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Another shutdown looms

Presented by The American Public Transportation Association: Delivered every Monday by 10 a.m., Weekly Transportation examines the latest news in transportation and infrastructure politics and policy.
Jan 16, 2024 View in browser
 
POLITICO's Weekly Transportation newsletter logo

By Alex Daugherty

Presented by The American Public Transportation Association

Quick fix

— Government funding partially runs out on Friday, and bipartisan cooperation will be needed to keep transportation funding from lapsing.

— FAA to audit Boeing as a former Trump Pentagon chief plays a central role in the response.

— The governor of New Jersey faces questions in two states over his transit approach.

IT’S TUESDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. You can reach Alex, Oriana, Tanya at adaugherty@politico.com, opawlyk@politico.com and tsnyder@politico.com, respectively. Find us all on the platform formerly known as Twitter @alextdaugherty, @TSnyderDC and @oriana0214.

“Tonight I'm gonna take that ride/Across the river to the Jersey side/Take my baby to the carnival/And I'll take her on all the rides”

 

A message from The American Public Transportation Association:

American jobs depend on public transportation. Public transportation employs the workers who design, build, and manufacture our bus and rail systems and the operators and technicians who move us reliably, safely, and efficiently. Public transportation is also essential for the millions of people who rely on transit to get to work, to support a local business, or to travel to a revenue-generating entertainment venue.

 
Driving the day

DEADLINE COMING: Government funding for a group of agencies and programs, including transportation, runs out on Friday and the House and Senate this week will be tasked with passing another short-term continuing resolution to avoid a shutdown. Senate Majority Leader Chuck Schumer set the process in motion late last week and House Speaker Mike Johnson announced his support for a continuing resolution that extends the programs set to expire on Friday until March 1 and the rest of the government, including defense, until March 8 (which is also the current FAA authorization deadline).

Johnson said another short-term bill, which he previously promised to oppose, would bring "an end to governance by omnibus, meaningful policy wins, and better stewardship of American tax dollars.” It’s expected that the right flank of his caucus will vote against another short-term bill and potentially increase tactics like voting against rules on the floor in a show of disapproval. H.R. 2872 (118) was introduced over the weekend and it's possible a short-term shutdown could commence next weekend if lawmakers fail to fast-track it. Caitlin Emma and Jennifer Scholtes have more.

The ongoing disputes over government funding go far beyond transportation, but the House GOP is unable to reach an agreement on THUD spending. The right flank of the House GOP wants more cuts to rail while a group of members in competitive Northeast Corridor districts opposes current rail spending cuts in the THUD bill, H.R. 4820 (118).

 

Tune in on Wednesday, Jan. 10, as POLITICO explores Taiwan's upcoming presidential election. Hear from our panel on the potential outcomes to the race and the profound implications for U.S.-China relations depending on who wins. REGISTER HERE.

 
 

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Aviation

INTO THE STORM: Patrick Shanahan, Donald Trump’s former acting defense secretary, is now working in another high-profile gig — president and CEO of Spirit AeroSystems, the contractor that manufactures the 737 MAX 9’s fuselage, including the faulty door panel that flew out during the Alaska Airlines mid-air incident. The Jan. 5 incident near Portland, Oregon, was just the latest in a series of accusations of shoddy work by Spirit Aero, including poor fittings and misdrilled holes.

Shanahan, who acquired the nickname Mr. Fix-It during his time at Boeing, is stepping in to solve another mess, his spokesperson said. Shanahan was appointed CEO in October. The Alaska Air debacle has escalated the stakes for Shanahan and his attempt to turn Spirit Aero around, making Boeing the focus of multiple probes into whether a manufacturing flaw in its most popular jet had endangered passengers’ lives.

“He feels, you know, in some ways, a sense of obligation because he was asked,” said Joe Buccino, a retired Army colonel who served as Shanahan’s spokesperson and special assistant at the Defense Department. Lee Hudson and Oriana have more.

MORE FAA MOVES: The FAA announced Friday that it will audit Boeing's 737 MAX 9 production line and suppliers, saying the audit will evaluate Boeing's compliance "with its approved quality procedures" and determine whether additional audits are needed. The FAA also said it will increase monitoring of MAX 9 “in service” events and conduct an assessment of safety risks around quality oversight as well as safety tasks “delegated” to manufacturers. On Monday, Boeing said it would increase inspections and deploy a team to review Spirit AeroSystems work.

The audit announcement came after Senate Commerce Committee Chair Maria Cantwell (D-Wash.) raised concerns with the FAA's oversight, writing in a letter that recent incidents — including the Alaska Airlines flight — show there might be ways manufacturers can avoid audit accountability from the FAA. On Friday, Cantwell said she welcomed the new audit. Your MT host has more.

Meanwhile, Alaska and United Airlines continue to cancel hundreds of flights per day as their MAX 9 fleets remain grounded. United canceled more than 300 flights on Monday and Alaska canceled more than 150 flights, according to FlightAware. The cancellations will continue until inspections to get the MAX 9 planes back in the air are able to begin.

Transit

FEELING THE HEAT: New Jersey Gov. Phil Murphy is in the unusual situation where a governor of one state is being blamed for problems in two, Ry Rivard reports, and the issue is transit. New Jersey Transit is facing a $100 million budget deficit this summer that will grow to nearly $1 billion next year. And Murphy has initiated a lawsuit against New York City’s congestion pricing plan — angering environmental and urban advocates who say the plan is necessary to reduce vehicle congestion and pollution.

Kathy Wylde, the influential president and CEO of the business-allied Partnership for New York City, said she was annoyed and disappointed by Murphy’s approach to transit funding in his state and his interference with New York’s plans. And she said Murphy, who worked as a top executive at Goldman Sachs before entering politics, should have first-hand knowledge of the region’s dysfunctional transit system. Wylde, who supported Murphy’s gubernatorial campaign, added that she’s telling friends to think about whether or not they should donate to Murphy’s wife Tammy, who recently announced a U.S. Senate bid.

 

A message from The American Public Transportation Association:

Delta Air Lines

 
Rail

STICK TO IT: A group of 15 Democratic senators led by Chris Murphy (D-Conn.) is urging appropriators to stick to the Senate’s THUD proposal that includes $100 million for the FRA’s Federal-State Partnership for Intercity Passenger Rail (IPR) grant program, money that the House has proposed to cut. Murphy and the group of senators wrote to Senate Appropriations Committee leadership urging them to “vigorously defend the $100 million appropriation.”

A reminder that the House hasn’t even passed a THUD bill, H.R. 4820 (118), amid GOP infighting on rail funding. While Republicans from Northeast Corridor states, many who face competitive reelection bids, are against cutting rail funding while a faction of the GOP’s right flank is adamant about adopting even more cuts than are currently in the House legislation.

Automobiles

MOVING TO LA: California approved fare rides for Waymo in Los Angeles, expanding the Google subsidiary’s presence on roads at a time when AV deployment faces questions in California. Jeremy B. White reports that California’s DMV greenlit the expansion, though the California Public Utilities Commission would still need to give final approval — a step Waymo intends to take, which could invite resistance from officials like Los Angeles Mayor Karen Bass.

Due to issues in San Francisco, notably the state revoking the AV company Cruise’s permits after one of the company’s vehicles struck and dragged a woman who was flung into its path, expanding AVs in Los Angeles has drawn warnings from Bass.

“A decision to allow AVs to operate in the City of Los Angeles without local regulation, and without a well-developed and collaborative deployment plan, will likely have adverse impacts on the residents of Los Angeles,” Bass wrote in a November letter.

COLLATERAL DAMAGE: Tesla will suspend the majority of its operations at its factory near Berlin due to shipping delays caused by Iran-backed Houthi attacks on Red Sea commercial shipping, Jeremy Van Der Haegen reports. Tesla vehicle production will be halted between Jan. 29 and Feb. 11 at the Berlin-Brandenburg facility, with the exception of a few assembly sections. Tesla’s Germany plant employs more than 11,000 people and churns out around 250,000 cars per year.

 

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Shifting Gears

The Aerospace Industries Association announced a series of staff promotions. Emma Hamilton is now senior manager, defense trade policy. Erica Osowiski is now manager, membership communications. And Maddy Carlson is now senior coordinator, standards.

The Autobahn

— “Tri-Rail to begin service to Downtown Miami this weekend.” CBS Miami.

— “US greenhouse gas emissions fell in 2023 after rising for two years.” Bloomberg.

— “‘This has been going on for years.’ Inside Boeing’s manufacturing mess.” Wall Street Journal.

— “Cracked window on Boeing 737 forces All Nippon Airways flight to turn back.” CNN.

 

A message from The American Public Transportation Association:

An investment in public transportation is an investment in America’s economic growth. Transit doesn’t just employ more than 400,000 people; it strengthens the U.S. economy by connecting employees to employers, customers to commerce, and communities to investment opportunities. It’s easy to see how $1 invested in public transit generates $5 of economic benefits.

Protecting public transportation funding in FY 2024 THUD appropriations needs to be a priority for Congress because modern transit is essential to Americans in all 50 states. It’s a federal investment that helps keep every U.S. industry competitive, productive, and growing.

Public transportation benefits everyone, no matter where you live or work, because it creates jobs, supports business, and helps drive a strong economy. That’s why investing in public transportation is essential.

 
 

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