The 1973 Federal-Aid Highway Act-An Analysis

The 1973 Federal-Aid Highway Act represents the most far-reaching comprehensive legislation yet passed by the Congress regarding surface transportation in America since the 1956 Highway Act. This act contains provisions for funding highway development, highway safety and mass transportation programs. Among its more important provisions are:

Increased funding of the Urban Highway System.

Urban System funds can be used for mass transit and beginning in fiscal 1975, these funds can be from the Highway Trust Fund.

Urban System funds are "earmarked" for urbanized areas of more than 200,000 population.

State and local governments in urbanized areas can elect to substitute mass transit for controversial Interstate System routes which are not essential to a unified system.

Realinement of the Federal-aid systems according to functional usage. -The establishment of Priority Primary Routes with separate funds

authorized.

New highway safety programs.

Additional funding from the Urban Mass Transportation Administration capital grant program.

HIGHWAY PROGRAMS

The Interstate Highway System

The 1973 Act reduced the Interstate authorizations from the $4 billion a year level authorized for Fiscal Years 1974–76, to $2.6 billion for Fiscal Year 1974 and $3 billion annually for Fiscal Years 1975 and 1976.

Authorization levels of $3.250 billion are set for each of the Fiscal Years 1977, 1978, and 1979. This gives total authorizations for Fiscal Years 1974-79 of $18.350 billion. Since this amount is not sufficient to meet the $19.957 billion Federal share of the cost to complete the Interstate System as reported in the 1972 Interstate Cost Estimate, Congress will have to consider an additional authorization at some future date to complete the funding of the Interstate System. It also will have to consider extending the Highway Trust Fund and the taxes dedicated to it as the taxes revert to lower rates and will not be deposited in the Highway Trust Fund after September 30, 1977.

Apportionment of Interstate System Funds-Authorizations for Fiscal Years 1974-76 are to be based on the apportionment factors contained in the 1972 Interstate Cost Estimate.

The 1973 Act continued the recent practice of a 2 percent minimum Interstate System apportionment begun in the 1970 Act. This minimum allows States nearing completion of their portions of the Interstate System to have reasonable funding levels and more rapid completion of their Interstate routes. An additional $50 million is authorized for the Interstate System to fund this 1/2 percent minimum. When a State completes the funding of its portion of the Interstate, it may add any remaining 2 percent minimum apportionment pro-rata to its so-called "ABCD" systems apportionments.

Completion Schedules and Mileage Substitutions-The States must, by July 1, 1974, give notice to the Secretary of Transportation of their intent to construct the remaining segments of the Interstate System. If a State has not notified the Secretary of its intent to construct a segment by July 1, 1974, and the Secretary determines the segment or route is not essential to a unified system, he is required to remove the segment or route from the Interstate System. A State can substitute a segment which would provide for an essential connection to the Interstate System up to July 1, 1975. These provisions do not apply to the District of Columbia.

The States must submit a schedule of completion of Interstate routes which have not been withdrawn or for any new or substituted sections to the Secretary by July 1, 1975. Should a State not meet this deadline, the Secretary is required to remove such sections from the System. This provision does not apply to the District of Columbia.

The Cramer-Howard amendment which allowed up to 200 miles to be added to the Interstate System is increased to 500 miles for substitution for withdrawn segments. The total cost of the new sections may not exceed the total cost of the withdrawn sections as reported in the 1972 estimate of the cost to complete the Interstate System. In allocating this mileage, the Secretary is required to give "preference" to the State withdrawing the section and . . due regard for interstate highway type needs on a nationwide basis."

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Urban Interstate and Transit Substitution-States may substitute mass transportation projects for controversial or unwanted Interstate sections in urbanized areas over 50,000. The mass transportation project eligibility includes rail rapid transit and rolling stock for rail transit or buses.

Determination to withdraw an Interstate segment must be made jointly by the Governor and local governments in the urbanized area. The local officials then notify the State highway department of their intent to withdraw the Interstate segment and substitute a mass transit project. Such substitution must be in accordance with the Section 134 comprehensive urban transportation planning process. The State highway department