Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
James Oberstar

James Oberstar on the Future of U.S. Transportation Funding

oberstar.jpgMinnesota Representative James Oberstar is perhaps the strongest advocate for transit on Capitol Hill. In a recent Q&A with the Kansas City Star, he shared his thoughts on how the financial crisis will affect federal investments in transportation:

Transit currently receives about 20 percent of federal surface transportation funding.  Next year’s surface transportation authorization will give us the opportunity to draft transformative legislation and completely restructure our transit program to reflect the new realities of America’s transportation needs.

Generating the revenues to develop the surface transportation network necessary to support the nation’s mobility and accessibility needs will be a major challenge for us to face in the authorization process next year.

The crisis in the financial markets and the demand for government help to resolve it will have an enormous effect on Congress’ ability to appropriate funds for a wide number of programs next year and beyond.

Although our surface transportation program is funded with its own revenue stream, primarily the federal fuel taxes drivers pay at the pump, that funding stream brings with it its own challenges in these times.

First, the rate has not been adjusted since 1993, and the purchasing power of the motor fuel excise tax revenue has been eroded by over 30 percent over this time. In addition, as people react to the high cost of fuel through conservation, fewer gallons of gasoline and diesel are purchased, and less revenue is collected.

These challenges will likely have an impact on the amount of money the federal government will be able to invest in highways, bridges, and transit in the coming years. Addressing this challenge will require Congress and the next administration to demonstrate the vision, leadership and the political will to identify financing and revenue options to generate the investments necessary to create the multimodal surface transportation system that will serve us best.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Beach Reading: Zohran Mamdani’s Answers to Streetsblog’s Mayoral Candidate Survey

Spend the holiday weekend with Zohran Mamdani's answers to Streetsblog's mayoral candidate questionnaire.

July 4, 2025

Friday Video: Why NYC Needs ‘Low-Traffic Neighborhoods’

London's Church Street, like so many of our business corridors, was choking on cars — until the advent of the low-traffic neighborhood.

July 4, 2025

Friday’s Headlines: E-Bikes in Parks … Permanently Edition

The Parks Department will permanently allow e-bikes in city parks following a two-year pilot. Plus more news.

July 4, 2025

Anti-Miracle On 34th Street: Adams Administration Pauses Work On 34th Street Busway

The highly-anticipated 34th Street busway may not happen under Mayor Adams after all, sources said.

July 3, 2025

Manhattan DA Says Alleged Central Park Hit-and-Run Cyclist Didn’t Flee, Drops Charges

Prosecutors said the 30-year-old cyclist "remained on the scene for about 45 minutes after the crash and waited for paramedics to arrive to treat the injured person."

Sean Duffy’s ‘Great America Road Trip’ Wants You to Drive to Central Park

Sean Duffy's "Great American Road Trip" encourages Americans to drive to sites in the most transit-rich and car-choked parts of the country.

July 3, 2025
See all posts