There has been much written about the very early days of transportation from the Colonial era through the middle of the twentieth century and the extensive involvement of the private sector during that time. Beginning with the years after World War II however, the road and transit responsibilities in the US became more and more concentrated in the hands of government. Passenger rail, transit systems and virtually all highway construction and maintenance moved into the hands of the state and local governments.
But public funds (federal, state and local) were not keeping pace with the demand to maintain and improve the nation's extensive network of roads, bridges and transit systems. In 1991, the Intermodal Surface Transportation Efficiency Act (ISTEA), Congress opened the door for private sector to again participate in transportation by increasing the flexibility to blend Federal aid with private financing and authorized more flexible operating arrangements. Section 1012 of ISTEA expanded the opportunities for Federal-aid participation in toll roads and permitted private ownership of facilities constructed with Federal-aid financing (Interstates were not permitted to utilize this provision.) Even with this flexibility, the potential was never realized,
Presidents G.W Bush and William Clinton issued executive orders (Executive Orders 12803 and 12893, respectively) to encourage private sector involvement in infrastructure investment. However, little private sector involvement was forthcoming. The states had statutes on their books that were aligned with the traditional funding and procurement mechanisms. These statutes would have to be addressed on a state by state basis. In addition, there were long standing practices embedded in the federal and state bureaucracies as well as in the contracting community.