Department of Transportation
The Department of Transportation subsidizes and regulates highways, airports, air traffic control, urban transit, passenger rail, and other activities. However, taxpayers and consumers would be better off if these activities were privatized, as has occurred in numerous other nations. Opening up the financing and operation of transportation infrastructure to the private sector would save money, spur innovation, and reduce congestion.
The department will spend about $79 billion in 2011, or about $670 for every U.S. household. It employs 58,000 workers and operates 84 subsidy programs.
Timeline of Government Growth
- See this timeline for key events in the department's growth.
Reading Room
- Here are background studies that examine the department's activities.
Cato Experts
- Randal O'Toole, Senior Fellow
- Chris Edwards, Director, Tax Policy Studies
- Tad DeHaven, Budget Policy Analyst
- Peter Van Doren, Senior Fellow
Spending Cuts Summary
- Here are proposed spending cuts to the department to save taxpayers $85 billion annually.
Downsize This!
- Federal Highway Funding. Highway aid gets misallocated and related regulations stifle local innovation. Highway aid and federal fuel taxes should be ended, and the states should pursue toll highway projects with the private sector.
- Urban Transit. The federal government spends billions of dollars a year on urban rail systems even though buses are more efficient. Without federal subsidies, cities would make better choices for their local transit needs.
- Airports and Air Traffic Control. Airport subsidies should be ended and U.S. airports privatized, as has occurred in many major cities abroad. Air traffic control should be commercialized, with Canada providing a good reform model.
- Privatizing Amtrak. Government-run railroads don’t work due to political meddling, high labor costs, and a lack of management flexibility. Amtrak should be privatized so that train service can thrive on those routes that make economic sense.
- High-Speed Rail. Policymakers are dumping billions of dollars into high-speed rail, even though foreign systems are money losers and carry only a small share of intercity passengers.
"Having considered the bill this day presented to me entitled 'An act to set apart and pledge certain funds for internal improvements,' and which sets apart and pledges funds 'for constructing roads and canals, and improving the navigation of water courses' . . . I am constrained by the insuperable difficulty I feel in reconciling the bill with the Constitution of the United States to return it with that objection to the House of Representatives. The legislative powers vested in Congress are specified and enumerated in the eighth section of the first article of the Constitution, and it does not appear that the power proposed to be exercised by the bill is among the enumerated powers."
- James Madison, March 3, 1817. Veto of federal transportation spending.
