On August 18, AGC, along with 14 other stakeholders in the transportation community, called on President Trump to oppose any temporary suspension or permanent repeal of dedicated federal user fees that generate revenue for the Highway Trust Fund (HTF). This call comes in light of a recent effort among other industry stakeholders seeking to temporarily suspend the federal excise tax on the purchase of new heavy trucks and trailers. Those in support of this measure have called for the lost revenue that such a suspension of the tax would create to be backfilled by Congress. However, AGC fears that a temporary suspension of any HTF funding mechanism could become permanent. The amount of revenue generated by this tax for the HTF can vary fiscal year to fiscal year. In fiscal year 2019, the tax generated approximately $5 billion in revenue for the HTF. AGC earlier in August sent the same message to congressional leaders. While AGC recognizes the need to provide economic relief on a multitude of fronts to the broader transportation community during this time, we cannot support any further exacerbation of the impending insolvency of the HTF and the loss of dedicated federal user fees.
Calls for One-Year Surface Transportation Extension with Additional Funds
Provides $9.5 Billion for Transportation and Building Infrastructure Improvements
On July 1, the U.S. House of Representatives passed a $1.5 trillion infrastructure investment bill—the largest and broadest federal investment in the nation’s infrastructure ever. Among the investment included in the Moving Forward Act (H.R. 2) is more than $500 billion for transportation construction, $130 billion for school construction, and $75 billion for water infrastructure construction. The bill, however, also includes certain untenable policies added during the largely partisan legislative process. Those policies are highly unlikely to advance through the Republican-controlled Senate, which will not consider this infrastructure package, or be enacted given President Trump’s veto threat. The Senate is more likely to consider targeted, more modest infrastructure investment—absent such policies—when it puts forth its pandemic relief bill by the end of July.
On June 15, Senators Ted Cruz (R-Texas), Todd Young (R-Ind.), and Kyrsten Sinema (D-Ariz.) introduced the Expedited Delivery of Airport Infrastructure Act, legislation that would ensure Airport Improvement Program (AIP) funds can be used to provide incentive payments to contractors for early completion of eligible projects. Rather than the owner agency establishing unrealistic completion dates, which could discourage some contractors from bidding on those projects, incentive payments allow contractors to determine how best to earn the incentive. This AGC-supported measure passed the House Transportation and Infrastructure Committee in February. AGC will continue to support this measure as it moves forward in the legislative process.
Provides $9.5 Billion for Transportation and Building Infrastructure Improvements
Organizes bipartisan letter to Senate Leadership
On June 15, ahead of the markup of the legislation in the House Transportation and Infrastructure Committee, AGC released a full analysis of the INVEST Act, the House Democrats’ recently introduced surface transportation reauthorization bill. This seven-page document provides a deep dive into the provisions of the bill, including analysis on investment and funding levels, workforce related policies, environmental initiatives and regulations, project delivery and safety, technology, research, and development. A one-page overview of that analysis is also available here. As the legislative process on this bill moves forward and amendments are adopted, AGC will continue to provide updates on this measure.
On May 11, over 135 members of the House—led by Reps. Conor Lamb (D-PA) and Bob Gibbs (R-OH)—called on Speaker Pelosi and Leader McCarthy to support approximately $50 billion in federal funding for state departments of transportation (DOTs) in the next COVID-19 response package. AGC, along with other transportation construction stakeholders, spearheaded this effort. Also this week, House Democrats proposed providing $15 million in direct funding for state DOTs in their recently released HEROES Act (see above). While AGC appreciates this measure, it is strongly encouraging Congress to increase the amount of funding for state DOTs as the legislative process moves forward. Such funding is essential to helping ensure planned transportation projects can proceed as planned and to helping protect construction jobs