The Obama administration is hoping to create a national infrastructure bank to fund large-scale transportation projects, according to a budget proposal released on Monday, Feb. 1.

An infrastructure bank, known as the National Infrastructure Innovation and Finance Fund, would be funded not by the Highway Trust Fund, but by general Treasury funds. U.S. Transportation Secretary Ray LaHood said it would start with an initial $4 billion and be used to issue grants and loans for projects of national or regional significance.

LaHood told the press Monday that the infrastructure bank would fund “innovative multi-modal projects” and “big projects around the country.” LaHood also reminded reporters that the proposal is still in the planning stages.

The overall budget request for the U.S. Department of Transportation calls for $78.8 billion in fiscal year 2011, an increase of 2 percent from the 2010 level of $77 billion.

Funding for federal aid highways would be increased by 0.6 percent despite an overall decrease of 2.2 percent for the Federal Highway Administration.

LaHood brought attention to an additional $1 billion in the budget request to fund high-speed rail and highlighted increases in safety funding in other areas.

As part of the safety push, LaHood said the budget includes a $50 million grant fund to assist states in implementing laws to combat distracted driving.

Safety personnel within the Federal Motor Carrier Safety Administration and National Highway Traffic Safety Administration would both be increased.

“First of all, safety personnel will be added across all agencies: Sixty-six additional personnel in NHTSA assigned to highway and vehicle safety and 118 additional motor carrier safety personnel (at FMCSA),” said LaHood.

– By David Tanner, staff writer
david_tanner@landlinemag.com