The other good point they make is that this is $500,000,000 that can be much better spent in other areas. Such as the bankrupt educational system, and underfunded fire and police departments.
1. Please not the educational system.
2. This wouldn't just be a transfer from one purpose to another, but a transfer from capital spending to operating budget. The two really shouldn't be fungible.
3. The money isn't available for other purposes. No doubt Reason would be happy to have the federal government operate completely differently than it actually does, but given the way it actually works, this seems to me a reasonable way to spend transportation money