LaHood’s Cost-Effectiveness Rule

It was with some trepidation that the Antiplanner finally took the time to carefully read the Department of Transportation’s final rules for major transit capital grants. Long-time readers may recall that the Antiplanner is concerned about the cost-effectiveness of these grants, and urged the Department to strengthen those requirements–without much hope that the Obama administration would pay any attention.

The law requires the Department to take cost-effectiveness into account when it considers applications for funds for streetcars, light rail, and other “New Starts” transit projects. But the Federal Transit Administration had always given this only token consideration until Bush’s second Secretary of Transportation, Mary Peters, put some strict limits on just how expensive projects could be if they were to get any federal funds.

Secretary LaHood chafed at these limits, particularly because they prevented any funds being given for streetcars. So he announced in 2010 that he was going to get rid of the limits. On behalf of the Cato Institute, the Antiplanner commented on LaHood’s proposal to make the change and then commented on the draft rules.

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