This week’s podcast Talking Headways Podcast: Localities Subsidize the State DOT, Talking Headways, Jeff Wood, was an interview with Adie Tomer of Brookings Institution about a research paper recommending that some federal transportation funding go directly to regional government, MPOs (Metropolitan Planning Organizations) and COGs (Council of Governments), rather than through state departments of transportation. The paper points out that in most cases local governments are subsidizing the state DOT, giving more money to the state than they are getting. The solution suggested is regional block grants (Regional block grants: A new approach to funding transformative infrastructure projects, Brookings Institution, 2025-05-08).

“Regions are the economic hubs of the nation, with metropolitan areas alone producing 90% of gross domestic product in 2023.”

“Regional infrastructure needs are complex, outpacing existing federal funding mechanisms. Formula funds primarily flow to states, while regional actors struggle to qualify for many competitive grants.”

“A new federal model should empower regions and their localities directly. Regional block grants can equip regions with predictable, flexible funding to deliver transformative infrastructure.”

I love the idea! Caltrans gets state funding, and gets a portion of SACOG funding, and a portion of Sacramento Transportation Authority funding. That allows Caltrans to continue to widen freeways and build interchanges, while local roads are pocked with potholes. We have ever fancier freeways with ever expanding lanes. Why? We don’t need that, it contributes nothing to solving our transportation needs, but just induces more driving and more congestion and more pollution and more crashes.

There is a constant tension at the SACOG Board when Caltrans demands funds that come from the state and other sources, for their pet projects. Same at SacTA, when Caltrans demands funds that come from local sales tax. Time to end this!

I encourage you to listen to the podcast, available on any podcast reader, and check the Brookings research paper.