LaHood rescinds Bush transit spending restrictions, more projects eligible for funds

LaHood rescinds Bush transit spending restrictions

WASHINGTON — Transportation Secretary Ray LaHood says he’s rescinding Bush administration restrictions on federal transit spending so that a wider range of projects will be eligible for funds.

LaHood told a conference of transportation officials and researchers Wednesday that the Obama administration wants greater flexibility to pay for bus, rail and other transit projects that could provide an economic boost or benefit the environment.

Former President George W. Bush, who believed transit systems should rely less on federal funds, restricted federal grants to transit projects that could be shown to reduce traffic congestion and commute times.

The new policy comes about a month ahead of when the Transportation Department is expected to announce the recipients of $1.5 billion in grants for innovative transportation projects.