Federal Stimulus Plan

Transportation reformers and status quo-lovers alike smacked their foreheads in frustration when the White House's first stimulus plan lowballed infrastructure to make room for tax breaks that had little demonstrable effect on job creation -- particularly the $70 billion adjustment of the alternative minimum tax (AMT).

As the $787 billion stimulus law nears its one-year anniversary, Congress' choice to route the lion's share of recovery funds through state capitals -- including state DOTs where misplaced priorities are all too common -- remains a sore spot for mayors and urban advocates.

Sens. John McCain (R-AZ) and Tom Coburn (R-OK) are no fans of dedicated federal spending on cleaner transportation. From bike and pedestrian safety to local transit funds, the duo has made a habit of attacking non-road projects as wasteful "pork."

President Obama will deliver a speech on job creation this morning in Washington, but one tactic that has won over quite a few Democrats of late -- redirecting unspent money from last year's financial bailout to transportation -- may not be as possible as lawmakers had thought.

In an economic recovery report released today by New York Gov. David Paterson (D), the state broke down its plans for the estimated $31 billion it received as part of the Obama administration's first stimulus law.

Pennsylvania Gov. Ed Rendell (D), who is in Washington today continuing his push for a "front-loaded" federal transportation bill, told Streetsblog Capitol Hill that he sees momentum building for a National Infrastructure Bank (NIB) to be created as part of the jobs bill now moving forward in Congress.

Members of Congress remain intensely focused on health care this fall, but as the unemployment rate hits double digits in more states, their No. 2 priority is best summed up in three words: Jobs, jobs, jobs.

Halfway through the extra month that Congress gave itself to resolve a long-simmering dispute over funding the nation's transportation system, Democratic leaders remain deadlocked over whether -- and how long -- to wait before debating a broad reform of federal infrastructure policy.

The White House's economic stimulus law included several large new spending programs, from $4 billion for broadband to $2.4 billion for electric car batteries. But nothing has aroused so much interest -- and criticism -- as the $8 billion for American high-speed rail.