Coming Soon to Popular Transport Stimulus Programs: Local Funding

Two of the most popular transportation programs in the Obama
administration's stimulus law, the $1.5 billion in competitive grants known as TIGER and the $8 billion high-speed rail
initiative, had an added feature that made them even more attractive to
cities and states: the federal funding awards would not require a local
match.

Amtrak's Empire Builder line currently provides rail service to Milwaukee. (Photo: Nat'l Corridors Initiative)

But
that arrangement is about to change, as the stimulus era runs its
course and the next rounds of high-speed rail and TIGER-style
competitive grants are given out by the U.S. DOT.

In Wisconsin, where an advertising war already has started between conservative critics and industry supporters of the state's $822 million bullet-train grant, local media reports that finding a local match for future rail grants could prove a significant stumbling block:

It
remains to be seen whether Wisconsin's resistance to budgeting for a
state contribution to high-speed rail -- which is not affecting its
enthusiasm for other federal road and transit programs that require a
local match -- will become a trend in the coming months. The $600
million in competitive TIGER-style grants that Congress approved last fall will require localities to find matching funds, but the U.S. DOT has yet to formally solicit applications for that funding.

Still,
as a growing number of states face budget crises in the wake of the
global financial crisis, available funding for all modes of
transportation is evaporating. The latest state to feel the pinch is Maryland, where officials have announced plans to delay for two years a $28 million capital contribution to the D.C. area's Metro transit system.