Every day Uncle Sam pays people to violate their own common sense on and near the Mississippi River, according to a first-of-its- kind report released October 23 in over a dozen locations from Minneapolis to New Orleans.

River of Subsidy, the first effort by any national budget-watchdog organization to catalog wasteful spending on the Mississippi, targets $1.5 billion in wasteful subsidies and advocates deep cuts in Army Corps programs. The report aims to reform current polices which pay people to build houses in exposed floodplains, transport by barge when rail would be cheaper, and build levees that cost more than the farm fields they protect.

The report, authored by Taxpayers for Common Sense with input from the Mississippi River Basin Alliance and grassroots organizations throughout the Mississippi Valley, targets 16 of the most egregious projects in the region for $1.5 billion in savings. A $143 million pumping facility that would exacerbate flooding in other areas and a $13 million annual subsidy for a channel used by only 3.5 ships per days are among the 16 budget cuts recommended in the report.

Not only do the management policies critiqued in the report cost a great deal while delivering little economic benefit, they also create a cycle of subsidy that requires future taxpayer outlays. For example, the Army Corps is attempting to justify a $500 million lock expansion program based on projected increases in barge traffic. However, barge traffic is artificially supported by a 92% federal subsidy—only 8 cents on the dollar of barge shipping is paid for by operators. Ending these massive barge subsidies, the report states, will likely eliminate the need for lock expansion.

The report advocates a complete review of river-management plans to stop unjustified expenditures and bring common sense to the Mississippi.

For more information, contact Steve Ellis (202) 546-8500 x 126 or steve [at] taxpayer.net