U.S. Treasury Outlines How States Can Spend $350 Billion State & Local Government COVID-Relief
Would Provide $35 Billion in the Nation’s Water Infrastructure
Would Add New Federal Labor Requirements to Getting Tax Credits
Supports AASHTO Request for Additional Highway & Bridge Investment
On April 15, AGC, along with the American Association of State Highway and Transportation Officials (AASHTO) and other industry stakeholders, called on Congress to authorize $200 billion in highway and bridge stimulus or “down payment” funding in any infrastructure package, available to be obligated through 2026 at 100 percent federal share. The request also asks that Congress provide $487 billion for the Federal-aid Highway Program as part of the upcoming five-year surface transportation reauthorization due by October 1. According to a recent USDOT report, the current investment backlog for highways and bridges stands at $756 billion. This funding request would finally address this longstanding investment backlog in our nation’s roads and bridges.
$1 Billion in RAISE Grants Tied to Administration’s Policy Objectives
Senate Republicans are reportedly preparing a counteroffer to the White House’s $2 trillion infrastructure proposal. West Virginia Senator Shelley Moore Capito and others in a Republican working group have stated that such a proposal would be in the range of $600 to $800 billion, more targeted in scope— focusing on traditional infrastructure such as roads, bridges, ports, airports, broadband, and water infrastructure— and would be funded by unspecified user fees. AGC will continue to monitor Congressional activity on infrastructure and surface transportation reauthorization negotiations.
On April 5, White House Press Secretary Jen Psaki stated that the administration is planning to propose that money from its infrastructure package be paid out through a "competitive bidding process," and that states and other entities would "have to apply for funding for rebuilding the infrastructure in their states or local communities. On April 6, Psaki clarified these comments, noting that while "it will be up to Congress" to shape the bill, the administration expected "a mix" of formula grants and competitive grants. She went on to say "…existing transportation funding flows through formula grants, which gives states a lot of flexibility on how to prioritize and spend their federal dollars based on what their needs are," but that "competitive grants are a more targeted way to direct funds to specific policy goals, often based on criteria set by Congress.” It is assumed that money for transportation infrastructure in the Biden plan will be in addition to a surface transportation reauthorization bill, which provides funding for the core highway and transit state formula programs. AGC will continue to monitor the trajectory of President Biden’s infrastructure proposal.
On April 7, AGC of America CEO Stephen Sandherr, Contractors Association of West Virginia Executive Director Mike Clowser and members of AGC Chapter-CAWV met in Charleston, West Virginia with Senator Joe Manchin on the PRO Act—the greatest threat to open shop and union construction firms—and President Biden’s Infrastructure Plan, on which you can find a comprehensive AGC analysis here. Sen. Manchin is one of five Democrats who has not pledged support for the PRO Act. He is also a pivotal player in the Biden’s administration’s plans for enacting any infrastructure legislation through the partisan reconciliation process that would only require 51—instead of 60—votes to pass in the Senate. AGC and its members in West Virginia and around the country will continue to oppose efforts to enact the PRO Act and to support significant investments in our nation’s transportation, building and utility infrastructure.