Set a Non-Binding Sept. 27 Deadline; Highway & Transit Programs Expire Sept. 30

Negotiations Underway to Determine What is Actually Included in the Bill

The survey will close on September 10

On Aug. 4, AGC of America’s Federal & Heavy Construction Division participated at the U.S. Army Corps of Engineers’ Executive Governance Meeting, which gathers Army Corps commanders from across the agency. AGC and the Army Corps discussed solutions to the challenges facing our nation’s infrastructure, and how the Army Corps can better partner with the construction industry. AGC emphasized the strain contractors are facing with construction materials at record high prices and the continued availability challenges. AGC urged Commanders to partner with AGC Chapters and member contractors back in their district offices, and also provided government guidance encouraging such meetings.

On Aug. 10, the Senate passed, 69-30, the Infrastructure Investment and Jobs Act, a historic, $1.2 trillion infrastructure package investing in all components of the nation’s physical infrastructure. AGC endorsed this legislation because it reauthorizes the nation’s federal-aid highway and transit programs for five years at record funding levels, includes significant environmental permitting streamlining provisions, and provides a host of other investments for a wide array construction projects without raising taxes on construction firms and without including any new, significant workforce mandates, like the PRO Act or government-mandated project labor agreements. A full AGC analysis of the bill can be found here. Additionally, a breakdown of what’s in the bill for each construction market can be found here:Highway Contractors; Utility Contractors; Direct Federal Contractors; Building Contractors ; and Other Markets (Transit, Rail, Waterways, Airports).

This week the Senate is debating the Infrastructure Investment and Jobs Act, or commonly referred to as the bipartisan infrastructure bill. AGC has weighed in on a few of the amendments that have been offered and is monitoring to see if they will get a vote:

On July 28, the Senate agreed, 67-32, to begin debate on a $1.2 trillion bipartisan infrastructure package. Ahead of the vote, the bipartisan group of senators announced it had resolved all major issues on the package. As a result of this initial vote, the Senate will consider the package over the coming days and, perhaps, weeks. However, an actual legislative bill detailing what is in the package has yet-to-be released or formally introduced as of July 29. When a bill is introduced in the Senate and, if passed, the bill will head to the House of Representatives for consideration. A 57-page summary of the bipartisan infrastructure package notes how it includes funding for a host of traditional, physical infrastructure. AGC appreciates and has fought for the significant levels of investment in the package and awaits actual legislative text before considering a formal association endorsement.

On July 16, AGC submitted regulatory comments on the U.S. Treasury Department's interim final rule governing how state, local, territorial and Tribal governments can spend $350 billion from a COVID-relief fund established under President Biden's $1.9 trillion COVID-19 relief law: the American Rescue Plan Act. AGC’s regulatory comments urge the Department to, among other things: (1) confirm and expand eligibility for all forms of infrastructure and building construction investments and related revenue streams; and (2) drop any reporting requirements encouraging government-mandated project labor agreements, local hiring requirements and the expansion of prevailing wage laws beyond the status quo. And, in a victory for AGC and the construction industry, the Department provided new guidance clarifying that losses of revenues from gas taxes and vehicle licensing fees incurred during the COVID-19 pandemic are eligible to be replenished using these recovery funds. AGC will continue to monitor the distribution of these recovery funds.

On July 14, AGC outlined its priorities for the bipartisan infrastructure package to the group of bipartisan senators who are drafting the legislation. In addition to significant investments in physical infrastructure, AGC calls for investing in the construction workforce, streamlining the federal environmental review and permitting process, improving the construction supply chain, as well as ensuring provisions restricting the expansion of highway capacity are not included. AGC and industry stakeholders continue to meet with the Senate offices working on this legislation to highlight construction industry priorities. The timing for when the legislation will be released and ultimately voted on continues to be unclear. However, Senate Majority Leader Chuck Schumer (D-N.Y.) has said the Senate will push to vote on it before the chamber breaks for the August recess.

On July 1, the U.S. House of Representatives passed H.R. 3684, the INVEST in America Act, a $715 billion federal investment in America’s roads, bridges, transit, passenger rail, and drinking and wastewater infrastructure. AGC lobbied against several of the policies included in the bill. However, its passage in the House is a first step towards enacting record levels of federal investment in infrastructure. It continues to remain unclear how this legislation will intersect with larger infrastructure package negotiations between the White House and a bipartisan group of senators. The AGC summary of the INVEST in America Act can be viewed here. AGC will continue to push for policy improvements to the bill.