New Orleans — Feds Renege on Funding

Rail Transit Online, December 2002

A powerful Republican congressman from Kentucky is holding a $14.8-million federal grant for the Canal Street trolley restoration project hostage because he apparently believes the government has been too generous.  U.S. Rep. Harold Rogers is chairman of the transportation subcommittee of the House Appropriations Committee, which has the final say on federal transit assistance, and he apparently doesn’t like the 80/20 funding split the $160-million New Orleans project received prior to the start of construction nearly two years ago.  Rogers, who is no friend of rail transit, supports a Bush administration proposal that would require the federal share of transit programs to be no more than 60 percent, a formula that would double the Regional Transit Authority’s financial responsibility for Canal Street, and he apparently wants to start the new policy immediately.  A total of $54 million has already been received from Washington but the delay in receiving the 2002 appropriation of $14.8 million has forced the RTA to borrow money at a cost of $20,000 a month.  RTA officials aren’t aware of any other project that has had the rules changed after more than half of work was completed.  The only additional funds available to the RTA is money set aside for the Desire Corridor streetcar project, planning for which has already cost the federal treasury $3.7 million.  Louisiana's congressional delegation has begun lobbying Transportation Secretary Norman Mineta and Rogers to get the grant released.  In the past the congressman attempted to sidetrack the $500-million Full Funding Grant Agreement for the Central Link light rail project in Seattle.