In a speech from the Rose Garden today President Barack Obama called on Congress to extend authorization of funding for the highway, transit and aviation programs as well as authorization for collecting the federal gas tax. The President warned of dire consequences for construction workers and their families across the country if these programs are allowed to lapse. AGC’s CEO Stephen Sandherr participated in the event to highlight the impact of inaction on the construction industry and to emphasize the need for Congress to act quickly upon its return from its August recess to ensure that a short term extension of the highway, transit and aviation programs are put in place and that a long term solution is found.
The debt ceiling compromise agreed to earlier this summer established a “Super Committee” that is charged with making recommendations for a long term solution to the Nation’s fiscal woes. In addition President Obama has established a jobs council to develop recommendations for spurring job growth and has requested time next week to address a joint session of Congress to present his proposals.
Last week, AGC and other transportation stakeholders participated in a conference call with Senate Environment and Public Works (EPW) Chairman Barbara Boxer (D-Calif), who provided an update on the next extension of the current highway authorization and the steps towards reauthorization.
When Congress returns in September, it will only have a few short weeks to deal with reauthorization of the highway and transit programs. Failure to act by September 30 could lead to a shutdown of the Federal-aid highway program and parts of the federal transit program similar to the recent FAA shut down. Not only does spending authorization expire, but also authority for collecting the federal motor fuels tax expires on September 30. Failure to act will result in the federal tax not being collected, further depleting the resources of the Highway Trust Fund and having other major impacts.
Last week, President Obama signed into law a bill to extend Federal Aviation Administration (FAA) authorization through Sept. 16, ending a two-week partial shutdown. The Senate – though it went into a month-long summer recess after Tuesday's vote to clear a debt-ceiling bill – held a "pro forma" session to approve the House passed extension legislation by unanimous consent.
When Congress returns in September they will only have a few short weeks to deal the with reauthorization of the Highway and Transit programs. Failure to act by September 30 could lead to a shutdown similar to the recent FAA shut down. Both the programs and the gas taxes funding the program will expire on September 30.
AGC led the construction industry’s effort to restart several billion dollars worth of airport construction projects. The projects were halted in late July after Congress failed to pass an extension to federal aviation legislation because of a dispute over proposed changes to airline union voting rules and subsidies for air service to rural communities. Without the legislation in place, the Federal Aviation Administration was unable to fund billions of dollars worth of airport improvement projects.The association worked to educate the media and members of Congress about the economic impacts of cancelling so many airport projects. AGC chief economist Ken Simonson explained to Reuters, CNN, National Public Radio, USA Today, The Wall Street Journal, The New York Times and many other reporters that the construction halt will cost 24,000 construction jobs, and threaten another 11,000 jobs in related construction supply businesses and 35,000 jobs in the broader economy.[[{"type":"media","view_mode":"media_large","fid":"4558","attributes":{"class":"media-image alignnone size-medium wp-image-9664","typeof":"foaf:Image","style":"","width":"300","height":"167","title":"LaGuardia Event","alt":""}}]]Meanwhile, AGC CEO Steve Sandherr participated in an Aug. 1 media event with U.S. Transportation Secretary Ray LaHood at New York’s LaGuardia Airport to make the case that construction workers shouldn’t have to suffer because Washington can’t resolve an unrelated policy dispute. And AGC’s legislative team met with members of Congress to resolve the issue.Thanks in large part to AGC’s efforts, Congress enacted new temporary extension to the aviation legislation on Aug. 5, helping restart billions of dollars worth of airport construction projects. The extension, however, does little more than put off the disagreements among lawmakers over the broader reauthorization of the FAA, which has been stalled over labor issues as well as funding levels and subsidies to rural airports. This means the FAA may face a similar shutdown threat when this short-term extension expires on Sept. 16.AGC will continue to work towards passage of a multiyear FAA reauthorization bill. You can send a message to your legislators through AGC’s web site urging Congress to complete action on this long overdue legislation.For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.
Upon completion of the debt ceiling legislation, Congress adjourned for its summer recess without taking up long-term highway and transit reauthorization legislation. While both the House Transportation and Infrastructure Committee (T&I) and the Senate Environment and Public Works Committee (EPW) have released outlines of what will be included in their bills, neither has actually released legislative proposals. EPW Chair Barbara Boxer (D-CA) had hoped her committee would be able to mark up a bill prior to the recess, however, that did not happen.
On Aug. 5, the Senate approved legislation to extend the Federal Aviation Administration (FAA) authorization through Sept. 16, ending a two-week partial shutdown. The Senate, even though it went into a month-long summer recess after Tuesday's vote to clear a debt ceiling bill, held a "pro forma" session last Friday morning to approve the legislation by unanimous consent and President Obama signed it into law.
Senators Ron Wyden (D-Ore.), John Hoeven (R-N.D.) and Mark Begich (D-Alaska) have introduced AGC supported legislation today to create a tax credit bond program dedicated to transportation infrastructure. Transportation and Regional Infrastructure Project bonds or TRIPs will be a financing tool to fund the transportation projects throughout the country.