regional block grants for transportation

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.

transportation funding sources and uses

Transportation in Sacramento County comes from a number of sources: federal, state, regional and local. The federal government is the big player in our national and regional transportation system, but has little role in local streets and roads. The state has a large role in national and regional transportation, partly with it own money and partly as a conduit for federal money. The regional Metropolitan Planning Agency, Sacramento Area Council of Governments in our case, does not contribute any funds, but does have a say in how a portion of the federal and state funds are allocated. Sacramento County has a role in the transportation system at all levels, national, regional, and local, and contributes through the Measure A sales tax. Some cities within the county contribute to projects, and much of what little maintenance is done is funding by the cities.

Some readers are saying whoa! There is a lot more detail to the story than this. Yes, there is. What I am doing at the moment is painting with a broad brush for common citizens who might have input on the proposed Measure B sales tax for transportation.

So, where does it go?

  • Federal funds reserve 10% for transit, and almost all the rest goes to highway construction projects. Though the federal government has said it wants to see a more multi-modal transportation system, they are giving money to the states with almost no strings attached and the states are spending it on highway construction. A recent effort to hold states more accountable is toothless.
  • State funds from Proposition 1B and other sources go to construction, transit, a little maintenance, and tiny amounts to the Active Transportation Program. 75% of the money is passed through to the MPOs and regional transportation agencies, but in such a way that most of the decisions are at the regional level are for the same, mostly construction and some other. Again, the state has said it wants to see a more multi-modal system, but funding decisions still strongly favor highways.
  • Regional funds are allocated largely based on requests from the counties and cities for projects, and most of the projects requested are highway construction and arterial expansion. Again, the MPOs have said they want a more multi-modal system, but the funds continue to go largely to cars.
  • County funds are primarily from the transportation sales tax Measure A. Most of these funds were allocated to new construction, with 1/3 for transit and almost none to maintenance and walking and bicycling. The nature of the sales tax measure, approved in 1988 and updated in 2004, is a 30-year term and a list of projects that can only be significantly changed by a new ballot measure.

Here are some links on transportation funding in California:

  • Transportation Funding, Institute for Local Government, undated but may be somewhat out of date
  • Transportation Funding in California, Caltrans, 2014
  • If you search for “transportation funding California” you will find a lot more information. Please realize that some of these web sites and documents are from road building industry groups, so put just as skeptical an eye on those as you do my posts!