Federal Budget Proposal Outlines Cuts To Department Of Transportation

Posted on: Mar 15, 2017

US President Donald Trump's proposals sees cutting the 2018 Department of Transportation (DOT) 13 percent year over year to $16.2 billion. The budget proposal sees a slimmed down DOT that will focus on safety oversight and investing in transportation infrastructure, reported American Shipper.

"The Trump budget reduces or eliminates programs that are either inefficient, duplicate other federal efforts, or that involve activities that are better delivered by states, localities, or the private sector", said the White House document. Former President Barrack Obama's Transportation Investment Generating Economic Recovery (TIGER) grant program would be shelved, saving $499 million a year. 

Several trade groups have released statements of unease regarding the budget blueprint, with American Association of Port Authorities (AAPA) president Kurt Nagle stating: "We're apprehensive. Adequate federal investments into US port-related infrastructure are crucial for the efficient movement of goods so the nation can remain globally competitive."
 
American Road and Transportation Builders Association also released this statement: "We do not support cutting current infrastructure investment as a down payment to some future infrastructure measure. While the funds will be used later for the infrastructure package, we should be clear this proposed infrastructure spending reductions would be used now to supplement increases in defense and security spending."
 
Labor federation AFL-CIO official Edward Wytkind: "The austerity measures offered for transportation in the president's budget blueprint go in the wrong direction and must be rejected. We cannot cut our way to a better and more modern transportation system." Stay tuned as more details about the proposed cuts, industry reactions and congressional reviews are released.
 
Source: American Shipper