I recognize that, in a time of budget constraints at every level of government, this might not seem a very promising approach, but let's look at the bright side. However, we encourage states and MPOs to use the flexibility available to them to meet their rail transportation needs, and we'll do everything we can to help such choices become realities. In addition to these ideas, we should be looking beyond public investment to a partnership with the private sector. The greater investment that this path promises is crucial if we're going to have the rail infrastructure we need. We took a first big step towards this in January, when President Clinton and Secretary Pena announced the Partnership for Transportation Investment, also known as innovative financing.
Innovative financing is our umbrella term to cover a wide range of financial strategies.
That's critical to success, because our current system of paying for projects only through grant reimbursements is outdated. A process that worked adequately a generation ago when the federal government had enough money for infrastructure is simply too rigid and inflexible for the cash-short 1990s. In addition to adding red tape that slows projects and increases costs, our current grant system makes it incredibly difficult for states and localities to involve private investors. The innovative financing program allows us to waive those existing restrictions or requirements in many cases, and give local decision-makers greater flexibility and authority, principles that we in fact expect to bring to all of our funding programs. We've already had tangible successes.