Summary: The Department of Transportation (DOT), with a budget request of more than $50.5 billion for fiscal year 2000, faces critical challenges in achieving its goals of ensuring the safe and efficient movement of people and goods and in making cost-effective investments in the nation's transportation infrastructure. The Federal Aviation Administration faces considerable challenges in managing its multi-billion dollar air traffic control modernization program, making its computer systems ready for the year 2000, and dealing with shortcomings in its safety and security programs. DOT and Congress confront challenges in continuing to improve oversight of highway and transit projects and in determining the future of passenger rail. The Coast Guard has not thoroughly addressed planning issues for its 20-year, $9.8 billion project to replace or modernize many of its deepwater ships and aircraft. DOT's lack of accountability for its financial activities impairs its ability to manage programs and exposes the Department to fraud, waste, abuse, and mismanagement. Although DOT has efforts underway to address the shortcomings in some of its programs, these activities are only in the early stages. Moreover, congressional action will also be needed to address some of the challenges facing the Department. Finally, congressional oversight will help ensure the effective resolution of these problems.