Overview of the Problem
While transport is the backbone of the U.S. economy, the sector faces a severe funding challenge. Both federal and state governments need to explore options for increasing funding.
Executive Summary
Transportation plays a vital role in the lives of any country’s citizenry. Specifically, transport enables people to access the most basic services. These services include, among others, healthcare, education, employment, recreational activities, social occasions, and shopping. In the U.S., highways, and roads enable citizens to accrue more than two trillion miles of travel each year. This makes the two systems the most essential components of the U.S. transport sector.
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The transport sector, despite its importance, is currently in a poor state. This is because the funds available for carrying out the much-needed improvements are not enough compared to the extent of damage to the transport system. This gap suggests that the resolution of the challenge is still a mirage. Besides the poor transportation system, there is a decline in such traditional funding sources as motor fuel tax. Lack of funding is problematic for the country, given that 40% of the main roads are in poor condition. The cost implication of this is catastrophic. The poor state of the country’s key roads costs motorists approximately $128.9 billion, while congestion of the vital urban interstates has a cost implication of $170 billion annually.
The most important change that needs to be made is increased funding for improvement of the U.S. transportation system. To achieve this, the government can build on, learn from, or enhance the achievements of such efforts as Proposition K, Intermodal Surface Transportation Efficiency Act , Transportation Equity Act , and The Americans with Disabilities Act (ADA). Ultimately, the power to address the current challenges in the transportation sector lies with the Department of Transport (DOT) and the Federal Transit Administration (FTA). Through collaboration, these entities can raise adequate funds and address the poor state of the transportation systems in the U.S. These responsibilities are spelled out in the two entities’ missions.
The Importance of Transportation in the United States
Transportation plays a crucial role in various aspects of peoples’ lives. In the United States (U.S.), road and highway systems are the backbone of the country’s transport sector. Despite its importance, the transport sector is currently deteriorating. In particular, the current needs for improving transportation systems outweigh the amount of funds available from both the federal and state governments.
Main Problem
One of the most pressing challenges facing the U.S. is the need for the country to meet its future transportation infrastructure needs. This challenge is driven by two key factors, namely, declining traditional funding sources such as motor fuels tax, and the old and deteriorating transportation infrastructure system. Bad roads cost motorists about $128.9 in additional vehicle operating and repair costs annually. On the other hand, 9% of the country’s bridges are deficient structurally while 45% of all vital urban interstates experience congestion, especially during peak hours. The latter costs motorists $170 billion annually.
To address this challenge, the government passes the Road and Repair Accountability Act (S.B. 1) in April 2017. This Act seeks to provide an additional $52 billion for both state and local roads for the next ten years. While this move is commendable, more than $130 billion is needed to address the existing challenges within the same period .
Required Change
The most significant change that needs to be made is an increase in funding for improvement of the U.S. transportation system. The U.S. Department of Transportation estimates that 34,700 jobs are created by every $1 billion of federal funds that is matched by local and state funds. Likewise, the American Association of State Highway and Transportation Officials ( AASHTO ) argues that highway and transit funding has directly created and sustained more than 280,000 jobs across the country .
Several options can be explored in funding the transport sector in the U.S. Firstly, the country can replicate Proposition K (Prop K), which generates about $100 million per year, and is used to fund the improvement of different transportation infrastructure in San Francisco. Secondly, the Intermodal Surface Transportation Efficiency Act , which expired in 1997 , had proven useful, particularly in the context of improving transportation equity.
Thirdly, the Transportation Equity Act succeeded and built on successes of the Intermodal Surface Transportation Efficiency Act . This Act authorized $218 billion from the Highway Trust Fun d from 1998 to 2003 . The government, in its pursuit of increasing funding for the transport sector, should also consider The Americans with Disabilities Act (ADA) of 1990 . T he Federal Transit Administration (FTA) works towards ensuring that ADA’s provisions are followed .
The power to change the existing narrative and thus promote transportation equity in the U.S. lies with several vital entities. One of these outfits is the Department of Transportation (DOT). The second important entity is the Federal Transit Administration (FTA) . By coming together, the DOT and FTA can change the transportation sector in the U.S., starting with raising adequate funds and addressing the poor state of the transportation systems.
Policy Proposal
The most important transportation issue that needs fixing is the inadequate funding of the transportation sector. This requires joint efforts from all concerned stakeholders including, state and federal governments, and their relevant transport agencies, the public, business community, academia, and policymakers. However, the DOT and FTA should be at the forefront of these efforts. The success of these efforts is based on the availability of a comprehensive policy framework. With this in mind, there is a need to reauthorize the Transportation Equity for the 21st Century Act (TEA-21) .
Federal transportation policy in the U.S. played a critical role in building a well-developed and functional intermodal transportation system. This is with the aim of promoting efficiency in the flow of goods across the country’s transportation systems while ensuring fulfilment of the daily transportation needs of the general populace. Against this backdrop, there is a need to reauthorize TEA-2 1 as the primary federal transportation policy since it expired in 2003. There is also a need to acknowledge the relationship between the condition of today’s transportation system and infrastructure and economic success, both presently and in the future. Nevertheless, congressional legislation is required to reauthorize TEA-2 1. On the other hand, there is a need to increase funding through a provision in the Road and Repair Accountability Act (S.B. 1) . Passed in April 2017, this Act is expected to avail $52 billion for local and state roads in the next decade. Since more than $130 billion is required to repair the existing transportation system, there is a deficit of $78 billion. The provision is thus critical to resolving the current state of the transportation systems.
Key Talking Points
The future of the U.S. economy dependents on the creation of equitable, accessible, vibrant, and functional transport sector.
Inadequate funding presents the main obstacle to the development of a transport sector that can meet the needs of the 21st-century economy.
Apart from building on, learning from, or enhancing the achievements of various efforts, both past and ongoing, the DOT and FTA should lead other stakeholders and collaborate both in raising funds and addressing the poor state of the transportation systems in the U.S.
There is a need to reauthorize TEA-2 1 as the primary federal transportation policy by pushing for congressional legislation.
A provision should be created in S.B. 1 to fill the deficit of $78 billion required to address the poor condition of the transportation systems.
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