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The Bush Administration’s proposed fiscal-year 2007 budget recommends funding the federal transit program at $8.87 billion, a 4.3 percent increase compared with FY2006.

However, the budget proposes funding the newly created small starts program at $100 million instead of the $200 million authorized under the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users. The program is designed to assist the development and construction of smaller fixed-guideway projects, such as streetcar, trolley and commuter-rail lines.

The president’s budget also projects $59 million in Northeast Corridor commuter-rail agency fees to support Amtrak operations. Language in the FY2006 Transportation Appropriations Act directed the U.S. Department of Transportation to establish and assess fees on commuter-rail operators to help cover the corridor’s direct capital or maintenance costs.