Searching for new revenue, some states have contemplated commercial advertising on official traffic signs on the public right of way.

US Senator Jerry Moran, R-KS, asked the next Secretary of Transportation about ads-on-the-road.

Insider is providing the senator’s question and the reply from Elaine Chao, nominated by President Trump as Secretary of Transportation.  Chao’s nomination hearing was held January 11 before the Senate’s Committee on Commerce, Science, and Transportation.  This committee approved Chao’s nomination; the full Senate is expected to confirm her nomination soon.

Senator Moran’s written question, submitted to nominee Elaine Chao follows:

The Department’s policy has been that highway right-of-way is acquired with public funds for public purposes. Some have argued for commercialization of the right-of way, though in 2012 the Senate voted 86-12 against commercialization of rest areas. Some states have considered proposals to sell large-screen commercial advertising on the right-of-way. For your reference, I am including a May 17, 2016, letter from Rep. Ted Poe (R-TX) to DOT Secretary Foxx on the subject.

Do you support current policy that right-of-way purchased with public funds should be limited to public purposes?

Elaine Chao’s answer is as follows:

I understand this issue is addressed in existing federal laws, and if I am confirmed, the Department of Transportation will adhere to the law, unless and until it is changed.

Texas is pushing a plan to allow corporate “sponsorships” on official traffic signs.  Sponsors’ logos would appear on one-third of the sign space on LED changeable-message traffic signs.  The plan would require federal approval.

Congressman Ted Poe, R-TX, is opposed to the plan.

Some Additional Background on federal law/regulations

US DOT and its Federal Highway Administration (FHWA) consistently have opposed commercial advertising on the right of way, citing congressional intent, federal law and regulations.

Federal law, 23 US Code 109 (d), requires that traffic signs must be approved by the State in concurrence with the Secretary of US-DOT.  Traffic signs must promote the safe and efficient use of the highways.

Under federal regulations, 49 CFR 1.48 (b) (8), the Secretary delegated approval authority to the FHWA Administrator.  FHWA created a Manual on Uniform Traffic Control Devices (MUTCD) to provide national standards.  Federal regulations say that right of way of public highways must be devoted exclusively to public highway purposes unless FHWA approves other uses, citing 23 CFR 1.23 (b).

FHWA Administrator Gregory Nadeau recently reiterated this policy (click this link fhwa-Huffman8-16), pointing out that the federal Manual for traffic signs (MUTCD) “explicitly prohibits the display of advertisements on any traffic control device.”

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