Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Barack Obama

Did Team Obama Gut Transit Funds From the Stimulus Package?

Reporting on last week's stimulus letdown -- when a proposal by US Rep. James Oberstar's Transportation and Infrastructure Committee for $17 billion in mass transit spending was slashed by the Appropriations Committee, while $30 billion in proposed allocations for roads and bridges remained the same -- Grist got word that the then-incoming Obama administration may have had a hand in paring down the transportation package.  

Oberstar's office says the cuts were the product of the House speaker'soffice, the Senate majority leader, and the Obama transition team. "Howthose decisions were made, I don't know," Jim Berard, communicationsdirector for the Transportation and Infrastructure Committee, toldGrist. "It's disappointing that our recommendation was not accepted onthe whole, but at the same time we got a good deal for transportationinfrastructure and we want to keep the momentum going for this bill."

Opinion varies on what constitutes "a good deal for transportation infrastructure" at this moment in our nation's history. (Grist notes that there is some $50 billion in "shovel-ready" transit projects currently in the queue.) But why would a self-professed pro-urban, pro-transit, anti-oil dependence admin pull the plug on the progressive portion of this transportation spending proposal? Why would a speaker who represents downtown San Francisco go along with it?

There is speculation that Obama economic adviser Larry Summers opposed the Oberstar plan, while others think the new admin wants to reevaluate spending formulas in this year's TEA authorization, allowing an increase in transit funding that could be invested in a more deliberate, effective way -- and over a sustained period of time.

Of course, the same care could also be taken before throwing $30 billion at nebulous highway projects

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Mamdani’s FDNY Spews Anti-Street Safety Talking Points at Bizarre Council Hearing

FDNY and DOT were at cross-purposes during a bikelash Council hearing.

February 26, 2026

Trump Dragnet That Stopped 34th St. Busway Is Holding Up Tremont Avenue, Too

A contentious Manhattan busway is causing trouble in the Bronx.

February 26, 2026

NEVER MIND: Bus Service Tanked After January Snowstorm, So MTA Nixed The Data

The January storm and days of below-freezing temperatures that followed left New York City bus riders in the lurch, the MTA said.

February 26, 2026

Thursday’s Headlines: Beyond Snowballs Edition

Tomorrow it could be rocks. Plus other news.

February 26, 2026

Judge Blocks City From Implementing 15 MPH Bike Speed Limit In Central Park

It's an indication that opponents of this "illegal application" of the so-called "Sammy's Law" may prevail on the merits at an upcoming full hearing.

February 25, 2026

Study: Most Of America’s Paint-Only Bike Paths Are On Our Deadliest Roads

Even worse, most Americans see these terrible lanes and think, "I'd be crazy to ride a bike" — and the cycle continues.

February 25, 2026
See all posts