Posts Tagged ‘Donald Trump’

Trump Might Support 7-cent Gas Tax Hike

October 31, 2017

The Trump administration might seek an increase in the federal gasoline tax as a way of paying for a proposed $1 trillion infrastructure program.

That point was made by Trump’s economic adviser Gary Cohn during a private meeting with House lawmakers last week.

The proposed 7-cent increase would be used to fund public work projects, such as railways, roads, waterways and bridges.

Trump had said earlier this year during an interview with Bloomberg News that he was open to a gas tax increase. The last gasoline tax increase came in 1993.

Rep. Bill Shuster (R-Pennsylvania), the chairman of the House Transportation and Infrastructure Committee said there is little interest in a gas tax hike now, but that committee members might support one if the White House gets involved and supports the increase.

Although the Trump infrastructure plan has received widespread attention, the administration has yet to reveal any hard details about it.

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Infrastructure Council Terminated

August 21, 2017

The Trump Administration has dropped its plans to create an Advisory Council on Infrastructure.

The council was proposed to help provide guidance on spending for a multi-billion dollar program to improve roads, bridges and other public works.

Membership of the council would have included 15 members from real estate, finance, labor and other sectors.

Termination of the infrastructure council followed the disbanding of two other advisory groups to guide U.S. manufacturing and policies.

In the meantime, President Donald Trump has released a plan that is designed to alleviate the length of time it takes to get federal approval for projects. Trump issued an executive order that will:

  • Establish “one Federal decision” for major infrastructure projects to proceed.
  • Set a two-year goal for completing reviews.
  • Set up a “quarterly scorecard” to hold agencies accountable for delays.
  • Reduce duplicative requests for information and late-stage changes in the approval process.

Trump Infrastructure Plan Included in Budget

May 25, 2017

It turns out that the Trump administration’s much-ballyhooed transportation infrastructure plan was tucked away inside the fiscal year 2018 budget announced on Tuesday although you can be forgiven for having missed it.

It was contained in a six page fact sheet as part of the budget proposal.

As hinted at by various administration officials, including Secretary of Transportation Elaine Chao, the plan proposes spending $200 billion over 10 years with the expectation that the money will attract and support $1 trillion in private/public infrastructure investment.

The budget document described the plan as a combination of new federal funding, incentives for private sector investment, and expedited projects.

“The administration’s goal is to seek long-term reform on how infrastructure projects are regulated, funded, delivered and maintained,” Transportation Secretary Elaine Chao said at a news conference.

She said more details will be forthcoming, including a legislative package later this year, but Chao described the plan outlined on Tuesday as “the main key principles.”

The plan calls for making changes in regulations so as to speed up the environmental review and permit process and shifting more service to the private sectors.

One example of the latter mentioned in the budget document would be to transfer the air traffic control system from the Federal Aviation Administration to a nonprofit or nongovernmental entity in 2021.

Another change would be to expand the ability of states to impose tolls on interstate highways by reducing existing restrictions on that practice.

Related to that the plan is a proposal to allow private investors to construct and maintain rest stops along highways.

A report by The Hill, said that the infrastructure plan relies on leveraging private sector investment, ensuring federal dollars are targeted toward transformative projects, shifting more services and underused capital assets to the private sector and giving states and localities more flexibility.

Pilot programs will be proposed to explore new environmental reviews, designate a single entity to guide a project through the approval process; put some permitting into the hands of states and localities, and ensure that agencies don’t need to worry about making a permit approval process litigation proof.

Funding of the Transportation Infrastructure Finance and Innovation Act program will be boosted to $1 billion every year.

The proposal to allow states to impose tolls on interstate highways won the approval of Patrick D. Jones, executive director and CEO of the International Bridge, Tunnel and Turnpike Association, although with some qualifications.

“Congress should give states access to one more tool in the toolbox by allowing them to toll their interstate highways specifically to rebuild them,” he said. “This wouldn’t be a mandate. No state would be required to toll their interstates. This would simply give states an option, the flexibility to choose tolling if it makes sense to them.”

President Donald Trump had spoken often during his 2016 campaign about the need to improve the nation’s infrastructure.

He mentioned it again during an election night speech and during a Feb. 28 address to Congress, saying it would create millions of jobs.

In response, Democrats noted the Trump’s budget would provide just $5 billion in FY 2018 and did not provide any detail about where the money would go or how it would be paid for.

But Senate Commerce Chairman John Thune said the plan “recognizes important needs in our country and takes a long-term view on meeting those needs.”

Chao expects Congress to begin working on the infrastructure package in the third quarter of this year.

Kan Nominated for Key U.S. DOT Post

April 11, 2017

Derek Kan has been nominated by President Donald Trump to become the undersecretary of the U.S. Department of Transportation.

Kan has served on the Amtrak board of directors since 2015 and is general manager of Lyft in Southern California.

He previously served as director of strategy at a Silicon Valley startup and has been a management consultant at Bain & Company.

Kan has been a policy adviser for Senate Majority Leader Mitch McConnell and served as the chief economist for the Senate Republican Policy Committee.

Transit Looks to Trump Infrastructure Plan

April 10, 2017

Faced with federal budget cuts, rail and transit agencies are hoping that the Trump administration will be open to helping to fund transit capital projects as part of a $1 trillion infrastructure plan that has been promised.

It is not clear yet when the plan will be rolled out or what it will seek to fund.

President Donald Trump recently said that the infrastructure plan will be for at least $1 trillion and that there may be a 90-day deadline to get started in order to receive funding.

Trump has said the plan will be revealed as early as next month.

That timeline was echoed by U.S. Secretary of Transportation Secretary Elaine Chao who said the administration is “working on a legislative package that will probably be in May, or late May.”

Chao said the plan will focus on investments for roads, bridges, airports and potentially broadband access, veteran hospitals, and improvements for the electrical grid and water systems.

She added that the bill containing the infrastructure plan will tackle reducing regulations.

In particular, rail and transit authorities are concerned about how the administration’s “skinny budget” seeks to reduce grant funding from the Federal Transit Authority and the U.S. DOT’s TIGER program. Hence, their interest in obtaining funding for capital projects through the infrastructure plan.

Budget Proposal Just a Starting Point

March 21, 2017

More than likely it is a waste of time to discuss the Trump administration proposal to eliminate funding for Amtrak’s long-distance trains.

A president’s budget proposal is just that, a proposal, and no president of either party sees the budget he sent to Congress come out without any substantive changes.

For that matter the House and Senate will have their own ideas about how to spend public money, including how much to allot to the national rail passenger carrier.

Amtrak has been down this road before, many times in fact. Past administrations have proposed zeroing out Amtrak funding only to see Congress time and again appropriate just enough to keep Amtrak’s skeletal national network operating.

If anything is a surprise that the Trump budget would seek to keep any funding for Amtrak.

Amtrak may have survived past budget fights but there have been route casualties along the way. A major restructuring in 1979 killed the only Amtrak service in Columbus and Dayton with the discontinuance of the New York-Kansas City National Limited.

A 1995 restructuring killed the Broadway Limited, which wiped Akron, Youngstown and Fostoria off the Amtrak map.

They later regained service for a short time when a revived Broadway operating as the Three Rivers ran between Chicago and New York.

Another budget fight took Athens and Chillicothe out of the Amtrak network when the Cincinnati-Washington Shenandoah was discontinued in 1981.

For a short time, that 1981 budget fight kicked Cincinnati out of Amtrak, but thanks to the political clout of the late Senator Robert Byrd of West Virginia, the Cardinal returned to its Chicago-New York flight path in early 1982, albeit as a tri-weekly rather than a daily train.

Given the history of Amtrak funding, it would seem likely that some, if not all, of Amtrak’s long-distance trains will survive due to political wrangling.

What could happen is that the fight becomes one of percentages as in what percentage of the Amtrak long-distance network will survive.

If that is the case, Ohio could be in the middle of the fight when some modifications of the long-distance route network are proposed to consolidate “duplicate” service, e.g., the Lake Shore Limited and Capitol Limited between Chicago and Cleveland.

I could see someone proposing reducing the Capitol Limited to a Pittsburgh-Washington service that connects with a combined Lake Shore Limited and Pennsylvanian between Chicago and New York. That would leave Erie, Pennsylvania, off the Amtrak map.

Already, Amtrak and the Michigan Department of Transportation have proposed rerouting the Lake Shore Limited through Michigan, presumably in lieu of an existing Wolverine Service train.

Someone in Washington in an Amtrak office, a Department of Transportation office and/or a congressional office has probably been studying the Amtrak map with an eye toward finding a way to end federal funding of the Lake Shore Limited by making it into a state train.

Michigan and Pennsylvania already fund the legs into Chicago and New York City respectively. Why not tell Ohio that if it wants service it needs to fund the leg between Detroit and Pittsburgh?

And if Pittsburgh-Washington service is to survive then Pennsylvania, Maryland and West Virginia or a combination of those three states will have to fund what would be left of the Capitol Limited.

Some lawmakers like to talk about offering “options.”  They may or may not know or may or may not care that Ohio is unlikely to agree to fund the middle section of the Lake Shore Limited route.

But if Ohio says “no,” well it was given an option and it voted with its wallet.

Buried in the Trump budget proposal is the rational for sharply reducing funding for programs that benefit public transportation: “Future investments in new transit projects would be funded by the localities that use and benefit from these localized projects.”

Look for some in the coming months or years to begin seeking to apply this philosophy to funding for Amtrak long-distance trains.

It would be part of a larger effort to frame the narrative over passenger train funding as a local issue, not a national one even if the trains in question work to form a national transportation network.

Trump Budget Would Hit Ohio Public Transit

March 20, 2017

The proposed fiscal year 2018 budget submitted to Congress by the Trump administration would put funding-starved public transportation in Ohio in even more dire straits.

“We’re barely hanging on. It’s just going to make the existing problems even worse,” said Kirt Conrad, president of the Ohio Public Transit Association and CEO of the Stark Area Regional Transit Authority.

President Donald J. Trump wants to cut the U.S. Department of Transportation budget by $2.4 billion, which is 13 percent.

Much of the adverse effect on public transportation could come from cuts to grant programs that benefit public transit systems.

The New Starts program, which was authorized to fund $2.3 billion in new rail or bus-rapid transit lines or to expand existing lines through 2020, was used by Greater Cleveland Regional Transit Authority’s HealthLine on Euclid Avenue.

“It [budget cuts] really potentially cuts future transit expansions in the country in general. It’s not just Ohio; in the whole country, public transit is at risk,” Conrad said. “In Ohio, without the federal support, I do not see those expansions.”

Also slated to be cut is the TIGER grant proram, which has also been used to fund transit in Ohio.

TIGER grants have funded rehabilitation of RTA stations, including the Little Italy-University Circle station and the University-Cedar station.

Two TIGER grants awarded in 2016 funded bicycle infrastructure in Cleveland and Akron.

Ohio transportation officials say the state’s transit systems rely on federal funding because Ohio limits the use of gas tax revenue to road projects.

Further squeezing public transit systems is a coming loss of revenue from a Medicaid MCO sale tax, which had been used for transit funding.

Starting in 2019, public transit systems in Ohio will lose $34 annually from that revenue source.

Ohio Gov. John Kasich has proposed increasing state funding for public transportation by $10 million to make up part of the slack being left by the loss of the Medicaid MCO sales tax.

“Access to public transit is just getting worse, not better, in Ohio,” Conrad said.

Although the impact of the proposed Trump budget on highway construction and maintenance funding has yet to come into clear focus, transportation officials say that the loss of TIGER grants will have an adverse effect by removing another source of federal funding.

A $125 million TIGER grant helped pay, for example, for the new eastbound span of the George V. Voinovich (Innerbelt Bridge).

The Trump budget would also shift responsibility for air traffic control from the Federal Aviation administration to an independent, non-governmental organization.

Trump Budget Would End Essential Air Service

March 20, 2017

It doesn’t get as much attention as Amtrak funding, but the federal government also underwrites airline service to rural regions of the United States.

No cites in Ohio receive funding for essential air service, but the program helps provide service in some neighboring states, including Pennsylvania.

The Trump administration budget proposal for fiscal year 2018 would end all federal funding for essential air service.

The budget proposal said ending the program would save about $175 million a year.

News reports indicate that The Essential Air Service program subsidizes airline flights to 111 communities that would otherwise have no scheduled service and which are at least 210 miles from the nearest hub airport.

About 60 communities in Alaska also receive subsidized air service.

Funding for air service to smaller communities has been around since the post-World War II era, but the current program was put into place in 1978 to preserve service at communities that were likely to lose air service in the wake of airline deregulation.

The program has drawn criticism because not all flights are full and the cost per passenger is high.

As is likely to be the case with the Trump administration plan to cut funding for Amtrak long-distance trains, opposition to the air service cuts are likely to arise in Congress, particularly the Senate, from lawmakers from rural states who have resisted past efforts to kill the air service program.

 

NARP Decries Amtrak, Transit Budget Cuts

March 17, 2017

The National Association of Railroad Passengers said Thursday that the Trump administration budget for Amtrak for the fiscal year 2018 appears to have been adopted from a model proposed by the conservative Heritage Foundation.

The administration described the budget blueprint as a “skinny budget” and it contains few program details.

NARP contends that while President Donald Trump has talked up the need for transportation infrastructure investment, “his administration’s first budget guts infrastructure spending, slashing $2.4 billion from transportation. This will jeopardize mobility for millions of Americans and endanger tens of thousands of American jobs.”

The budget, which must be approved by Congress, would end all federal funding for Amtrak’s national network trains.

NARP said this would leave 23 states, including Ohio, without rail passenger service.

The Trump budget would also cut $499 million from the TIGER grant program, which has been used to advance passenger rail and transit projects and eliminate $2.3 billion for the Federal Transit Administration’s “New Starts” Capital Investment Program, which is used to fund the launch of transit, commuter rail, and light-rail projects.

Political analysts have noted that no budget proposal sent to Congress has emerged without changes.

It is likely that transportation advocacy groups will lobby Congress hard to restore the funding that Trump wants to cut.

Trump Wants to End Amtrak Long-Distance Train Funding, to Trim Public Transportation Funding

March 16, 2017

Here we go again. Another president has taken aim at Amtrak’s federal funding.

The proposed FY2018 budget released by the Trump administration this week calls for eliminating federal funding of Amtrak’s long-distance trains and would impose other steep cuts in transportation spending.

Amtrak would not lose all funding, but the funding it receives would be focused on supporting services within specific regions, specifically the Northeast Corridor and state-funded corridors in the East, Midwest and along the West Coast.

The budget described long-distance trains as inefficient and incurring the vast majority of Amtrak’s operating losses.

Trump is seeking to cut the U.S. Department of Transportation budget by $2.4 billion or 13 percent.

If Congress adopts the Trump budget blueprint, DOT will receive $16.2 billion.

Also slated for deep cuts in the budget are Transportation Investment Generating Economic Recovery (TIGER) grants.

Funding of the New Starts program of the Federal Transit Administration will be slashed and limited to projects with existing full funding grant agreements.

In a statement with the budget, Trump said the DOT budget is being revamped to focus on “vital federal safety oversight functions and investing in nationally and regionally significant transportation infrastructure projects.”

A statement with the budget request said that the blueprint seeks to reduce or end “programs that are either inefficient, duplicative of other federal efforts, or that involve activities that are better delivered by states, localities or the private sector.”

In a statement, Amtrak President Charles “Wick” Moorman said that Amtrak’s 15 long-distance trains offer the only service in 23 of the 46 states that the carrier .

“Eliminating funding for long-distance routes could impact many of the 500 communities served by Amtrak,” Moorman said.

“These trains connect our major regions, provide vital transportation to residents in rural communities and generate connecting passengers and revenue for our Northeast Corridor and state-supported services. Amtrak is very focused on running efficiently  — we covered 94 percent of our total network operating costs through ticket sales and other revenues in FY16 — but these services all require federal investment.”

Moorman pledged to work with the Trump administration, including U.S. Transportation Secretary Elaine Chao and Congress to “understand the value of Amtrak’s long-distance trains and what these proposed cuts would mean to this important part of the nation’s transportation system.”

As for transit funding, the budget blueprint says that curtailing federal funding leaves funding up to “localities that use and benefit from these localized projects.”
The American Public Transportation Association issues a statement saying it was surprised and disappointed with the budget details so far.

APTA noted that the administration has been touting a broad plan to spend $1 trillion for infrastructure investment, but “the White House is recommending cutting billions of dollars from existing transportation and public transit infrastructure programs.”

The trade group said the budget cuts would affect projects underway in Kansas City; Dallas; Fort Worth, Texas; Indianapolis; Grand Rapids, Michigan; and Fort Lauderdale, and Jacksonville, Florida.

The cuts to the TIGER program is aimed at what the budget described as “unauthorized” projects. In January before Trump was inaugurated , DOT had announced that $500 million was available. The TIGER grants were first awarded in 2009.

Among the 2016 grant recipients are San Bernardino County, California., which received $8.6 million for passenger rail service; Mississippi’s 65-mile long Natchez Railway, which received $10 million for rehabilitation and upgrades for five bridges; and Springfield, Illinois, which received $14 million to build two underpasses for proposed high-speed service between St. Louis and Chicago.