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Politico
21-07-2025
- Business
- Politico
What's next for DOT appropriations?
Presented by The Association of American Railroads With help from Pavan Acharya QUICK FIX — The Senate Appropriations Committee is gearing up to consider its DOT and HUD spending bill after a House panel cleared its own version last week. Here's the schedule. — The FAA's finalized request for companies' ideas on revamping the U.S. air traffic control system still isn't out. And the timeline moving forward is unclear. — There's a looming trade war with the EU, and aircraft are in the crosshairs. IT'S MONDAY: You're reading Morning Transportation, your Washington policy guide to everything that moves. We're glad you're here. Send tips, feedback and song lyrics to Sam at sogozalek@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'If you leave today, I'll just stare at the way/ The orange touches all things around/ The grass, trees, and dew, how I just hate you/ Please turn those headlights around/ Please turn those headlights around.' Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the Week MOVING QUICKLY: The Senate Appropriations Committee will consider its fiscal 2026 DOT and HUD spending bill Thursday morning, skipping a subcommittee markup. (House appropriators approved their version of the annual legislation last week.) The race is on as Congress faces a Sept. 30 funding deadline, with limited days in session over the coming two months due to the August recess. WHAT TO WATCH: Will the panel aim to keep DOT's funding relatively steady — or even increase it? How will the FAA fare? And will transit or Amtrak see cuts? — Where and when: The meeting starts at 9:30 a.m. in Dirksen 106. But as a heads up, the Interior Department and EPA spending bill will also be considered. IS IT FRUITLESS? It's unclear whether Democrats will play ball in the Senate as appropriators seek to avoid another continuing resolution. Keep an eye on the floor as early as Tuesday, with a test vote anticipated for the upper chamber's first tranche of Republican spending bills, including possibly one for the VA and military construction. That will provide some indication of how things are shaping up. Democrats may have little incentive to help the GOP out as a government shutdown looms: Office of Management and Budget Director Russell Vought says the White House may send another rescissions package to Congress soon. GET THE RUNDOWN: Your MT team had full coverage last week of the House Appropriations Committee's fiscal 2026 DOT and HUD spending bill, which the panel advanced. You can read more here: — Sam has a breakdown of the text, including amendments adopted at a markup. — He also has a deep dive into Republicans' attempt to repurpose more than $4 billion in 2021 infrastructure law funds to use for parts of their new legislation. — Sam and Chris reported on the GOP's effort to block any appropriations from flowing to New York's congestion pricing program. — And there's much, much more. Aviation STILL NOTHING: The FAA noted Friday that a finalized version of its request for companies' ideas on how to undertake the Trump administration's planned overhaul of the U.S. air traffic control system is not ready yet. The agency 'is continuing to review feedback, assess, and refine,' reads an update on the federal government's contracting website. 'A new publishing [date] will be determined.' OOP: As MT readers will know, the FAA on July 11 reported that the updated request was anticipated to be released early last week, with proposals for the project set to be due Aug. 4. Now, it's unclear what the time frame is. A TIGHT WINDOW: DOT Secretary Sean Duffy wants to complete the endeavor in three to four years, a highly ambitious schedule. Republicans in their recent reconciliation package gave the FAA a $12.5 billion 'down payment' for the effort, but Duffy told the House Transportation Committee last week that he wants $19 billion more on top of that to complete the entire project. FIRST IN MT: A group of 12 Democratic senators, led by Sen. Ed Markey (D-Mass.), in a letter to FAA Administrator Bryan Bedford is requesting a slew of details about the state of the agency's staffing, citing the firing of probationary workers in February (who a federal judge ordered be reinstated) and the Trump administration's so-called deferred resignation program. The lawmakers want to obtain, among other things, an 'analysis conducted by the Office of Airports related to the impact of workforce cuts on its safety mission.' — The group also wants information about the FAA's use of artificial intelligence to analyze air traffic risks. ICYMI: DOT threatened Saturday to disapprove flight requests from Mexico if the country doesn't take action in response to the Trump administration's concerns over slot cuts and the forced relocation of U.S. cargo carriers out of Mexico City's Benito Juarez International Airport. Details can be found here. Trade A STRESSFUL SUMMER: President Donald Trump is threatening to impose a blanket 30 percent tariff on EU goods starting Aug. 1 if there's no trade deal with the bloc, and Boeing and Airbus are facing a devastating blow if European countries follow through on a potential retaliatory strike against almost €11 billion in U.S. aircraft and parts, Tommaso Lecca reports from Brussels. — 'A tit-for-tat tariff situation would put more pressure on the already fragile aviation supply chain,' said Marina Efthymiou, professor of aviation management at Dublin City University. 'Higher costs and delays in moving parts could slow down aircraft production and deliveries.' On The Hill LOTS OF MODES: It won't be as hectic this week when it comes to transportation issues on Capitol Hill, but lawmakers still have a lot on their plate. Aside from the Senate appropriations markup, here's what's on the schedule: — Tuesday: The Senate Commerce Committee's surface transportation, freight, pipelines and safety panel will hold a hearing about the trucking and commercial bus industries to discuss possible ways to adjust the FMCSA in the successor to the 2021 infrastructure law. At 2 p.m., the House Transportation Committee's Coast Guard and maritime subcommittee will host a hearing about the Federal Maritime Commission's fiscal 2026 budget request. — Wednesday: Three nominees for high-ranking DOT roles will face a Senate Commerce Committee confirmation hearing at 10 a.m. They are Seval Oz for assistant secretary for research and technology; Michael Rutherford for assistant secretary for multimodal freight infrastructure and policy; and Gregory Zerzan for general counsel. At 3 p.m., the Senate Environment and Public Works Committee's transportation panel will host a hearing about improving U.S. infrastructure. The witnesses are: Chad Orn, deputy director of planning at the North Dakota DOT; Marisa Jones, managing director of policy and partnerships at the Safe Routes Partnership; and Samantha Biddle, the Maryland DOT's deputy secretary. drones NONCOMMITTAL: Pavan caught up with Senate Commerce Chair Ted Cruz (R-Texas) late last week after some House members recently suggested they were interested in muscling counterdrone authorities legislation through Congress sometime before next summer's FIFA World Cup, which spans North America. Cruz said it's 'certainly an issue we're looking at very closely,' appearing to refer to his committee, and when asked if it's realistic that such a bill could get done prior to the soccer tournament, he would only say: 'Possibly.' Highways THOUGHTS, ANYONE?: DOT in a Federal Register notice says it's seeking ideas and comments from the public about the next surface transportation bill. NEW FACES WHO THEY ARE: Three DOT administrator nominees breezed through their Senate Commerce Committee confirmation hearing last week, and their initial questionnaires submitted to the panel are now available to the public. — Jonathan Morrison, the pick to run NHTSA, indicated that he might take an industry-friendly approach to the oversight of emerging software and hardware like automated driving systems, saying the agency must work to 'establish robust performance requirements that meet the need for motor vehicle safety in a way that does not hamper innovation.' He's a former Apple attorney and was the agency's chief counsel during Trump's first term, during which he tangled with Elon Musk's Tesla. — Derek Barrs, the choice to head the FMCSA, suggested that he wants to upgrade the trucking regulator's internal computer systems to 'ensure they can effectively support new technologies and withstand cyber threats.' He previously served as chief of the Florida Highway Patrol and is a school board member in the Sunshine State. — Paul Roberti, the prospective leader of PHMSA, who was the pipeline safety agency's top lawyer during the first Trump administration, wrote that it must 'rise to the challenge of streamlining regulations.' Shifting Gears — Jonathon Freye will head the Association of Value Airlines as executive director. He previously led government affairs for an aerospace division of Hyundai Motor Group. The Autobahn — 'Delta regional pilot makes 'aggressive maneuver' to avoid B-52 collision.' ABC News. — 'US judge sets August hearing on bid to end Boeing criminal prosecution.' Reuters. — 'NTSB chair says media reports on Air India crash are speculative, premature.' Reuters. — 'After years of tough rules on liquids and footwear, US air travel may be on the cusp of a new era.' AP. — 'JFK Lifts Ground Stop Caused by Disabled Aircraft on Runway.' Bloomberg. — 'Carmakers Face Uncertainty as Tariffs and Earnings Collide.' Bloomberg.
Politico
14-07-2025
- Business
- Politico
Welcome to appropriations season
With help from Pavan Acharya QUICK FIX — House appropriators released their fiscal 2026 spending bill for DOT, which includes a funding boost for the FAA. — It's a busy few days on Capitol Hill when it comes to transportation issues. DOT chief Sean Duffy will be testifying before lawmakers, and three DOT administrator nominees have their confirmation hearing. — The FAA is expected to update its request for companies' ideas on how to revamp the nation's air traffic control system. We break down the schedule. IT'S MONDAY: You're reading Morning Transportation, your Washington policy guide to everything that moves. We're glad you're here. Send tips, feedback and song lyrics to Sam at sogozalek@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'Mountains rough this time of year/ Close the highway down/ They don't warn the town/ I've been fightin' second gear/ For 15 miles or so/ Tryna beat the angry snow.' Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the Week DIG IN: The House Appropriations Committee is out with its fiscal 2026 spending bill for DOT, Sam reports. You can read it here, and a summary is available here. The Transportation, Housing and Urban Development, and Related Agencies subcommittee will mark up the legislation at 5 p.m. today. Your MT team is digging through the text, and will have full coverage throughout the week. HIGHLIGHTS: The legislation includes around $22 billion in discretionary money for DOT, which is roughly $3.1 billion below fiscal 2025 levels and $4.7 billion less than the Office of Management and Budget's request, according to the committee's summary. With $83.3 billion in obligation limitation for highway and airport trust fund programs, there's approximately $105 billion in 'total budgetary resources' to 'improve the safety and efficiency of our nation's transportation system,' the summary says. — The FAA would see a notable boost in funding, snagging about $23.3 billion — an increase of roughly $2.3 billion compared to fiscal 2025. This includes approximately $10.4 billion to 'fully fund air traffic control operations' and to allow the FAA to hire 2,500 controllers, the summary says. THE STAKES: Lawmakers are racing to avoid a government shutdown before the Sept. 30 funding deadline — a tall order, with Congress on recess in August and limited days in session over the coming weeks. And Democrats may have little incentive to help Republicans in the Senate pass appropriations bills as the Trump administration continues its government-slashing effort, which includes a rescissions package that targets foreign aid and public broadcasting. On The Hill BUSY, BUSY, BUSY: Aside from the House appropriations markup, Wednesday is jam-packed with transportation-related events on Capitol Hill — all at 10 a.m. They are: — House Transportation Committee: DOT Secretary Sean Duffy, who is also now interim administrator of NASA, will answer questions from lawmakers during an open forum about Navy Yard, including the department's fiscal 2026 budget request. Expect questions on everything from Duffy's plan to build a 'brand new' air traffic control system to how his temporary role at the space agency will impact his work at DOT. — Senate Commerce Committee: Three DOT administrator nominees — Jonathan Morrison for NHTSA, Derek Barrs for the FMCSA and Paul Roberti for PHMSA — will testify at their confirmation hearing. Expect questions about NHTSA's oversight of Elon Musk's Tesla and autonomous driving technology, as well as traffic fatalities; trucking safety and the FMCSA's regulation of the industry; and PHMSA's pipeline safety enforcement. — Senate Environment and Public Works Committee: The panel will hold a hearing about the upcoming surface transportation bill, which will succeed the 2021 infrastructure law. (The Biden-era package expires next fall.) EPW Chair Shelley Moore Capito ( previously told your MT host that she wants to have text in hand by year's end. The witnesses will be: North Dakota Gov. Kelly Armstrong (R), on behalf of the National Governors Association; Austin Ramirez, CEO of Husco International Inc., on behalf of the National Association of Manufacturers; and Kate Gallego, mayor of Phoenix, Arizona. BONUS: The House Homeland Security Committee's transportation and maritime security panel is hosting a hearing at 10 a.m. Tuesday titled: 'Surveillance, Sabotage, and Strikes: Industry Perspectives on How Drone Warfare Abroad Is Transforming Threats at Home.' Aviation THE RACE IS ON: The FAA is expected to release early this week a finalized version of its request for companies' ideas on how to overhaul the U.S. air traffic control system, a key priority of Duffy's. (The GOP included roughly $12.5 billion in Republicans' recent megabill as a 'down payment' for this effort.) Proposals for the project will be due Aug. 4. SPEED IT UP: DOT said Friday that since Duffy rolled out a plan in late February to boost the nation's ranks of air traffic controllers, the FAA has expanded onsite training at its Oklahoma City academy by nearly 30 percent, with July set to see the highest number of students in the agency's history (550 by the end of the month). MORE QUESTIONS: Indian investigators are out with their preliminary report into June's Air India Boeing 787 crash, which killed at least 260 people in the city of Ahmedabad. The initial analysis shows confusion in the cockpit just before the jet hit a building, with fuel supply to the engines being cut off soon after takeoff. In a recording, one pilot can be heard asking the other why he did this — but the latter responded that he hadn't flipped the switches. — Investigators stressed that, at this point, they have no recommendations for either Boeing or GE Aerospace, which manufactured the engines. The probe into the incident remains ongoing, and no cause has been determined. Rail ICYMI: A dozen Senate Democrats are calling on the FRA to deny a petition from the rail industry that would allow most North American freight railroads to replace some track inspections conducted by humans with ones done via autonomous technology. (Unions are upset, too.) The group of lawmakers was led by Sen. Maria Cantwell (D-Wash.), ranking member of the Senate Commerce Committee. The Association of American Railroads, which filed the petition, has argued that the changes will allow companies to be able to detect track defects earlier. The Autobahn — 'At least 4 presumed dead, 11 missing after Houthi rebels sink ship in Red Sea, EU naval mission says.' AP. — 'Ford Breaks Annual Record for Safety Recalls Within First Six Months of Year.' Wall Street Journal. — 'How China's BYD Is Squeezing Suppliers in the EV Price War.' Wall Street Journal. — 'Amid Air India probe, US FAA, Boeing notify fuel switch locks are safe, document, sources say.' Reuters. — 'Boeing settles with Canadian man whose family died in 737 MAX crash.' Reuters. — 'US senator says United, JetBlue partnership could harm competition.' Reuters. — 'Jaguar Land Rover North America recalls about 21,000 US vehicles over torn passenger airbags.' Reuters. — 'US safety regulator opens recall query into over 27,000 Polestar 2 vehicles.' Reuters. — 'Stellantis Says Armed Man at Its Michigan Plant Now In Custody.' Bloomberg. — 'Delta Strips Engines Off New Airbus Jets to Overcome US Shortage.' Bloomberg.
Politico
30-06-2025
- Business
- Politico
Senate inches closer on megabill
With help from Pavan Acharya, Oriana Pawlyk and Chris Marquette QUICK FIX — Senate Republicans hope to push through their reconciliation package today or early tomorrow. How have transportation provisions fared? — We caught up with the chair of the House Transportation Committee's aviation panel. Here's what his subcommittee's summer is looking like. — The Government Accountability Office called out DOT for (still) not having a pandemic preparedness plan for aviation. IT'S MONDAY: You're reading Morning Transportation, your Washington policy guide to everything that moves. We're glad you're here. Send tips, feedback and song lyrics to Sam at sogozalek@ Chris at cmarquette@ Oriana at opawlyk@ and Pavan at pacharya@ and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @pavanmacharya. 'We know a place where no planes go/ We know a place where no ships go/ Hey!/ No cars go/ Hey!/ No cars go/ Where we know.' Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day HOURS TICK DOWN: The Senate GOP aims to tee up a final vote sometime today or early tomorrow on its version of the party's sprawling domestic policy package. Republicans dropped updated language for their reconciliation measure throughout the weekend as Senate leaders raced to address both parliamentarian rulings and skittish members. So far, many high-profile transportation provisions have not been affected, but the GOP has accelerated the proposed phase-out of electric vehicle tax credits. Here's where things stand. WHAT'S DIFFERENT: The text would move up the termination date for EV tax credits to Sept. 30, compared to six months after enactment as was initially proposed by the Senate Finance Committee, Kelsey Tamborrino and James Bikales report. WHAT'S THE SAME: The legislation still includes roughly $12.5 billion for air traffic control upgrades, new fees on commercial space launches and reentries, a zeroing-out of penalties for automakers who fail to comply with Corporate Average Fuel Economy standards, a boost in Coast Guard funding and various Inflation Reduction Act rescissions. JUMPING BACK IN: Elon Musk, President Donald Trump's former cost-cutting adviser and the CEO of Tesla, renewed his criticism of the legislation Saturday, writing on X that the version of the megabill will 'destroy millions of jobs in America and cause immense strategic harm to our country!' He added: 'Utterly insane and destructive.' Aviation WHAT'S NEXT?: Your MT host recently caught up with Rep. Troy Nehls (R-Texas), chair of the House Transportation Committee's aviation panel, about what he has planned for his subcommittee this summer. Nehls said he's holding closed-door, information-gathering sessions with stakeholders in the industry, with two set for July: one with telecommunications 'groups' such as Verizon and one with air traffic controllers, likely at Dulles International Airport's tower. 'We just want to have open dialogue,' Nehls said. 'It's like, you know, take the jackets off, take the ties off, let's have a casual conversation, a meaningful conversation, about what we can do to modernize' the national airspace. ''Cause Congress doesn't have the answer,' Nehls said. — He added that he hopes to have these types of meetings continue over the course of four to six months, and aims to 'come up with some good policy' that lawmakers can work with DOT Secretary Sean Duffy to present to the White House. 'THE CLOSER': That's what Senate Majority John Thune (R-S.D.) calls Trump when it comes to the GOP's reconciliation package. And part of Trump's closing argument: Hyping up the $12.5 billion included in Republicans' megabill for air traffic control improvements. In a roughly minute-long video message published Friday, Trump in the Oval Office lauded the investment, saying it will give the U.S. the 'best, most advanced' system on Earth. (Industry, and Duffy, think more dollars will be needed to get the job done.) 'It's time to pass the one big, beautiful bill into law,' Trump said. PLEASE, MORE: We spotted an interesting op-ed featured Friday in Fox News: Paul Rinaldi, the former president of the National Air Traffic Controllers Association, who now works at Airlines for America, urged the Senate to include more money in its reconciliation measure for airspace upgrades — or pass a 'supplemental package' for the effort. (Based on Trump's remarks, it seems like $12.5 billion is all the GOP will include in its megabill.) RALLYING OPPOSITION: Sen. Maria Cantwell's (D-Wash.) team on Friday flagged statements, including from former FAA Administrator Mike Whitaker, blasting Commerce Chair Ted Cruz's (R-Texas) inclusion of an upper C-band spectrum auction in the GOP megabill, which Cantwell, the panel's ranking member, is worried will negatively affect aviation safety. Whitaker, too, expressed alarm, as did former Biden-era Deputy FAA Administrator Katie Thomson and Capt. Chesley 'Sully' Sullenberger, the 'Miracle on the Hudson' pilot — who was even more blunt: 'This is yet another Dumb, Dangerous, and Unnecessary idea.' A majority spokesperson for the committee directed your MT host to Cruz's recent comments about the subject at the confirmation hearing for FAA administrator nominee Bryan Bedford, during which Cruz said the proposed auction poses no risk to air safety. At the Agencies ALARMING: The GAO in a report released Friday called out DOT for still not having a preparedness plan to help limit the spread of infectious diseases via air travel. (This comes after the Covid-19 pandemic, West Africa's Ebola epidemic in the 2010s and many more outbreaks over the years.) The push for such a strategy isn't new, Pavan reports. GAO first recommended a plan back in 2015, and federal law required one to be finished as of December 2024, according to the watchdog. — DOT has dragged its feet before. In 2020, the department wanted DHS or HHS to take point, saying they were better suited. DOT didn't respond to a request for comment Friday. Trucking MORE SCRUTINY: Duffy on Friday announced that FMCSA will launch a nationwide review of states that issue commercial driver's licenses to residents of other areas, i.e. 'non-domiciled' individuals. Following a late April executive order from Trump, it's the latest in an apparent DOT effort to crack down on any undocumented immigrants in the trucking industry. (Last month, Duffy rolled out new guidance that says truck drivers who fail to comply with English proficiency requirements will be placed out-of-service.) — Context: The American Trucking Associations earlier this year argued that the FMCSA should better track the number of non-domiciled CDLs issued by states on an annual basis. And George O'Connor, a spokesperson for the Owner-Operator Independent Drivers Association, said Friday that the group likes Duffy's move. 'It's become a safety issue over the last 10 years,' he said. A HELPING HAND: The DOT chief on Friday also detailed a new initiative that will boost the industry, including more than $275 million in grant money to expand parking access for truck drivers, such as over 900 spots along the Interstate 4 corridor in Central Florida. (A slice of highway that your MT host, who used to live in the Sunshine State, must say has some of the worst traffic in the U.S.) — Duffy's announcement also included a move to withdraw a joint FMCSA and NHTSA rulemaking that sought to require speed-limiting devices on heavy vehicles. NEW FACES KEEP AN EYE OUT: A new DOT advisory board, literally called the 'Advisory Board,' will hold its first meeting on July 16, according to the Federal Register. It will kick off at 2 p.m. and will be in the White House, with the public able to watch virtually. It remains unclear who is part of the group. A DOT spokesperson didn't provide a list when your MT host asked about the subject Friday. — What the board will focus on, exactly, is murky, too. Its formation was announced last month. The group's charter says it will consist of no more than 12 members, and annual operating costs are estimated to be $250,000. The board is supposed to offer recommendations on 'infrastructure modernization and expansion,' advise on public-private partnerships and discuss ways to 'reduce bureaucratic obstacles.' It's set to include industry members and experts, including from the aviation and construction sectors. Shifting Gears — Anissa Frucci has been promoted to chief financial officer of the United States Maritime Alliance. Justin Weir has been named chief operating officer. Frucci most recently was USMX's executive vice president of finance and administration. Weir was previously president and general manager of Florida International Terminal. The Autobahn — 'American Airlines Flights Snarled by Computer Glitch.' New York Times. — 'They're Tiny. They're Slow. And People Are Obsessed.' New York Times. — 'Elon Musk Says First Tesla Drove Itself From Factory to Customer.' Bloomberg. — 'Cash-strapped Maryland revives plan for trains to Virginia and Delaware.' Washington Post. — 'Airlines, transportation groups targeted by cybercriminal group.' POLITICO Pro.
