Investing in multimodal transport choices reduces infrastructure costs

Innovative Infrastructure: Cost-Efficient Transportation Strategies for Urban Areas

As fiscal constraints challenge policymakers, recent research highlights the potential for significant savings through diversified transportation investments. By reallocating funds typically reserved for road expansions to enhance public transit options, states can address urban transit demands more economically.

In a pivotal decision last month, Illinois legislators redirected funding from road projects to bolster the Chicago transit system, averting a financial crisis. This shift occurs amid rising transportation costs and shrinking budgets for traffic alleviation initiatives, leaving many U.S. cities contemplating severe cuts to public services and facing reduced federal support for pedestrian-friendly developments. Yet, states like Illinois are pioneering efforts to provide immediate commuter relief.

The Institute for Transportation and Development Policy (ITDP) conducted an analysis suggesting that national adoption of Illinois's strategy could save $1 trillion in public spending by 2050. This approach emphasizes "multimodal" solutions, such as bus, rail, and cycling infrastructure, over traditional roadway expansions.

Exhibit 1: Investing in cost-effective, multimodal solutions reduces the necessity for extensive urban road networks, resulting in net savings and providing commuters with more affordable options.

The ITDP's analysis contrasts two investment pathways. The status quo sees ongoing focus on highway expansion, leading to increased traffic congestion and sprawling urban development. Despite significant investments, drivers endure over 63 hours annually in traffic. In contrast, the Multimodal Investment Pathway envisions a future where cities invest in diverse transit options, potentially reducing state budgets by an average of 10% annually.

Evaluating State Savings Through Multimodal Networks

An analysis by RMI and ITDP localized the potential savings for each U.S. state, highlighting the influence state leaders have in directing transportation funding. By coordinating housing and development with these new transit options, states like Michigan and Pennsylvania could save billions annually.

Exhibit 2: Click to explore potential state savings from investing in bus rapid transit, passenger rail, and protected bike lanes.

While the scale of these networks may seem ambitious, historical examples like Washington state's expansion of the Link Light Rail demonstrate their feasibility. Constructing these networks relies on strategic policy frameworks, offering fiscal, environmental, and congestion-reducing benefits.

Virginia's Success with Multimodal Infrastructure Attracting Investment

Virginia's transformation of its transportation strategy via the SMART SCALE program illustrates the economic benefits of prioritizing multimodal infrastructure. This initiative has tripled the state's investments in rail, bus, and active transportation since its inception, contributing to significant economic developments like Amazon’s $2.5 billion investment in Arlington.

Exhibit 3: The SMART SCALE program has significantly increased funding for rail, bus, and active transportation, showcasing the impact of strategic investment decisions.

By fostering transit-rich environments, Virginia has enhanced property values, expanded the tax base, and maintained quality services, creating a cycle of growth and attracting business investments.

Illinois' Strategic Shift to Support Public Transit

In response to looming service cuts, Illinois took decisive action to stabilize Chicago's transit system by redirecting road funds to transit operations. This move not only preserves service levels but also aligns with findings suggesting that expanded transit prevents economic losses, potentially saving $1.4 billion annually.

Exhibit 4: Shutting down Chicago's transit would severely affect the local economy by increasing congestion and household costs.

This data underscores the critical role of multimodal investments in maintaining affordability and competitiveness within urban regions. By learning from Illinois and Virginia, states can effectively reduce congestion, save costs, and boost their economies.