Should the Feds Fund Transportation Projects?

The impending bankruptcy of the Highway Trust Fund a lack of clear purpose for national transport investment has Eric Jaffe asking if, after 120 years, we might be witnessing the end of federal transportation funding as we know it.

2 minute read

March 11, 2013, 1:00 PM PDT

By Jonathan Nettler @nettsj


Jaffe lays out the two opposing arguments for what role the federal government should play in funding transportation.

"On one hand, there are those who believe the country would be better off if federal governance of transportation were either significantly reduced or entirely eliminated." In this scenario, transportation funding responsibility would be shifted to states and localities.

"Proponents of decentralization also point out that, like it or not, the process has already started," notes Jaffe. "This past fall, a number of cities passed referendums to fund local transportation, extending a trend that goes back several years."

On the other side, the arguments for continued federal investment are based on "the historical roots of national transportation investment and the need to coordinate interstate infrastructure."

"It's kind of a myth that it will be feasible for the federal government simply to shed responsibility and leave it to the states," says transport scholar Martin Wachs of the RAND Corporation, a California-based think tank. "There's a national interest in every aspect of the transportation system, and it's a political question as to how to organize it. It's a terrible mistake to think that the best thing to do is just to let it go."

"Of course there's a middle ground to this discussion." adds Jaffe. "The federal government can keep some sort of funding involvement in the nation's roads and rails but see its traditional top-down role of governance reformed."

In the current political climate the prospects for significant reform, whatever form it might take, are slim. 

Monday, March 11, 2013 in The Atlantic Cities

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Street with parking protected bike lane and parked cars in downtown Portland, Oregon.

Portland Raises Parking Fees to Pay for Street Maintenance

The city is struggling to bridge a massive budget gap at the Bureau of Transportation, which largely depleted its reserves during the Civd-19 pandemic.

July 8 - Willamette Week

Aerial view of Spokane, Washington with river in foreground.

Spokane Mayor Introduces Housing Reforms Package

Mayor Lisa Brown’s proposals include deferring or waiving some development fees to encourage more affordable housing development.

July 8 - The Spokesman-Review

Close-up on black and white "Bike Lane Ends" sign with bike logo.

Houston Mayor Kills Another Bike Lane

The mayor rejected a proposed bike lane in the Montrose district in keeping with his pledge to maintain car lanes.

July 8 - Houston Public Media

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA