During a U.S. Senate Environment and Public Works Committee hearing examining the Federal Highway Administration’s (FHWA) proposed budget for fiscal year 2027 with FHWA Administrator Sean McMaster, Senator John Curtis (R-UT) called for reforms to current funding formulas that rely on static historical data and fail to account for the rapid population growth and travel demand seen in states like Utah. The Senator also raised Utah’s success in managing the environmental review process and inquired about how Congress can authorize further flexibilities to help states build out infrastructure.
Near the end of the exchange, the Senator highlighted his bipartisan Build Housing, Unlock Benefits and Services (HUBS) Act, which he co-sponsored with Senator Lisa Blunt Rochester (D-DE), which makes several changes aimed at improving the usability of important infrastructure loan programs. The Senator ended his questioning by inviting Administrator McMaster to visit Utah to see the state’s projects firsthand.
The full transcript of the exchange is below.
Senator Curtis: Thank you, Administrator, for being here. As you and I had a minute to talk before the meeting, we discussed the dynamic growth in Utah. And what I’d like to touch on just quickly, is the formula for funding that’s based upon static historical information and really doesn’t take into account a state like Utah’s rapid growth.
And as you can imagine, that’s very problematic for Utah with the growth that we’re experiencing. So, I guess my question is as Congress considers the next surface transportation reauthorization, how should we think about incorporating projected population growth and travel demand in the formula?
The Honorable Sean McMaster: Yeah, I know the formula is kind of a touchy topic. It hasn’t been adjusted dramatically for a little bit of time. We’d be happy to work closely with you. My understanding is, you know, population, you can kind of back into that a little bit in certain capacities, but I don’t think it directly associates itself with population growth. So, happy to work with you.
Curtis: I would love to work with you. You being familiar with our situation, you can see how frustrating that is to have that rapid growth not taken into consideration as we’re getting funding.
Some of my colleagues have talked about this permitting and state flexibility. As you know, Utah’s participated in the Federal Highway Administration’s NEPA Assignment Program and has demonstrated that states can successfully navigate this in a responsible way and do a good job.
So, my question is, what other flexibilities could Congress authorize, considering the federal permitting process, to help states build roads and bridges more efficiently?
McMaster: I appreciate your focus on permitting and permitting reform. As an administration, we share your interest in this. As we talk to industry and you talk to folks and state partners, stakeholders all across, everybody raises this as a point of interest and a point of necessity. We do require a lot of work on the permitting side in order to build projects.
And I’m sure there are ways that we can reform this. I think we would be happy as an administration to talk further with you and the Committee about ideas that we have put together or that we had considered during the reauthorization process.
Curtis: Would love to do that. I will just tell you, I’d be curious in all ways that we can change it. And just to give you an example, when I was mayor of Provo, Utah, as the third largest city, we had a rule of thumb that if we used $1 of federal money, it increased the cost of our project by 30%. So, we could do all of the same work, all the environmental standards we could meet, but increase the project by 30%.
And imagine a 30% increase in funds, just by simply changing a few policies, how many more roads that we could build. So, beyond just the NEPA and things like that, I would love to explore with you block grants, come to mind. Block grants come from the federal government, and those regulations don’t apply, states then get that 30% extra margin. That’s a big deal.
McMaster: I’ll be happy to work with you on that. And also, I want to give a shout out to your DOT. They are fantastic on environmental work. They are at the head of the pack.
Curtis: And that’s just a really good example that states can do it responsibly and where they can. And they demonstrated they can. The more we can head off, the better.
I’d like to talk just a little bit about transit-oriented development. Congress faces growing fiscal constraints. We should be looking for ways to stretch transportation dollars further and attract additional private and local investment, rather than relying solely on new federal spending.
The TIFIA program has historically been one of the federal government’s most effective tools for leveraging nonfederal capital for major investments.
I’m pleased to sponsor, with Senator Blunt Rochester, the Build Hubs Act, which is intended to help communities maximize the benefits of transportation investments through existing financial tools.
As you know, Utah has this unique situation where 80% of our population lives within about an 80-mile segment there, and the transit-oriented hubs are very effective. So, as we consider the next surface transportation reauthorization, can you discuss the role these programs play in helping communities maximize the long-term value of transportation investment and leveraging private parties?
McMaster: Well, the TIFIA program is run out of the Build America Bureau, which is run out of the Secretary’s office. But what I would say is it’s a fantastic tool for states and localities to leverage to build important infrastructure projects.
There’s not enough federal dollars to go around and loan programs at the Bureau, TIFIA in particular, are fantastically important and well utilized, and they have a long backlog.
And that just speaks to the value of those programs of the Bureau. So, I’m happy to take back the specific comments here, share them with the Bureau, and then follow up with you directly. However, we can be helpful.
Curtis: Good. I couldn’t end without an invitation to come see us in Utah and explore some of these projects together.
McMaster: I’d like that very much, I appreciate that.
Curtis: Thank you.
