Legislative Update

House Appropriations Committee Approves DOT Funding Bill – Transit at $7.2 Billion

July 25, 2003

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Acting on a Manager’s Amendment offered by Subcommittee Chairman Ernest Istook (R-OK), the full House Appropriations Committee approved the FY 2004 Transportation, Treasury and Independent Agencies Appropriations bill on Thursday, July 24th. Thanks to the APTA membership for its strong support on this effort - both here in Washington during Lobby Day and for all the good work around the country with congressional delegations - the action by the full committee is $110 million better for public transportation than had been the case. The following table shows the changes made by the Committee:

Program	Guaranteed Authorization FY 2003	Actual Appropriation After Reduction FY 2003 (a)	House Subcommittee Appropriation FY 2004	House Committee Bill FY 2004
				FY 2004 Amount	Change from FY 2003 Guarantee	Change from FY 2003 Actual Appropriation
	(Millions)	(Millions)	(Millions)	(Millions)	(Millions)	(Millions)
Total All Programs	7,226.00	7,178.97	7,120.90	7,231.00	+ 5.00	+ 52.03
Formula Total (b)	3,789.00	3,764.37	3,789.00	3,789.00	0.00	+ 24.63
UZA and Rural Formula	3,686.55	3,662.58	3,686.55	3,686.55	0.00	+ 23.96
Elderly and Disabled	90.65	90.06	90.65	90.65	0.00	+ 0.59
Alaska Railroad	4.85	4.82	4.85	4.85	0.00	+ 0.03
Rural Transp. Accessibility	6.95	6.90	6.95	6.95	0.00	+ 0.05
Capital Investment (c)	3,086.00	3,110.65	3,046.40	3,156.50	+ 70.50	+ 45.85
New Starts	1,214.40	1,251.21	1,104.30	1,214.40	0.00	- 36.81
Fixed-Guideway Modernization	1,214.40	1,206.51	1,214.40	1,214.40	0.00	+ 7.89
Bus and Bus Facilities (c)	657.20	652.93	727.70	727.70	+ 70.50	+ 74.77
Planning	73.00	72.46	73.00	73.00	0.00	+ 0.54
Research	49.00	48.68	49.00	49.00	0.00	+ 0.32
Job Access & Reverse Commute	150.00	104.32	85.00	85.00	- 65.00	- 19.32
University Centers	6.00	5.96	6.00	6.00	0.00	0.04
FTA Operations	73.00	72.53	72.50	72.50	- 0.50	- 0.03

(a) Reflects FY 2003 government-wide across-the-board spending reduction of 0.65%.

(b) Excludes $50 million Clean Fuels Formula Funds authorized in formula program but transferred to Bus and Bus Facilities during appropriations.

(c) Includes $50 million Clean Fuels Formula Funds authorized in formula program but transferred to Bus and Bus Facilities during appropriations.

The bill funds the federal transit program at $7.231 billion, an increase of $5 million over the FY 2003 guaranteed level and $52 million over the actual FY 2003 appropriation. The subcommittee’s increase in the bus capital program of $70.5 million is retained. The bill also restores funding for the New Starts program that had been cut in the subcommittee markup to the amount guaranteed in FY 2003, but still $36.8 million below the actual FY 2003 appropriations.

Formula programs under the bill would be funded at $3.789 billion in FY 2004, the same as the FY 2003 guaranteed level, excluding $50 million in Clean Fuels Funds that were authorized in the formula program, which as in previous years are transferred to the Bus and Bus Facilities program bringing funding for that program to $727.7 million in FY 2004 under the bill.

The bill cuts funding for the Job Access and Reverse Commute (JARC) program to $85 million, a reduction of $65 million from the guaranteed FY 2003 level, and $19 million below the actual appropriation level in FY 2003. It also cuts funding for FTA operations by $500,000 from the guaranteed FY 2003 level. The bill retains the Buy America program changes implemented in the subcommittee markup – these would: clarify and tighten the definitions of "manufactured product" and "microprocessor"; restrict the usage of waivers; and require that federal regulatory Buy America decisions are subject to review under the Administrative Procedure Act.

Amtrak and Highway Funding

The bill increases Amtrak funding to $900 million, a $320 million increase over the subcommittee-approved level but still $143 million less than approved in FY 2003. It sets highway funding at $33.4 billion, a cut of  $1.1 billion below the subcommittee-approved level and approximately $2 billion over the FY 2003 level.

Commuter Rail

The bill authorizes the Surface Transportation Board in the case of cessation of Amtrak services to direct the continuation of operations, dispatching and other necessary functions in existing freight or commuter rail passenger transportation operations, and the Board shall provide funding to fully reimburse the directed service provider for its costs, including the payment of increased insurance premiums. The Board also would order complete indemnification against any and all claims associated with the provision of service to which the directed rail carried would be exposed.

Next Steps

With the House set to break for its August recess today, the bill will not be considered by the full House of Representatives until September. Although the Senate will not break for its August recess until the end of next week, the Senate version of the FY 2004 transportation appropriations bill is unlikely to move through the Senate Appropriations Subcommittee before the Senate returns in September.

Action Call! From congressional visits during Lobby Day, it is clear there is support for reauthorization but little sense of urgency to move the legislation. During the August congressional recess it is critical that APTA members make the case with their congressional delegations to support TEA 21 reauthorization at the highest levels possible. Emphasize the benefits of TEA 21, the significant unmet transit needs, and the importance of highway and transit funding for jobs and the economy. Urge them to support the bipartisan TEA 21 reauthorization efforts of the leadership of the House Transportation and Infrastructure Committee and the Senate Banking Committee!

For More Information

For more information on the appropriations process, please contact Rob Healy in APTA’s Government Affairs Department at (202) 496-4811.

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