Proposed FY16 budget includes six-year surface transportation solution; generous rail funds

Written by Mischa Wanek-Libman, editor
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President Obama unveiled his proposed budget for Fiscal Year 2016, which includes a six-year $478-billion surface transportation reauthorization proposal that contains rail funding sources through the Generating Renewal, Opportu¬nity, and Work with Accelerated Mobility, Efficiency, and Rebuilding of Infrastructure and Communities throughout America (GROW AMERICA) Act.

 

The U.S. Department of Transportation is budgeted to receive $94.7 billion in the FY16 proposal and says the “proposal makes critical investments in infrastructure needed to promote long-term economic growth, enhance safety and efficiency and support jobs for the 21st century.”

The six-year surface transportation solution included in the proposal provides funds through the GROW AMERICA Act that include close to $115 billion to invest in transit, $28.6 billion to fund the development of high-performance rail and other passenger rail programs and $7.5 billion through multi-modal investment, such as the Transportation Investment Generating Economic Recovery (TIGER) program. The proposal includes $1.25 billion for TIGER grants in the next six years. In 2015, the program was authorized at $500 million.

The president is requesting $18.4 billion in FY16 for the Federal Transit Administration (FTA), which is an increase of $7.4 billion, or 67 percent above, the FY 2015 enacted level. FTA’s Transit Formula Grants would see a $5.1-billion boost for strategic infrastructure investments, which its Capital Investment Grants would see a more than $1 billion increase in the proposed budget with a total of $3.25 billion being requested.

The Federal Railroad Administration (FRA) would have a $5-billion budget in FY16, which reflects a $3.4-billion increase over 2015 enacted levels. The budget proposal includes $4.8-billion to establish a National High-Performance Rail System (NHPRS) to support current operations and to improve the rail system for the future. FY 2016 is the first year of a proposed 6-year $28.55 billion rail reauthorization proposal, which includes two major new programs: Current Passenger Rail Service and the Rail Service Improvement Program. These activities will be fund¬ed from a proposed new Rail Account to be included in the proposed Transportation Trust Fund.

“Our budget proposal lays the foundation for a future where our transportation infrastructure meets the demands of a growing population and an economy that depends on the free flow of freight,” said Transportation Secretary Anthony Foxx. “This administration is looking towards the horizon – the future – but to do this we need Congress’ partnership to pass a long-term reauthorization to put Americans to work rebuilding America.”

The president’s proposal now heads to a Republican-led Congress.

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