Cspan programs are available at cspan. Org. It is on our homepage or video library. Secretarysportation alain shout testifies on a president s 2018 budget request and other priorities for her department. From houseuestions members about the president s plan to privatize the nations air Traffic Control system and reductions to transportation projects. This is two hours. The subcommittee will come to order. Before i began, i know that all of our minds are a little bit elsewhere because of the incident yesterday at the baseball practice field. I just wanted to, once again mention how all of us are whip,g for, obviously the steve scalise. The two Brave Police Officers along with a member of the staff and a former member of the staff who were injured. We cannot forget them and we do not. We wish their full recoveries. With that, this morning we welcome secretary chao to testify for the department of transportation 2018 budget. I dont have to tell any of you that secretary chao comes to this position with frankly one of the most impressive records of Public Service that anyone will ever see. Having served as chair of the ,ederal Maritime Commission deputies secretary of the department of transportation, director of the peace corps, and secretary to the department of labor. Not to mention a number of leadership positions in the private sector, the nonfor nonprofit sectors, and you have led large and complex corporations corporations. We are fortunate to have somebody of your knowledge and heading dlt as we are facing challenges. Nobody is more prepared menu. Then you. We are grateful you agreed to work and come back to Public Service, as you always have. Thank you for your service to our nation. I look forward to working with you to maintain and improve the Transportation System, all the while ensuring that our Infrastructure Investments lead to Economic Growth and really to improve the daytoday lives of the american people, which is really what we are talking about. Thebudget request for department of transportation is 16. 3 billion in discretionary. A total of 75 billion in total resources including obligation limitations for Service Transportation and aviation programs. Safety is this committees top priority for dlt. I am pleased with the budget request placing priority on safety programs and funding several programs consistent with the fast act. Continuing many safety previous 17n the bill. That is frankly very good news. In addition to focusing on safety of the transportation network, we must ensure that we in grow the economy. Yes through fiscally responsible transportation investments. In doing so we must ensure that we do not leave Rural America and economically distressed areas behind. As we make the tough decisions that face us for the 2018 and beyond,2018 budget and i want you to know that i want to work with you. We want to work with you to make sure that we continue to present your service to small towns and promote communities. I want to make sure that we address the needs for the rural communities. I also want to take a careful look at transit as an important component of the transportation network. We can, we must make tough choices in federal spending. We all have to do that. We all have to be willing to do that. I have some concerns about the administrations proposal to terminate departments that work with local governments on several transit projects. I look forward to working with you and through all of those very difficult issues. I look forward to a spirited discussion about the administrations proposal to transfer airTraffic Control operations from facilities to a corporate, nongovernmental entity. We are dealing with a monopoly, whether it is a monopoly controlled by the government or a monopoly controlled by somebody else, it will still be a monopoly. I have not been shy of saying that i believe we should maintain air Traffic Control system. That is accountable to the public, it is on by the public and it should be accountable by the public. Eye dont see any other way to achieve this then to maintain our role. Ive i believe preserving the publics voice, frankly, is the only way to maintain the airspace as a national asset. And to protect access to all users. This is key. Drones and space operators, in many cases we dont know what they are, but we know it is happening now. Maximum extent possible protect the right of the traveling public. Aerospace isecret, the most, located in the world with a unmatched Safety Record. We can Work Together to build on that Safety Record and i look forward to. Open the airspace to more users. Lets make sure we are not limiting it but opening it to more users. Some are beyond our imagination that are starting to happen. Madam secretary, know that i look forward to discussing this issue with you today and not only today, the continuing those conversations in the weeks and months ahead. Secretary, i appreciate your attention. And the attention the president has given to infrastructure last week. sproving the nations infrastructure is an area where we can find Common Ground and make a real improvements to the daily lives of the american people. Not only in their ability to get around, but frankly to help the economy. I really look forward to working with you and my colleagues to make smart investments, to go after waste of a cut rate cut taxpayers. D helps thank you for your service to the nation, thank you for appearing before us today, and with that i would like to yield now to my Ranking Member, mr. Price. You. Rice thank welcome, madam secretary, were glad to have you here. I want to associate myself with the chairmans remarks about yesterdays tragedy and the concern we all have our and,ague, steve scalise, in particular i want to acknowledge david bailey, one of the Police Officers who is injured. A North Carolina central graduate and we have followed his progress over the years area we really have come together as an institution as as a and as a country. Come. Some good will in the meantime, we are dealing with real, difficulties, tragedt command our attention attention and our good wishes. Were here this morning to examine the 2018 budget request for the department of transportation. This system that were funding facilitated facilitated the flow of commerce, impacts eave american. We know that investness transportation infrastructure keeps safe, improves the economy, creates jobs. Unfortunately we also know that were not doing so well according to objective on servers such as the American Society of civil engineers, whose 2017 report card gives americas infrastructure a grade of only dplus. The report concludes we need to invest nearly 4. 5 trillion decide just to bring the infrastructure from poor to good condition. We have heard a lot recently about the need reduce bureaucratic re tape, encourage investment in preparation projects. They wont deliver result without a core of robust federal funding. To maintain and modernize and improper our nations Transportation System. We must take bold stubsteps to reduce the backlog of deferred maintenance to move the transportation infrastructure back to a state of good repair and make Strategic Investments in new technologies to make transportation safer and more efficient. The challenge for us is clear and only gets worse without action on the part of congress and this administration. Have to say i think this Budget Proposal falls short of that mark. The result largely adheres to the funked levels agreed pop in the fast act for programmed that rely on trust fund dollar but overall Budget Authority would be cut by 3. 1 billion decide or 16 . The brunt of these decisions affect transportation, rail other, projects critical to the transportation future. For example, the highly competitive Capital Investment grants would be discontinued for all projected that have full Funding Grant agreements. Despite the fact that funding for this program was increased just two months ago in the bipartisan omnibus package. Ending the cig program would upend dozens of badly needed transited projections in the country including two any home district in. They existing funding amendment from state and local government wood not longer be enough to move forward with construction. Dooming many projects to failure. We should be encouraging more state and local investment in transit, eliminate thing federal matching dollars with heat exactly have exactly the on effect. Equally concerning i could point to successful projects in my district and my state that leverage funds from other sources. This is a very successful Grant Program. It supports innovative projects, regional and national significance. Difficult to fund through traditional federal programs. Tiger grants are a awarded on a competitive basis and every member knows how competitive the process is, how far the demand for funding exceed his current supply. Congress provide ed hundred million for tiger grantses in the the omnibus package and its zeroed out in this budget. Passenger rail fares poorly. The Department Seeks to end amtraks National Rate biz smashing the network by 50 and proposed 28 cut incredibly for the havely traveled northeast corridor. Meanwhile, amtrak is breaking ridership records and more americans look to rail for commuting needed. Support for a Robust National rail system has been reaffirmed by members of both parties, including the most recent longterm transportation reauthorization bill and we have strong validation from North Carolina where traveling from charlotte to raleigh and the other has been a model for efficient and pleasant transportation. You stated that safety must remain a top priority of the department, yet the budget request would cut funding in operations and research account, the safe and realizations account at the federal railroad, the Pipeline Safety administration, and aviation safety activitied within the foo faas accounted. Im puzzled by. We need to know how the department will maintain safety. Want to shift gears and address air Traffic Control. The administration has endorsed the outlines of chairman schusters privatization proposal. I have grave concerns about this, said that repeatedly. This would sever faas aviation safety and air Traffic Control components. The model would reduce transparent and i and oversight and allow for fee incorrections, diminished as sees to the National Air Space and antipress dented give away of Taxpayer Fund its assets to an untested private entity and then the progress were making, threaten efforts to modernize delivering billions in savings to airlines and customers. So the budget request not only unrealistically assumes a quick transition to a private entity and defers Capital Investment inside faas that is directly at odd midst notion of improving atc operation. The other and also the Infrastructure Initiative and this is something hat has potential for bipartisan support. But we dont have enough to work with. Its a sixpage document, rather vague, mentioning 200 billion in federal outlays that supposedly would leverage 800 billion in spite of nonfederal investment. Of course we need more details about this to even begin to assess it. Before i close we need to acknowledge that we still have no budget resolution no top line spending number, no subcommittee allocations. Theres talk ol rushing to assembly a republican only omnibus package would represent a complete abandonment of the regular order. Even if we reject thed a meteorologists draconian cuts to discretionary funding the appropriations process is at risk of completely breaking down if were forced to write our bills to sequestration limits. Bipartisan budget agreementers are required given the requirementeds of the budget control act. If we have workable allocations to write transportation hud and other appropriations bills. I know we want to work in this cooperative farc but cooperative fashion. I look forward to your tim today. Work with you to ensure that Vital Transportation programs are adequately funded. Thank you. And thank you mr. Chairman. Thank you mr. Price. Now im, toly honored to pleased to welcome one of the besidest leaders, the chairman. Mr. Frelinghuysen. Itsits. Its a pleasure to walk welcome secretary chao to another stint serving our public so well. Thank you very much for being here, madam secretary. We look forward to your testimony. Let me just add on what dr. Price and mr. Mr. Bollaad. Were shocked to the core and pray for the quick recover for those wounded and we raised the profile of the Important Role of our Capitol Police and may i say a lot of what you do as sect is you have within your purview or out your purview the men and women who protect our harbors, our tunnels, our airports, our train stations, sometimes we pass by them and we acknowledge them but sometimes dont expect that at some point they might have to put their lives on the line. Want to take this opportunity to recognize their role and raise their profile. Todays hearing is an important part of the oversight duty idea of the commit. The power of the purse resides here on capitol hill. As secretary of transportation youre responsible for maintaining and improving the nations infrastructure, and protecting it. As we pursue policies and programs to grow our economy, so too we must grow our infrastructure to support it. In that context, id like to bring up a critical project for our national economy. The gateway project and the hudson thumb tunnel project. Over 50 Million People between the District Of Columbia and botts has 20 of the Gross National product. Safe and reliable Passenger Rail service is essential to that economic opportunity, whether it we the east coast, west coast, or somewhere in between. Were build thing hudson tunnel is a vital importance to our region and my home state of new jersey. Given the clear benefit of the im concerned about the budget provision limiting funding for Capital Investment grants, referred to on the committee as new starts. And iger to hear either in this setting or outside this room how the Department Plans to support this vital infrastructure proposal for the new yorknew jersey region. Also taken note of the administration residents proposal to spend 200 billion on targeted federal investments to Leverage Private sector resources so the ends result in at least 1 trillion in total infrastructure spending. Like to hear more about the specifics and how it will improve our infrastructure planning for state and local governmented but above all we welcome you, madam secretary, and thank you, mr. Chairman, for the time. Thank you, mr. Chairman. Madam secretary, youre full of written testimony will be submitted. Youre recognized now for five minutedful thank you. Discuss the president s fiscal year 2018 budget request for transportation. My colleagues and i share your thoughts and prayers for those injured in yesterdays incidents and were so grateful that the Capital Police were there. On transportation we all share the same goal, to ensure that our countrys Transportation Systems are safe, dependable and ready to adapt to transformational new technologies. The president s 2018 budget represents a bold vision for our transportation infrastructure, the administration has carefully studied our current spending patterns and has taken a closer look at programs that may not be meeting their intended purposes, have outrafted their usefulness or could be replaced with new initiatived that will better address future transportation needed temp request ising and 76 bill decide for transportation. This request fully fund surface transportation programs, including the fast act, provides steady state funding for the majority of other transportation programs. The budget provides new policy direction in several key areas, first, our transportation infrastructure is crumbling and in need of attention. To address the concern the president proposed longterm reformed that change the way Infrastructure Project are regulate, funded, delivered, and maintained. The president s plan will create incentives for additional state, local, and private funding, and well ensure that federal funding is leveraged to maximize infrastructure investment. The president has identified a total federal commitment of 200 billion for Infrastructure Improvements of which a portion will be directed towards Rural America. Nest the president s fiscal year 2082018 budget has a proposal that represents a major shift for the faa. Despite spending billions of taxpayer dollars and decades of effort the government hat not been able to fully implement stateoftheart air Traffic Control technology. Air Traffic Controller still use pap