Abstract: | This article examines attempts during 19931999 to reformthe U.S. Department of Transportation to hold it accountablefor achieving improved program results through performance measures.These attempts affected the department's relationships withCongress and the states. The political context, institutionalstructure, federal system, and separation of powers into whichthese reforms were introduced limited the course and outcomesof the reforms. For the reforms to succeed, changes need totake place in the behavior of state transportation departmentsand members of Congress. However, there are no clear incentivesfor either constituency to change its behavior. Instead, thestates' political interests in maintaining their flexibilitiesand the electoral concerns of members of Congress create incentivesthat undermine rather than enforce reform. |