Transportation chief thinks stimulus spending has been up to speed

Transportation Secretary Ray LaHood Thursday said his department is approving stimulus act funds twice as fast as its normal programs and has released nearly $13 billion "that puts wages in people's pockets and gives hope to struggling families and communities."

At a National Press Club speech, LaHood said that despite concerns that the department's share of the stimulus funds was moving too slowly, "every project we announce is an immediate signal for states to advertise contracts and for contractors to begin hiring workers and ordering materials like steel and asphalt."

Asked his priorities for use of Recovery Act and other transportation funds, LaHood said safety is his No. 1 priority and the ideal project for recovery funds would be multimodal, blending rail, highway and maritime. He endorsed President Obama's call for high-speed passenger rail and for the "livability" requirements that encourage alternatives to automobiles for urban transportation.

In response to questions, he said the federal gasoline tax was not adequate to support the required transportation projects, but said "this administration will not be promoting an increase in the gas tax." He ignored a question on whether he would renew his support for replacing that tax with a mileage fee, a position that attracted a rebuke this year from White House Press Secretary Robert Gibbs. "I wonder if Bob Gibbs is watching," he said.

LaHood predicted the House will pass a reauthorization of surface transportation programs this year, saying that House Transportation and Infrastructure Committee Chairman James Oberstar, D-Minn., has told him he would have "a very aggressive schedule" after next week's recess and that he would be part of the discussion.

LaHood was also asked about another sensitive issue, a program to allow Mexican trucks to operate further from the border than has been previously allowed.

LaHood said the department has developed a Mexican truck program that he believes will satisfy the members of Congress who used a supplemental funding bill to block the plan, first designed by the Bush administration. He noted that allowing Mexican trucks to carry cargo well north of the border was part of the North American Free Trade Agreement, and suggested the tariffs on U.S. products that Mexico imposed in retaliation is having an effect. He said there was "a good chance" he could get the truck program reinstated "in a way that meets Congress' concerns."