Our nation has built vast  systems of roads, airways, railways, transit systems, pipelines, and  waterways that facilitate commerce and improve our quality of life. However, these systems are under considerable strain due to increasing  congestion and the costs of maintaining and improving the systems. DOT implements national transportation policy and administers most  federal transportation programs. For fiscal year 2010, the President’s budget  requested $72.5 billion to carry out these and other activities. Rather, the recipients of transportation funds, such as state departments  of transportation, implement most transportation programs. Aiding Economic Recovery and Ensuring Accountability for Recovery Funds’ Use

Congress and the presidential administration have fashioned the American  Recovery and Reinvestment Act of 2009 to help our nation respond to  what is generally reported to be the worst economic crisis since the Great  Depression. DOT received about $48 billion of these funds for investments  in transportation infrastructure—primarily for highways, passenger rail,  and transit—mostly for use through fiscal year 2010. As with  other executive agencies, DOT now faces the challenges of using these  funds in ways that aid economic recovery, making wise funding choices  while spending the money quickly, and ensuring accountability for results. This is a difficult  challenge for transportation infrastructure projects. Among other things, the act gives our office the responsibility of reporting  to Congress bimonthly on how selected states and localities are using the  recovery funds. Addressing Funding, Safety, Mobility, and Modernization Challenges in Surface Transportation and Aviation Reauthorization Efforts

DOT and Congress will be faced with numerous challenges as they work  to reauthorize the surface transportation and aviation programs. In  particular, the department and Congress will need to address challenges in  (1) ensuring that the nation’s surface transportation and aviation systems  have adequate funding, (2) improving safety, (3) improving mobility, and  (4) transforming the nation’s air traffic control system. Surface  transportation program funding is one of the issues on our high-risk list. Funding the Nation’s Transportation System

Revenues from motor fuels taxes and truck-related taxes to support the  Highway Trust Fund—the primary source of funds for highway and  transit—are not keeping pace with spending levels. This fact was made  dramatically apparent last summer when the Highway Account within the  trust fund was nearly depleted. Supplement existing revenue sources. Turning to aviation funding, the excise taxes that fund Airport and Airway  Trust Fund revenues have been lower than previously forecasted, and  forecasts of future revenues have declined because of a decline in airline  passenger travel, fares, and fuel consumption. We recently reported that although the  number of traffic crashes and the associated fatality rates has decreased  over the last 10 years, the number of fatalities has, unfortunately, remained  at about 42,000 annually and some areas are of particular concern. While the U.S. commercial aviation industry is among the safest in the  world, aviation safety is also a major concern because when accidents or  serious incidents occur they can have catastrophic consequences. Improving Transportation Mobility

Congestion has worsened over the past 10 years, despite large increases in  transportation spending at all levels of government and improvements to  the physical condition of highways and transit facilities. Flight delays and cancellations at congested airports also continue to  plague the U.S. aviation system. For example, almost one in four flights either arrived late or was  canceled in 2008, and the average flight delay increased despite a 6 percent  decline in the total number of operations through December 2008. Sustaining the current air traffic control system and maintaining facilities  during the transition to NextGen. Federal Aviation Administration: Challenges Facing the Agency in  Fiscal Year 2009 and Beyond.
Why GAO Did This Study

A safe, efficient, and convenient transportation system is integral to the health of our economy and quality of life. Our nation's vast transportation system of airways, railways, roads, transit systems, and waterways has served this need, yet is under considerable pressure due to increasing congestion and costs to maintain and improve the system. Calls for increased investment come at a time when traditional funding for transportation projects is increasingly strained. The authorizing legislation supporting transportation programs will soon expire. The Department of Transportation (DOT) implements national transportation policy and administers most federal transportation programs. DOT received funds for transportation infrastructure projects through the American Recovery and Reinvestment Act of 2009 to aid in economic recovery. DOT also requested $72.5 billion to carry out its activities for fiscal year 2010. This statement presents GAO's views on major challenges facing DOT and Congress as they work to administer recovery funds and reauthorize surface transportation and aviation programs. It is based on work GAO has completed over the last several years. GAO has made recommendations to DOT to improve transportation programs; the agency has generally agreed with these recommendations. To supplement this existing work, GAO obtained information on the recovery funds provided to DOT.

What GAO Found

The Department of Transportation received about $48 billion of recovery funds for investments in transportation infrastructure from the American Recovery and Reinvestment Act of 2009. As with other executive agencies, DOT is faced with the challenges of using these funds in ways that will aid economic recovery, making wise funding choices while spending the money quickly, and ensuring accountability for results. GAO will report to Congress bimonthly on how states and localities use the recovery funds received from DOT. DOT and Congress will also be faced with numerous challenges as they work to reauthorize surface transportation and aviation programs. Funding the nation's transportation system. Revenues to support the Highway Trust Fund are not keeping pace with spending levels and the Highway Account was nearly depleted last summer. In addition, the excise taxes that fund Airport and Airway Trust Fund revenues have been lower than previously forecasted, and forecasts of future revenues have declined. Declining revenues in both trust funds may adversely affect DOT's ability to continue to fund surface transportation and aviation programs at levels previously assumed. Improving transportation safety. Although the number of traffic crashes and the associated fatality rate has decreased over the last 10 years, the number of fatalities has remained at about 42,000 annually. The continued high level of fatalities and difficulties experienced by states in implementing grant programs raise issues for Congress to consider in restructuring these programs during reauthorization. While the U.S. commercial aviation industry is among the safest in the world, accidents can have catastrophic consequences. The lack of performance measures and complete data limit DOT's ability to improve safety and manage safety risks. Improving transportation mobility. Despite large increases in transportation spending, congestion on our nation's highways has increased over the last 10 years and increased demand will further strain the system. Flight delays and cancellations at congested airports continue to plague the U.S. aviation system. For example, almost one in four flights either arrived late or was canceled in 2008, and the average flight delay increased despite a 6 percent annual decline in the total number of operations through December 2008. Congestion poses serious economic as well as environmental and health concerns for the nation. Transforming the nation's air traffic control system. The air traffic control modernization program is technically complex and costly. The Federal Aviation Administration will need to accelerate the implementation of new and existing technologies, consider incentives for aircraft operators to acquire those technologies, and sustain the current system while transitioning to the new one, among other things.