Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
2009 Transportation Bill

As Minneapolis Joins NACTO, Oberstar Backs Shift on Transit Operating Aid

At an event in Minneapolis today, House transportation committee chairman Jim Oberstar (D-MN) announced his support for giving urban transit agencies more flexibility to spend federal transportation formula money on operating -- a change in the current law that has already won the backing of Transportation Secretary Ray LaHood but has split the transit industry.

transit_oberstar_3_30_10.jpgOberstar (center) joined New York City transport chief Janette Sadik-Khan (right) at today's event. (Photo: B.Clements, Finance & Commerce)

Oberstar appeared at an event marking Minneapolis' move to join the National Association of City Transportation Officials (NACTO), founded 14 years ago by then-New York City Transportation Commissioner Elliot Sander to counterbalance the influence of state DOTs' voice in D.C., the American Association of State Highway and Transportation Officials.

Oberstar's specific remarks on transit operating aid were unavailable as of press time. But transport committee spokesman Jim Berard said the Minnesotan supported "in principle" the concept of allowing transit agencies from areas with populations greater than 200,000 to use their federal transportation formula grants on operating expenses.

Under current law, urban transit agencies are restricted to spending federal formula money on capital expenses, such as purchasing new rail cars or laying track for an expanded line.

Congress agreed last year to give transit officials the freedom to redirect 10 percent of their federal stimulus aid to operating budgets, underscoring that the change was a temporary response to the recession.

The American Public Transportation Association (APTA), the transit industry's chief lobbying group for more than a century, has opposed the use of formula grants for transit operating, preferring that already-scarce highway trust fund dollars be reserved for capital spending on rail and buses. APTA did not return a request for comment by press time on the growing support for changing the existing rules governing transit operating funds.

It's worth noting that the change Oberstar and LaHood have endorsed would not come until lawmakers take up a new long-term federal transportation bill, which may not occur until next year. Also left undetermined is the share of formula funds that would be made available for transit operating costs if the proposal becomes law; legislation offered by Sen. Sherrod Brown (D-OH) and Rep. Russ Carnahan (D-MO) would okay the use of between 30 percent and one-half of federal formula grants.

(ed. note: The post above has been edited to clarify the distinction between capital and operating expenses.)

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Spooky Stuff: On Halloween, Some Places Have Deadlier Roads Than Others

New York City hasn't proven to be that scary on the candy-filled holiday. But it's still a bad idea to mix kids, darkness and cars.

October 31, 2025

Friday’s Headlines: After the Flood Edition

Flooding that would happen once in a while now happens a few times a year. Plus other news.

October 31, 2025

Amtrak’s Penn Station Plans Assume Gateway Tunnel Will Happen Despite Trump ‘Termination’

Andy Byford's Penn Station plans assume a capacity boost from the Gateway Tunnel project that President Trump insists is "terminated."

October 30, 2025

Judge Lets Court Street Bike Lane Live … For Now

Businesses sued too late to stall the redesign, a judge said. But a wider ruling will come as soon as next month.

October 30, 2025

Thursday’s Headlines: Janno’s Speaking Edition

Local news outlets had a field day after MTA CEO Janno Lieber reiterated his longstanding skepticism of Zohran Mamdani's free buses platform. Plus more news.

October 30, 2025

Decision 2025: Ben Chou Hopes to Unseat Vickie Paladino on Street Safety

Chou, who grew up biking in and around the district, called out his opponent's anti-bike "fear-mongering."

October 30, 2025
See all posts