Putting "Big Road" in the crosshairs of the Dept of Government Efficiency

Some eye-opening observations about federal subsidies for Motordom

By now, you’ve no doubt heard of the Department of Government Efficiency (DOGE), the new advisory group co-led by Elon Musk and Vivek Ramaswamy. The group’s purpose is to identify waste, fraud, and inefficiency in federal spending and make recommendations for making better use of taxpayer dollars. Who knows if they’ll stick to this, but they’ve suggested they’ll disband by July 4, 2026, America’s 250th birthday. 

Elon Musk has a reputation for transforming industries through a relentless focus on efficiency. Across his ventures—Twitter/X, SpaceX, Tesla—he’s focused on cost-cutting, design innovation, and operational agility. I’m not saying that as a fanboy, but as someone who consumes a lot of business and technology podcasts and hears Musk’s competitors and friends make the same observations. 

Maybe you’ve seen some of the recent videos of SpaceX tests, like the one where a reusable torch the size of a skyscraper was caught in mid-air by what looked like giant kitchen tongs. 

In the early 2000s, launching payloads into orbit cost around $54,500 per kilogram (think NASA Space Shuttle). SpaceX reduced the cost to around $2,720 per kilogram. The Falcon 9's reusable first stage allows for multiple flights, which obviously means the cost per launch goes way down. They don’t share all the details, but outsiders estimate SpaceX's internal launch costs are about $15 million per flight and on a path to be $2 million per flight. No wonder it surged as a leader in the aerospace industry. 

Regardless of what politicians do with DOGE’s findings, I’ll be on the edge of my desk chair with popcorn as the financial recommendations roll in. The US has a $35 trillion national debt that keeps rising every month, which any economist will tell you is a guaranteed route to disaster.

While DOGE is staffing up, they’re already crowdsourcing input directly from the public, encouraging you and me to spotlight areas for improvement. I asked Grok, Twitter/X’s built-in AI chatbot, to help DOGE prepare for their upcoming role in cost-cutting recommendations. Grok was particularly appalled by the subsidies for Big Road and has some suggestions for the incoming administration. 

GROK INVESTIGATES MOTORDOM

Current Expenditure:

The Federal Highway Administration (FHWA) distributed approximately $52 billion annually from the Highway Trust Fund for highway projects in 2022. This funding primarily supports road construction, maintenance, and expansion, which are inherently car-centric.

Disproportionate Investment:

Over 70% of the funds from the Infrastructure Investment and Jobs Act (IIJA) are allocated to road infrastructure, significantly overshadowing investments in public transit (around 20%). This focus not only increases vehicle miles traveled but might not align with the most cost-effective or sustainable transportation solutions.

Environmental and Health Costs:

Road expansion contributes to an estimated increase of 190 million metric tons of emissions by 2040, not accounting for the health costs from pollution or the social cost of carbon. Additionally, approximately 40,000 deaths per year are linked to road traffic, a cost not factored into traditional ROI calculations for highways.

State and Local Spending:

State and local governments spend three times more than the federal government on highways, indicating a significant financial commitment to car-oriented infrastructure. This could be seen as cost-inefficient when considering the broader societal impacts not captured in immediate financial terms.

Highway Trust Fund Issues:

The fund's reliance on fuel taxes for revenue is becoming less effective as fuel efficiency increases and electric vehicles gain popularity. This system locks in spending towards highways regardless of their true benefit or cost to society.

COST-CUTTING & EFFICIENCY RECOMMENDATIONS

Reevaluate Funding Priorities:

Shift funding priorities towards projects that demonstrate clear benefits in terms of reducing congestion, emissions, and fatalities. Encourage funding for multi-modal projects that integrate public transit, biking, and pedestrian options.

Implement Performance-Based Funding:

Move towards funding based on performance metrics that include not just construction speed or cost but also environmental impact, safety improvements, and reduction in vehicle miles traveled.

Introduce New Revenue Models:

Consider alternatives to the fuel tax like a Vehicle Miles Traveled (VMT) fee, which could more accurately reflect road usage and encourage less driving.

Enhance ROI Analysis:

Incorporate social, environmental, and health costs into ROI calculations. This could make projects that reduce car dependency more financially appealing over time.

Promote and Fund Alternatives:

Increase funding for alternatives like rail, bus rapid transit, and greenway projects which often provide better long-term cost efficiency, especially when considering lifecycle costs and benefits.

Reduce Induced Demand:

Instead of widening roads, which often leads to more traffic through induced demand, focus on demand management strategies like congestion pricing or improving transit options.

Leverage Technology for Efficiency:

Use smart technology for traffic management and road maintenance to make existing infrastructure more efficient rather than expanding it.

Audit and Reallocate:

Conduct regular audits on transportation spending to identify where funds can be reallocated from less efficient projects to those with higher societal returns.

By focusing on these strategies, the Department of Government Efficiency could significantly reduce the financial drain on public resources while promoting more sustainable and safe transportation options. This approach would also align better with modern urban planning principles that prioritize human health, environmental sustainability, and economic efficiency.

After reading that, I asked Grok to write a note to Elon Musk and Vivek Ramaswamy about the findings. 

"Listen up, Elon and Vivek, you two are all about shaking things up, right? Well, here's your chance to disrupt the road less traveled by literally making it more traveled – on foot, bikes, or via transit. Picture this: instead of funding the next batch of parking lots for Teslas, we could be investing in a world where people don't need cars to feel free. We're talking less road rage, more yoga in the park. Car dependency? More like car dependency syndrome, and you could be the ones prescribing the cure. Let's make urban life less about dodging traffic and more about dodging into new business ventures, like, say, a global network of super-efficient, super-cool transit systems. And hey, if you're looking for a new challenge, there's your next big thing."🫡

From AI’s mouth to Elon’s ear. Let’s go.