Policy win: TDM THUD language
On Sunday, March 3 Republican and Democratic Congressional leaders released the final text for six appropriations bill that will fund portions of the Federal government, including the Department of Transportation (DOT), for the remainder of Fiscal Year 2024. Included in this funding bill is report language submitted by ACT that directs the Federal Highway Administration (FHWA) to provide guidance on what TDM strategies and tools are eligible for Federal-aid highway funds. Additionally, the language also requires FHWA to develop best practices and provide additional technical assistance to State DOTs, MPOs, and local governments to incentivize the use of TDM. Inclusion of this report language in the funding bill indicates congressional intent and FHWA is required to comply with these directives. On Wednesday, March 6 the House passed the bill 339-85, and the Senate followed suit on Friday, March 8 by a vote of 75-22. The entirety of the provision is included below:
Transportation Demand Management [TDM].—The Committee supports the use of TDM (including planning, programs, policies, marketing, communications, incentives, pricing, data, and technologies) as a tool for reducing congestion, but recognizes that each locality has to develop solutions tailored to their specific transportation challenges and needs. The Committee is also aware that while TDM is eligible under certain Federal-aid highway programs, not all TDM strategies and programs comply with the restriction on the use of Federal funds in 2 CFR 200. As such, the Committee directs the FHWA to provide guidance on what TDM strategies and tools are eligible for Federal-aid highway funds, and to develop best practices and provide additional technical assistance to State DOTs, MPOs, and local governments to incentivize the use of TDM.
The inclusion of this provision marks a significant policy win for ACT. This directive also means the promotion and funding of TDM activities through FHWA funds will not be subject to the policy priorities of political leadership at US DOT. By directing FHWA to promote and incentivize the use of TDM through legislation, Congress has ensured TDM is elevated within DOT and will receive more attention as a policy issue.