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  A Nationally-Recognized Resource in Infrastructure Financing January 22, 2010  
 

Inside Transportation

 

From Capital Partnerships LLC

 

DOT Shifts Focus Toward “Livability” for Transit Funding

 

IUnder the previous administration in 2005, the Federal Transit Authority had begun the implementation of a rule making cost-effectiveness the central criteria for the New Starts and Small Starts programs. However, Transportation Secretary Ray LaHood has indicated that the FTA will be rescinding the rule and shifting focus away from commute times and onto “livability.” In abandoning the prior criteria, LaHood noted the rigidity of the 2005 rule due to its strict cost and performance requirements, which has prevented popular projects involving light rail and streetcars from receiving program funding. Instead the FTA hopes to begin funding projects that consider a broad spectrum of factors, including encouraging economic growth, reducing carbon emissions, and cutting commute times. The FTA is likely to begin the process of promulgating a new rule consistent with these broad factors of livability very soon, but the rescission of the 2005 rule will go into effect immediately.

     
 
 

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