United States Government Accountability Office

GAO Testimony 

Before the Subcommittee on Transportation, 

Housing and Urban Development, and Related 

Agencies; Committee on Appropriations; 

House of Representatives

PERFORMANCE AND 

ACCOUNTABILITY 

Transportation Challenges 

Facing Congress and the 

Department of 

Transportation 

Statement of Patricia A. Dalton, Managing Director 

Physical Infrastructure Issues 

For Release on Delivery

Expected at 2:00 p.m. EST 

March 6, 2007

 

GAO-07-545T 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

March 6, 2007

PERFORMANCE AND ACCOUNTABILITY

Transportation Challenges Facing 

Congress and the Department of 

Transportation 

Highlights of GAO-07-545T, a testimony 

before the Subcommittee on 

Transportation, Housing and Urban 

Development, and Related Agencies; 

Committee on Appropriations; House of 

Representatives 

A safe, efficient, and convenient

transportation system is integral to

the health of our economy and

quality of life. Our nation’s vast 

transportation system of airways, 

railways, roads, pipelines, transit, 

and waterways has served this 

need, yet it is under considerable 

strain from (1) increasing 

congestion, (2) the large costs to 

maintain and improve it, and (3) 

the human cost of over 44,000

people killed and over 2.5 million 

injured each year in transportationrelated accidents. 

The Department of Transportation

implements national transportation

policy and administers most federal 

transportation programs. For fiscal 

year 2008, the department has 

requested $67 billion to carry out 

these and other activities. 

While the department carries out 

some activities directly, such as

employing about 15,000 air traffic 

controllers to make certain that

planes stay a safe distance apart, it

does not have direct control over 

the vast majority of activities that it

funds, such as local decisions on 

the priority and placement of 

airports, public transit, and roads. 

In other cases, such as railways 

and pipelines, the infrastructure is

owned and operated by industry. 

This statement presents GAO’s 

views on major transportation 

challenges facing Congress and the 

department. It is based on GAO 

products, including 

recommendations made, and the 

products of others. 

Financing mechanisms for the nation’s transportation system are under 

stress. Our nation’s transportation infrastructure is threatened by increasing

demand for transportation services, and revenue from traditional funding 

mechanisms for the nation’s highway and aviation systems may be unable to 

keep pace at current tax rates. In addition, freight traffic is projected to 

grow substantially, but current planning and financing mechanisms impede 

public strategies to address needs. 

Our nation’s mobility is threatened because the nation’s infrastructure is 

under great strain. Congestion across modes (e.g., aviation, highways, and 

rail) is expected to worsen. However, funding by mode and the lack of 

performance-related goals result in little assurance that funds are being 

channeled to the most critical mobility concerns and that intermodal 

approaches can be integrated into the transportation system. 

Improvements in transportation safety are needed to reduce the number 

of deaths and injuries from transportation accidents—about 95 percent of 

which occur on our nation’s roads. Increases in congestion across modes as

a result of population and economic growth could cause deterioration in 

transportation safety despite departmental and state efforts to reduce 

accidents. 

The transition from the current air traffic control system to a broader and 

modernized system will be one of the department’s most complex 

undertakings. In previous years, FAA has faced systemic management and 

acquisition problems that led us to designate its air traffic control 

modernization program as high risk. While the agency has made significant 

progress in recent years, a key challenge going forward will be to 

institutionalize these improvements and to continually improve. 

In addition, the department and the transportation sector face persistent 

human capital challenges due to an impending shortage of skilled people to 

meet changing transportation needs. Furthermore, despite recent 

improvements in financial management, the department received a 

qualified opinion on its 2006 financial statements. Finally, the department is 

working to clarify its role in transportation security and emergency 

preparedness and response. 

Source: Photodisc and Corbis.

www.gao.gov/cgi-bin/getrpt?GAO-07-545T.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Patricia Dalton 

at (202) 512-2834 or Daltonp@gao.gov. 
Mr. Chairman and Members of the Subcommittee: 

We appreciate the opportunity to participate in this hearing today to 

discuss transportation challenges facing Congress and the Department of 

Transportation. These issues are important for three reasons. First, the 

nation’s economic vitality and its citizens’ quality of life depend 

significantly on the soundness, safety, and security of its vast 

transportation system. This system fuels the nation’s economic engine, 

facilitating the movement of goods and people. Second, transportation 

solutions are typically expensive, and the federal government’s financial 

condition and fiscal outlook are worse than many may understand.1

 This 

calls for a reexamination of the goals of transportation policy, how we 

hold stakeholders accountable for results, and how programs are financed. 

Finally, as an implementer of congressional policy, the Department of 

Transportation must be a high-performing agency—one that innovates, 

delivers results, is fiscally prudent, and has a workforce that can meet 21st 

century challenges.2

My remarks today focus on four primary transportation challenges and 

some that are continuing concerns. (See fig. 1.) Some are solely within the

Department of Transportation’s purview; some require congressional 

action as well. For the most part, these challenges are the ones that we 

identified in 2003 as part of our series of reports of performance and 

accountability challenges facing the federal government.3

 This is not 

because little or no progress has been made. In many cases there has been 

progress. Rather, it is because some of these challenges—such as 

improving mobility and transportation safety—are so vast, and the 

department’s ability to address them is so indirect, that years of focused 

efforts will be needed to see measurable improvements. In addition to our 

completed work on these issues, we have a body of ongoing work that 

should be of use to Congress and the department as our country moves 

forward to improve the design of transportation programs, delivery of 

 1

GAO, Fiscal Stewardship: A Critical Challenge Facing Our Nation, GAO-07-362SP 

(Washington, D.C.: January 2007). 

2

GAO, 21st Century Challenges: Reexamining the Base of the Federal Government, 

GAO-05-325SP (Washington, D.C.: February 2007). 

3

GAO, Major Management Challenges and Program Risks: Department of 

Transportation, GAO-03-108 (Washington, D.C.: January 2003). See 

http://www.gao.gov/pas/2005/dot.htm for a 2005 update.

Page 2 GAO-07-545T 
services, and accountability for results (See app. I and a list of related 

GAO products at the end of this statement). 

Figure 1: Major Challenges Facing Congress and the Department of Transportation

Improving mobility through intermodal and modal approaches

Sources: Photodisc and GAO.

Improving transportation safety

Managing the transition to the next generation air

transportation system

Financin Financingg the nation’ the nation’ss tran transsportation portation ssyysstemtem

Page 3 GAO-07-545T 
My statement is primarily based on work that we have completed over the

past several years for Congress. We also reviewed assessments of the 

Department of Transportation’s activities prepared by its Office of 

Inspector General and key departmental documents, such as its budget, 

strategic plan, and performance and accountability report. Finally, we 

discussed these issues with selected senior officials within the 

department. We conducted our work in February 2007 in accordance with 

generally accepted government auditing standards. 

In summary: 

• Financing mechanisms for the nation’s transportation system are 

under stress. The efficiency of the nation’s transportation infrastructure is 

threatened by increasing demand for transportation services, and revenue

from traditional funding mechanisms may be unable to keep pace at 

current tax rates. Revenues to support the Highway Trust Fund—the 

major source of federal highway and transit funding—are eroding, with 

recent estimates forecasting a negative balance of more than $14 billion by

the end of fiscal year 2012. For aviation, there is concern that with the 

current funding system, the costs of providing and modernizing air traffic 

control services might increase without a corresponding increase in 

revenues collected from users. In the future, freight traffic is projected to 

grow substantially, putting strain on our nation’s transportation systems, 

but current planning and financing mechanisms impede public strategies

to address needs, and industry’s ability to fund its capacity increases to 

meet growth is largely uncertain. As a result of these concerns, we 

designated financing the nation’s transportation infrastructure as a highrisk issue this year.4

• The challenges in reforming transportation finance systems are critical to

maintaining and improving our nation’s mobility. The nation’s 

infrastructure is under great strain; congestion across modes is significant 

and expected to worsen. However, federal funding levels are not linked to

specific performance-related goals and outcomes, resulting in limited 

assurance that federal funding is being channeled to the nation’s most 

critical mobility needs. Furthermore, federal funding is often tied to a 

single transportation mode, which may limit the use of federal funds to 

finance the greatest improvements in mobility. It is also unlikely that 

mobility can be enhanced unless major modes—air, highway, rail, transit, 

and water—are well connected. However, intermodal connections, such as

 4

GAO, High-Risk Series: An Update, GAO-07-310 (Washington, D.C.: January 2007). 

Page 4 GAO-07-545T 
multimodal passenger terminals and roads that link freight terminals and 

major highways, are among the transportation system’s weakest links. 

The department is implementing a number of new initiatives aimed at 

mitigating congestion, including providing funds to local governments to 

test innovative ideas for curbing congestion and new funding for projects 

that have national or regional benefits. In the aviation arena, the Federal

Aviation Administration (FAA) is leading a multiagency effort to transform 

the air traffic control system in order to safely handle the projected growth 

in the demand for air travel. While these steps are encouraging, 

successfully addressing the nation’s mobility needs requires strategic and 

intermodal approaches and solutions. 

• Improving transportation safety is an imperative. Each year over 44,000 

people are killed and over 2.5 million are injured in transportation-related 

accidents. Of particular concern is the limited progress in improving safety 

on our nation’s roads, where about 95 percent of all transportation 

fatalities occur. Projected increases in congestion across modes, as a 

result of population and economic growth, could cause deterioration in 

transportation safety despite vigorous efforts to reduce accidents. To 

address these problems, the department is carrying out a number of 

initiatives related to improving aviation, commercial motor carrier, 

highway, railroad, and pipeline safety. However, certain areas require 

increased attention. In particular, improvements in data, performance 

measures, and evaluations are needed to determine whether programs are 

achieving intended results. For example, agencies need to develop better 

measures of the direct results of their efforts—such as safety 

improvements made as a result of enforcement of safety standards—that 

contribute toward reductions in accidents. This information can also hold 

agencies accountable for the performance of their programs and support 

congressional oversight.

• FAA has worked with the Joint Planning and Development Office (JPDO) 

to design and plan the Next Generation Air Transportation System

(NextGen) and will face challenges as it moves toward implementation 

and integration of NextGen systems.5 This transition from the current air 

 5

In 2003, Congress authorized the creation of the JPDO, housed within FAA, to plan for and 

coordinate the transition to the Next Generation Air Transportation System. It operates in

conjunction with seven partner agencies. NextGen involves airport-curb-to-airport-curb 

modernization and encompasses security screening and environmental issues, as well as

projects to augment the global positioning system to aid in approaches and landings and to

provide new displays and data processing for air traffic controllers. 

Page 5 GAO-07-545T 
traffic control system to the broader and modernized NextGen system will 

be one of the Department of Transportation’s most complex undertakings. 

In previous years, FAA has faced systemic management and acquisition 

problems that led us to designate its air traffic control modernization 

program as high risk. FAA has made significant progress in its handling of 

air traffic control acquisitions, but a key challenge going forward will be to 

institutionalize these improvements and to continuously improve in this 

area. FAA and JPDO also need to provide Congress with a valid and 

comprehensive estimate of the costs of the NextGen system, including the 

identification and costs of necessary research, development, and 

demonstration projects. One limited, preliminary estimate concluded that

FAA’s budget under a NextGen scenario would average about $15 billion 

per year through 2025, or about $1 billion more annually (in today’s 

dollars) on average than FAA’s fiscal year 2006 appropriation. JPDO has 

estimated that failure to achieve a timely transition to NextGen could 

result in a gap between the demand for air transportation services and 

available capacity that could cost the U.S. economy billions of dollars 

annually. 

• In addition, the department and the transportation sector as a whole face 

persistent human capital challenges that put their mission performance 

at risk. Both face an impending shortage of people with the skills and 

competencies they will need in the future. Furthermore, while the 

department has made significant improvements in recent years in its 

financial management, it received a qualified opinion on its 2006 

financial statements because of material weaknesses related to certain 

FAA activities. Finally, the department has retained some responsibilities 

and involvement in transportation security and emergency 

preparedness and response and is working with the Department of 

Homeland Security to further clarify its role. 

The safe, efficient, and convenient movement of people and goods 

depends on a vibrant transportation system that meets those needs. Our 

nation has built a vast transportation system of roads, airways, railways, 

pipelines, transit, and waterways that facilitate commerce and improve 

our quality of life. The flow of people and goods is enormous: the nation 

moved about 5 trillion ton miles of freight and 5 trillion passenger miles of 

people in 2004.6

 Spending for commercial, personal, and government 

Background 

 6

One ton-mile is the movement of one ton of freight for one mile. One passenger mile is the 

movement of one person for one mile. Statistics are for both interstate and intrastate 

travel. 

Page 6 GAO-07-545T 
transportation represents about 11 percent of the gross domestic product.

Yet there is a price for this system: 

• Increasing congestion on the ground and in the air delays the arrival of 

people and freight at their destinations and imposes economic losses. 

According to Department of Transportation estimates, congestion costs 

Americans roughly $200 billion each year. 

• The system is expensive to maintain and improve. Total federal, state and 

local transportation expenditures are close to $200 billion annually. 

• There is a human cost: over 44,000 people are killed in transportationrelated accidents and over 2.5 million are injured each year. 

The transportation system is under considerable strain from these factors,

and this strain is expected to increase as the demand to move people and 

goods grows resulting from population growth, technological change, and

the increased globalization of the economy. For example, according to the 

Transportation Research Board, an expected population growth of 100 

million people could double the demand for passenger travel by 2040. 

Moreover, this population growth will be concentrated in certain regions 

and states, further intensifying the demand for transportation in these 

areas.7

The Department of Transportation implements national transportation 

policy and administers most federal transportation programs. Its 

responsibilities are considerable and reflect the extraordinary scale, use,

and impact of the nation’s transportation system. The department has 

multiple missions—primarily focusing on mobility and safety—that are 

carried out by several operating administrations. (See table 1.) 

 7

Transportation Research Board, Critical Issues in Transportation (Washington, D.C.: 

2006). 

Page 7 GAO-07-545T 
Table 1: Primary Missions of the Department of Transportation

Mission Responsible entity within the department 

Enhancing the quality and performance of the nation’s highway system 

and intermodal connectors 

Federal Highway Administration 

Promoting the safety and efficiency of the national airspace system Federal Aviation Administration

Supporting locally planned and operated public mass transit systems Federal Transit Administration 

Reducing motor vehicle crashes and their associated deaths and injuries National Highway Traffic Safety Administration 

Reducing commercial motor vehicle-related (large trucks and buses) 

fatalities and injuries

Federal Motor Carrier Safety Administration 

Improving safety on the nation’s rail systems and providing grants for 

intercity passenger rail activities

Federal Railroad Administration 

Maintaining the safety and integrity of the nation’s pipeline transportation 

system and the safety of transporting hazardous materials

Pipeline and Hazardous Materials Safety Administration 

Strengthening the nation’s maritime transportation system, including

infrastructure, industry, and labor 

Maritime Administration 

Source: GAO presentation of Department of Transportation information. 

For fiscal year 2008, the President’s budget requested $67 billion to carry

out these and other activities. This budget request would support about 

55,000 full-time-equivalent employees. 

The department carries out some activities directly, such as employing 

more than 15,000 air traffic controllers to coordinate air traffic to make 

certain that planes stay a safe distance apart. However, the vast majority 

of its activities are not under its direct control. For example, in recent 

years the Federal Highway Administration (FHWA) has provided state 

governments nearly $34 billion each year to build and improve roads and 

bridges and meet other transportation needs. However, for the most part 

state and local governments decide which transportation projects have 

high priority within their political jurisdictions. Similarly, while the 

National Highway Traffic Safety Administration (NHTSA) encourages the 

use of safety belts by the motoring public as a means of saving lives and 

reducing injuries, states determine whether and how to punish 

noncompliance. In other cases—notably most freight railways and 

pipelines—the infrastructure is owned and operated by private companies 

and the Department of Transportation regulates the safety of their 

transportation operations. 

Page 8 GAO-07-545T 
In our view, Congress and the Department of Transportation face four 

major transportation challenges—financing the nation’s transportation 

system, improving mobility, improving safety, and managing the 

transformation of the air traffic control system. Another three issues are of 

continuing concern: building human capital strategies, fostering improved 

departmental financial management, and improving transportation 

security and emergency preparedness and response. 

Transportation 

Challenges Facing 

Congress and the 

Department of 

Transportation 

Financing the Nation’s

Transportation System 

The efficiency of the nation’s transportation infrastructure is threatened 

by increasing demand for transportation services, and revenue from 

traditional funding mechanisms may be unable to keep pace at current tax 

rates. In addition, the nation’s long-term fiscal challenges8

 will constrain 

decision makers’ ability to use other revenue sources for transportation 

needs. As a result of these concerns, we designated financing the nation’s 

transportation infrastructure as a high-risk issue this year. 

Revenues to support the Highway Trust Fund—the major source of federal 

highway and transit funding—at the current fuel tax rate are eroding. 

While receipts for the Highway Trust Fund, which are derived from motor 

fuel and truck-related taxes, are growing, the federal motor fuel tax rate of

18.3 cents per gallon has not been increased since 1993 and inflation has 

eroded purchasing power. In addition, increased fuel efficiency and the 

advent of alternative-fuel vehicles will further erode trust fund receipts. 

While increases in vehicle travel will increase fuel tax revenues, funding 

already authorized in recently enacted highway and transit program 

legislation is expected to outstrip the growth in trust fund receipts. 

According to recent estimates from the Congressional Budget Office and 

the President’s budget, the trust fund balance will steadily decline and 

reach a negative balance of more than $14 billion by the end of fiscal year 

2012. (See fig. 2.) To help remedy this situation, a commission—chaired by

the Secretary of Transportation—will report later this year on 

recommendations to place the trust fund on a sustainable path. In 

addition, the Department of Transportation’s strategic plan suggests 

exploring tolling projects and private sector involvement to address 

funding constraints—ideas that some state and local governments are 

currently exploring. 

 8

GAO-05-325SP. 

Page 9 GAO-07-545T 
Figure 2: Highway Trust Fund Year-End Balance Forecasts 

Dollars (in billions)

Source: Congressional Budget Office and President’s Budget.

Year

Congressional Budget Office

President’s budget

-20

-15

-10

-5

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012

Federal aviation programs are also facing growing infrastructure demands 

with constrained resources, and a disruption in the flow of funds may 

jeopardize FAA’s ability to carry out its improvement programs. Demand 

for air travel has increased in recent years, with over 740 million 

passengers flying in fiscal year 2006. Failing to meet infrastructure 

challenges in aviation may have significant consequences, since aviation is 

an integral part of the economy. To meet anticipated increases in 

commercial aviation travel, FAA and aviation stakeholders are developing 

new systems to modernize and increase capacity, but it is uncertain 

whether the current funding system can generate sufficient revenues to 

meet these budgetary needs.9

 FAA and some stakeholders have concerns 

that the costs of providing and modernizing air traffic control services 

might increase without a corresponding increase in revenues collected 

from users. Under one preliminary estimate of modernization costs, FAA’s 

budget requirements would, on average, exceed fiscal year 2006 

appropriation levels by approximately $1 billion a year (in today’s dollars) 

 9

GAO-07-310. 

Page 10 GAO-07-545T 
through 2025. To better connect FAA’s revenues with the cost of air traffic 

control services that it provides, the President’s budget for fiscal year 2008 

has proposed replacing, in fiscal year 2009, FAA’s current excise tax 

financing system, built largely around purchases of tickets and aviation

fuel, with a cost-based user fee system. This new system would aim to 

recover the costs of providing air traffic control services through user fees

for commercial operators and aviation fuel taxes for general aviation.

However, some stakeholders believe that the current structure has been

effective in funding FAA and can be successful in the future, although 

some modifications may be necessary. In addition, the President’s budget 

has proposed cutting and reallocating federal funds for developing 

projects at the nation’s 3,400 airports. FAA estimates the total cost for 

planned airport projects eligible for funding at approximately $42 billion 

(in nominal dollars) for fiscal years 2007 through 2011. FAA is also 

proposing that Congress allow airports to collect more revenue from other 

sources to help offset any reductions. Adding to uncertainty, the current 

excise taxes that largely fund FAA revenue are scheduled to expire at the 

end of September 2007, unless there is congressional action to renew them

or provide an alternative source of funding to avoid a lapse of revenue in

fiscal year 2008. 

Freight traffic is projected to grow substantially, putting strain on ports, 

highways, railroads, and airports, but current public planning and 

financing impede strategies to address capacity investment, and industry’s 

ability to fund its capacity increases to meet growth is largely uncertain.10

Freight mobility—the ability to move goods—is a driver of economic 

growth, and increasing congestion and unreliability of transportation 

systems can have severe economic consequences. In the future, Congress 

is likely to receive funding requests for additional freight projects and face 

decisions about the federal role in the nation’s freight infrastructure. 

Improving Mobility 

through Intermodal and 

Modal Approaches 

While the federal government has made huge investments in our nation’s 

transportation infrastructure in the last 50 years, the expansion of this 

infrastructure has not kept pace with needs and the system is currently 

under great strain. Congestion across modes—estimated to cost $200 

billion per year—is significant and is projected to worsen. For example, 

 10GAO, Freight Railroads: Industry Health Has Improved, but Concerns about 

Competition and Capacity Should be Addressed, GAO-07-94 (Washington, D.C.: Oct. 6,

2006) and Freight Transportation: Strategies Needed to Address Planning and Financing

Limitations, GAO-04-165 (Washington, D.C.: Dec. 19, 2003).

Page 11 GAO-07-545T 
travel on roads is expected to increase by about 25 percent from 2000 to 

2010, freight traffic is expected to increase by 92 percent from 2002 to 

2035, and demand for air travel is expected to climb by about 35 percent 

from 2006 to 2015. To help address congestion concerns, the federal 

government spends billions of dollars each year to build, maintain, 

operate, and improve the nation’s aging transportation system. As 

congestion increases, federal policymakers face the challenge of ensuring

that funds are used efficiently in order to prevent congestion from 

overwhelming the system. However, currently there is little assurance that

the projects selected and funded best meet national goals for meeting the 

nation’s mobility needs. 

The department and Congress have recently taken a number of new 

actions to address this major threat to our nation’s economic growth and 

quality of life. In May 2006, the department announced a national strategy 

that will provide $175 million to local governments to demonstrate and 

test innovative ideas for curbing congestion. Certain large-scale pilot 

projects would be chosen based on their sponsors’ willingness to 

implement a comprehensive congestion reduction strategy, including 

congestion pricing,11 commuter transit services, and commitments from 

businesses to expand flexible work schedules. The strategy also includes 

initiatives to encourage private sector investment in transportation 

infrastructure, promote the use of operational and technological 

improvements, address major freight bottlenecks, and accelerate major 

aviation capacity projects, among other things. The department is also 

implementing a number of new initiatives to mitigate congestion that were 

called for in the Safe, Accountable, Flexible, Efficient Transportation 

Equity Act: A Legacy for Users (SAFETEA-LU), including programs to 

allow states to monitor, in real-time, traffic conditions on major highways 

and new funding for projects that have national or regional benefits. In 

addition, SAFETEA-LU established a commission that will report on ways 

to raise revenue for highway and transit projects and also reduce the costs 

of congestion. Finally, in the aviation arena, FAA is the primary 

implementer of a multiagency effort to transform the air traffic control 

system in order to safely handle projected growth in the demand for air 

travel. I will further discuss this effort later in my statement.

 11Congestion pricing involves charging surcharges or tolls to drivers who choose to travel 

during peak periods when their use of the roads increases congestion. 

Page 12 GAO-07-545T 
While these steps are encouraging, successfully addressing the nation’s 

mobility challenges requires strategic and intermodal approaches and 

solutions.12 The nation faces a growing fiscal crisis that challenges it to 

fundamentally reexamine existing government programs and 

commitments and to make tough choices in setting priorities and linking 

resources to results. In particular, the Highway Trust Fund—the largest 

source of federal funding for transportation—was created in 1956 for the 

purpose of constructing the interstate highway system and, although that 

system is now complete, the basic construct of the program, in terms of 

financing and delivery mechanisms, has not changed. In addition, this and

other federal transportation programs do not have mechanisms to link 

funding levels with the accomplishment of specific performance-related 

goals and outcomes related to mobility. Most highway grant programs are 

apportioned by formula, without regard to the needs or capacity of 

recipients. In addition, the preponderance of evidence suggests that 

federal-aid highway grants have influenced state and local governments to 

substitute federal funds for state and local funds that otherwise would 

have been spent on highways. State and local governments have broad

flexibility to select most projects that receive federal funding. As such, 

there is little assurance that the projects selected and funded best meet 

national goals for addressing the nation’s mobility needs.13 Intercity 

passenger rail service is also at a critical juncture, with the existing system 

in poor condition and federal subsidies—over $1 billion annually in recent 

years—not targeted to the greatest public benefits, including congestion 

relief.14

Furthermore, transportation programs and funding mechanisms are 

largely stovepiped by modes of transportation. For example, while 

passenger and freight travel occurs on all modes, federal funding and 

planning requirements focus largely on highway, transit, and aviation 

passenger travel. This framework makes it difficult for intermodal projects 

and other modal projects (e.g., freight or passenger rail) to be integrated 

 12GAO-05-325SP. 

13GAO, Highway and Transit Investments: Options for Improving Information on 

Projects’ Benefits and Costs and Increasing Accountability for Results, GAO-05-172

(Washington, D.C.: Jan. 24, 2005); Federal-Aid Highways: Trends, Effect on State 

Spending, and Options for Future Program Design, GAO-04-802 (Washington, D.C.: Aug. 

31, 2004) and Surface and Maritime Transportation: Developing Strategies for 

Enhancing Mobility: A National Challenge, GAO-02-775 (Washington, D.C.: Aug. 30, 2002). 

14GAO, Intercity Passenger Rail: National Policy and Strategies Needed to Maximize 

Public Benefits from Federal Expenditures, GAO-07-15 (Washington, D.C.: Nov. 13, 2006).

Page 13 GAO-07-545T 
into the transportation system. We have found, for example, that the 

limited visibility that freight projects receive in the process for planning 

and prioritizing transportation projects as well as the lack of a 

comprehensive evaluation approach, such as a cost-benefit framework, 

impedes the implementation of improvements to better ensure that 

systemwide, multimodal solutions are considered and adopted where 

appropriate. It is unlikely that mobility can be enhanced unless major 

modes—air, highway, rail, transit, and water—are well connected. 

However, intermodal connections, such as multimodal passenger 

terminals and roads that link freight terminals and major highways, are 

among the transportation system’s weakest links.15

The critical issues facing Congress and the department to effectively

address congestion problems and enhance the nation’s mobility include: 

• How narrowly or broadly should the federal role be defined? 

• Should federal programs be more closely aligned with specific national

interests and purposes, such as interstate freight mobility? 

• Should formulas be revised to better consider need, performance, 

capacity, and effort by states and localities? 

• Can intermodal solutions be effectively carried out within the existing 

federal modal program framework, or is another model needed? 

Finally, a high priority should be maximizing the benefits of federal 

investments in transportation infrastructure and ensuring accountability 

for results. Each year, FHWA distributes billions of dollars—$34.2 billion 

in fiscal year 2006—to state governments for projects aimed at improving 

the nation’s highway systems.16 However, we have found that often formal 

analyses are not used in deciding among alternative projects, projects 

often do not meet anticipated outcomes, and evaluations of outcomes are 

 15See GAO-07-94; GAO-04-165; Intermodal Transportation: Challenges to and Potential

Strategies for Developing Improved Intermodal Capabilities, GAO-06-855T (Washington,

D.C.: June 15, 2006); and Intermodal Transportation: Potential Strategies Would Redefine

Federal Role in Developing Airport Intermodal Capabilities, GAO-05-727 (Washington,

D.C.: July 26, 2005). 

16Once FHWA distributes funds to the states, funds are available to be obligated by the

states for construction, reconstruction, and improvement of highways and bridges on

eligible federal aid-highway routes and for other purposes authorized in law.

Page 14 GAO-07-545T 
not typically conducted.

17 Furthermore, we have reported on the need for 

improving accountability for results in FHWA’s oversight of projects, 

through goals and performance measures, for example.18 The agency has 

made progress in this area, partly in response to mandated improvements 

in SAFETEA-LU, but a continued focus on efforts to improve 

accountability will be important. Finally, FAA provides funds to airport 

operators to provide increased capacity at the nation’s airports and has 

estimated that the total cost for planned projects eligible for federal grants

for fiscal years 2007 through 2011 will be $42 billion. While changes the 

Administration is proposing may reduce the amount FAA provides, it will 

be essential to ensure that public benefits from these investments are 

maximized.

Each year, tens of thousands of people are killed and millions are injured 

in transportation accidents in the United States. In 2005 alone, over 44,000

people were killed and over 2.5 million were injured in highway, aviation, 

railroad, transit, and pipeline accidents.19 (See fig. 3.) Motor vehicle 

crashes, in particular, exact an enormous personal and economic toll on 

this country and are the leading cause of death for people aged 3 through 

33. While transportation safety has improved considerably over the past 4 

decades, in recent years, fatalities have plateaued.20 Since the highest payoff actions—such as improvements in vehicle crashworthiness and 

increases in seat belt use—have occurred, future progress will be more 

difficult. Of particular concern is the limited progress in improving safety

Improving Transportation 

Safety 

 17GAO-05-172. 

18See GAO, Federal-Aid Highways: FHWA Needs a Comprehensive Approach to 

Improving Project Oversight, GAO-05-173 (Washington, D.C.: Jan. 31, 2005). The 

Department of Transportation’s Inspector General has also found that a top management

challenge for the department is making the most of federal resources for surface 

infrastructure improvements through continued emphasis on project oversight. See Office 

of the Inspector General, U.S. Department of Transportation, Department of 

Transportation’s Fiscal Year 2007 Top Management Challenges, PT-2007-004 

(Washington, D.C.: 2006). 

19In addition, according to the Bureau of Transportation Statistics, in 2004, 769 people were 

killed in waterborne transportation accidents and, in 2003, 4,666 were injured in these 

types of accidents. These are the latest years for which these data are available. In 2003, the 

Coast Guard, which is responsible for maritime safety, was transferred from the 

Department of Transportation to the Department of Homeland Security. 

20Motor vehicle fatalities, adjusted for the level of travel, have shown some improvement

over the last decade, falling from 1.7 deaths per 100 million vehicle miles traveled in 1995 to 

1.5 in 2005. 

Page 15 GAO-07-545T 
on our nation’s roads, where about 95 percent of all transportation 

fatalities occur. Furthermore, motorcycle fatalities have steadily increased

over the past decade (to over 4,500 in 2005). While nonhighway modes of 

travel are much safer, safety in these modes—such as aviation and rail—is 

also a major concern because when accidents occur, they can have 

catastrophic consequences. Projected increases in congestion across 

modes, as a result of population and economic growth, could cause a 

deterioration in transportation safety in the future despite vigorous efforts 

to reduce accidents. 

Figure 3: Fatalities by Transportation Mode, 2005 

Note: Aviation figures are preliminary. Of the 602 aviation fatalities, 562 occurred in general aviation, 

which covers all civil aircraft not flown by commercial airlines or the military. 

To address these problems, the department has designated improving 

safety as its highest priority. Its efforts to improve surface transportation 

safety are wide-ranging and include programs to change driver 

behaviors—such as alcohol use and speeding—that cause accidents; 

enhance motor vehicle safety; improve the safety of highway and 

intersection infrastructure; and improve safety performance in the motor 

carrier, railroad, transit, and pipeline industries. SAFETEA-LU established 

0

10,000

20,000

30,000

40,000

50,000

Fatalities

Source: Bureau of Transportation Statistics.

Mode

43,443

602 535 183 19

Pipeline

Transit

Rail

Hi

Aviation

ghway

Page 16 GAO-07-545T 
an incentive grant program—which has been quite successful—to 

encourage states to pass primary seat belt laws.21 SAFETEA-LU also 

mandated a number of other promising new initiatives, including a grant 

program for highway safety that provides states with flexibility to target 

funds to their most critical safety needs. Under this program, states are 

required to prepare strategic highway safety plans, based on an analysis of 

safety data, and to assess results. FAA focuses on improving safety in 

commercial aviation, in which accidents are rare but have the potential for 

a large loss of life, as well as in general aviation. The agency’s safety 

activities include air traffic control as well as certification and inspection 

of various participants in the aviation industry, such as commercial 

airlines, flight schools, and aircraft manufacturers. 

While the department’s many efforts to improve transportation safety are 

to be commended, certain areas require increased attention. In particular, 

improvements in data, performance measures, and evaluations are needed

to determine whether programs are achieving intended results. For 

example, in reviewing certain programs of the Federal Motor Carrier 

Safety Administration aimed at improving driver behavior, we found that,

in some cases, funds were being directed to initiatives that lacked 

information on whether they worked and that evaluations of program 

impacts were not planned for a number of years.22 In reviewing a NHTSA 

grant program to help states improve the quality of their traffic safety data, 

we found that the agency did not have an effective process in place for 

monitoring progress.23 We have also found that the effectiveness of the 

department’s efforts to oversee and improve the safety performance of 

airlines, truck companies, pipeline companies, and railroads is unclear 

 21Primary enforcement seat belt laws allow police officers to stop vehicles and write 

citations whenever they observe violations of safety belt laws. Since SAFETEA-LU was 

signed into law, three states have enacted primary seat belt laws, bringing the total number 

of states with such laws to 25. 

22GAO, Truck Safety: Share the Road Safely Pilot Initiative Showed Promise, but the 

Program’s Future Success Is Uncertain, GAO-06-916 (Washington, D.C.: Sept. 8, 2006) and

Federal Motor Carrier Safety Administration: Education and Outreach Programs Target

Safety and Consumer Issues, but Gaps in Planning and Evaluation Remain, GAO-06-103 

(Washington, D.C.: Dec. 19, 2005). In addition, in reviewing NHTSA’s grants to states for 

reducing alcohol-impaired driving, the department’s Inspector General has found that the

agency’s ability to gauge the effectiveness of these programs would be improved if states 

had established performance measures. See PT-2007-004. 

23GAO, Highway Safety: Improved Monitoring and Oversight of Traffic Safety Data

Program Are Needed, GAO-05-24 (Washington, D.C.: Nov. 4, 2004). 

Page 17 GAO-07-545T 
because of limitations in data, performance measures, and evaluation.24

For example, agencies need to develop better measures of the direct 

results of their efforts—such as safety improvements made as a result of 

enforcement of safety standards—that contribute toward reductions in 

accidents. Performance measures and evaluations, supported by 

appropriate data, provide managers with information on program results 

that helps them make decisions that can improve performance, including

decisions to refine programs and adjust policies and priorities. This 

information can also hold agencies accountable for the performance of 

their programs and support congressional oversight. While agencies have 

been making progress in this area in response to our recommendations as 

well as some mandated improvements in SAFETEA-LU, it is important that 

the department continue to improve information on the performance of its 

safety programs to have greater assurance that they are producing desired 

effects. 

Furthermore, the department’s ability to maintain the high level of safety

in the aviation industry will depend to a large extent on FAA’s ability to 

hire, train, and deploy its primary workforce, including safety inspectors 

and air traffic controllers. FAA must overcome several key challenges in

this area. Planned changes in the agency’s oversight approach for air 

carriers will result in workload shifts for its inspectors that will make it 

important for FAA to improve its staffing process. In addition, the agency 

plans to hire almost 12,000 new air traffic controllers by 2015 to replace

retiring controllers and accommodate increases in air traffic and will need 

to train these new controllers and incorporate them into its workforce.25

 24GAO, Aviation Safety: FAA’s Safety Oversight System Is Effective but Could Benefit

from Better Evaluation of Its Programs’ Performance, GAO-06-266T (Washington, D.C.: 

Nov. 17, 2005); Large Truck Safety: Federal Enforcement Efforts Have Been Stronger 

Since 2000, but Oversight of State Grants Needs Improvement, GAO-06-156 (Washington,

D.C.: Dec. 15, 2005); Natural Gas Pipeline Safety: Integrity Management Benefits Public

Safety, but Consistency of Performance Measures Should be Improved, GAO-06-946 

(Washington, D.C.: Sept. 8, 2006); and Rail Safety: The Federal Railroad Administration 

Is Taking Steps to Better Target Its Oversight, but Assessment of Results Is Needed to 

Determine Impact, GAO-07-149 (Washington, D.C.: Jan. 26, 2007). 

25GAO, Federal Aviation Administration: Challenges Facing the Agency in Fiscal Year

2008 and Beyond, GAO-07-490T (Washington, D.C.: Feb. 14, 2007) and Aviation Safety: 

FAA’s Safety Efforts Generally Strong but Face Challenges, GAO-06-1091T (Washington,

D.C.: Sept. 20, 2006). 

Page 18 GAO-07-545T 
The current approach to managing air transportation is becoming 

increasingly inefficient and operationally obsolete. In 2003, Congress 

authorized the creation of the JPDO, housed within FAA, to plan for and 

coordinate the transition to NextGen, a complex and ambitious 

multiagency undertaking that is intended to upgrade the system by 2025 to

safely accommodate increased air traffic. As the primary implementer of 

the transition to NextGen, FAA faces challenges in moving from planning 

to implementation, including institutionalizing management reforms it has 

made in recent years, obtaining financial and technical resources and 

expertise, and collaborating with JPDO on planning efforts.26 If FAA does 

not meet these challenges, the realization of NextGen goals could be 

severely compromised. Without a timely transition to NextGen 

capabilities, JPDO officials estimate a future gap between the demand for 

air transportation and available capacity that could cost the U.S. economy 

billions of dollars annually. 

FAA has had systemic management and acquisition problems that have led 

us to designate its air traffic control modernization program as high-risk 

since 1995. However, FAA has made significant progress in recent years. 

For example, FAA established the Air Traffic Organization to operate and

modernize the air traffic control system. This organization is headed by a 

Chief Operating Officer who has focused on implementing more 

businesslike management and acquisition processes to address cost, 

schedule, and performance shortfalls that plagued air traffic control 

modernization in the past. FAA has reduced organizational stovepipes, 

increased accountability for costs, and begun investment reviews of major 

acquisitions. FAA has reported meeting its acquisition cost and schedule 

goals for the last 3 years. 

JPDO has completed some initial planning necessary for implementing 

NextGen. For example, JPDO has been developing an enterprise 

architecture, or technical blueprint, that it expects will provide more 

clarity regarding its expectations for NextGen, thereby facilitating (1) 

coordination among JPDO’s partner agencies27 and private sector 

Managing the Transition to 

the Next Generation Air 

Transportation System 

 26GAO, Next Generation Air Transportation System: Progress and Challenges Associated

with the Transformation of the National Airspace System, GAO-07-25 (Washington, D.C.: 

Nov. 13, 2006). 

27In addition to FAA, these agencies include the Departments of Transportation,

Commerce, Defense, and Homeland Security; the National Aeronautics and Space 

Administration; and the White House Office of Science and Technology Policy. 

Page 19 GAO-07-545T 
manufacturers, (2) alignment across agencies of research and

development activities with the blueprint, and (3) integration of 

modernized systems in a way that minimizes overlap and duplication and

maximizes integration. As we reported in November 2006, a limited, 

preliminary cost estimate concluded that FAA’s budget under a NextGen 

scenario would average about $15 billion per year through 2025, or about

$1 billion more annually (in today’s dollars), on average, than FAA’s fiscal 

year 2006 appropriation.28

Despite its progress, as the key implementer of NextGen, FAA needs to 

institutionalize improvements made and continuously improve. For 

example, we recommended that, before making decisions to fund systems 

already in service, FAA re-evaluate projects’ alignment with strategic goals 

and objectives, but FAA’s acquisition management guidance does not 

clearly indicate if this is yet the case. The agency developed a cost 

estimating methodology, but has yet to implement it, as well as a 

framework for improving system management capabilities, but has yet to

institutionalize it. Additionally, we recently recommended that FAA 

examine its strengths and weaknesses with regard to the technical 

expertise and contract management expertise necessary to transition to 

NextGen.29 In response, FAA is considering convening a blue ribbon panel

to make recommendations, which we believe could help the agency begin 

to address this concern.

JPDO faces challenges in coordinating agencies and continuing planning

necessary for implementation of NextGen. For example, work remains to 

synchronize NextGen’s enterprise architecture with the partner agencies’ 

planning documents and to keep the necessary research and development 

on track. In addition, JPDO has yet to provide Congress with a valid, 

comprehensive estimate of the costs to JPDO partner agencies for the 

required research, development, systems acquisitions, and systems 

integration.30 Finally, continuing collaboration between JPDO and the 

 28This preliminary estimate—developed by the Research, Engineering and Development 

Advisory Committee, an advisory committee to FAA—indicates that costs for a status quo 

scenario (i.e., no NextGen) would also be about $15 billion per year through 2025. This is 

due primarily to the expectation that, under the NextGen scenario, capital expenditures

would be higher than under the status quo scenario in the near term, but operations costs 

would be lower because of productivity improvements in the longer term. 

29GAO-07-25. 

30GAO-07-490T. 

Page 20 GAO-07-545T 
Office of Management and Budget is needed to allow the budget agency to

make funding decisions based on a unified NextGen program. The 

Congressional Research Service has pointed out that Congress may 

examine options to align the budgets of the agencies involved, given that

JPDO does not have authority over funding, personnel, and resources.31

The department and the transportation sector as a whole face persistent

human capital challenges that put their mission performance at risk. 

Building human capital strategies that will allow the department and the 

transportation sector to attract, hire, and retain an effective workforce is 

an overarching issue that directly affects their ability to respond to the 

challenges I have outlined today.32 In particular, both are confronted with 

an impending shortage of skilled people that threatens to have serious 

short- and long-term consequences. For example, FAA alone expects to 

lose about 10,000, or 70 percent, of its air traffic controllers over the next

10 years, mostly due to retirement. For the department and the 

transportation sector as a whole, the growing demand for transportation 

services will collide with the reality of fewer people entering 

transportation-related fields. Further complicating this shortage, changes 

in intergovernmental responsibilities for delivering transportation 

services, new travel patterns, advances in technology, and changed public

expectations are redefining the competencies and skills that are needed. 

Increasingly, transportation will require more diverse, sophisticated 

management and technical competencies than ever before. 

The department has acknowledged that accomplishing its mission 

depends on a strategic approach to human capital, and it is taking steps to 

adopt such an approach. For example, in 2005, the agency piloted a 

program to expand entry-level hiring in mission-critical occupations. Also, 

in 2006, the agency increased its investments in human capital by 48

percent. Furthermore, the agency is working to align its human capital 

initiatives to meet the President’s Management Agenda. In the 

department’s current performance and accountability report, the Office of

Building Human Capital 

Strategies 

 31Congressional Research Service, Reauthorization of the Federal Aviation

Administration: Background and Issues for Congress (Washington, D.C.: January 29, 

2007). 

32We added strategic human capital management as a governmentwide high-risk area in 

2001 because federal agencies lacked a strategic approach to human capital management 

that integrates human capital efforts with agency mission and program goals. See 

GAO-07-310. 

Page 21 GAO-07-545T 
Management and Budget awarded the department top marks for current 

and prospective progress on its human capital initiative. However, the

department has not convinced its workforce about these results. In the 

results of the 2006 federal employee human capital survey, the employees

scored the department lower in each of the four broad areas than they did 

in 2004, when the survey was last conducted. Among the 36 federal 

agencies surveyed, the department finished in the bottom 10 for talent 

management and job satisfaction and in the bottom 3 for fostering a 

results-oriented performance culture and for leadership and knowledge 

management. The department will need to take further actions to address 

these issues, to improve its ability to respond to the challenges it faces. 

Across the transportation sector, transportation agencies are also taking 

steps to improve human capital practices, by identifying organizational 

and staff competency needs, as well as other gaps. They are also beginning 

to investigate nontraditional sources for qualified employees, such as 

highly qualified retirees from other organizations, as well as ways to 

develop individual competencies by training the existing workforce. While 

these efforts are promising, these agencies vary widely, and although each 

has its own unique capabilities and resources to address workforce needs, 

all have limited resources. Furthermore, few have addressed their future 

workforce needs comprehensively, which further complicates efforts to 

predict how many people in specific job categories for each type of agency

will be needed in 5 or 10 years.33

In 2003, we cited financial management as a major challenge facing the 

Department of Transportation, specifically, identifying weaknesses in the 

accuracy and reliability of FAA’s financial information.34 In recent years, 

the department has made significant progress in managing its finances, 

including substantial improvements in FAA’s financial management 

systems and practices. Improvements have included installing a 

departmentwide financial system, including a new general ledger system 

and integrated property systems at FAA, as well as receiving unqualified

opinions on its financial statements from auditors for several fiscal years 

Fostering Improved 

Departmental Financial 

Management 

 33Transportation Research Board, The Workforce Challenge: Recruiting, Training, and

Retaining Qualified Workers for Transportation and Transit Agencies, Special Report

275 (Washington, D.C.: 2003). 

34GAO-03-108. 

Page 22 GAO-07-545T 
in a row. As a result of this progress, in 2005, we removed FAA’s financial

management from our high-risk list. 

While progress has been made, work remains to ensure that the 

Department of Transportation soundly manages its finances and accounts 

for its use of federal and other funds. For fiscal year 2006, the department 

received a qualified opinion on its financial statements and the auditors 

cited two material internal control weaknesses.35 This qualified opinion 

resulted from a material weakness at FAA relating to management’s 

inability to support the accuracy and completeness of a $4.7 billion 

account used for equipment and facility projects. The department’s Office 

of the Inspector General has reported that correcting this deficiency will 

be critical for FAA to meet its stated goal of sound financial management.36

The other material weakness involves the financial management, 

reporting, and oversight of the Highway Trust Fund agencies.37 During 

fiscal year 2006, trust fund agencies implemented significant

improvements over several previously reported deficiencies. However, 

weaknesses remained in several areas, including a lack of policies and 

procedures to ensure more timely correction of any abnormal account 

balances and concerns with the preparation and analysis of financial 

statements. The Inspector General has listed several additional steps to 

further improve oversight of the trust fund, including better detection of 

improper payments and development of realistic project cost estimates.38

 35A material weakness can involve one or more of the following categories: significant 

weakness of safeguards against waste, loss, unauthorized use, or misappropriation of 

funds, property, or other assets; violates statutory authority; results in a conflict of interest; 

deprives the public of significant services, or seriously affects safety or the environment; 

impairs the fulfillment of the agency’s mission, and/or would result in significant adverse 

effects on agency credibility. 

36Department of Transportation Office of the Inspector General, PT-2007-004 

37Agencies using Highway Trust Fund funds include the Federal Highway Administration, 

National Highway Traffic Safety Administration, Federal Transit Administration, Federal 

Railroad Administration, Federal Motor Carrier Safety Administration, and Research and 

Innovative Technology Administration. 

38Department of Transportation Office of the Inspector General, PT-2007-004. 

Page 23 GAO-07-545T 
The size and interconnectedness of the nation’s transportation systems 

make it highly difficult to secure against attack. In 2003, we cited 

transforming transportation security as a major challenge facing the 

Department of Transportation.39 In recent years, Congress has shifted 

many of the department’s security responsibilities to the Department of 

Homeland Security, which now has primary responsibility for securing the 

nation’s transportation infrastructure, including aviation, railroad, 

pipeline, and other systems. The Department of Transportation has 

retained some involvement in securing transportation infrastructure, in 

part, due to overlap with its safety efforts involving freight, including the 

transportation of hazardous materials, and passenger rail. In light of these 

changes, the department faces the challenge of working with the 

Department of Homeland Security to clarify its remaining role in securing 

the nation’s transportation infrastructure. The sheer number of 

stakeholders involved in securing transportation modes can sometimes 

lead to communication challenges, duplication of effort, and confusion 

about roles and responsibilities. For example, the department’s safety 

standards have at times conflicted with the Department of Homeland 

Security’s security standards. Both departments have begun efforts to 

strengthen coordination and cooperation to promote the security of the 

transportation system. The departments have signed a memorandum of 

understanding to define broad areas of responsibility for each department 

and to delineate specific security related roles, responsibilities, resources, 

and commitments for mass transit, rail, and other matters.40 However, the 

departments’ coordination efforts in this area are ongoing. 

The department also coordinates with the Department of Homeland 

Security in developing protective measures affecting transportation and 

has statutory roles related to emergency preparedness, response, and 

recovery. This encompasses programs like FHWA’s Emergency Relief 

program, which provides funding to states to repair or reconstruct 

highways and roads damaged or destroyed in disasters.41 During times of 

disaster, the department plays a significant role as the lead and supporting 

agency for coordinating transportation support. In this role, it is primarily

responsible for coordinating the provision of federal and civil 

Improving Transportation 

Security and Emergency 

Preparedness and 

Response 

 39GAO-03-108. 

40GAO, Passenger Rail Security: Federal Strategy and Enhanced Coordination Needed to 

Prioritize and Guide Security Efforts, GAO-07-459T (Washington, D.C.: Feb. 13, 2007). 

41GAO, Highway Emergency Relief: Reexamination Needed to Address Fiscal Imbalance 

and Long-Term Sustainability, GAO-07-245 (Washington, D.C.: Feb. 23, 2007). 

Page 24 GAO-07-545T 
transportation services, as well as the recovery and restoration of 

transportation infrastructure, among other things. In the future, the 

department will be tasked to further clarify its roles and responsibilities 

with the Department of Homeland Security in planning for and providing 

evacuation assistance. Catastrophic disasters like Hurricane Katrina 

demonstrate the importance of transportation preparedness and response 

to ensure the safe evacuation of citizens in emergencies when state and 

local governments are overwhelmed.42 Yet the department’s 

responsibilities in providing evacuation assistance have not been entirely

clear. In addition, despite recent progress by the federal government in 

providing evacuation assistance, gaps remain. For example, the 

Department of Homeland Security has not yet clarified, in the federal 

government’s plan for disaster response, the leading, coordinating, and 

supporting federal agencies to provide evacuation assistance when state 

and local governments are overwhelmed, and what their responsibilities 

are. One White House report recommended that the Department of 

Transportation be designated as the agency responsible for developing the 

federal government’s capability to carry out mass evacuations when state 

and local governments are overwhelmed.43

Mr. Chairman, this concludes my prepared statement. I would be pleased

to respond to any questions that you or other Members of the 

Subcommittee might have. 

For further information on this statement, please contact Patricia Dalton 

at (202) 512-2834 or Daltonp@gao.gov. Individuals making key 

contributions to this testimony were Matthew Cail, Judy Guilliams-Tapia, 

Marietta Mayfield, Margaret Vo, and James Ratzenberger. 

GAO Contacts and 

Staff 

Acknowledgement 

 42GAO, Transportation-Disadvantaged Populations: Actions Needed to Clarify

Responsibilities and Increase Preparedness for Evacuations, GAO-07-44 (Washington,

D.C.: Dec. 22, 2006). 

43White House Homeland Security Council, The Federal Response to Hurricane Katrina:

Lessons Learned (Washington, D.C.: Feb. 2006). 

Page 25 GAO-07-545T 
Page 26 GAO-07-545T 

Description (expected completion) GAO contact 

Transportation financing

• Airport capital development funding (early 2007) Gerald Dillingham 

(202) 512-2834 

DillinghamG@gao.gov

• Federal role in overseeing and funding railroad bridge and 

tunnel projects (mid 2007) 

• GAO forum on transforming transportation policy 

(mid 2007) 

JayEtta Hecker

 (202) 512-2834 

HeckerJ@gao.gov

• The Federal Transit Administration’s New Starts program 

(mid 2007) 

Katherine Siggerud 

(202) 512-2834 

SiggerudK@gao.gov

Mobility

• The Federal Transit Administration’s implementation and

oversight of the New Freedom program (TBDa

) 

Kay Brown 

(202) 512-2834 

BrownKE@gao.gov

• Operational, capacity, and safety issues associated with the 

Airbus A380 (early 2007) 

Gerald Dillingham 

(202) 512-2834 

DillinghamG@gao.gov

• Introduction of very light jets into the national airspace system 

(mid 2007) 

Susan Fleming

(202) 512-2834 

FlemingS@gao.gov

• Approaches to the efficient use of existing transportation 

infrastructure (mid 2007) 

• Freight bottlenecks (late 2007) 

• Public-private partnerships in transportation (late 2007) 

• Restructuring the federal-aid highway program (TBDa) 

• Trends and performance of state contracting with the private

sector (TBDa

) 

JayEtta Hecker

(202) 512-2834 

HeckerJ@gao.gov

• Port preparedness and mobility of goods during natural 

disasters (early 2007) 

• Barriers in addressing intermodal solutions to transportation

mobility challenges (mid 2007) 

• Corporate Average Fuel Economy program policy options

(mid 2007) 

• Surface transportation compliance with the Americans with 

Disabilities Act of 1990 (late 2007) 

Katherine Siggerud 

(202) 512-2834 

SiggerudK@gao.gov

Safety 

• The public safety impact of the Transportation Security 

Administration’s modifications to the prohibited items list 

(early 2007b

) 

Cathleen Berrick 

(202) 512-3404 

BerrickC@gao.gov

• Implementation progress of the Uniform Carrier Registration 

program (TBDa

) 

Kay Brown 

(202) 512-2834 

BrownKE@gao.gov

Appendix I: Ongoing GAO Work Related to 

Transportation Challenges 
Description (expected completion) GAO contact 

• Operational, capacity, and safety issues associated with the 

Airbus A380 (early 2007) 

• Airport runway safety and the role of the Federal Aviation 

Administration (late 2007) 

Gerald Dillingham 

(202) 512-2834 

DillinghamG@gao.gov

• Identification of motor carriers that pose a high risk for 

crashes (mid 2007) 

• Federal Motor Carrier Safety Administration identification and 

monitoring of unsafe motor carriers (mid 2007) 

Susan Fleming

(202) 512-2834 

FlemingS@gao.gov

• Safety standards for older drivers (early 2007) 

• Emerging trends in and challenges to preventing highway 

fatalities (late 2007) 

Katherine Siggerud 

(202) 512-2834 

SiggerudK@gao.gov 

Next generation air transportation system

• Survey of Joint Planning and Development Office 

stakeholders (mid 2007) 

• The Federal Aviation Administration’s air traffic control 

modernization program (mid 2007) 

Gerald Dillingham

(202) 512-2834 

DillinghamG@gao.gov

Human capital strategies 

No ongoing work 

Financial management 

• The Federal Aviation Administration’s financial management 

efforts (mid 2007) 

Gerald Dillingham 

(202) 512-2834 

DillinghamG@gao.gov

• Highway transit funding authority (mid 2007) Katherine Siggerud 

(202) 512-2834 

SiggerudK@gao.gov

Security and emergency preparedness and response 

• Research and development of aviation passenger checkpoint 

screening technologies (mid 2007b

) 

• Planning and implementation efforts to ensure the security of 

commercial vehicles (TBDa,b) 

Cathleen Berrick 

(202) 512-3404 

BerrickC@gao.gov 

• Vulnerabilities of tank vessels to terrorist attack (early 2007b) Stephen Caldwell 

(202) 512-9610

CaldwellS@gao.gov 

• Port preparedness and mobility of goods during natural 

disasters (early 2007) 

• The Federal Transit Authority’s emergency assistance for 

transit agencies (TBDa

) 

Katherine Siggerud 

(202) 512-2834 

SiggerudK@gao.gov

Source: GAO. 

a

To be determined 

b

This report may not be publicly available at this time because it may contain security sensitive 

information. 

Page 27 GAO-07-545T 
Page 28 GAO-07-545T 

Related GAO Products 

The following are the most pertinent GAO products to the topics discussed 

in this hearing statement since our 2003 report on management challenges

facing the Department of Transportation. Other products can be found at 

GAO’s Website at www.gao.gov. 

Intercity Passenger Rail: National Policy and Strategies Needed to 

Maximize Public Benefits from Federal Expenditures. GAO-07-15. 

Washington, D.C.: November 13, 2006. 

Freight Railroads: Industry Health Has Improved, but Concerns about 

Competition and Capacity Should Be Addressed. GAO-07-94. Washington, 

D.C.: October 6, 2006. 

Aviation Finance: Observations on Potential FAA Funding 

Options. GAO-06-973. Washington, D.C.: September 29, 2006. 

National Airspace System Modernization: Observations on Potential 

Funding Options for FAA and the Next Generation Airspace 

System. GAO-06-1114T. Washington, D.C.: September 27, 2006. 

Highway Finance: States’ Expanding Use of Tolling Illustrates Diverse 

Challenges and Strategies. GAO-06-554. Washington, D.C.: June 28, 2006. 

Highway Trust Fund: Overview of Highway Trust Fund 

Estimates. GAO-06-572T. Washington, D.C.: April 4, 2006. 

Federal Aviation Administration: An Analysis of the Financial Viability 

of the Airport and Airway Trust Fund. GAO-06-562T. Washington, 

D.C.: March 28, 2006. 

Freight Transportation: Short Sea Shipping Option Shows Importance of 

Systematic Approach to Public Investment Decisions. GAO-05-768. 

Washington, D.C.: July 29, 2005. 

Highlights of an Expert Panel: The Benefits and Costs of Highway and 

Transit Investments. GAO-05-423SP. Washington, D.C.: May 6, 2005. 

Airport and Airway Trust Fund: Preliminary Observations on Past, 

Present, and Future. GAO-05-657T. Washington, D.C.: May 4, 2005. 

Financing the Nation’s

Transportation System 
Highway and Transit Investments: Options for Improving Information 

on Projects’ Benefits and Costs and Increasing Accountability for 

Results. GAO-05-172. Washington, D.C.: January 24, 2005. 

Federal-Aid Highways: Trends, Effect on State Spending, and Options 

for Future Program Design. GAO-04-802. Washington, D.C.: August 31, 

2004. 

Surface Transportation: Many Factors Affect Investment 

Decisions. GAO-04-744. Washington, D.C.: June 30, 2004. 

Transportation-Disadvantaged Populations: Actions Needed to Clarify 

Responsibilities and Increase Preparedness for Evacuations. GAO-07-44. 

Washington, D.C.: December 22, 2006. 

Federal Transit Administration: Progress Made in Implementing 

Changes to the Job Access Program, but Evaluation and Oversight 

Processes Need Improvement. GAO-07-43. Washington, D.C.: November 17, 

2006. 

Intercity Passenger Rail: National Policy and Strategies Needed to 

Maximize Public Benefits from Federal Expenditures. GAO-07-15. 

November 13, 2006. 

Freight Railroads: Industry Health has Improved, but Concerns about 

Competition and Capacity Should Be Addressed. GAO-07-94. Washington, 

D.C.: October 6, 2006. 

Commercial Aviation: Programs and Options for the Federal Approach 

to Providing and Improving Air Service to Small Communities. GAO-06-

398T. Washington, D.C.: September 14, 2006. 

Public Transportation: New Starts Program Is in a Period of 

Transition. GAO-06-819. Washington, D.C.: August 30, 2006. 

Public Transportation: Preliminary Information on FTA’s 

Implementation of SAFETEA-LU Changes. GAO-06-910T. Washington,

D.C.: June 27, 2006. 

Intermodal Transportation: Challenges to and Potential Strategies for 

Developing Improved Intermodal Capabilities. GAO-06-855T. 

Washington, D.C.: June 15, 2006. 

Improving Mobility 

through Intermodal and 

Modal Approaches 

Page 29 GAO-07-545T 
Commuter Rail: Commuter Rail Issues Should Be Considered in Debate

over Amtrak. GAO-06-470. Washington, D.C.: April 21, 2006. 

Transportation Services: Better Dissemination and Oversight of DOT’s 

Guidance Could Lead to Improved Access for Limited English-Proficient

Populations. GAO-06-52. Washington, D.C.: November 2, 2005.

Intermodal Transportation: Potential Strategies Would Redefine Federal 

Role in Developing Airport Intermodal Capabilities. GAO-05-727. 

Washington, D.C.: July 26, 2005. 

Federal-Aid Highways: FHWA Needs a Comprehensive Approach to 

Improving Project Oversight. GAO-05-173. Washington, D.C.: January 31, 

2005. 

Highway and Transit Investments: Options for Improving Information 

on Projects’ Benefits and Costs and Increasing Accountability for 

Results. GAO-05-172. Washington, D.C.: January 24, 2005. 

Federal-Aid Highways: Trends, Effect on State Spending, and Options 

for Future Program Design. GAO-04-802. Washington, D.C.: August 31, 

2004. 

Underinflated Tires in the United States. GAO-07-246R. Washington, D.C.: 

February 9, 2007. 

Rail Safety: The Federal Railroad Administration Is Taking Steps to 

Better Target Its Oversight, but Assessment of Results is Needed to 

Determine Impact. GAO-07-149. Washington, D.C.: January 26, 2007. 

Aviation Safety: FAA’s Safety Efforts Generally Strong but Face 

Challenges. GAO-06-1091T. Washington, D.C.: September 20, 2006. 

Natural Gas Pipeline Safety: Integrity Management Benefits Public 

Safety, but Consistency of Performance Measures Should Be 

Improved. GAO-06-946. Washington, D.C.: September 8, 2006. 

Natural Gas Pipeline Safety: Risk-Based Standards Should Allow 

Operators to Better Tailor Reassessments to Pipeline Threats. GAO-06-

945. Washington, D.C.: September 8, 2006. 

Improving Transportation 

Safety 

Page 30 GAO-07-545T 
Truck Safety: Share the Road Safely Pilot Initiative Showed Promise, but 

the Program’s Future Success Is Uncertain. GAO-06-916. Washington, 

D.C.: September 8, 2006. 

Rail Transit: Additional Federal Leadership Would Enhance FTA’s State 

Safety Oversight Program. GAO-06-821. Washington, D.C.: July 26, 2006.

Federal Motor Carrier Safety Administration: Education and Outreach

Programs Target Safety and Consumer Issues, but Gaps in Planning 

and Evaluation Remain. GAO-06-103. Washington, D.C.: December 19, 

2005. 

Large Truck Safety: Federal Enforcement Efforts Have Been Stronger 

Since 2000, but Oversight of State Grants Needs Improvement. GAO-06-

156. Washington, D.C.: December 15, 2005. 

Highway Safety: Further Opportunities Exist to Improve Data on 

Crashes Involving Commercial Motor Vehicles. GAO-06-102. Washington, 

D.C.: November 18, 2005.

Aviation Safety: FAA’s Safety Oversight System Is Effective but Could 

Benefit from Better Evaluation of Its Programs’ Performance. GAO-06-

266T. Washington, D.C.: November 17, 2005. 

Aviation Safety: System Safety Approach Needs Further Integration into 

FAA’s Oversight of Airlines. GAO-05-726. Washington, D.C.: September 28, 

2005. 

Vehicle Safety: Opportunities Exist to Enhance NHTSA’s New Car 

Assessment Program. GAO-05-370. Washington, D.C.: April 29, 2005. 

Highway Safety: Improved Monitoring and Oversight of Traffic Safety 

Data Program are Needed. GAO-05-24. Washington, D.C.: November 4, 

2004. 

Federal Aviation Administration: Challenges Facing the Agency in 

Fiscal Year 2008 and Beyond. GAO-07-490T. Washington, D.C.: February 

14, 2007. 

Next Generation Air Transportation System: Progress and Challenges 

Associated with the Transformation of the National Airspace System. 

GAO-07-25. Washington, D.C.: November 13, 2006. 

Managing the Transition to 

the Next Generation Air 

Transportation System 

Page 31 GAO-07-545T 
Next Generation Air Transportation System: Preliminary Analysis of 

Progress and Challenges Associated with the Transformation of the 

National Airspace System. GAO-06-915T. Washington, D.C.: July 25, 2006.

Air Traffic Control Modernization: Status of the Current Program and 

Planning for the Next Generation Air Transportation System. GAO-06-

653T. Washington, D.C.: June 21, 2006. 

Next Generation Air Transportation System: Preliminary Analysis of 

the Joint Planning and Development Office’s Planning, Progress, and 

Challenges. GAO-06-574T. Washington, D.C.: March 29, 2006.

National Airspace System: Transformation will Require Cultural 

Change, Balanced Funding Priorities, and Use of All Available 

Management Tools. GAO-06-154. Washington, D.C.: October 14, 2005. 

National Airspace System: FAA Has Made Progress but Continues to 

Face Challenges in Acquiring Major Air Traffic Control Systems. GAO05-331. Washington, D.C.: June 10, 2005. 

Federal Aviation Administration: Stronger Architecture Program 

Needed to Guide Systems Modernization Efforts. GAO-05-266. 

Washington, D.C.: April 29, 2005. 

Aviation Security: TSA’s Staffing Allocation Model Is Useful for 

Allocating Staff among Airports, but Its Assumptions Should Be 

Systematically Reassessed. GAO-07-299. Washington, D.C.: February 28, 

2007. 

Aviation Safety: FAA Management Practices for Technical Training 

Mostly Effective; Further Actions Could Enhance Results. GAO-05-728. 

Washington, D.C.: September 7, 2005. 

Human Capital: Agencies Need Leadership and the Supporting 

Infrastructure to Take Advantage of New Flexibilities. GAO-05-616T. 

Washington, D.C.: April 21, 2005. 

Federal-Aid Highways: FHWA Needs a Comprehensive Approach to 

Improving Project Oversight. GAO-05-173. Washington, D.C.: January 31, 

2005. 

Building Human Capital 

Strategies 

Page 32 GAO-07-545T 
FAA Budget Policies and Practices. GAO-04-841R. Washington, D.C.: July 

2, 2004. 

Federal Aircraft: Inaccurate Cost Data and Weaknesses in Fleet 

Management Planning Hamper Cost Effective Operations. GAO-04-645. 

Washington, D.C.: June 18, 2004. 

Highway Emergency Relief: Reexamination Needed to Address Fiscal 

Imbalance and Long-Term Sustainability. GAO-07-245. Washington, D.C.: 

February 23, 2007. 

Passenger Rail Security: Federal Strategy and Enhanced Coordination 

Needed to Prioritize and Guide Security Efforts. GAO-07-459T. 

Washington, D.C.: February 13, 2007.

Aviation Security: Progress Made in Systematic Planning to Guide Key

Investment Decisions, but More Work Remains. GAO-07-448T. 

Washington, D.C.: February 13, 2007.

Transportation-Disadvantaged Populations: Actions Needed to Clarify 

Responsibilities and Increase Preparedness for Evacuations. GAO-07-44. 

Washington, D.C.: December 22, 2006. 

Passenger Rail Security: Evaluating Foreign Security Practices and 

Risk Can Help Guide Security Efforts. GAO-06-557T. Washington, D.C.: 

March 29, 2006. 

Undeclared Hazardous Materials: New DOT Efforts May Provide 

Additional Information on Undeclared Shipments. GAO-06-471. 

Washington, D.C.: March 29, 2006. 

Passenger Rail Security: Enhanced Federal Leadership Needed to 

Prioritize and Guide Security Efforts. GAO-05-851. Washington, D.C.: 

September 9, 2005. 

General Aviation Security: Increased Federal Oversight is Needed, but 

Continued Partnership with the Private Sector Is Critical to Long-Term 

Success. GAO-05-144. Washington, D.C.: November 10, 2004. 

Transportation Security: Federal Action Needed to Help Address 

Security Challenges. GAO-03-843. Washington, D.C.: June 30, 2003. 

Fostering Improved 

Financial Management 

Improving Transportation 

Security and Emergency 

Preparedness and 

Response 

Page 33 GAO-07-545T 
Transportation Security Research: Coordination Needed in Selecting 

and Implementing Infrastructure Vulnerability Assessments. GAO-03-

502. Washington, D.C.: May 1, 2003.

Page 34 GAO-07-545T (541029) 
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