By RSI Staff
As predicted by many at Railway Interchange last year, the Trump administration is bringing political changes that will significantly impact transportation funding.
Ahead of this year’s event, we spoke with two Railway Interchange speakers, Husein Cumber, senior advisor, Brightline Holdings, and Robert Pearsall, partnerships director at U.S. High Speed Rail, to understand the current state of passenger and transit funding and how leaders should position their organizations in this new environment.
What are the most significant political changes impacting transportation funding that stakeholders should be aware of?
Husein Cumber: Each administration brings expected change to funding and policy that requires all of us to adapt and react. In less than 100 days, two things are apparent: the administration demands a return on investment for any project receiving taxpayer dollars; secondly, they want to see projects that have a clear path for completion.
In the past, projects have received the benefit of the doubt that they’ll be built in a timely manner while providing a public benefit. Now, we’re hearing, “Prove it.” This is a good thing and will ensure the best projects rise to the top.
We’ve also seen this administration move swiftly to reward large-scale investments by removing red tape that typically delays critical infrastructure. President Trump is a developer who wants to incentivize investment and has signaled from his first day in office that he intends to cut red tape. Historically, this process causes delays, adds cost, and leads to uncertainty. A streamlined process that takes a set amount of time will likely motivate more private sector involvement and eliminate public skepticism that big infrastructure and transportation projects will get done. Again, this is a great thing that will ensure the best projects are prioritized.
Robert Pearsall: The Trump administration is pulling back a lot of federal funding for high-speed rail (HSR) and other transit projects. In the HSR space for example, Department of Transportation Secretary Duffy and other administration officials have expressed public support for the Brightline West (mostly) private capital model for similar projects. The recent news of the Kleinheinz Equity investment in the Texas Central project is another indication that a similar model might get federal support.
How might these changes influence the future of passenger and transit funding?
Husein Cumber: I think one of the biggest changes will be how this particular administration evaluates projects seeking discretionary grant funds. Beyond understanding the public benefit and return on investment, they want to know exactly how it will be built and paid for. In short, projects and entities vying for competitive grants must leave any guesswork out of the equation. Viable projects will be required to show a complete funding plan from start to finish because it is clear that this administration will not be supportive otherwise.
Robert Pearsall: States such as California will try to rely on state funding for its HSR rail projects and perhaps others in the transportation space.
What are some potential long-term implications that rail leaders need to be aware of in this arena? Is there any action that can/should be taken?
Husein Cumber: All of these changes should be seen as an opportunity; we ought to lend our experience and expertise to these policy discussions. For example, our industry has been asking for a more definitive environmental review process for decades. We should be thinking about ways we can impact these adjustments.
As we look to kickstart high-speed rail, we have focused our efforts on utilizing existing transportation corridors like highways and freight systems. When you think about it, roadways and freight corridors should expedite the environmental review process even more because they are already environmentally studied and impacted. Our industry should come to the table with bold plans to change the environmental process and push for categorical exclusions for any project built within existing transportation corridors.
Robert Pearsall: Continue to work with policymakers and stakeholders on short- and long-term planning. Plan slow, build fast. It’s important to build community support from the outset, too.
What strategies can the transportation industry adopt to navigate the new funding landscape?
Robert Pearsall: Build local and support your state. Avoid pitfalls of focusing on DEI-related elements of a project. Focus on the economic impacts of transportation projects. I made this case in Dallas at the 21st Southwestern Rail Conference to invest in the Texas Triangle, with some helpful data from the Texas Department of Transportation.
In any new political environment, be creative with your strategies. Look for opportunities to build bipartisan support. At U.S. High Speed Rail, we’re working closely with Republicans on permitting reform for all HSR projects, because Republicans will advance permitting reform in other areas such as energy projects. The current administration is amenable to streamlining and cutting red tape, which we see as an important opportunity that will help speed up HSR projects.
On Wednesday, May 21, Cumber and Pearsall will be joined onstage by Benji Schwartz, director of government affairs and advocacy at APTA, and Greg Regan, president, transportation trades department, AFL-CIO (TTD), during their session titled, “Adapting to Change: Navigating Passenger Rail Funding in the New Political Landscape.” Learn more and register for Railway Interchange today.
About the Railway Supply Institute (RSI)
The Railway Supply Institute (RSI) is dedicated to advancing safety, innovation, technology, and sustainability within the freight and passenger railway supplier industry, both in North America and global markets. As the voice of the industry, RSI strategically engages in critical and urgent industry matters by leveraging the technical expertise of our members to advocate in the legislative and regulatory arenas, foster education, host impactful events, and facilitate networking opportunities. For more information visit www.rsiweb.org, follow RSI on Twitter and LinkedIn.