A little over a week since the last post-election recap, we thought recent announcements of agency appointments, chairmanship decisions, and transition team insights justified a brief update. Things continue to move quickly as Washington nears the 111^th session of Congress and the inauguration of the 44^th President. Both branches appear eager to hit the ground running on several issues, including a strong focus on transportation. The following offers a general overview of news we thought important, and Capital Partnerships will continue focus on various changes and proposals as they relate to your interests. For more detailed information or follow-up on this release, please do not hesitate to contact us.

The President Elect's Transition Team & Cabinet Appointments:

We received noteworthy insights regarding the transition team's approach to setting the Obama administration's goals. In the next few weeks, newly formed "Agency Review Teams" will compile briefing books on the various agencies and departments to guide incoming leaders. Mort Downing, Jane Garvey, and Michael Huerta have been chosen to head the Review Team for DOT. As mentioned in our prior update, Capital Partnerships has worked with Mort for nearly 20 years. He is the current Chairman of PB Consult and was Deputy Secretary of Transportation under Clinton. Jane Garvey served as FAA Administrator from 1997-2001 and currently oversees U.S. Public/Private Partnerships at JP Morgan. She remains among the top Secretary of Transportation prospects. Michael Huerta, a current Executive Vice President and Group President of ACS Transportation Solutions, also served at DOT under Clinton, initially as chief of staff and later as Associate Deputy Secretary of Transportation.

To compile the briefing guide, the team will spend this week and perhaps part of next interviewing current DOT personnel, seeking policy ideas and input on the programs to cut or continue in the new administration. In the week after Thanksgiving, the team will interview sources outside DOT, including leading transportation suppliers, providers, and trade associations. This will be done in an effort to solicit advice from the private sector on fresh policy ideas and thoughts on how the new administration might improve DOT effectiveness.

In the end, the Review Team's briefing book should provide a roadmap for DOT's to-be-named leaders on strategic policy, budgetary, and personnel decisions. Carol Carmody, an international aviation consultant and 2000 Clinton appointee to the NTSB, will compile a similar briefing book for NTSB.

Recent articles in the New York Times and the Wall Street Journal highlight two concerns that will likely capture the Agency Review Teams' attentions. David Leonhardt's NY Times article criticizes the current approach to infrastructure development, noting that future funding should be tied to tangible policy goals, that it should only finance well-researched proposals, and that funding must generally be increased. The WSJ noted that the transportation industry is justified in anticipating a much-needed funding boost, but also warned that these expectations should be somewhat tempered by deficit concerns.

Although unrelated to transportation issues specifically, President-elect Obama made some other key appointments of late. Rumors seem to confirm that Senator Hillary Clinton will be the next Secretary of State. In addition, Tom Daschle will head HHS, Eric Holder will be Attorney General, David Axelrod will serve as senior White House adviser, and Greg Craig will be White House counsel. Billionaire Chicago businesswoman, Penny Pritzker, appears Obama's top choice for Commerce Secretary, and Arizona Governor Janet Napolitano is expected to head Homeland Security. Philip Schiliro, a longtime aide to Congressman Henry Waxman (see below), will serve as director of Congressional relations for the White House.

Congress & Chairpersons:

The battle over the House Energy and Commerce Committee chairmanship appears over, with Congressman Henry Waxman (Calif.) securing a 25-22 Steering Committee nomination over current Chairman John Dingell (Mich.). Waxman, who successfully argued that he would more vigorously advocate Obama's change agenda, said that he plans to push forward comprehensive climate and health care legislation as soon as possible. The full Caucus vote remains, but it will likely follow the Steering Committee's suggestion.

The ousting of Dingell, who represents a suburban district of Detroit, proved another blow the struggling auto industry. Congress could not reach agreement on a plan to help the auto sector, despite President-elect Obama's apparent support for a deal. In a move that quickly soured congressional opinion towards the bailout, CEOs of the "big three" flew separately to Washington in private jets. A December bill remains a possibility, but Congress may require specific guarantees for change from Detroit.

A larger stimulus package seems unlikely until early 2009. Rahm Emanuel, Obama's chief of staff, remarked earlier this week that a stimulus plan would be the "first order of business" for the new administration. Senate Budget Chairman Kent Conrad similarly urged support for a stimulus bill, but also called for a long-term return to fiscal discipline. Several experts appearing before Conrad's Committee suggested a stimulus in the range of $400-450 billion, with about $100 billion going towards infrastructure. When discussing the stimulus package, both Obama and the Democrat-led Congress have consistently emphasized the short and long-term benefits of funding projects for roads, bridges and public works. Despite the stall of the major stimulus bill this week, Congress offered limited relief by passing an extension of unemployment benefits.

Reeling from election setbacks, the House Republicans sorted out various leadership questions. Minority Leader Boehner (Ohio) won another term to lead the Republican Conference after defeating Rep. Dan Lungren (Calif.), Congressman Pete Sessions (Texas) seized the chairmanship of the National Republican Congressional Committee after Tom Cole (Okla.) withdrew his bid for another term, and House Republican Policy Committee Chairman Thaddeus McCotter (Mich.) survived a challenge by Rep. Michael Burgess (Texas). None of the vote totals for these elections were released. The Senate Republicans continue fighting to secure two seats still in question. These include incumbent Mark Coleman's narrow 237 vote lead over Al Franken in Minnesota and the upcoming December 2 runoff election between incumbent Saxby Chambliss and Jim Martin in Georgia.