Stimulus Money Pits Cities Against States

In an effort to secure federal stimulus funding, cities and states are elbowing to see who can get transportation projects started the fastest.

1 minute read

December 19, 2008, 11:00 AM PST

By Nate Berg


"The nation's cities and counties are asking Obama transition officials to give them most of the infrastructure money from the multibillion-dollar economic stimulus package, setting off a dispute with the states over who can launch transportation projects the fastest."

"The disagreement over the stimulus money partly reflects the increased tension between state and local governments during a worsening recession."

"Many city and county leaders already are upset at state officials who are slashing aid to local governments to cover budget gaps. Their anxieties over being shortchanged were heightened Dec. 2 when 48 current and incoming governors met with President-elect Barack Obama to ask Obama to direct much of the stimulus money to states."

Thursday, December 18, 2008 in Stateline

Young Professional

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 and Environmental 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 and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

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

September 16, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

The Gross Reservoir, a large body of water surrounded by trees and mountains.

Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion

Overuse and climate change have caused the Colorado River’s water levels to plummet.

September 18, 2026 - Inside Climate News

A painted bus lane in NYC.

NYC DOT wants faster, more permanent street upgrades

The city is examining ways to build more concrete infrastructure without getting entangled in 'decades-long' projects.

September 21 - NYC Streetsblog

A woman looks at a utility bill.

'Something we’ve never seen before:' rising utility rates could strain city finances nationwide

Data centers, climate change and other factors have caused utility rates in the United States to increase by 38% since 2020.

September 21 - Smart Cities Dive

A person scuba diving in a coral reef off Guam.

Trump to overrule local leaders, lease millions of acres of America’s Pacific Island territories’ seafloors to mining companies

International law says that the Indigenous people of America’s territories have a right to prior and informed consent regarding projects that impact their countries.

September 21 - Grist