Yes, cut the grants

The US House Budget chairman Paul Ryan proposes some serious reductions in federal transportation spending in his budget released today. US spending - mostly grants to the states is to drop by nearly a quarter $21b in 2012 from $85b in authorizations and in 2015 would be $25b or 30% lower than this year (see table nearby). Cuts like these are essential to ending the ballooning of federal debt with all the potential that carries for new financial crises, flight of capital, and crippling new taxes.

US road and transit spending along with "livability" grants and other fringe transportation programs has seriously outrun stagnant gas/diesel tax revenues and the program increasingly adds to the general Federal deficit, being funded with unfunded grants.Toll Road News

Grant money for higher government to lower government removes accountability, and always leads to graft. Local transportation districts can raise their own money from toll fees. Grant money is an attempt by a politician to engage in accounting fraud, separating the taxpayer from his choices.