Buttigieg Faces Questions From House on IIJA Implementation, Inflation, and Highway Trust Fund

What happened: U.S. Department of Transportation (USDOT) Secretary Pete Buttigieg July 19 told the House Transportation & Infrastructure (T&I) Committee that continued federal general fund transfers are ‘certainly a legitimate way to fund our highway needs.’ Since 2008, Congress has approved more than $270 billion in general fund transfers to the Highway Trust Fund to help support transportation investment levels. ‘As we continue to transition toward electric vehicles and zero-emitting vehicles, it means that we’re going to need to have other means for filling gaps in the Highway Trust Fund,’ Buttigieg said at the committee’s Infrastructure Investment and Jobs Act (IIJA) implementation hearing.

As expected, T&I Committee Democrats largely praised the agency for its efforts to date, while Republicans were more skeptical in their questioning in several key areas:

• Inflation: Amid rising project and materials prices, Buttigieg said USDOT is focused on cost containment, but did not offer specifics the agency is taking to address challenges facing state/local DOTs, and the transportation construction industry. Republicans urged Buttigieg to recognize that IIJA funds need to be disbursed to states more quickly. ‘The administration isn’t as laser-focused (on inflation) as it needs to be,’ said committee Ranking Member Rep. Sam Graves (R-Mo).
• Greenhouse Gas Emissions (GHG): Rep. Bruce Westerman (R-Ark.) noted that USDOT may have exceeded its authority in its recent proposed rulemaking requiring states to monitor transportation-related GHG. Buttigieg responded, saying he was ‘extremely confident’ the authority was given in 2012’s MAP-21 surface transportation law.
• On Project Streamlining: Several Republicans asked for an update on implementing the IIJA’s project approval process improvements known as ‘One Federal Decision.’ While there has been no specific plan as to how USDOT plans to meet the IIJA’s goal of a two-year average for project reviews, Buttigieg pointed to work being done on advancing smaller projects (categorical exclusions) and underscored the importance of continuing to reduce delays in light of increasing materials costs.

Why it matters: The hearing represented the first opportunity for committee members to question the secretary about progress on the nearly 9-month-old IIJA. It also previewed likely Republican priorities toward IIJA oversight should the party seize control of the House following the November elections.

What’s next: ARTBA will continue to engage Congress and the Biden administration on IIJA implementation matters, the challenges posed by rising materials prices, and how transportation investments are paid for at the federal level.