Monday, February 2, 2004
Contact: Lenny Alcivar, (202) 366-4570
DOT 7-04

Secretary Mineta Announces $58.7 Billion Budget for FY 2005 to Support Infrastructure Improvements and Increase Safety

U.S. Transportation Secretary Norman Y. Mineta today unveiled a $58.7 billion Administration budget request for transportation in Fiscal 2005 that focuses on greater infrastructure and safety-related investments, and represents a more than four billion dollar increase over the previous request.

Secretary Mineta said the Department’s share of the President’s budget means good news for the American economy. “The President’s budget reflects this Administration’s commitment to improving our nation’s infrastructure, strengthening the economy and creating more jobs,” he said.

The Department’s budget request increases funding for the President’s six-year surface transportation reauthorization proposal, the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 (SAFETEA) to $256 billion, an almost nine billion dollar increase over the Administration’s original $247 billion proposal announced last May.

The Secretary said the adjustment in the Administration’s SAFETEA funding request was made to account for an increase in FY 2004 transportation appropriations passed by Congress as part of the omnibus spending bill signed by the President last month.

The adjusted spending level does not reflect a change in the Administration’s position concerning the overall funding of the bill, but is meant to recognize actions already taken by Congress in what equates to the first year of a six-year program, Secretary Mineta said. He also noted that the funding adjustment would be paid for from the Highway Trust Fund.

“The Administration’s proposal is the largest federal highway and transit investment in the nation’s history and I will continue to work with Congress to pass a full, six-year reauthorization legislation to avoid further delays and protect the economy,” he said

“Congress must enact a fiscally responsible, six-year reauthorization bill before the February 29 deadline that does not impose costly new taxes or potentially bankrupt the highway trust fund.”

The Administration’s funding request for the Federal Aviation Administration is $14 billion, the first yearly appropriation of the $60 billion, four-year Vision 100-Century of Aviation Reauthorization Act signed by the President in December. Vision 100 includes a 31 percent increase over the previous authorization, and represents the Department’s commitment to airspace modernization and infrastructure improvements to increase the safety and efficiency of our aviation system.

Because of the high human and economic costs of motor vehicle crashes and other transportation-related accidents to the economy, the Secretary said the Administration would allocate almost a quarter of the Department’s budget -- $14.4 billion -- toward safety programs within the Federal Aviation, Highway, Motor Carrier Safety, Railroad and Transit Administrations, as well as the National Highway Traffic Safety Administration and Research and Special Programs Administration.

The FY 2005 budget would provide $900 million for Amtrak. In addition, the proposal underscores the Administration’s commitment to inter-city rail by allowing for a potential increase to $1.4 billion in FY 2006 and beyond if reforms outlined in the Administration’s Passenger Rail Investment Reform Act are enacted by law.

The Secretary also said the Administration’s budget request would help provide taxpayers the best value for their dollars by supporting the Department’s efforts to build on the significant progress made in performance standard improvements under the President’s Management Agenda (PMA).

A Budget in Brief, which summarizes the President’s budget request for the U.S. Department of Transportation, will be made available on the Internet at www.dot.gov.

Briefing Room