Key Points from Senate Budget Hearing with Department of Transportation

HARRISBURG – Serious concerns were raised about PennDOT’s questionable management of public transit and infrastructure projects during a budget hearing with the Senate Appropriations Committee today, with lawmakers pressing the agency not only on project oversight but also on the growth of funding held in certain accounts and the lack of transparency surrounding how those dollars are being spent.

The governor’s $53.3 billion budget proposal for Fiscal Year 2026-27 would increase spending by $2.7 billion, 5.4% more than the current budget.

Department of Transportation

Many questions centered around the Public Transportation Trust Fund (PTTF), which has grown to $2.4 billion even after the governor flexed money out of the fund to support the Southeastern Pennsylvania Transportation Authority (SEPTA) and Pittsburgh Regional Transit (PRT). PennDOT Secretary Mike Carroll testified under oath that SEPTA and PRT have not utilized hundreds of millions of capital dollars allocated to them in PTTF.

Full Hearing (Part 1)

Full Hearing (Part 2)

Majority Leader Pittman on the continued growth of PTTF, major transit agencies deferring projects while money sits in PTTF unused, why transportation funds were flexed away from infrastructure projects two years ago when billions in PTTF funds were available, the lack of transparency on projects and expenditures, and more

Senator Martin on serious inconsistencies in testimony PennDOT provided to House lawmakers regarding the Senate-passed transportation plan in August, whether PennDOT actually read the bill before testifying, the impact of flexing PTTF funding for SEPTA and PRT, and more

Video Highlights

The Shapiro Administration could have acted to prevent the SEPTA service cuts that impacted Philadelphians in August, but they chose not to act.

Gov. Shapiro’s proposed transfer of $33 million in PTTF interest to the General Fund in next year’s budget does not delay any capital projects, proving there is excess money in the fund.

The growing balance of the Motor License Fund was also questioned. The fund balance has grown by more than $2 billion over the past decade.

SEPTA has not right-sized routes or addressed serious safety concerns amid reduced ridership post-COVID.

Concerns were discussed regarding the issuance of nondomiciled commercial driver’s licenses.

It was unclear how long PennDOT was aware of the challenges facing Philadelphia’s Silverliner Regional Rail trains.

Questions were raised about how PennDOT prioritizes capital improvement projects.

There was bipartisan agreement on the need for PennDOT to better communicate about how PTTF and Motor License Fund dollars are allocated.

PennDOT refused to take a position on the potential removal of sovereign immunity caps.

An update was provided on the planned launch of a second daily Amtrak Pennsylvanian line.

You can find recaps and video from every Senate budget hearing at PASenateGOP.com.

CONTACT: Jason Thompson