US President Obama has indicated the government’s intention to invest in a 21st century transportation system in his last State of the Union address.

Transportation secretary Anthony Foxx revealed that almost $4bn will be invested over a period of ten years to expedite the development and adoption of safe vehicle automation through real-world pilot projects as part of the president’s FY17 budget proposal.

Foxx also stated that the US Department of Transportation is eliminating any potential roadblocks in the way of integration of innovative, transformational automotive technology that can bolster safety, mobility and sustainability.

"NHTSA is using all of its available tools to accelerate the deployment of technologies that can eliminate 94% of fatal crashes involving human error."

The secretary made this announcement at the North American International Auto Show in Detroit, Michigan.

Foxx said: "We are on the cusp of a new era in automotive technology with enormous potential to save lives, reduce greenhouse gas emissions and transform mobility for the American people.

"Today’s actions and those we will pursue in the coming months will provide the foundation and the path forward for manufacturers, state officials, and consumers to use new technologies and achieve their full safety potential."

The $4bn budget would be utilised for pilot programmes to test connected vehicle systems in designated corridors across the US, and will see the department collaborating with industry leaders for a common multistate framework on connected and autonomous vehicles.

The secretary also unveiled policy guidance that updates the National Highway Traffic Safety Administration’s (NHTSA) 2013 preliminary policy statement on autonomous vehicles, reflecting the reality that the widespread deployment of fully autonomous vehicles is now feasible.

NHTSA administrator Mark Rosekind said: "NHTSA is using all of its available tools to accelerate the deployment of technologies that can eliminate 94% of fatal crashes involving human error.

"We will work with state partners toward creating a consistent national policy on these innovations, provide options now and into the future for manufacturers seeking to deploy autonomous vehicles, and keep our safety mission paramount at every stage."

Within six months, NHTSA will work with industry and other stakeholders to develop guidance on the safe deployment and operation of autonomous vehicles.

NHTSA will also work with state partners, the American Association of Motor Vehicle Administrators and other stakeholders to come up with a model state policy on automated vehicles that paves a way to consistent national policy.