Obama Administration to Alter FTA's "New Starts" Program

In a move that has been sought by transportation planners and professionals for many years, US Transportation Secretary Ray LaHood announced the Obama Administration's plan to change the way that major capital transit projects are funded. Secretary Lahood, speaking at the Transportation Research Board Annual Meeting, proposed shifting the guidelines for major transit projects applying for the Federal Transit Administration's "New Starts" program to focus on livability issues such as economic development opportunities and environmental benefits, in addition to cost and time saved, which are currently the primary criteria. "New Starts" is the federal government's primary grant program for major transit projects.

In making this policy change, the LaHood's DOT will be rescinding March 2005 Bush Administration budget restrictions placed on the FTA's New Starts and Small Starts Program that primarily on how much a project shortened commute times relative to its cost. The overall cost of projects will remain a factor in the New Starts Program, but it will no longer be given more weight than factors such as congestion relief.

In announcing this policy shift, Lahood noted that, "Our new policy for selecting major transit projects will work to promote livability rather than hinder it. We want to base our decisions on how much transit helps the environment, how much it improves development opportunities, and how it makes our communities better places to live."

US House of Representatives Tranportation and Infrastructure Committee Chairman James Oberstar hailed the decision. "Now we need increased investment dollars to follow this reform, so that we can move forward with transit projects that relieve congestion, reduce emissions, increase our energy independence, and promote more livable communities across the country."

This policy shift will require a change in the rules for New Starts by the FTA. Following along these lines, the FTA will soon initiate a separate rulemaking process, inviting public comment on ways to appropriately measure all the benefits that result from such investments.