The nation has reached a critical juncture with its current surface transport. (CST) policies and programs. Demand has outpaced the capacity of the system, resulting in increased congestion. In addition, without significant changes in funding levels or planned spending, the Highway Trust Fund -- the major source of fed. highway and transit funding -- is projected to incur significant deficits in the years ahead. This testimony discusses: (1) recent findings on the structure and performance of the CST program; (2) a framework to assess proposals for restructuring of the CST program; (3) potential options to fund invest. in the CST system; and (4) recent findings on the benefits, costs, and trade-offs of using public-private partnerships to help fund transport. invest. Ill.