What Was Everyone Fighting About_
On June 9, 1998, President Clinton signed into law a new federal transportation bill called TEA-21, The Transportation Equity Act for the 21st Century. It is in every sense a direct successor to the 1991 Intermodal Surface Transportation Efficiency Act—ISTEA. In spite of TEA-21's complexity and the many disagreements it provoked during almost two years of debate, this new law both leaves the groundbreaking reforms of ISTEA intact and provides new opportunities for innovation. Now that TEA-21 is here, the transformation of our 1950s-era highway building program into a flexible transportation program achieved in 1991 can no longer be called an aberration. ISTEA was created by a Democratic Congress dominated by Northeasterners and a Republican President, and its reforms have been continued by a Republican Congress led by Southerners and a Democratic President. ISTEA, and all it represents, is here to stay.

This means that ISTEA's weaknesses live on as well. It allowed people to rethink their choices about spending money, but did not require them to. TEA-21 is no different, and making it a success on the ground will take hard work.

The purpose of this guide is to explain in simple terms the major elements of TEA-21 and how they came to be, highlight the parts of the new law that create new opportunities for progress, and draw attention to some new threats.

Let's Talk About Money

  • 1. TEA-21 authorizes $217 billion in funding over six years, 40 percent more than ISTEA.
  • Actual funding flowing to the states is unlikely to go up by 40 percent. In most states funding will be higher, but the difference will be incremental rather that revolutionary.
  • The amount of highway money available in future years will depend on how much money flows into the Highway Trust Fund.

 

Category

Total 6-year funding (billions)

1. Total Amount Authorized

$216.3

Total Amount Authorized, Highways

$173.1

Total Amount Authorized, Transit

$41.0

2. Total Contract Authority

$209.3

Total Contract Authority, Highways

$171.7

Total Contract Authority, Transit

$36.0

3. Total Amount Guaranteed

$198.7

Total Amount Guaranteed, Highways

$162.7

Total Amount Guaranteed, Transit

$36.0

The Donors Rebel

  • The conflict between donor and donee states dominated much of the TEA-21 debate.
  • Most donor states will see significant funding increases, up to 70 percent above ISTEA levels. Other states will see only small increases.
  • Some funding programs

New Rules for the Federal Budget

  • The budget rules that apply to transportation have changed. Cuts in transportation spending can no longer be used to boost spending on other programs.
  • Highway spending can exceed the "guaranteed" floor if revenue flowing to the highway trust fund exceeds expectations, or if Congress appropriates "non-guaranteed" funds . This means that state-by-state funding projections are only estimates, and actual amounts may differ from initial projections.
  • The funding guarantee for transit is set at a fixed amount of $36.0 billion, and will not vary over time as revenues rise and fall.
  • Most transportation programs are covered by the funding "guarantee," but some are not. Non-guaranteed programs, like AMTRAK, will still compete for funding in the budget free-for-all.

 

State

Change in Total Funding, TEA-21 vs. ISTEA (percent increase)

State

Change in Total Funding, TEA-21 vs. ISTEA (percent increase)

South Carolina

79.3

Oregon

49.9

Georgia

69.7

Wisconsin

48.1

Tennessee

62.1

North Dakota

47.8

Idaho

61.9

Alaska

47.3

Nevada

61.8

Rhode Island

47.2

Virginia

61.8

Kansas

47.1

Michigan

61.2

Pennsylvania

46.8

Montana

61.1

California

45.6

Alabama

60.6

New Mexico

45.3

Delaware

60.5

Nebraska

42.9

Texas

60

Iowa

42.8

Arizona

59.5

West Virginia

41.3

Wyoming

58.3

Minnesota

40.1

Utah

57.8

Washington

37.2

Louisiana

57.6

Ohio

36.9

Mississippi

57.6

New York

35.4

Florida

57.3

Arkansas

31.6

South Dakota

57

New Jersey

30.3

Oklahoma

55.6

Illinois

29

North Carolina

54.7

Maryland

28.7

New Hampshire

53.1

Maine

17.2

Missouri

52.9

Connecticut

12.8

Colorado

52.3

District of Columbia

12.4

Indiana

52.2

Hawaii

7.3

Vermont

50.8

Massachusetts

-41.2

The Transit Guarantee

Transit Funding Category

Guaranteed

Non-Guaranteed

Urbanized Area Formula Grants

$17.28 billion

$750 million

Other Formula Grants

$1.94 billion

--

Bus Programs

$2.80 billion

$500 million

New Starts

$6.09 billion

$2.09 billion

Rail Modernization

$6.09 billion

$500 million

Planning

$364 million

$170 million

Research

$281 million

$162 million

Job Access

$500 million

$250 million

Clean Fuel Grants

$500 million

$500 million

University Transportation Centers

$36 million

--

Administration

$364 million

$78 million

TOTAL

$36.00 billion

$5.00 billion

TEA-21 Reference:

Section 1105,Title VIII.

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