Is Federal $ Coming to Baltimore Transit?, Part 2 of 3

In the first of this three-part newsletter series, we outlined some of the early- and mid-term funding and planning opportunities to improve transit access along Baltimore's east-west corridor. While those opportunities were relatively small-scale, much of the transportation conversation at the federal level has been on a much larger level. In addition to a different scale, there is also complexity in terms of plans proposed, counteroffers made, bills filed and committees "marking up" bills.

It's a complex and dynamic situation that seems to change day-by-day.

But to keep it simple we tend to separate all the action into two buckets: Surface Transportation Reauthorization and the American Jobs Plan.

Surface Transportation Reauthorization bills are how Congress normally funds and sets policy for the federal government's role in the country's surface transportation, including highways, transit, safety, and intercity passenger rail. The most recent surface transportation bill was the FAST (Fixing America's Surface Transportation) Act, which was enacted in 2015. It was supposed to expire in 2020, but Congress gave itself a one-year extension that is set to expire at the end of September this year. The FAST Act was funded through both the Highway Trust Fund and General Fund, providing funding for the U.S. Department of Transportation and for aid to state and local governments for surface transportation, primarily highways and transit, but also smaller pots of money for biking, pedestrian, and trail projects.

Surface Transportation Reauthorization is critical because this is the main law through which Congress sets long-term funding levels for the different modes of transportation through various "formulas" that divvy up the federal funds to the state and local governments. Historically, these formulas have prioritized spending on construction and highways over spending on operating service and transit. In general, large transit agencies cannot use federal funds for operations, which are the day-to-day activities that support transit service, such as paying bus and rail operators, cleaning vehicles and stations, paying for fuel or electricity, and making repairs such as patching a tire or replacing a wiper blade. In addition to the restriction on how federal funds can be used, there is a historic (dating back to 1982) split in federal tax revenue that sends 80% of revenue to highways and 20% of revenues to transit. 

Together, the 80/20 split and the prohibition on operating expenses limit investments in transit that could improve the aspects of transit service (frequency, reliability, and access) that most motivate people to ride transit. But there are bills to reform the way that the federal government has traditionally set policy in the Surface Transportation Reauthorizations. One example of this is the Stronger Communities through Better Transit Act being introduced by Rep. Hank Johnson of Georgia. It would provide $20 billion annually in federal support for transit operations. Funding would be available for all types of transit, such as buses, trains, demand-response service, and paratransit, but funding must be used for transit service above and beyond existing service.  Examples of eligible projects include decreasing headways (the time between buses or trains) on existing routes, expanding transit's service area or service hours or days, or providing new or increased frequent service.

In addition to the reauthorization bill, President Joe Biden has proposed the American Jobs Plan. Sometimes simply referred to as the infrastructure plan, this is more of a once-in-a-generation stimulus proposal that is distinct from the regular surface transportation bill.

The $2.3 trillion proposal aims to invest in water infrastructure, broadband, the power grid, housing, schools, childcare, and manufacturing, among other things. Of that total, $571 billion is proposed for transportation infrastructure broken into the following categories:

• Electric vehicles - $135 billion for EV charging network, tax incentives, electric school buses, and electrifying the federal vehicle fleet
• Highways - $115 billion for reconstructing/repairing roads and bridges
• Transit - $110 billion for modernizing and expanding transit systems
• Intercity Rail - $80 billion for Amtrak to fix repair backlog, upgrade existing lines, and add new capacity
• Megaprojects - $44 billion to "accelerate transformative investments" and support "ambitious projects" that are "too large or complex for existing funding programs"
• Airports - $25 billion airport improvements and modernizing air traffic control
• Equity - $25 billion to "reconnect neighborhoods cut off by historic investments" and ensuring new projects support "racial equity and environmental justice"
• Safety - $20 billion for existing road safety programs and a new Safe Streets for All program to fund local "vision zero" plans
• Ports - $17 billion for "inland waterways, coastal ports, land ports of entry, and ferries"

(Sources: Eno Center for Transportation analysis and American Jobs Plan fact sheet.)

But the American Jobs Plan is still just a proposal from the Biden administration. It will take Congressional action to make the Plan reality by turning it into a bill or series of bills that create and fund its programs. One example of this comes from Maryland Senators Ben Cardin and Chris Van Hollen who have co-sponsored a bill called the Reconnecting Communities Act. The bill would establish a new federal grant program to fund efforts that identify and remove or retrofit highways that divide neighborhoods, particularly low-income communities and communities of color. In Baltimore, the Highway to Nowhere is a textbook case where such a program could fund a project or projects to repair the damage caused by the partially-built highway. The Highway to Nowhere is also in that same east-west corridor where the Red Line was supposed to run and where the Maryland Transit Administration is planning a regional transit corridor. 

And what about the Red Line anyway? Since its cancellation in 2015, many have wondered whether it would be possible to dust off the plans should the opportunity arise. Could the surface transportation bill or the American Jobs Plan be vehicles for resurrecting the project?  In Part 3 of our newsletter series, we'll take a look at that possibility and what would need to happen to resurrect the Red Line or something like it.

State Transit Funding Update: Hogan Vetoes TSIA

Last week, Governor Hogan vetoed the Transit Safety & Investment Act (TSIA), bi-partisan legislation designed to improve Maryland's public transit system and eliminate a $2 billion maintenance backlog that leaves the system prone to constant breakdowns and unsafe for operators and riders. 

The Transportation Alliance along with our partners with the Save Maryland Transit coalition denounced the Governor's action and are already talking to bill sponsors Del. Brooke Lierman and Sen. Cory McCray about plans for a veto override.

Since Governor Hogan took office, MTA's share of the state's capital transportation program has fallen from 31 percent to just 19 percent. The result is that MTA's rail systems -  Metro Subway and Light Rail - break down more frequently than any comparable rail systems in the entire country. MARC Commuter Rail breaks down fourth most, and buses most among peer systems. These numbers won't improve with shortsighted decisions like this veto. Despite the setback, we will continue to advocate for funding and policies that prioritize a fix-it first approach.

The Transportation Alliance is sincerely grateful to everyone who supported this legislation and helped to get it passed by the General Assembly.