FY04 Spending Bill Poised to Gut Funding for Transportation Choice 
posted July 16, 2003

House Appropriations Subcommittee Dismantles Funding for Multi-Modal Investments in FY’04 Spending Bill -- Ends Funding for Enhancements, Places Amtrak on Shutdown Path, and Constricts Entrants into “New Starts” Program                              sample letter

The House Appropriations Subcommittee on Transportation and Treasury marked-up a highly controversial appropriations bill on Friday, July 11.  While official details have not yet been released, the Subcommittee approved a Transportation-Treasury Appropriations bill for FY’2004 – the new federal fiscal year that begins October 1^st – that eliminates or substantially reduces funding for key surface transportation programs under TEA-21. The bill also provides funding levels for Amtrak that would force the nation’s passenger rail system to shut down.  (The Subcommittee’s actions are occurring in the void that now exists since the authorizing committees have slowed down their renewal efforts and are clearly going to miss the September 30^th deadline for renewing TEA-21.) 

Ends Enhancements and TCSP Funding - It is reported that the bill includes language that prohibits states from allocating any funds to Transportation Enhancements projects, even though the bill provides highway funding of more than $34 billion (well above the President’s request of $29.2 billion which included continued funding for Transportation Enhancements). Enhancements, which fund bicycle and pedestrian projects, historic preservation, and community development, is the only major TEA-21 program category that was targeted under the Subcommittee’s bill.  All funding for the Transportation Community and System Preservation Program (TCSP), a modest program supporting land use planning, would be cut under the bill.

Cuts to Transit and New Starts - Funding for public transportation is targeted for cuts, through removing commitments to specific projects and reducing program levels.  Current funding to the “New Starts” program would be cut by $150 million, down to $1.1 billion, falling well short of FTA's FY04 request of $1.4 billion.  Only projects with existing full funding grant agreements are guaranteed funding in the bill, leaving pending projects without any assurances of future funding.  Also, the bill is expected to include language that will make it more difficult for local areas to qualify rail transit projects for “New Starts” funding in future years.

Other TEA-21 Impacts – JARC - It is reported that the bill will cut funding for the Jobs Access and Reverse Commute (JARC) program funds by about one-half from current levels (from $149 million to $85 million).

Begins Shutdown of Amtrak – The bill essentially begins the process of shutting down Amtrak, reducing the current funding level from $1.04 billion to $580 million.  It is a matter of record that this funding level would result in the dismantling of the nation’s passenger rail system. The action was particularly surprising in that a majority (219 Members) of the House of the Representatives has written to the Appropriations Committee urging adoption of a $1.8 billion funding level, which is what Amtrak President David Gunn said is necessary to implement the corporation’s five-year improvement program. 

Full Committee Must Approve – The House Appropriations Committee is expected to consider the Subcommittee’s proposed bill as early as the week of July 21^st.  To read the 7/12 Washington Post article “House Panel Slashes Amtrak Budget Plan, Railroad Head Says Service Would Stop” see http://www.washingtonpost.com/wp-dyn/articles/A45460-2003Jul11.html.

ACTION NEEDED:  Call your Member of Congress TODAY, especially if they serve on the House Appropriations Committee (see list below).   Follow up by faxing in comments using this sample letter.

MESSAGE: 

Restore Eligibility for Transportation Enhancements

• Eliminate the provision precluding states from spending any highway funds on Transportation Enhancements projects.  TE funds hundreds of small, community-based projects that provide transportation and economic revitalization benefits to the nation’s cities, towns and rural communities throughout your state, should continue to one of the tools available to governors in developing their state transportation programs.

Restore Funding and Keep Current Rules Governing New Starts

• The New Starts program has increased transit ridership nationwide, supporting the nation’s economy, transit users and commuters, and our air quality. 

Restore Funding for Job Access and TCSP programs

• The Job Access and Reverse Commute program has also benefited communities, linking welfare recipients and low-income workers access jobs, childcare and related services.

• The Transportation and Community and System Preservation program has helped support the efforts of communities in developing innovative transportation programs and planning more effectively for the future.  

Fully Fund Amtrak to Avert Shutdown

• Honor the request of a majority of House members to fund Amtrak at $1.8 billion. Amtrak provides intercity passenger rail service to over 23 million Americans residing in 46 states annually, supporting congestion relief and domestic tourism.  According to a recent CNN and Gallup poll, over 85 percent of respondents support providing Amtrak with $2 billion annually to fund its operations. 

For More Information: Contact Andrea Broaddus at the Surface Transportation Policy Project at 202-466-2636.