Downsizing

Transportation | Downsizing the Federal Government

The Department of Transportation subsidizes and regulates highways, airports, air traffic control, urban transit, passenger rail, and other activities. However, taxpayers and consumers would be better off if transportation activities were privatized, which has been a global trend. Opening up the financing and operation of infrastructure to the private sector would save money, spur innovation, and reduce congestion.

The department will spend $83 billion in 2019, or about $650 for every U.S. household. The department employs 56,000 workers.

  • Highways. Highway aid gets misallocated and federal intervention raises costs. Federal aid and fuel taxes should be ended, and the states should pursue toll highway projects with the private sector.
  • Urban Transit. The federal government spends billions of dollars a year on urban rail systems even though buses are often more efficient. Without federal subsidies, cities would make better choices for their local transit needs.
  • Air Traffic Control. The bureaucratic Federal Aviation
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