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Thursday, March 11, 2010

Federalism Issues in Surface Transportation Policy: Past and Present

Robert Jay Dilger
Senior Specialist in American National Government

American federalism, which shapes the roles, responsibilities, and interactions among and between the federal government, the states, and local governments, is continuously evolving, adapting to changes in American society and American political institutions. The nature of federalism relationships in surface transportation policy has also evolved over time, with the federal government's role becoming increasingly influential, especially since the Federal-Aid to Highway Act of 1956 which authorized the interstate highway system. In recent years, state and local government officials, through their public interest groups (especially the National Governors Association, National Conference of State Legislatures, National Association of Counties, National League of Cities, U.S. Conference of Mayors, and American Association of State Highway and Transportation Officials) have lobbied for increased federal assistance for surface transportation grants and increased flexibility in the use of those funds. They contend that they are better able to identify surface transportation needs in their states than federal officials and are capable of administering federal grant funds with relatively minimal federal oversight. They also argue that states have a long history of learning from one another. In their view, providing states flexibility in the use of federal funds results in better surface transportation policy because it enables states to experiment with innovative solutions to surface transportation problems and then share their experiences with other states. Others argue that the federal government has a responsibility to ensure that federal funds are used in the most efficient and effective manner possible to promote the national interest in expanding national economic growth and protecting the environment. In their view, providing states increased flexibility in the use of federal funds diminishes the federal government's ability to ensure that national needs are met. Still others have argued for a fundamental restructuring of federal and state government responsibilities in surface transportation policy, with some responsibilities devolved to states and others remaining with the federal government. 

Congressional attention to federalism issues in surface transportation policy tends to increase during reauthorizations of the federal highway and mass transit program. The current highway and mass transit program, the $286 billion, Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2005: A Legacy for Users (SAFETEA, P.L. 109-59), after being extended several times, is set to expire on March 28, 2010. Its reauthorization has generated considerable legislative activity during the 111th Congress. Issues addressed by Congress include SAFETEA's funding level and financing, especially proposals addressing the Highway Trust Fund's fiscal sustainability, state funding guarantees, and congressional earmarks. 

This report provides an historical perspective on contemporary federalism issues in surface transportation policy that are likely to be addressed by Congress during the 111th Congress, including possible devolution of programmatic responsibility to states and proposals to change state maintenance-of-effort requirements and state cost matching requirements.


Date of Report: March 4, 2010
Number of Pages: 36
Order Number: R40431
Price: $29.95

Document available electronically as a pdf file or in paper form.
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