Congress appears poised to send a simple two-month extension to President Obama before they leave town for their Memorial Day recess. This short-term extension funds highway & transit programs through July 31, allowing Congress to pass a bill without finding additional money to fund the Highway Trust Fund, which is set to run out of money later this summer.

As the May 31 deadline to reauthorize highway and transit programs approaches, there is still no clear path forward to address the need for a long-term bill. House and Senate leadership have indicated that an authorization extension is being considered but there is no agreement on its length. To go beyond July 31 will require additional revenue for the Highway Trust Fund. The Senate Finance and House Ways and Means committees are working on an $11 billion short-term patch for highway and mass transit programs through the end of the year. Additionally, there appears to be some support for simply extending the Highway Trust Fund expenditure authority beyond May 31. Today, Senators Tom Carper (D-Del.) and Barbara Boxer (D-Calif.) introduced a two-month extension that requires no additional money for the Highway Trust Fund.

This week, Senators Ron Wyden (D-Ore.) and John Hoeven (R-N.D.) introduced S. 1186, the “Move America Act of 2015.” The AGC-supported bill seeks to promote public-private partnerships in infrastructure development by creating up to $180 billion in new tax-exempt infrastructure bonds (similar to Private Activity Bonds) or up to $45 billion in tax credits that can be given to businesses that invest in infrastructure projects.

This week, Senators Ron Wyden (D-Ore.) and John Hoeven (R-N.D.) introduced S. 1186, the “Move America Act of 2015.” The AGC-supported bill seeks to promote public-private partnerships in infrastructure development by creating up to $180 billion in new tax-exempt infrastructure bonds (similar to Private Activity Bonds) or up to $45 billion in tax credits that can be given to businesses that invest in infrastructure projects.

As Congressional leaders deliberate on the pending expiration of the current transportation program extension, the AGC-led Transportation Construction Coalition weighed in, urging them to move a short-term extension that will clearly lead to a well-funded multi-year reauthorization of Federal Highway and Transit programs.

AGC submitted comments to the U.S. Department of Transportation (DOT) on its proposal to end its long standing prohibition against the use of geographic-based/local hire preferences on construction contracts that receive federal funding from the Federal Highway Administration (FHWA) or the Federal Transit Administration (FTA). AGC called on DOT to stop the pilot program, which would allow state and local governments to use geographic hiring preferences over the next year, and to refrain from making these changes permanent by altering existing FHWA and FTA regulations that prohibit their use.

This week, the House Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) passed their fiscal year 2016 funding bill. The bill includes funding for the Department of Transportation, the Department of Housing and Urban Development, and other related agencies.

This week, the House Transportation & Infrastructure Subcommittee on Highways and Transit held a hearing that looked at the role of federal regulations as it pertains to Commercial Motor Vehicle Safety, including Hours of Service regulations. AGC submitted a statement outlining our transportation reauthorization priorities on issues affecting the construction industry under the jurisdiction of the Federal Motor Carrier Safety Administration.

In just five weeks, on May 31, highway and transit program authorization ends. Even with an extension of authorization, additional revenue is needed in the HTF by mid-summer or the Department of Transportation (DOT) will have to implement “cash management” practices which will result in slow or reduced reimbursements to states for on-going construction projects. Several states have cancelled contract lettings or reduced the number of projects in the lettings because of this uncertainty. Additionally, feedback from speakers and Hill visits at last week’s Transportation Construction Coalition Fly-In indicate that it is unlikely that Congress will be able to pass legislation before the deadline and yet another short-term extension will be necessary — the thirteenth short-term extension in the past five years.

Over 500 contractors, material suppliers, equipment distributors and manufacturers, and other construction industry businesses participated in the 2015 Transportation Construction Coalition (TCC) Legislative Fly-In, held this week in Washington, D.C. The groups heard from House Transportation & Infrastructure Committee Chairman Bill Shuster (R-Pa.), Rep. Reid Ribble (R-Wisc.), Rep. Earl Blumenauer (D-Ore.) and Transportation Secretary Anthony Foxx about the prospects for passage of a long-term transportation reauthorization bill and a fix for the Highway Trust Fund. TCC members then spent a day visiting with their Congressional delegations pointing out that the uncertainty of not having a long-term reauthorization bill in place has caused states to reduce lettings going into the construction season and undermines contractor hiring and training of new employees and making investments in equipment. AGC’s Highway and Transportation Division Chair Tom Foss participated in a press conference with Senate Environment and Public Works Committee Chair Sen. Jim Inhofe (R-Okla.) and ranking Democrat Barbara Boxer (D-Calif.) called to highlight the need for Congress to act.