
Since 1982, transit has received hundreds of billions of dollars in subsidies from highway users. Yet in 2008 — supposedly a boom year for transit because of high gas prices — per-capita transit ridership was lower than it was in 1990, though higher than in 2000.
Oberstar considers this to be a great success. Building on that “success,” he effectively wants to turn the formula around: 20 percent for highways and 80 percent for transit. The executive summary of his plan supposedly “provides $337.4 billion for highways.” But, in fact, only $100 billion of this is dedicated to highways; most of the rest is in “flexible funds” that states and cities can spend on either highways or transit. Nearly $100 billion goes for transit, and $50 billion goes for high-speed rail. The remaining $12.4 billion goes for safety programs.