US urban motorists in 2011 traveled an additional 5.5 billion hours and purchased an extra 2.9 billion gallons of fuel as a result of congestion. The economic impact of degraded mobility has been estimated at $21 billion which is quickly eroding the nation’s economic competitiveness. This research is intended to develop efficient methods that dynamically evaluate the current traffic system performance, propose interventions that can ameliorate the performance as needed, and implement and re-evaluate the effectiveness of the intervention. It represents an early attempt at modeling “active” traffic management in real-time by actually intervening at the right time and place to improve the system performance.