Fiscal Year 2004 DOT Budget Requests $54.3 Billion For Safer, Simpler, Smarter Transportation System

Contact DOT 11-03 Bill Mosley 202-366-5571

Monday, February 3, 2003 -- The U.S. Department of Transportation today unveiled its proposed fiscal year 2004 budget, requesting $54.3 billion - a 6 percent increase over President Bush's 2003 request. A total of $14.4 billion, or 27 percent, is targeted towards supporting transportation safety, U.S. Secretary of Transportation Norman Y. Mineta's top priority.

"During the past year, we at DOT have been hard at work creating a safer, simpler and smarter national transportation system for all Americans: safer, because we are placing a greater emphasis on saving lives and reducing accidents; simpler, because we want to consolidate and streamline programs and improve project delivery; and smarter, because we are improving system performance and enhancing program accountability," Secretary Mineta said. "This budget request and these guiding principles provide the foundation for a new reauthorization cycle in both surface and aviation programs that will guide the course for these important programs for the next several years." He added that for DOT, 2003 will be a year of special focus on highway and aviation safety.

In a briefing at DOT headquarters, Deputy Secretary Michael P. Jackson said that the President's budget reflects the first full year of funding for the newly established Department of Homeland Security, to which the United States Coast Guard and the Transportation Security Administration (TSA) are moving from DOT. DOT provided guidance and support for the Coast Guard for more than 35 years. DOT also shepherded TSA from its inception through its first full year of operation, significantly improving security for the traveling public. The new agency met all of its statutory deadlines for bringing airports throughout the country into compliance with new security procedures, Jackson said.

Current laws authorizing both surface and air transportation financial assistance programs will expire at the end of 2003. In anticipation of this, the 2004 budget includes the foundation for proposed new legislation that will authorize these programs for the next several years, including increased funding flexibility, innovative financing tools, efficient environmental review processes, and expansion of the capacity and efficiency of freight transportation. In addition, the proposal includes an emphasis on consolidating and expanding federal transportation safety programs.

For the Federal Highway Administration, the administration's 2004 proposal extends the current funding approach established under the Transportation Equity Act for the 21st Century, which links highway spending to Highway Trust Fund receipts. The proposed budget is designed to keep the Highway Trust Fund balance relatively constant, with an obligation limitation of $29.3 billion for fiscal year 2004. The budget also proposes that all revenue from gasohol taxes be deposited directly into the Highway Trust Fund, which would add approximately $600 million of available funding to the Highway Trust Fund for each year of the authorization cycle. The proposal also unveils a new $1 billion Infrastructure Preservation and Maintenance (IPM) initiative specifically aimed at addressing immediate highway needs and at projects that can be implemented quickly.

The budget includes $665 million for the National Highway Traffic Safety Administration (NHTSA) to support its mission of reducing vehicle fatalities, preventing injuries, and encouraging safe driving practices. Of NHTSA's budget, $447 million will support grants to states to enforce safety belt and child safety seat use and reduce impaired driving.

In order to prevent fatalities and injuries resulting from accidents involving commercial motor vehicles, the budget includes $447 million for the Federal Motor Carrier Safety Administration. This funding includes $174 million to strengthen truck and bus safety standards, ensure compliance with safety regulations, and support inspection programs that keep unsafe trucks off our roads. The budget also emphasizes a comprehensive safety inspection program at the southern border to assure that trucks entering the United States from Mexico meet U. S. federal safety regulations. Also included is a total of $223 million for Motor Carrier Safety Grants to states to ensure aggressive enforcement of interstate commercial truck and bus regulations.

The budget also includes $7.2 billion for the Federal Transit Administration (FTA) to strengthen and maintain U.S. mass transit systems. The request reflects a streamlined and consolidated program giving states and localities additional flexibility to meet mobility needs in their communities. The 2004 budget funds 26 "new start" projects, as well as $145 million to support the President's New Freedom Initiative to reduce barriers for persons with disabilities who wish to enter the workforce.

The budget request includes $14 billion for Federal Aviation Administration (FAA) programs for FY 2004, maintaining the department's commitment to investing in the nation's air traffic control system and airports as the demand for air services returns to pre-9/11 levels. The FAA budget also will help move toward the goal of reducing aviation fatality rates by 80 percent over the period 1996 to 2008. The President's budget and the pending reauthorization will maintain current levels of aviation infrastructure investment and expand FAA's safety staff.

The President's 2004 budget includes $900 million for Amtrak, a level designed to encourage Amtrak to adopt reforms that will strengthen its business operations and financial footing. The budget also seeks $189 million for the Federal Railroad Administration to help reduce rail-related accidents and to ensure the safe transport of hazardous materials throughout the rail system.

The movement of hazardous materials also is a priority focus for the Research and Special Programs Administration (RSPA), which oversees the transportation of hazardous materials, including America's 2.1 million miles of gas and oil pipelines. The budget provides $132 million, including $67 million specifically targeted towards pipeline safety initiatives.

The request for DOT water programs includes $219 million for the Maritime Administration (MARAD) and $14 million for the Saint Lawrence Seaway Development Corporation. MARAD's funding includes $11.4 million to dispose of obsolete ships that potentially pose an environmental risk to the nation's waterways.

Further details on the budget are available from DOT's fiscal year 2004 "Budget in Brief" at http://www.dot.gov/bib2004/bibindex.html.