Activity in Congress can significantly affect states' ability to pay for transportation programs. The most direct effect is the result of congressional decisions on the allocation of federal money to the states through the transportation reauthorization bill. The 2005 reauthorization bill, SAFETEA-LU, contains formulas for distributing money to the states and direct earmarks for individual transportation projects and much-needed transportation money.
Although SAFETEA-LU provides many benefits for the states, the political maneuvering in Congress needed to pass the bill actually could negatively affect states' ability to successfully promote transportation funding to the public. It took more than two years to complete the reauthorization bill and, in the process, federal lawmakers approved several controversial projects that have drawn attention from pressing transportation needs.
Federal decisions also can negatively affect state transportation funding by shifting the financial burden to states. An example of federal political maneuvering that could affect state transportation funding needs is the battle over the future of Amtrak. In December 2005, President Bush signed legislation to provide $1.3 billion in federal aid over the next year to Amtrak. Earlier in the year, however, President Bush and Secretary of Transportation Mineta proposed breaking up Amtrak, possibly selling off segments of the rail line to private entities, and shifting many of Amtrak's costs to the states. If the plan is approved, states could be faced with the choice of spending millions of dollars to support passenger rail service or eliminating the service altogether.
Other federal mandates also could affect transportation costs for the states. Legislation passed in 2005-the REAL ID Act-that creates federal standards for state issuances of driver's licenses will place significant financial burden on states for implementation. Some estimates put the cost at billions of dollars. States that hope to comply with REAL ID may be forced to shift money from other transportation programs.