Obama Proposes $302 Billion Transportation BillAssociation of Construction and Development
March 12, 2014 — 1,371 views
President Barack Obama released his budget proposal for 2015 which contained details of the administration’s proposal for the new transportation bill.
The $302 billion surface transportation plan of the White House proposes a record increase for transit funding - from the previous year's $12.3 billion to $22.3 billion per year starting in 2014. Also proposed in the budget is that $600 million be spent in yearly TIGER spending and a brand new $4 billion yearly program instituted to modernize the department of transportation in each state. It is also proposed that about $19.1 billion be spent to expand intercity rail network in the subsequent four years.
Fixing and accelerating surface transportation
The released document provides more information on the plan of the White House to prevent wasteful expenditure on highway expansion. A new program is introduced in the budget which is targeted at the reformation of obsolete state DOTs. The Obama administration has proposed a $4 billion new yearly program called “Fixing and Accelerating Surface Transportation”. This program is designed to generate incentives both for the state and also for the local partners to take on crucial reforms.
According to the Obama administration, the funding is intended for the modification of transportation plans for the inclusion of bike, pedestrian and mass transit options. The management of peak transport concerns like congestion, pricing and tolling is also included.
According to the proposal, the localities and the states will receive incentives for new investments for the improvement of the present infrastructure. The re-authorization proposal of the administration will emphasize the importance of improving and preserving the existing assets of the department.
The question of how the administration will pay for all this is a contentious issue. The budget document states that an exhaustive reform of the business tax will compensate for stagnating tax receipts on gas. According to the Wall Street Journal, the proposal made by the White House includes new taxes amounting to $100 billion on the international operation of business corporations. It is calculated that approximately $150 billion is required to bridge the gap between the projected federal transportation budget and gas tax revenue spanning the subsequent four years.