One-Year Extension of the FAST Act Included
Only a few days remain until the current highway and public transit law – the Fixing America’s Surface Transportation (FAST) Act – expires on September 30. AGC is cautiously optimistic that Congress will extend the FAST Act for one-year (through fiscal year 2021). The extension would likely be considered as part of legislation to temporarily fund the federal government, known as a continuing resolution (CR). However, there is one outstanding issue that key negotiators need to resolve. They need to decide how much money should be deposited into the Highway Trust Fund (HTF) so that it can support the funding levels in the extension. Making this decision more complicated is the fact that the Congressional Budget Office (CBO) and the U.S. Department of Transportation (DOT), which monitor the overall financial health of the HTF, differ significantly on the amount of money required.
On Sept. 9, AGC helped lead an ad hoc coalition of 88 national trade associations and labor unions in calling on Congressional leaders to take action on three priorities: (1) a turn-key, one-year extension of the current surface transportation law—the FAST Act—with increased investment levels; (2) emergency federal funding for state departments of transportation and public transit agencies—$37 billion and $32 billion, respectively; and (3) provisions to ensure solvency of the Highway Trust Fund for the duration of the extension at a minimum. This broad coalition initiative is an essential component of AGC’s ongoing effort to demonstrate to Congress the strong, groundswell of support for action on these priorities.
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