September 25, 2002

Thank you, Chairman Jeffords and Chairman Baucus, for holding this joint hearing on the success we have had on expanding the reach of the highway trust fund through innovative financing and how we can continue that success in the reauthorization of TEA-21. I look forward to hearing from our witnesses.

Chairman Jeffords and Baucus, it is clear that we need to consider alternative means to finance our important highway and mass transit projects. AASHTO estimates that the annual level of investment needed to maintain current conditions and performance of our highway systems is $92 billion. For mass transit, the amount is $19 billion. We are falling far short of this under the authorized amounts of TEA-21. To get even close, we need to look at all sources of funding, including financing.

Congress enacted financing provisions in TEA-21. Under the “Transportation Infrastructure Finance and Innovation Act” (TIFEA), the Department of Transportation may provide secured loans, lines of credit and loan guarantees to public and private sponsors of eligible surface transportation projects. $530 million was authorized for this program.

Chairman Jeffords and Baucus, we need to look at what good has been done under TIFEA, what needs to be changed, and what can be done in addition to TIFEA. I look forward to working with you both to explore ways to do this.