President's FY20 budget proposal a mixed bag for transportation

The Trump Administration's proposed budget for Fiscal Year 2020 was released March 11. The administration renewed its call that $1 trillion in infrastructure investment could be generated through targeted programs and legislation. The administration pointed to its efforts to reduce the permitting burden faced by some projects and said this streamlined process has resulted in $1 billion saved through the avoidance of permitting delays. 

The proposal reflects a 22 percent decrease in discretionary FY19 funding estimates for the U.S. Department of Transportation (USDOT). 

"In 2018 and 2019, [US]DOT received large discretionary increases for surface transportation and airport infrastructure investments, meeting the administration’s call for increased infrastructure investments. The 2020 budget continues certain important transportation infrastructure investments, but in a way that also recognizes that the federal government is not—and should not be—the primary funder of the nation’s transportation systems," the administration stated within the USDOT section of the budget proposal. 

The budget proposal is the first step in a long process that will input from both the Senate and House of Representatives before any funding is enacted. 

What the proposal includes: 

• Fully funds programs supported by the Highway Trust Fund as laid out in the Fixing America’s Surface Transportation (FAST) Act of 2015. The FAST Act expires at the end of 2020 and what the next long-term surface transportation legislation will look like is expected to be a hot topic on Capitol Hill over the next year.

• In addition to FAST Act funding; the proposal includes a separate $200 billion for "other infrastructure priorities," which the administration said could be 5G wireless communications, artificial intelligence or rural broadband.

• Competitive grant programs would see $3 billion under the proposal. This includes $2 billion for the Infrastructure for Rebuilding America (INFRA) grant program, which is a $1 billion increase over FAST Act authorization levels, and $1 billion for the Better Utilizing Investment to Leverage Development (BUILD) grant program. 

• Reduction in Capital Investment Grants (CIG) Program: The budget includes $1.5 billion for the CIG program, $500 million of which would be for funding new projects.The CIG program was allocated $2.5 billion in FY19. The administration's reasoning says the "program needs to be refocused on projects that have high non-federal funding commitments and provide the greatest impact to improving mobility and access for riders who depend on public transit." 

• Proposes restructuring Amtrak's system away from long-distance trains and refocuses the network on routes that are less than 750 miles. The proposal would provide $550 million to help with the transition and suggests partnerships with intercity bus providers would replace the long-distance routes. The budget also provides $936 million in direct grants to Amtrak, to support investment on the Northeast Corridor and existing state-supported lines and to assist Amtrak in this transition.

On a final point about the budget proposal, the American Public Transportation Association (APTA) pointed out in an email to member that the budget does not appear to address the FAST Act contract authority rescission that will occur on July 1, 2020.

"On July 1, the FAST Act permanently rescinds $7.569 billion of Federal-aid Highway contract authority from states' unobligated balances of highway funds. This rescission could reset the budget baseline for the surface transportation programs beginning in FY 2021," APTA said.