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A Conversation with Secretary LaHood: The Role of Transportation in the Economic Recovery

With debate brewing in the United States about how the economic stimulus package is succeeding in spurring economic recovery and whether or not a second stimulus bill might be needed, the Center for National Policy hosted Secretary of Transportation Ray LaHood for a discussion on the impact that transportation projects are having in helping the economy rebound.    

Secretary LaHood emphasized his belief that the increased funds made available to transportation initiatives through the American Recovery and Reinvestment Act of 2009 would have—and already have had—a major impact on the nation's economy. Calling the stimulus "the most sweeping, complex, and serious aid package in decades," Secretary LaHood further noted that transportation comprises roughly ten percent of US GDP, and is therefore vital to any economic recovery.

Predicting that the stimulus will have positive ripple effects on the economy for several years to come, Secretary LaHood stated that he was already seeing beneficial results from the additional $48 billion allocated to the Department of Transportation under the stimulus.   While following well-established procedures and attempting to avoid fraud and abuse, he stated that the DOT has managed to move much of this money into active programs twice as fast as normal and has been able to award far more contracts than originally estimated, in part by working through well-established relationships with governors, mayors, and other local officials. 

As evidence of the positive effect of increased transportation funds, he sited the fact that the funds have boosted Pennsylvania's fiscal '09 highway and bridge construction by more than half, creating and saving thousands of jobs. He noted that the Maryland DOT has been able to recall all employees it was forced to lay off.  Further, he stated that as many as half of all states have obligated half of their recovery highway funds to economically depressed areas, where he argued the funds have the most chance of providing vitally needed assistance and achieving substantial results.  LaHood notes that cities are benefitting too, making sweeping upgrades in transit facilities and equipment to fight congestion and reduce emissions and improve mobility for millions of people.

Beyond speaking of the success of the stimulus and its impact on transportation, Secretary LaHood also discussed several of his priorities for future transportation advances.  Noting the success of Portland as a "livable community" with limited congestion, Secretary LaHood advocated increased use of light rail and other innovations that would make urban travel and commuting easier.  He also mentioned his support of high speed rail systems, a capability in which the United States trails much of the rest of the world.  Finally, speaking to the need for increased research within the DOT, Secretary LaHood stated that one of his top priorities was increasing funding, programs, and staff for the Research and Innovative Technology Administration in an effort to develop more intelligent transportation options.