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Transportation

Congress and the administration have a full slate of critical transportation legislation to address, which provides an opportunity to bolster the United States' economic health and Americans' quality of life by maintaining, modernizing, and expanding the nation's transportation networks.

Highways and Transit

The current federal highway and public transportation programs, known collectively as the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), have been operating on a series of short-term extensions since their expiration on September 30, 2009. The existing programs have been widely criticized for doing little to identify or address national needs, being heavily earmarked, and over obligating available funding, thereby leaving the Highway Trust Fund insolvent and in need of recurring bailouts.

These programs are failing to keep pace as national needs have continued to grow and construction, labor, and land costs have rapidly increased. Further, the ongoing recession is having an impact on needed funding as state budgets and credit markets across the county constrict, and federal revenues fall short of projections due to a drop in vehicle miles traveled. To prevent cuts, Congress must swiftly reauthorize the surface transportation programs while ensuring that the federal role is defined, existing programs are reformed, wasteful spending is curbed, and federal investment in U.S. highways and transit systems is increased.

Aviation

The Federal Aviation Administration (FAA) has been operating under a series of extensions since its authorizing legislation expired in September 2007. A full reauthorization is needed to transform our aviation system to meet the projected growth in passengers and freight.

Reauthorization should expedite air traffic control modernization by providing adequate investment and laying out a clear technology road map including timing, investment, and funding requirements. It should also include concrete plans for cost reduction and increased efficiency at the FAA, provide research and technology funding targeted to projects that increase national aviation system capacity and safety, and provide a national air transportation system that ensures continued air service — a key economic development tools to communities nationwide.

To help address these needs, Congress should increase investment in aviation infrastructure by increasing the General Fund contribution and supporting initiatives for targeted airport and airway programs that foster innovative finance and project delivery approaches, such as public-private partnerships where feasible.

Marine Transportation

The U.S. Marine Transportation System (MTS) consists of ports, coastal and inland waterways, the Great Lakes, and the St. Lawrence Seaway and is an integral part of the global supply chain and the broader transportation network. In addition to supporting the nation's economic activities, the MTS provides passenger transportation through ferries, water taxis, and cruise ships and supports national security objectives and recreational activities.

However, inadequate investment and insufficient improvements to the MTS threaten its ability to support domestic economic development, interstate commerce, international trade, and future growth.

Congress and the administration can reinforce the federal government's commitment to the MTS by improving federal coordination; establishing priorities for maintenance, modernization, and expansion; increasing investment; creating conditions for successful project delivery; and acting expeditiously to reauthorize Water Resources Development Act and other related legislation.

Freight Railroads

Railroads are critical to freight movement throughout the United States. The railroad industry's investment in infrastructure alone will not be enough to handle the U.S. Department of Transportation's prediction that freight transportation demand will rise 92% by 2035 from 2002 levels. Congress and the administration should enact an infrastructure investment tax credit for the rail industry to help accommodate this projected increase.

As Congress and the administration take steps to improve U.S. transportation infrastructure, the Chamber recommends:

  • Supporting a multimodal and intermodal U.S. transportation system to enhance connectivity, increase productivity, and mitigate congestion.
  • Identifying transportation assets in the national interests and ensuring that they are modernized and kept in good condition to provide adequate capacity.
  • Encouraging research, development, and the application of new technologies to foster better project design, construction, maintenance, financing, and operations.
  • Ensuring that public funding is spent efficiently and effectively and is commensurate with national needs.
  • Considering all funding and financing options and ensuring that the costs are borne primarily by users of the system.
  • Reinvesting transportation taxes, revenues, and other user fees into the system and its services.
  • Encouraging project financing and delivery approaches that attract private investment.
  • Improving and making consistent the project review and approval process for all modal investments to ensure that the completion of improvements to the U.S. transportation system are finished in a timely and environmentally sound manner.
  • Ensuring a comprehensive, results-oriented approach to safety by developing national goals, performance metrics, complementary plans, and incentives for applying best practices.