	Background

Most of the federal funding for highway and transit infrastructure and  safety improvements is provided by FHWA, FTA, and NHTSA. MAP-21 included a number of statutory requirements related to  transforming the surface transportation system to a performance-based  approach, for the operating administrations, as well as for states and  other grantees, in many cases holding grantees accountable for the first  time. DOT Has Made Progress in Moving toward a National Performance-Based System, but Multiple Factors Affect Progress

		DOT Has Made Extensive Outreach Efforts to Communicate with States and Other Grantees

Since MAP-21 was enacted in July 2012, DOT has conducted an  extensive outreach effort to prepare states and grantees for a national  performance-based approach to surface transportation. FHWA has released three of its five proposed rules for public  comment. In developing these rules, DOT has missed five out of six performance- related rulemaking deadlines established in MAP-21. As part of finalizing the rules, DOT plans to establish specific  deadlines for grantees’ implementation of the MAP-21 performance  target- setting and reporting requirements. Multiple Factors Affect DOT’s Progress in Developing a National Performance-Based Approach

DOT’s progress in developing a national performance-based approach  has been affected by the extent to which MAP-21 transformed surface  transportation programs, the length and complexity of the rulemaking  process, and DOT’s varying levels of experience implementing a  performance-based approach. For example,  NHTSA has been collaborating with grantees and the Governors  Highway Safety Association (GHSA) to develop performance  measures in its highway safety grant programs since 2008. We have previously found that implementing a performance  accountability framework necessitates agencies having to collect and  analyze data that are useful and relevant. For  example, state and grantee officials told us they were concerned that data  may not be available to measure congestion, in part, because there is a  lack of consensus among states and grantees regarding how to measure  it. In addition, FHWA has  proposed that states collect data on the average annual daily traffic on  all public roads. According to some state officials we spoke with,  however, this would be a substantial undertaking. For example, New  York DOT officials told us the state currently has adequate data for  only about 37 percent of its public roads. For example, DOT has encouraged and worked with  states to share data, best practices, and templates for reporting. Implementation Costs Could Vary and Be a Significant Challenge for Some States and Grantees

Representatives from 5 national organizations and officials from 22 of the  29 states and other grantees we spoke to reported potential challenges  with the costs of implementing a national performance measurement  system. Agency Comments

We provided a draft of this report to DOT for review and comment. DOT  provided technical comments, which we incorporated as appropriate. Appendix I: Objectives, Scope, and Methodology

The objectives of our review were to determine: (1) the progress that DOT  has made in developing a national performance-based approach to  surface transportation and (2) the challenges states and other grantees  report facing in implementing this approach. To understand the challenges states and other grantees face in  implementing a performance-based approach to surface transportation,  we analyzed comments submitted to DOT by and interviewed  representatives from seven national transportation organizations (such as  AASHTO, Association of Metropolitan Planning Organizations, and  American Public Transportation Association), which broadly represent  state and local transportation, transit, and planning interests and  perspectives, both in urban and rural communities.
Why GAO Did This Study

In fiscal year 2013, DOT provided about $50 billion to states and other grantees (such as metropolitan planning organizations and transit agencies) to support highway and transit infrastructure and safety. However, it is not clear if this funding has improved system performance because, in part, these programs have lacked links to performance and national goals. Since 2008, GAO has highlighted the need to link surface transportation programs to performance. MAP-21 transformed surface transportation programs by including provisions for both DOT and its grantees to move toward a national performance-based approach, in many cases holding grantees accountable for performance for the first time. This approach includes DOT establishing national performance measures, and states and other grantees setting targets related to these measures, and reporting progress.
GAO examined (1) the progress that DOT has made in developing a national performance-based approach to surface transportation and (2) the challenges states and other grantees report facing in implementing this approach. GAO reviewed proposed rules and DOT information on rulemaking milestones and interviewed officials from DOT, national transportation organizations, and a non-generalizable sample of 29 grantees in 13 states, selected on the basis of state population growth, performance management experience, and other factors. DOT reviewed a draft of this report and provided technical comments, which were incorporated as appropriate.

What GAO Found

The Department of Transportation (DOT) has made progress moving toward a national performance-based approach since the Moving Ahead for Progress in the 21st Century Act (MAP-21) was enacted in July 2012. DOT has undertaken extensive outreach efforts with states and other grantees and is developing nine rules that, among other things, are to establish national performance measures, and target-setting and reporting requirements for grantees. Five of the rules have been released for public comment, and none has been finalized. (See figure.) DOT has missed five of six deadlines established by MAP-21. However, given the extent to which MAP-21 transformed surface transportation programs and the length and complexity of the rulemaking process, these deadlines may have been ambitious. DOT's progress has also been affected by the varying experiences within its operating administrations in implementing a performance-based approach. For example, the National Highway Traffic Safety Administration has been implementing such an approach in its grant programs since 2008, while other DOT operating administrations started more recently.
States and other grantees reported potential data and cost challenges with implementing a national performance-based approach. According to some grantees and national organizations GAO contacted, data may not be available for measuring performance in some areas, such as congestion, and collecting data that are available may prove difficult. For example, DOT has proposed states collect traffic data on all public roads, and some state officials told GAO this step would be a substantial undertaking; New York officials told GAO that the state has adequate data for only about 37 percent of its public roads. Further, some grantees noted they may lack the staff or resources to analyze data, and some raised concerns that implementation costs may be substantial. DOT officials acknowledged these challenges and are working with grantees to help overcome obstacles. For example, DOT is working with states to share data, best practices, and templates for reporting.