Federal Transportation Appropriations: Big Gaps to Close and the Clock is Ticking

Welcome to the 2024 federal budget appropriations season. Time is running out on efforts to close the gap between House and Senate spending bills and a budget impasse is looming. 

The House and Senate transportation spending bills do agree on two things. Both bills set the formula highway funding total at $60.1 billion, an increase of $1.3 billion (2%) above 2023.  Both bills also set the transit formula level at $13.4 billion, a 3% increase over 2023.  Beyond that, the House and Senate bills differently significantly.

House Transportation Appropriations Bill Highlights

The House Appropriations Committee passed its Transportation Housing and Urban Development (THUD) bill on July 18 by a close party-line vote.  The House bill cuts the U.S. Department of Transportation (USDOT) budget by $5.4 billion in 2024, to $100.9 billion.  The House GOP is using this year’s budget appropriations to rein in federal spending through deep cuts to several popular highway and bridge programs, as well as transit, rail, and climate program spending.  The House bill excludes additional spending on programs not directly funded by the Infrastructure Investment and Jobs Act (IIJA), except for most earmarks and $150 million for tribal transportation.  This means an $800 million cut for the popular Mega and RAISE grant programs for projects of regional and national significance and for bridges over rail lines, new pedestrian paths, and street redesigns. 

House Amendments Target Tolling Restrictions

Of particular concern to the toll industry is the approval of two last-minute House amendments that curtail state tolling initiatives.  Representative Cole (OK-4) advanced an amendment prohibiting the collection of certain tolls in Oregon, among other provisions.  Representative Reschenthaler (PA-14) offered an amendment that would prohibit tolls on certain Pennsylvania federal highways and bridges as a hedge against any attempt to resurrect the Pennsylvania DOT’s proposal to add toll finance to major bridge investments along its interstate highways. 

Senate Transportation Appropriations Bill Highlights

The Senate Appropriations Committee passed its THUD bill on July 20 with a 29-0 bipartisan vote.  The Senate committee's version would advance a modest $1.5 billion increase for USDOT over 2023 enacted levels, to $107.8 billion.  Senate appropriators approved $28.4 billion in discretionary spending for USDOT.  The Senate’s proposed funding provides $60.096 billion for highways in line with IIJA authorized levels paid from the Highway Trust Fund with an added $2.047 billion for highway investment.  The added spending includes $1.145 billion for bridges, $150 million for resiliency in PROTECT program grants, $45 million for the Active Transportation Infrastructure Investment Program, and $120 million for the Appalachian Development Highway System, Scenic Byways, and other programs.  Importantly, the Senate bill maintains RAISE grant funding to continue investing in transportation infrastructure projects that have a significant local or regional impact.

What’s Next?

The time pressure to reach a resolution on the federal budget is heightened this year because of the Fiscal Responsibility Act of 2023 which suspended the federal debt limit through January 1, 2025.  Under this new law, if Congress fails to pass full appropriations bills by the end of the year, nearly across-the-board spending cuts of 1% initially would be triggered.  No one wants to see this happen, so there will be more pressure this year to avoid continuing resolutions while budget agreements are settled.

What Can We Do?

The takeaway from all of this is that Congress needs to hear from the tolling and road pricing industry.  We need to emphasize the good work that IIJA is enabling for our customers and the nation’s economic future.  Now is not the time for Congress to let up on its commitment to rebuild and modernize American transportation infrastructure to ensure safe, reliable, efficient, and integrated mobility.  IBTTA encourages members to reach out to your congressional delegations and let them know how cuts to transportation funding will be detrimental in these times of inflationary pressures, rising interest rates, tight labor markets, and supply chain vulnerabilities.  You should also urge Congress NOT to impose a federal prohibition on tolling and road pricing because such prohibitions limit the ability of states to generate new revenues to fund their own state and local transportation needs.