TEA-21 creates some new tools for using transportation to revitalize communities and create alternatives to driving. This chapter reviews the most important of these new opportunities.

• As jobs have moved to the suburbs, many low-income city residents have no reasonable way to get to these jobs.

• TEA-21's Access To Jobs program will provide discretionary grants to transit service providers to help bridge this gap.

• Some funds are set aside for "reverse commute" projects. There is no requirement that these funds be targeted to low-income individuals.

• Not all of the program's funding is guaranteed; $250 million of the $750 million authorization must be fought for.

TEA-21 Reference:

Section 3037.

• Through changes in federal tax law, employers are now free to offer a range of commute fringe benefits without fear of tax consequences.

• These benefits can either be offered in addition to an employee's base salary, or the employer can offer the benefit "in lieu of compensation."

• Providing a portion of an employee's income in the form of a transit voucher cuts taxes for both the employer (less FICA tax) and the employee (less income tax).

• Commuters will not benefit from the new rules until employers know about them and begin offering a choice of fringe benefits. Making employers aware of the new rules is the most important action people can take to make "commuter choice" a reality.

TEA-21 Reference:

Section 9010.

• Building a transportation system that provides for economic growth, preserves quality of life, and minimizes environmental impacts will require strong coordination between land use and transportation decisions.

• The TCSP program, authorized at $120 million over six years, will fund projects that link transportation and land use decisions with community quality of life.

• The program contains a strong bias toward project teams that include non-traditional partners like community groups, non-profit organizations and business groups.

• FHWA has placed implementation guidance and a request for letters of intent from potential grantees for TEA-21's Transportation and Community and System Preservation Pilot Program (TCSP).  Click here for a copy! 

TEA-21 Reference:

Section 1221.

• Many fast growing cities are realizing that rail transit has much to offer. As a result, demand for New Starts funding has exploded since ISTEA.
  
• Although a majority of New Starts money falls within TEA-21's funding guarantee, some does not. Full funding will only be achieved if supporters of new start projects push for it.
  
• The best new start projects integrate the transit system with transit-supportive land use. This attracts economic development, boosts ridership and builds better communities.

TEA-21 Reference:

Sections 3009 and 3030.

• ISTEA required the consideration of bicycling and walking as transportation plans are assembled, and slowly this has begun to happen. TEA-21 continues and expands these requirements.

• TEA-21 continues ISTEA's policy innovations and increases funding for the CMAQ and Transportation Enhancements programs, which fund most bicycle and pedestrian projects.

• New provisions—such as eligibility for safety funds and development of design guidance—will help ensure that the needs of bicyclists and pedestrians are addressed.

TEA-21 References:

Sections 1202, 1203, 1204, and 1401.

• The innovative finance programs represent a lot of money—too much to ignore.

• Applicability to mass transit could open doors. For example, a transit agency that wants to extend rail service could pledge revenues from selling pre-paid transit passes to repay debt undertaken to build a line extension.

• TEA-21's innovative finance programs are very flexible—the lines of credit or secured loans can be used for a wide variety of purposes.

• Like all loans, the money must be repaid.

TEA-21 Reference:

Sections 1501 through 1511.

• In many areas, emissions from diesel engines are becoming a larger piece of the overall pollution problem. The clean fuels grant program provides an opportunity to start reducing pollution from the transit bus fleet.

• Only one-half of the $200 million per year authorized for this program is guaranteed. The remainder must compete for funding in the annual appropriations process.

• Only those who apply can receive funds.

TEA-21 Reference:

Section 3007.

• TEA-21 is a big improvement for the donor states, but it may not help the other donors—many of the country’s metropolitan areas.

• USDOT is now required to report on how funds are spent within states.

TEA-21 Reference:

Section 1130(h).