For more information: Trevor Sleeman, Federal Affairs, (971) 273-9519 or Shelley M. Snow, Communications, (503) 881-5362
SALEM - Oregon Department of Transportation leaders thanked Oregon’s congressional delegation today for passing the $300 billion “Fixing America’s Surface Transportation Act,” or FAST Act (HR 22). FAST Act reauthorizes federal surface transportation policy and funding through 2020. The five-year funding act is the first long-term reauthorization in over a decade.
FAST ACT funding
FAST Act provides stable funding with modest increases to states over the five year life of the bill. In the first year of the FAST Act, Oregon’s federal highway funding shared by ODOT and local governments will rise by five percent to $507 million from the current $482 million. Funding will then rise by about two percent per year until the bill’s final year.
“I would like to thank all members of Oregon’s congressional delegation for their votes in favor of FAST Act,” said ODOT Director Matthew Garrett. “In particular, I thank Congressman Peter DeFazio for the incredible work he has done on behalf of Oregonians on this bill. Oregon will receive $325 million more over the next five years than we would have if Congressman DeFazio had not been in a continuous position of leadership on transportation policy in Washington, DC. I would also like to thank Senator Ron Wyden for his hard work on the final agreement.”
New freight programs
FAST Act creates two new programs designed to help address the movement of freight. The “National Highway Freight Program” will provide annual funding to states for addressing freight projects on the highway system. ODOT is set to receive an additional $80 million over five years through this program, which will help the state address highway issues that impact Oregon’s trade-dependent economy. The “Nationally Significant Freight and Highway Projects Program” is a new competitive grant program for so-called “megaprojects” that cost over $100 million. ODOT, local governments, ports and tribal governments will be eligible to apply for this new funding.
Funding alternatives
FAST Act also launches a competitive grant program for states to demonstrate alternatives to the gas tax as a revenue source for surface transportation projects. Oregon has led the way in exploring new ways to fund transportation with the first-in-the-nation road usage charge program, OReGO. FAST Act could support efforts in Oregon and around the country to address the challenges facing the gas tax as vehicles become increasingly fuel efficient.
“We are excited that Congress has recognized the value of a road usage charge as an alternative to the gas tax,” said Jim Whitty, director of ODOT’s Office of Innovative Partnerships and Alternative Funding. “This new grant program could help support expansion of the OReGO program and similar approaches elsewhere to take the next steps toward transforming the way we fund transportation nationally.” A total of $95 million in alternative funding grants will be made available to states by the FAST Act.
For more detail, see the two-page summary attached.
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