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U.S. Department of Transportation
2005 Budget in Brief

Federal Aviation Administration (FAA)
Federal Highway Administration (FHWA)
Federal Motor Carrier Safety Administration (FMCSA)
National Highway Traffic Safety Administration (NHTSA)
Federal Transit Administration (FTA)
Federal Railroad Administration (FRA)
Research and Special Programs Administration (RSPA)
Maritime Administration (MARAD)
Saint Lawrence Seaway Development Corporation (SLSDC)
Office of the Inspector General (OIG)
Office of the Secretary
Surface Transportation Board (STB)
Bureau of Transportation Statistics (BTS)

Federal Aviation Administration

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Overview: The Federal Aviation Administration's (FAA) mission is to promote aviation safety and mobility by building, maintaining, and operating the Nation's air traffic control system; overseeing commercial and general aviation safety through regulation and inspection; and providing assistance to improve the capacity and safety of our airports. The 2005 budget request for the FAA reflects the Administration's commitment to increase the performance and capacity of our aviation system.

The total FY 2005 request for the FAA, $14 billion, is approximately 1 percent higher than FAA's bud-get resources at the FY 2004 enacted level.

FY 2005 Budget

Operations: The President's FY 2005 budget requests $7.8 billion for FAA Operations, a five percent increase over the FY 2004 enacted level. Most of the funds requested for FAA Operations in FY 2005 support the goal of maintaining and increasing aviation safety, reflecting the President's commitment in this area. Other significant amounts support mobility and security.

• Safety — $7.4 billion includes all funding for inspecting aircraft and ensuring the safety of flight procedures. This includes $18 million in discretionary increases to support implementation of required navigational performance and the creation of advanced collision risk models. The budget supports continued development of the Air Traffic Organization, which was formed in FY 2004 to improve the delivery of air traffic services by adopting "best business-like" practices. It also includes funding for operating and maintaining the air traffic control system, developing a replacement air traffic data and telecommunications system, commercial space transportation, and a share of agency overhead support costs.

• Mobility — The request includes $260 million to improve air traffic efficiency by various means including improving the flow of air traffic through better airspace design.

• Other — The request includes $212 million to promote other goals, most notably reductions in aviation noise, organizational excellence, and global connectivity.

Facilities and Equipment: The FAA requests $2.5 billion to continue to improve and modernize the equipment central to the National Airspace System (NAS). The request includes:

• Safety — $343 million for projects that support safety performance goals to reduce aviation fatalities, such as improvements to weather sensing and reporting systems, safety information databases and computer systems to assist safety inspections, improvements to flight services for general aviation, and runway incursion research and new technology.

• Mobility — $1.7 billion for projects to support mobility goals to reduce aircraft delays, such as replacement of older radars, Free Flight and oceanic automation to improve flight route flexibility, and significant infrastructure improvements to reduce outages caused by older, less capable facilities and equipment.

• Environmental Stewardship — $55 million for projects to support environmental performance goals, such as replacing fuel tanks at FAA facilities, removing environmental hazards, and cleaning up hazardous materials at identified sites.

• Security — $71 million for projects to support security goals, including $40 million for security of NAS facilities and $8 million for information security.

• Organizational Excellence — $311 million for projects to support telecommunications infrastructure and competitive sourcing initiatives.

Research, Engineering, and Development: The budget requests $117 million, including $93 million for continued research on aviation safety issues. The remaining research funding is for mobility and environmental issues.

Grants-in-Aid for Airports: The budget request includes $3.5 billion for planning and development of the Nation's airports, including grants for security, safety, capacity, and noise-reduction projects. Funding also includes $69 million for administrative expenses.

Federal Highway Administration

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Overview: The mission of the Federal Highway Administration (FHWA) is to improve the quality and performance of our Nation's highway system and its intermodal connectors. Highways are the critical link in our Nation's transportation system, as virtually every trip we take and every good consumed passes over a road at some point. Our challenge is to preserve and improve the 160,000-mile National Highway System, which includes the Interstate System and other roads of importance for national defense and mobility, while also improving highway safety, minimizing traffic congestion, and protecting the environment on these and other key facilities. Through surface transportation programs, innovative financing mechanisms, and increased use of innovative pavement and highway operational technology, FHWA will increase the efficiency by which people and goods move throughout the Nation, and improve the efficiency of highway and road connections to other transportation modes. The President's FY 2005 budget request of $33.6 billion in obligation limitation will allow the FHWA to address these challenges.

FY 2005 Budget

The FY 2005 budget request supports the Administration's blueprint for the future, as described in the Safe, Accountable, Flexible, and Efficient Transportation Equity Act (SAFETEA). The Administration is requesting an additional $3.4 billion in FY 2005 over the obligation limitation originally proposed in SAFETEA. This funding level will support the Secretary's goals and continue efforts to improve highway safety dramatically, slow the growth of traffic congestion, and promote good stewardship of the environment. FHWA will also strengthen its stewardship of Federal surface transportation funds by improving oversight and increasing accountability to ensure every dollar spent achieves maximum benefits for Americans.

Federal-aid Highway Program: The Federal-aid Highway Program (FAHP) provides Federal financial assistance to the States to construct and improve the National Highway System, urban and rural roads, and bridges. The FY 2005 budget request includes an obligation limitation of $33.6 billion for the FAHP. This amount is more than doubled by additional resources from State and local governments that utilize the funds for highway investment. In total, investments in highway improvements support the achievement of safety, mobility, environmental stewardship, and security goals. FHWA will continue its efforts to increase oversight and accountability, including large-proj-ect management and oversight, to ensure the protection of the large Federal investment, while maintaining the prerogatives of the States in the delivery of highway transportation projects to the public.

Federal Lands Highway Program: The Federal Lands Highway Program (FLHP) improves access to and within national forests, national parks, Indian reservations, and other public lands. The $947 million requested for the FLHP in FY 2005 will support the President's initiatives to enhance the protection of America's national parks and protect these national treasures for present and future generations. This will include enhancement of ecosystems, improvement of outdoor opportunities, improved infrastructure, and greater accountability. The FLHP will also continue to develop and implement two new funding categories - Recreational Roads and Safety - as proposed in SAFETEA.

Research and Intelligent Transportation System (ITS): To support the FAHP and FLHP, FHWA conducts and manages a comprehensive research, development, and technology program. For FY 2005, $428 million is requested for Research and ITS. FHWA will continue to work on identifying ways to reduce the number of injuries and fatalities on our Nation's roadways by demonstrating the application of innovative technologies in highway safety, deploying and evaluating safety technologies and innovations at the State and local levels, and assuring the deployment of best practices in training, management, design, and planning.

Credit Programs: Under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, the FHWA, on behalf of the Department of Transportation, will use FY 2005 funding of $130 million to help stimulate private capital investment in transportation infrastructure. Approved applicants receive credit assistance in the form of direct loans, loan guarantees, and lines of credit for up to one-third of the cost of large infrastructure construction projects of national or regional significance.

Emergency Relief Program: The Emergency Relief (ER) program provides funding for the repair or reconstruction of Federal-aid highways and roads on Federal lands that have suffered serious damage as a result of natural disasters or catastrophic failures from an external cause. Title 23, section 125 of the United States Code authorizes $100 million annually. The Administration proposes to continue this level in FY 2005.

Limitation on Administrative Expenses: A Limitation on Administrative Expense (LAE) of $350 million is requested for FY 2005 for the necessary salaries and benefits of 2,424 FTE and on-going administrative expenses in support of the above Federal programs. This LAE includes increased funding of $4.3 million to support the President's Management Agenda activities for competitive sourcing ($1 million), information technology infrastructure and security enhancements ($2 million), Federal-wide e-Government initiatives ($636,000), and mega-project oversight ($646,000).

Federal Motor Carrier Safety Administration

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Overview: The Federal Motor Carrier Safety Administration's (FMCSA) primary mission is to prevent commercial motor vehicle-related fatalities and injuries. Large trucks represent about three percent of registered vehicles; however, they account for 7 percent of the vehicle-miles traveled on our Nation's highways, and are involved in 11 percent of all fatal crashes. Truck-related fatalities in 2002 were 4,897, compared to 5,111 in 2001, a reduction of 4.2 percent. The commercial motor vehicle fatality rate, factoring in increases in commercial motor vehicle miles traveled, was reduced to 2.28 in 2002, a reduction of 7 percent from 2001 (2.45), marking the fifth consecutive year the rate has been reduced. While significant progress is being made, much more needs to be done. The 2005 budget request for FMCSA, $455 million, will help meet this challenge.

FY 2005 Budget

Motor Carrier Safety Operations & Programs: $228 million is requested to support critical motor carrier program activities that will reduce crashes, save lives, and prevent injuries on our Nation's highways. The FY 2005 budget proposes the following funding requests aimed at meeting DOT's strategic goals and performance targets:

• Highway Safety — $176 million is dedicated to reducing the incidence and severity of commercial truck and bus crashes by advancing motor carrier standards and rulemaking; increasing compliance with Federal Motor Carrier Safety Regulations through enforcement operations; enforcing safety regulations at the borders; extending motor carrier safety education and best practices; overseeing certification of physical qualifications to operate motor carriers; improving commercial motor vehicle safety information and analysis; and advancing technological solutions.

• Hazardous Materials Safety — $11 million is requested to reduce the number and severity of commercial motor vehicle hazardous materials (HAZMAT) incidents through enforcement and compliance operations, research, and technology.

• Hazardous Materials Security — $8 million is requested to improve the security of motor carrier transport of hazardous materials through outreach and security operations.

• Commercial Motor Vehicle Productivity — $4 million is requested to improve the efficiency and integrity of commercial truck and bus transportation by ensuring compliance with Federal Motor Carrier Commercial Regulations through increased household goods carrier enforcement, education, and outreach efforts, and maintaining a nationwide safety violation and consumer complaints telephone hotline.

• Organizational Excellence — $29 million is requested to increase accountability and program performance through meeting the objectives of the President's Management Agenda in the areas of Strategic Management of Human Capital, Citizen-Centered E-Government, Competitive Sourcing, Financial and Procurement Performance, and Budget and Performance Integration. Efforts focus on evaluating and improving business practices and processes that support program delivery.

Motor Carrier Safety Grants: $227 million is requested to maintain aggressive State enforcement of interstate commercial truck and bus regulations as part of the Federal/State partnership aimed at meeting DOT's strategic goals and performance targets:

• Highway Safety — $217 million is requested to support State enforcement, regulatory compatibility, and safety information capabilities. This includes $168 million dedicated to Motor Carrier Safety Assistance Program (MCSAP) State grants. Grants will be used to support State motor carrier compliance reviews; conduct roadside inspections; enforce violations noted in roadside inspections; and ensure that new commercial trucking firms pass a safety audit within the first 18 months of operations in order to receive permanent registration. State safety enforcement efforts at the international borders are funded at $23 million to ensure Mexican and Canadian trucks and buses adhere to the same safety standards as U.S. motor carriers. In addition, $22 million is included to improve State commercial drivers' license (CDL) oversight activities to prevent unqualified drivers from being issued CDLs, and $4 million is provided for the Performance Registration Information Systems and Management (PRISM) program, which links State motor vehicle registration systems with carrier safety data in order to identify unsafe commercial trucks and buses.

• Hazardous Materials Safety — $10 million is requested to continue a grant program in support of State HAZMAT enforcement and regulatory compatibility at the international borders with Mexico and Canada to ensure that all points of entry to the U.S. transportation system are fortified with comprehensive safety measures.

National Highway Traffic Safety Administration

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Overview: The National Highway Traffic Safety Administration (NHTSA) conducts critical behavioral and vehicle programs, and provides grants to the States for the administration of highway traffic safety programs. In 2001, traffic crashes were the leading cause of death for persons ages 2 and 4 through 33. In 2002, motor vehicle crashes claimed nearly 43,000 lives and accounted for over 95 percent of transportation-related deaths. The economic cost of motor vehicle crashes is estimated to be more than $230 billion annually. Emerging demographic trends, such as a continuing increase in the number of drivers and a significant growth in both elderly and teenage drivers, pose increased traffic safety challenges that must be addressed. The President's FY 2005 budget request includes $689 million for NHTSA to carry out its mission. The request reflects an increase of $18 million above the FY 2004 enacted level, plus the transfer of the safety belt use and impaired-driving law incentive programs from the Federal Highway Administration to NHTSA in FY 2005.

FY 2005 Budget

Operations and Research: The FY 2005 budget request includes $233 million for Operations and Research activities to reduce highway fatalities, prevent injuries, and significantly reduce their associated economic toll. The request includes:

• Research and Analysis — $94.4 million is dedicated to reducing highway fatalities and injuries by providing leadership in crash causation and crash prevention research. This includes crashworthiness research for occupant protection and biomechanics; driver distraction testing; crash causation research; and national crash data systems. A new $5 million crash avoidance initiative will analyze real-world data and assess methods to test new motor vehicle technologies and improve driver performance. A new $1 million initiative is also included to develop an innovative crash data system to provide real-time fatality data.

• Highway Safety Programs — $56.3 million is dedicated to reducing highway fatalities and injuries by funding programs committed to changing driver behavior, a critical factor in reducing the number of highway fatalities and injuries. NHTSA will develop and disseminate programs that address impaired driving deterrence, increased safety belt usage, and correct placement of child safety restraints. Funds will provide for emergency medical system development and education, and strategies for strengthening motorcycle safety, pedestrian, bicycle, and pupil transportation safety, as well as occupant protection usage surveys.

• Enforcement — $35.5 million is dedicated to reducing highway fatalities and injuries by removing unsafe vehicles from the roadways. Activities include vehicle testing to ensure compliance with Federal Motor Vehicle Safety Standards, investigating alleged safety-related defects, and monitoring safety recalls.

• Rulemaking — $25.9 million is dedicated to reducing highway fatalities and injuries by providing crash avoidance and crashworthiness testing; initiatives to evaluate child safety seats; initiatives to reduce occupant ejection in rollover crashes; and studies to improve seating systems and headlight glare reduction. Through the New Car Assessment Program, consumers will be provided with information on frontal and side impact protection, and rollover resistance of light vehicles.

Highway Traffic Safety Grants: NHTSA's highway traffic safety grant program will help reduce highway fatalities and injuries through new innovative grant programs. The FY 2005 budget request of $456 million includes $396 million to support a full range of highway safety programs in every State, terri-tory, and Indian nation, including an impaired driving initiative in which grants are awarded strategically to States where the greatest gains in reducing alcohol-related fatalities can be made. Funds are also provided for safety belt use performance grants and primary safety belt law incentive grants. Of the $396 million, $20 million will be set aside to fund national paid advertising in support of high visibility safety belt use and impaired driving mobilizations. Additional programs include $50 million for State Traffic Safety Information Systems Improvement programs to support improvements in highway safety data systems and $10 million for a new Emergency Medical Services Initiative to assist States in adopting comprehensive wireless emergency and response systems.

Federal Transit Administration

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Overview: The Federal Transit Administration (FTA) provides leadership, technical assistance and financial resources for safe, technologically advanced public transportation that enhances mobility and accessibility, improves America's communities, preserves the natural environment, advances economic growth, and ensures that transit systems are prepared to function during and after criminal or terrorist attack. Transit systems safely and efficiently move millions of people every day, reducing congestion, improving air quality, facilitating economic development, and connecting people to their jobs and communities. The President's FY 2005 budget request includes $7.3 billion for Federal transit programs. The request maintains the Federal commitment to transit and, when combined with State and local funding, will improve mobility and accessibility, address critical safety and security requirements, and advance the President's Management Agenda.

FY 2005 Budget

The FY 2005 budget request reflects program streamlining and consolidation proposed in the Administration's SAFETEA legislation, and supports the President's goal of creating a customer-focused, outcome-based Federal Government. This consolidation will give States and localities additional flexibility to meet the mobility needs of their communities without the constraints and administrative burdens that the current budget structure imposes.

Formula Grants and Research: FTA requests $5.6 billion for transit purposes, including security, planning, bus and railcar purchases and maintenance, facility repair and construction, and where eligible, operating expenses. The program includes grants specifically targeted to urbanized areas and, through States, to non-urbanized areas and to transportation providers that address the special transportation needs of the elderly, people with low incomes, and persons with disabilities. In addition, funds proposed for the Formula Grants and Research program will contribute $7 million to improve the accessibility of over-the-road buses, $4.8 million for the Alaska Railroad, and $3.7 million for the National Transit Database that will support important research and training activities. The following summary describes the major programs within this account:

• Urbanized Area Programs — $4.7 billion is requested for the Urbanized Area Formula program and the Fixed Guideway Modernization program, to help meet the capital replacement, rehabilitation and refurbishment needs of existing transit systems and ensure that customers continue to receive safe and reliable public transportation. FTA is fully committed to the President's mandate that the Federal Government become customer-focused and outcome-based. Creating an outcome-based performance incentive program to promote increased transit ridership in every community is a key feature of this budget request. This proposal represents an important and effective means to focus attention on better meeting the needs of current and potential transit riders.

• State Administered Programs — $756 million is requested for programs to be administered directly by the States, including $148 million for the President's New Freedom Initiative to reduce barriers to work for persons with disabilities by providing funding to States to implement innovative transportation solutions. This program will increase access and opportunities for Americans with disabilities, and strengthen the communities in which they live and work. The request also includes funding for the Non-Urbanized Area Formula Program, the Elderly and Persons with Disabilities Program, and the Job Access and Reverse Commute Program, and will promote a coordinated approach to meeting the needs of transportation-disadvantaged individuals.

• National Research — $50.6 million is requested for National Research. This program includes $32.1 million for the National Research Program, $8.4 million for the Transit Cooperative Research Program, $4.1 million for the National Transit Institute training programs, and $6 million for the University Transportation Research Program.

• Planning — $114.6 million is requested to support the activities of regional planning agencies and States, helping them to plan for transit investments that best meet the needs of the urban and rural communities they serve. This includes funding for Metropolitan Planning and Statewide Planning.

Major Capital Investment Grants: $1.6 billion is proposed in FY 2005 for the construction of new fixed guideway and non-fixed guideway corridor systems and extensions to existing systems.

• New Starts — $1.5 billion is requested for New Starts projects, reflecting an expansion of the New Starts program to make new non-fixed guideway transportation corridor projects eligible for funding, and to encourage project sponsors to consider more cost-effective transit options that may not require a fixed guideway. The request includes funding for 32 existing, pending or antic-ipated Full Funding Grant Agreements (FFGAs), which are multi-year contractual agreements between FTA and the grantees. Located in every geographic area of the country and in cities of all sizes, these projects include commuter rail, light rail, heavy rail, and bus rapid transit. When completed, they will carry over 243 million riders annually, save over 121 million hours in travel time annually, and significantly improve mobility in America.

• Planning — $31.3 million is requested to support the activities of regional planning agencies and States, and to facilitate planning for transit investments that best meet the needs of the communities they serve. This includes funding for metropolitan and statewide planning.

Transit Security: $37.8 million is requested to support transit security, which will remain a high priority in FY 2005. This funding includes the one percent of Urbanized Formula Grant funding that is statutorily required to be spent on security initiatives. Through its technical assistance and other programs, FTA will place emphasis on security training for transit system employees, emergency preparedness and response, and public awareness efforts.

Project and Financial Management Oversight: To provide oversight of FTA grants, $70 million is requested in FY 2005. Project and financial management oversight are core management responsibilities of FTA, and are essential to good stewardship of Federal taxpayers' dollars.

Federal Railroad Administration

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Overview: The Federal Railroad Administration's (FRA) mission is to ensure that our Nation has safe, secure, and efficient rail transportation that enhances the quality of life for all. The FY 2005 budget request of $1,088 million supports our commitment to continue and improve the Nation's strong railroad safety record. It also provides limited funding to permit Amtrak to continue operating while the Administration and Congress strive to enact legislation regarding a revitalized national intercity passenger rail system.

FY 2005 Budget

Grants to the National Passenger Rail Corporation/Intercity Passenger Rail: Because Congress has not yet acted on the Administration's Passenger Rail Investment Reform Act of 2003, the FY 2005 budget includes $900 million for intercity passenger rail. However, the Administration would support as much as $1.4 billion for its new vision for passenger rail service in subsequent years if the requested reforms are enacted.

Safety & Operations: Safety remains FRA's most important performance segment. The request for FY 2005 includes $142 million to support the Department's goal of reducing railroad accidents and incidents, and specifically to support FRA's goals of reducing accidents, fatalities, and grade crossing accidents, while contributing to the avoidance of serious hazardous materials incidents in rail transportation. The FY 2005 budget reflects an increase of about 10 percent over the FY 2004 enacted level funding level for this account. New initiatives include funding for a third track geometry vehicle that will allow FRA to inspect an additional 30,000 track miles each year; safety inspectors of new operating practices; new inspector-trainee positions to address workforce planning and diversity issues in rail safety; and studies in the area of fatigue countermeasures.

Research & Development: In FY 2005, $36 million is requested to support research efforts in the areas of rail systems safety, track structures, train occupant protection, human factors in train operations, rolling stock and components, track and train interaction, track control, grade crossings, and hazardous materials. The budget includes an increase of $2 million over the FY 2004 enacted funding level. This increase will provide funding for a High-Speed and Freight Locomotive simulator (partnering with the Army), as well as research in the areas of driver behavior and accident causation. The increase will continue the installation of the Nationwide Differential Global Positioning System, which will provide precise positioning and navigation information to ensure the safety and security of lives and property throughout the United States. The increase also enables FRA to continue various research projects in support of the Department's safety mission.

Next-Generation High-Speed Rail: To support high-speed train control systems, track and structures technology, corridor planning, and grade crossing hazard mitigation and high-speed non-electric locomotives, $10 million is requested. Funds under this account support the Department's goal of reducing transportation time by supporting and demonstrating high-speed train control systems, corridor planning, and high-speed non-electric locomotives.

Research and Special Programs Administration

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Overview: The Research and Special Programs Administration (RSPA) serves to protect people and the environment from risks of hazardous materials transportation; foster transportation innovations through research, technology, education and training; and prepare the Nation's transportation system to aid people and property harmed by natural or terrorist disasters.

In FY 2005, RSPA's focus is on reducing hazardous materials pipeline transportation incidents managing the Department's transportation-related emergency response and recovery responsibilities and promoting the development of a hydrogen fuel infrastructure and standards for hydrogen vehicle fuel systems. RSPA also provides planning and training grants to States and Indian tribes to improve hazardous materials emergency preparedness. The FY 2005 request of $137 million represents an increase of $11 million, or 9 percent, from the FY 2004 enacted level.

FY 2005 Budget

Hazardous Materials Safety Program: The President's budget requests $25 million, 8 percent ($2 million) above the FY 2004 enacted level, to meet the performance goal of achieving no more than 503 serious hazardous materials incidents in 2005.

Emergency Preparedness Grants: The FY 2005 request provides $14 million, the same level of funding as in FY 2004, for States to train hazardous materials responders and improve response plans.

Research and Technology: For RSPA's research programs the budget request totals $3 million, the same as FY 2004, to improve DOT's Research and Development program, and to promote the safe transport of hydrogen fuels and fuel systems so that alternative-fuel vehicles can be developed as a safe alternative to petroleum-fueled vehicles. RSPA will be working with the Department of Energy to obtain $1 million in reimbursable funding for this purpose.

Emergency Transportation Program: The FY 2005 budget requests $4.3 million, a $1.3 million increase from the FY 2004 enacted level. This increase is key to preparing the Nation's transportation system in advance to aid people and property harmed by natural or intentionally caused disasters. The improvement resulting from these additional FY 2005 resources will be measured by our transportation capability assessment for readiness (TCAR) score, which we hope to increase from 67 in FY 2004 to 80 in FY 2005.

Pipeline Safety: The budget requests includes $70 million, 7 percent ($4 million) above the FY 2004 enacted level, to meet the performance goals of holding serious pipeline incidents to no more than 295 in FY 2005 and reducing hazardous liquids spilled in pipelines to a level that equates to no more than 2.2 teaspoons for every 100 gallons shipped 3,000 miles coast-to-coast. The increases will continue implementation of our important integrity management safety protocols.

Maritime Administration

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Overview: The Maritime Administration's (MARAD) mission is to promote the development and maintenance of an adequate, well-balanced U.S. merchant marine that is sufficient to carry the Nation's domestic waterborne commerce and a substantial portion of its waterborne foreign commerce, and to serve as a naval and military auxiliary in time of war or national emergency. Through the management of the Maritime Security Program, the Voluntary Intermodal Sealift Agreement Program and the Ready Reserve Force, MARAD helps support national security and strategic mobility by assuring access to ships and crews for Department of Defense mobilizations. MARAD's Education and Training Programs, through the U. S. Merchant Marine Academy and six State Maritime Schools, help provide skilled U. S. merchant marine officers, capable of serving both defense and commercial transportation needs. Through its ship disposal program, MARAD also continues to address the environmental risks posed by over 130 obsolete ships in the National Defense Reserve Fleet.

The FY 2005 budget request of $234 million is an increase of $10 million (4.5 percent) above the 2004 enacted funding level. The request will help eliminate the obsolete ship backlog and it will assist the U.S. Merchant Marine Academy in meeting academic accreditation.

FY 2005 Budget

Operations and Training: The FY 2005 budget request includes $109 million to support the U.S. Merchant Marine Academy, State Maritime Schools, and MARAD operations. All three programs support national security, mobility, global connectivity, and environmental stewardship. The budget request includes $56 million for the U.S. Merchant Marine Academy, including a continuation of $13 million for critical capital improvement projects, $10 million for the State Maritime Schools, and $43 million for MARAD Operations.

Maritime Security Program: The FY 2005 budget request includes $98.7 million for the Maritime Security Program, as authorized. This fleet consists of 47 active, militarily useful, privately owned vessels to meet national defense and other security requirements, and to maintain a U.S. presence in international commercial shipping. The Maritime Security Program, together with the Voluntary Intermodal Sealift Agreement Program and the Ready Reserve Force, assures DOD access to ships and crews during DOD mobilizations, and helps ensure the efficient flow of military cargo through commercial ports.

Ship Disposal: The FY 2005 budget request includes $19.6 million to remove obsolete ships from the National Defense Reserve Fleet (NDRF). MARAD is required to dispose of the obsolete ships in the NDRF by 2006, but still has an inventory of over 130 vessels. MARAD continues to pursue alternative disposal methods, such as export and artificial reefing initiatives, with other Federal agencies to minimize any impact on the human and natural environment. The budget request also includes $2 million to begin the decommissioning, removal, and disposal of the nuclear reactor and hazardous materials aboard the nuclear ship SAVANNAH.

Maritime Guaranteed Loan Program: Consistent with the Administration's intent to eliminate corporate subsidies, no funds are requested for loan guarantees. The budget request of $4.8 million is for the administration of the existing loan guarantee portfolio.

Ready Reserve Force: The Ready Reserve Force (RRF) is funded in the Department of Defense budget, but managed by MARAD. RRF vessels were used in Operation Enduring Freedom and continue to serve in Operation Iraqi Freedom. The initial activation of the vessels for Iraqi Freedom was the fastest and most efficient sealift in U.S. history. MARAD will continue to support national security by meeting DOD sealift requirements and readiness levels for the RRF with an estimated $220 million for FY 2005 activities.

Saint Lawrence Seaway Development Corporation

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Overview: The U.S. Saint Lawrence Seaway Development Corporation (SLSDC), a wholly owned government corporation and an operating administration of DOT, is responsible for the operations and maintenance of the U.S. portion of the St. Lawrence Seaway between Montreal and Lake Erie. This responsibility includes managing vessel traffic control in areas of the St. Lawrence River and Lake Ontario, as well as maintaining and operating the two U.S. Seaway locks located in Massena, N.Y. In support of DOT's global connectivity strategic goals, the SLSDC coordinates its activities with its Canadian counterpart, the Saint Lawrence Seaway Management Corporation (SLSMC), to ensure that the U.S. portion of the St. Lawrence Seaway, including the two U.S. locks, are available for commercial transit 99 percent of the time during the navigation season (usually late March through December of each year). Additionally, the SLSDC performs trade development activities designed to enhance the utilization of the Great Lakes St. Lawrence Seaway System.

FY 2005 Budget

The FY 2005 budget request totals $15.9 million from the Harbor Maintenance Trust Fund, which includes a request of $1.5 million to begin a four-year concrete replacement project at the Eisenhower and Snell locks.

Office of the Inspector General

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Overview: The Inspector General Act of 1978, as amended, established the Office of the Inspector General (OIG) as an independent and objective organization within DOT. The Inspector General is committed to fulfilling its statutory mission and assisting the Secretary, Members of Congress and senior Department officials in achieving a safer, simpler, and smarter transportation system that furthers our vital national interests and enhances the quality of life of the American people.