Under President Obama’s proposed 2016 budget, The Department of Transportation would receive a significant level of funding.
While there is general agreement that the nation’s transportation infrastructure needs substantial investment, significant questions have been raised both about the manner in which the Administration’s plans would be funded, and about the competence to effectively and efficiently address the problem.
Over 6 years, the proposed funding would provide :
- $317 billion to invest in the highway system: The proposal will increase the amount of highway funds by an average of nearly 29 percent above FY 2015 enacted levels, emphasizing policies and reforms that prioritize investments for repairs and improvements to road safety and transit services, with particular attention to investments in rural and tribal areas.
- Nearly $115 billion to invest in transit systems and expand transportation options: The proposal increases average transit spending by nearly 76 percent above FY 2015 enacted levels, which will enable the expansion of new projects that improve connectivity, such as light rail, street cars, and bus rapid transit, in suburbs, fast-growing cities, small towns, and rural communities, while still maintaining existing transit systems.
- Predictable funding for rail investments: $28.6 billion over 6 years would be provided to fund the development of high performance rail and other passenger rail programs as part of an integrated national transportation strategy.
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To pay for these programs, the White House has called for over $2 trillion in tax increases, including hikes to the personal income tax, death tax, capital gains and business tax rates (the U.S. already has the highest corporate tax level of any major nation, resulting in more jobs moving overseas) and sales taxes.
A CATO analysis of the transportation budget criticized the use of corporate taxes to pay for the plan, the emphasis on federal rather than state funding, the centralization of rail policy, and the generally increased role for Washington as opposed to more efficient state and local governments.