Enabling Better Access to Federal Transportation Funds for Small and Rural Communities
Summary
Most federal transportation funds are distributed to state and regional transportation entities by a legislatively set formula for different types of transportation. An exception to this rule is the U.S. Department of Transportation’s (USDOT) Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants program (formerly known as the TIGER program). The BUILD program is extremely flexible, with funding available for any kind of surface-transportation project and any government agency, and it the only transportation program that provides direct capital support to local transportation projects. This flexibility has made the BUILD program incredibly popular, receiving 10 times more applications than can be funded. However, the application process is extensive and can require outside assistance to produce, making the application itself too expensive for some areas to take on, especially considering the high level of competition. USDOT should create a simpler application that most public agencies can manage with internal staff to make the program more universally available to communities of all sizes and levels of capacity.
A supply-side tax credit (STC) could offer a tax incentive to material suppliers and professional service consultants that provide goods or services to affordable housing projects.
The Department of Housing and Urban Development (HUD), Department of Commerce, and Department of Transportation should jointly develop and manage a data resource—a Housing Production Dashboard—to track housing production within and across states.
Exempting affordable housing from volume caps would address the underlying issue and have the greatest impact in this housing emergency.
The U.S. should establish a national housing loss rate to stand alongside the national unemployment rate as a key indicator of social and economic well-being.