The 2010 AGC Federal Contractors Conference will be held April 26-29, 2010, at The Mayflower Hotel in Washington, D.C. This meeting is the only national event where contractors and federal agency personnel can meet in a collaborative forum to review federal construction contracting issues and trends from around the country. This year, AGC's Federal Contractors Conference will include a track with Department of Transportation agencies, including Federal Highway Administration, Federal Aviation Administration, Federal Transit Administration and Federal Railroad Administration. This is an opportunity to hear from and discuss with the top leaders in these Federal agencies about issues that impact construction in your market. To learn more about the conference, download the conference brochure and register, visit www.agc.org/fedcon.

While Congress has passed legislation to keep the highway and transit programs operating through the end of the year and provided funds to keep the Highway Trust Fund solvent through the first quarter of 2011, much work still needs to be done. Senators and representatives need to understand the importance to your state's transportation program, jobs and long term investment of enacting long-term well-funded highway and transit reauthorization legislation. The Transportation Construction Coalition has scheduled a Washington Fly-in for May 25-26, 2010 at the Capitol Hill Hyatt Regency to deliver the message: "Transportation Creates Jobs While Building the Future." The Fly-in starts on May 25 with an AGC caucus at 11:00 am followed by a legislative briefing at 2:30 pm. CNN political commentator William Schneider will join key Congressional leaders in discussing the politics of getting the highway and transit bill passed. Schneider will also discuss the broad political landscape and upcoming elections. More information, including registration and hotel reservations, is available here.  http://www.agc.org/galleries/events/AGC_DCFly10HI_2.pdf

On March 18, 2010 the Senate gave final approval to the “Jobs” legislation and President Obama has signed it. The bill, known as the "HIRE Act", includes the following provisions of importance to the highway construction industry: • Extends highway program authorization through December 31, 2010 at current funding levels.• Provides additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011 by restoring $19.5 billion in interest payments foregone on the HTF’s previous cash balances.• Restores $12 billion in highway spending authority that was cut on September 30, 2009 due to an $8.7 billion budget rescission in SAFETEA-LU and a subsequent rescission of $3.2 billion. • Authorizes payment of interest on future HTF balances.• Alters the way in which long-standing fuel tax exemptions provided to state and local governments are accounted for which are projected to increase HTF balances by about $1.7 billion annually, for a total of $9.8 billion over six years.• Provides $4.6 billion in additional authority for Build America Bonds which have been used extensively by state and local governments to fund infrastructure projects, including highway and bridge projects.• Extends section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.

The House today approved the Senate passed "jobs" bill by a vote 217 to 201, with 211 Democrats and 6 Republicans voting in support.  Before adoption, the bill was amended to address the budgetary concerns of the fiscally conservative "Blue Dog" Democrats who wanted to assure that the bill was deficit neutral. Also included in the amendment is language extending, but not altering, authority for the Department of Transportation's Disadvantaged Business Enterprise (DBE) program. The bill now goes back to the Senate for its consideration. There is no indication as to when the Senate will address the amended bill.The bill provides an extension of highway program authorization until December 31, 2010, provides additional revenue to the HTF to keep it solvent through the first quarter of 2011, and remedies an $8.7 billion rescission of highway spending authority included in the SAFETEA-LU law. Other construction friendly provisions in the bill include an extension of Build America Bonds and accelerated equipment expensing. The program is operating under authorization provided in a 30 day extension that was passed by the Senate on Tuesday and signed by the President yesterday.

This week, Tom Foss, President of Griffith Company, Brea, California presented AGC testimony before the Senate Environment and Public Works (EPW) Committee on the importance of transportation investments to the National economy and jobs. Foss emphasized that the construction industry, like other businesses relay on a well functioning transportation system for delivery of materials and products to job sites and, therefore, called for increased investment to improve system functionality. Foss pointed out that unemployment in the construction industry is currently running at over 24 percent and that additional highway and transportation investment is needed to remedy this situation. AGC's testimony pointed out that transportation funding in the stimulus legislation has saved construction jobs but that more funding was needed. Foss also called for enactment of a long term SAFETEA-LU reauthorization with increased funding to bring long term economic growth and certainty to the highway construction market. EPW Committee Chair Barbara Boxer (D-Cal) said she is committed to getting a six year highway bill completed this year. She called the hearing the first step in accomplishing this goal.

Tom Foss, president of Griffith Company, Brea, Calif., presented AGC testimony before the Senate Environment and Public Works (EPW) Committee on the importance of transportation investments to the national economy.

By a vote of 78-19 the Senate last night approved legislation to extend several Federal programs until March 31, 2010, including Highway Trust Fund spending authority that expired on February 28, 2010. The House previously approved the bill and President Obama has signed it. The bill has been on hold due to objections from Senator Jim Bunning (R-Ky.) over budgetary considerations not related to the highway program. The stalemate caused the furlough of Federal Highway Administration (FHWA) employees and prevented reimbursements to state DOTs for ongoing Federal-aid highway contracts. Some states postponed bid lettings because of the uncertainty over the funding and several direct FHWA projects were shut down. Furloughed workers have been told to report back to work today.Still pending is H.R. 2847, the so-called jobs legislation, which would provide an extension of highway program authorization until December 31, 2010, provide additional revenue to the HTF to keep it solvent through the first quarter of 2011, and remedy an $8.7 billion rescission of highway spending authority included in the SAFETEA-LU law. Other construction friendly provisions in the bill include an extension of Build America Bonds and accelerated equipment expensing. The "jobs" bill was passed by the Senate last week but concerns by different factions in the House kept the bill from being approved, making the 30 day extension necessary. One issue raised by House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.), related to the distribution of highway funds for the Projects of National Significance Program and Corridors Program, has been resolved. The House may consider the "jobs" bill as early as today.

Congress adjourned for the week without enacting legislation to extend highway and transit program spending authority beyond the February 28, 2010 deadline. As a result, states will not be reimbursed for payments for ongoing contracts starting on Monday and FHWA employees will be furloughed on Tuesday. Since the House will not be back in session until Tuesday and the Senate is not scheduled for a vote until Tuesday afternoon, this stalemate cannot be resolved until late next week at the earliest.Two pending bills were intended to keep this shutdown from occurring but efforts to pass either bill have been stymied. The "Jobs" bill passed by the Senate this week would have extended highway program authorization through the end of the year and provided additional Highway Trust Fund revenue to keep the program solvent. When that bill was sent to the House, it encountered opposition from the fiscally conservative Blue Dog Democrats who raised concerns that the non-highway provisions in the bill violate the House statutory PAYGO budget rules requiring an offset for increased spending. In addition, House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn) asked members to oppose the extension because he objected to the formulas used in the Senate bill to distribute the highway funding. The Senate bill guaranteed that each state receive the same amount of money under the extension as it received in FY 2009. In addition, there was resentment from House members that most of the provisions from the House-passed jobs bill were not included. Since it did not appear likely that the House could pass an extension before February 28, a thirty-day extension was included in a separate bill providing extensions for several other programs also set to expire at midnight on Sunday, which the House adopted. When that bill was brought up in the Senate, Senator Jim Bunning (R-KY) objected to these extensions on budgetary grounds. In order to get past Sen. Bunning's objections, a cloture motion, requiring 60 votes in support, is necessary. This procedure has time requirements that will keep the bill from moving forward for several days. The House could still overcome objections to the "Jobs" bill and pass that.AGC is contacting key Senators and representatives pointing out the devastating impact this shut-down will have on the highway construction industry and urging them to resolve these differences quickly. You are urged to call your Senators and representative with the same request. To be connected to your elected officials, call the US Capitol switchboard at: 202-224-3121.A letter to your members of Congress will be posted to http://www.bipac.net/issue_alert.asp?g=AGC&issue=HTF&parent=AGC.

By a vote of 62-30 the Senate today voted for cloture, a procedural move that allows debate on the "Jobs" legislation to proceed. The vote was largely along party lines with the following Republican Senators joining 58 Democrats in support: Bond (Mo), Brown (Mass), Collins (Me), Snowe (Me), Voinovich (OH). Senator Nelson (Neb) was the lone Democrat voting against. While there are still 30 hours of potential debate on the underlying bill, today's vote was the key, and final passage in the Senate will likely occur on Tuesday. AGC sent numerous alerts in support of the legislation and members across the country responded by urging their Senators to support cloture. AGC followed up visits and correspondence with Senators by sending a Key Vote alert today pointing out the high importance the construction industry placed on today's vote. The bill contains the following provisions:Extends highway program authorization through December 31, 2010 at current funding levels.Provides additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011.Restores highway spending authority that was cut on September 30, 2009 due to a budget recession in SAFETEA-LU.Allow public bodies to convert tax credit bonds to Build America Bonds.Exempts workers hired in 2010 that have been unemployed for at least 60 days from Social Security payroll taxes.Extends 2008 and 2009 section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time. Following passage by the Senate the bill must go to the House for consideration.

Hours after Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) released a draft "Jobs" bill to address current economic conditions which had bipartisan support, Senate Majority Leader Harry Reid (D-Nev.) offered instead a scaled-down version and announced that the Senate will consider this version of the legislation on February 22, following the week-long President's Day recess.  The Reid "jobs" legislation contains the same provisions related to the highway program as in the Baucus/Grassley bill as follows: - Extends authorization for the highway and transit programs at FY 2009 funding levels though December 31, 2010;- Provides $19.5 billion in revenue to the Highway Trust Fund to keep the program solvent into 2011. This transfer would reimburse the HTF for $19.5 billion in lost interest payments since 1998;- Shifts the cost of motor fuel tax exemptions for state and local governments from the HTF to the general fund.  This would provide ongoing HTF revenue of approximately $1.5 billion each year;- Restores spending authority lost from an $8.7 billion rescission of contract authority contained SAFETEA-LU.The current extension of highway and transit program authorization expires on February 28, and because of federal budget rules it is important that the extension and transfer of funds happen before that deadline. Every state will lose funding if this fix is not approved. Click here to view the impact on your state. This new twist will make meeting this deadline even more difficult. If you have not yet done so, please contact your senators, particularly Republican senators, and tell them to support an extension of the highway and transit program with additional revenue through the end of the year. Inform them that failure to pass the extension and the additional program revenue will have a direct impact on FHWA's ability to reimburse your state DOT for ongoing construction projects and could cause your DOT to cancel scheduled lettings.  You can send a message by calling the Capitol Hill switch board at 1-800-828-0498 and ask for your Senators' offices, or by following this link to AGC's Legislative Action Center.