New York State’s Use of Federal Roadway Funds Overlooks Key Climate and Transportation Safety Goals, NYC Comptroller’s Report Reveals

The 2021 Infrastructure Investment and Jobs Act (IIJA), the bipartisan infrastructure law passed by Congress, is bringing a large infusion of federal funding into New York City, but a new report from the New York City Comptroller’s Office reveals that New York State’s funding decisions fail to prioritize transportation safety, state-of-good-repair, and climate priorities, instead favoring highway expansion projects.  

The State has broad discretion on how and where to spend its “formula funding,” which makes up the bread and butter of IIJA funds. While the City has dedicated its much smaller share of formula-funded roadway projects to address bicycle, pedestrian, safety, and sustainability goals, the State is spending roughly half of the roadway formula funds it is allocating for New York City on widening highways. The report highlights the need for New York State to follow other states (including California, Colorado, and Minnesota) in adopting performance standards for project selection to ensure that federal funding is used to reduce emissions, improve street safety and maintain a state of good repair.  

“The bipartisan infrastructure law is a monumental achievement, bringing desperately needed funds to invest in New York City’s transportation infrastructure, including historic investments in mass transit. Unfortunately, New York State’s lack of performance standards results in projects that expand highways, rather than repair our aging infrastructure, improve safety and accessibility, and reduce emissions. Albany needs to follow City Hall’s lead in channeling these precious federal funds toward safer and more sustainable modes of transportation, and with a stronger emphasis on local hiring,” said Comptroller Brad Lander. 

“This report from Comptroller Lander provides critical insights that will guide our work as we continue the massive task of implementing the Bipartisan Infrastructure Law and its once-in-a-generation investments in New York’s infrastructure. I look forward to continuing to work hand-in-hand with state and local partners, like Comptroller Lander, to make sure implementation of the law provides maximum benefit for New Yorkers,” said U.S. Senator Charles Schumer.

“Without higher performance standards and a much bolder vision, New York State risks squandering the historic investments of the 2021 Infrastructure Investment and Jobs Act (IIJA) by directing far too much funding toward highway expansion instead of climate-resilient, multimodal projects,” said Assemblymember Emily Gallagher. “In an era of extreme heat and air pollution, we must not repeat the costly mistakes of 20th century planning. Comptroller Lander’s new report shines a light on our state’s antiquated approach to federal investments and is required reading for all of us that want to see the IIJA succeed. I look forward to working with my colleagues in Albany to reorient our approach to infrastructure and adopt long overdue standards for formula-funded projects.” 

One bright spot of the report’s findings is that 58% of the State’s IIJA funds will go toward public transit, making New York the only state to receive more federal funds for transit than roadways. Almost half of the State’s transit funding will go toward the second phase of the Second Avenue Subway expansion and the Gateway Hudson Tunnel Project, two large and complex projects vital to the region’s transit network. 

Most of the remaining statewide IIJA funding is dedicated to highway formula-funded projects, which can be used for a wide range of projects including traditional highway-building, state-of-good-repair work, street safety improvements, and active transportation. The State is empowered to determine how formula funds are spent and how much to pass through to local municipalities. However, without performance standards and clear visibility into the decision-making process, a significant amount of federal funds are being directed toward projects that do not align with the City and State’s policy goals. 

The $1.3 billion project to widen the Van Wyck Expressway encapsulates this priority clash. When the expressway was built in 1950, Robert Moses refused to include space for a future transit option, to save less than $2 million. The current project entails adding and widening lanes of the highway to reduce car travel times to John F. Kennedy International Airport, which may bring temporary benefit for drivers but will have long-lasting health and climate impacts. This project, as well as other large highway construction projects overseen by NYSDOT within the five boroughs which are likely to increase greenhouse gas emissions, are incompatible with the City’s climate goals.  

The City of New York is receiving some money to spend on projects of its own selection, both through a suballocation of the State’s formula funds, and by applying for competitive grants under IIJA. New York City has aggressively applied for competitive grants to advance sustainability and transportation objectives and received awards for major projects like the New York City Greenway Expansion Plan, the Delancey Street Road Diet, and the Hunts Point Intermodal Facility.  

The City of New York has also moved aggressively to take advantage of new IIJA provisions that allow for targeted hiring to local residents. Mayor Adams issued Executive Order 22 establishing a new office to ensure that New York City residents are hired for the good jobs created by these infrastructure projects. The State has not yet publicly announced plans for targeted or local hiring on its IIJA projects.  

The report’s recommendations address these issues and aim to maximize the potential benefits of IIJA funding for New York City: 

• New York State should establish performance standards for transportation projects to align them with climate change, street safety, state-of-good-repair and equity goals. By setting clear and ambitious performance standards, New York can prioritize projects that contribute to sustainability, safety, and accessibility, ensuring federal funds are utilized effectively. 

• Increase transparency in the funding relationship between the State and City to better plan and budget for capital improvements. Clear guidance from NYSDOT on the exact amount of funding passed onto the City will enhance budgeting and planning efforts for capital projects. 
• Adopt overdue reforms to the City’s capital process through State legislation and City implementation to accelerate the delivery of infrastructure projects in New York City, improving efficiency and cost-effectiveness. By streamlining bureaucratic procedures and adopting the recommendations of the Capital Projects Reform Task Force, the City can expedite infrastructure projects and maximize the impact of federal funding. 
• Advance local and targeted hiring to leverage the IIJA’s authorization for local hire provisions and create good jobs for New Yorkers. Supporting employment opportunities for economically disadvantaged candidates and prioritizing local hiring can ensure that the benefits of infrastructure projects reach the communities that need them most. 
• New York City and State should improve tracking and spending of IIJA capital projects to enhance transparency and inform project delivery improvements. Establishing a centralized and comprehensive tool to track IIJA funding will not only increase transparency but also guide improvements in project delivery processes. 

“The comptroller’s report makes crystal clear how much New York has been able to achieve with federal infrastructure funding but also how far we have to go to spend it all consistent with our values,” said Danny Pearlstein, Policy & Communications Director at Riders Alliance. “Riders will continue to hold our leaders accountable for making the most of available resources to deliver fast, frequent, reliable and accessible public transit service for millions of New Yorkers, commuters and visitors.” 

“The IIJA has brought about unprecedented investments in transit and infrastructure projects like the Gateway Program, electric buses, new subway rolling stock, and state-of-good-repair work,” said Vanessa Barrios, Manager of Diversity, Equity, and Inclusion Initiative at Regional Plan Association. “RPA’s research has found that approximately $9.5 billion of the $16 billion received by the states of New York, New Jersey, and Connecticut have gone towards road and bridge infrastructure. This contradicts the climate goals set by the states and makes it less likely we will reach a more sustainable future. Allocating funding currently slated for highway widenings and expansions to improving transit access and pay dividends for generations to come. Thank you to Comptroller Lander for shining a light on this incredibly important topic.”

“New York State residents want their communities to be inclusive and vibrant. Public transit, like trains and buses, and accessible walking and bike routes, give us a healthy, clean, and affordable way for everyone to get around, said Haley Richardson, Director of Communications at TransitCenter. “But for too long, NYSDOT has funneled enormous sums towards expanding roads while neglecting transit, biking and walking projects. With a record-amount of money currently flowing to New York State from the IIJA, it’s time for NYSDOT to change the ‘norm,’ and set new transportation goals that will give all of us more affordable and varied ways of getting around. At a critical moment for the climate, Comptroller Lander’s welcome new report outlines how New York State can do our part to lower transportation emissions, all while making our air cleaner and our streets safer.” 

“We have known for decades the damage highway expansions have on communities of color. Transportation continues to be one of the largest emissions contributors in New York. We need to do more than electrify vehicles. The IIJA is a significant funding opportunity that would overhaul the state of our climate and health infrastructure. The State must prioritize projects that will help New York achieve the emission reduction mandates in the Climate Act and ensure that an equitable distribution of federal funds go to environmental justice communities,” said Eunice Ko, Deputy Director at NYC Environmental Justice Alliance. 

“Reinvent Albany welcomes Comptroller Lander’s analysis and recommendations for increasing the transparency of the federal funding split between the State and City, and ensuring a historic boost in federal funds are best used to meet the state’s climate goals,” said Rachael Fauss, Senior Policy Advisor at Reinvent Albany. “If spent wisely, the enormous federal IIJA infrastructure grants can provide huge public benefits and New Yorkers deserve to know exactly how they are being used.” 

“The 2021 Infrastructure Bill provides the largest infusion of funds for improving and modernizing infrastructure in nearly 100 years,” said Felicia Park-Rogers, Director of Regional Infrastructure Projects at Tri-State Transportation Campaign. “As the Comptroller’s important new report points out, it is critical for city, state, and region to pivot how we spend these funds by moving away from destructive 20th Century planning methods and towards planning for a more resilient, equitable, and sustainable 21st Century. The recommendations in this report point the way, it is incumbent on decision makers to adopt them.” 

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