Daily Archives: July 13, 2017

House Bill Kills Tiger, Cuts New Starts,
Keeps Amtrak, Earmarks Gateway

The House Appropriations Committee has released a proposed 2018 transportation funding bill that follows the administration’s proposal to end the Transportation Investment Generating Economic Recovery (TIGER) grant program. This program, which spent $500 million a year funding numerous streetcar projects and other boondoggles around the country, was originally created to stimulate the economy. While there is no evidence that it actually did stimulate the economy, the economy arguably doesn’t need to be stimulated any more.

The bill funds $2.75 billion (a $500 million reduction from 2017) for the transit capital investment program (a.k.a. New Starts) and directs the Secretary of Transportation to “continue to administer” the program in accordance with the law. However, it doesn’t specifically mandate that the secretary sign any new full funding grant agreements, and so long as they remain unsigned, projects without such agreements can’t be funded.

As the Antiplanner predicted, the House rejected the administration’s proposal to stop funding Amtrak long-distance trains. Half the states are served only by long-distance trains, so cutting those trains effectively tells half of Congress that their interests are less important than those of the other half. The administration would be done better to propose to give Amtrak incentives to increase ridership in the form of 10 cents in subsidies per passenger mile carried. Since current federal subsidies average more than 20 cents a passenger mile (plus more from the states), this proposal would have led to a debate over “how much should the subsidy be?” rather than “which states should get subsidies?” Continue reading

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