The week of June 28, the House is set to vote on the INVEST in America Act, legislation to reauthorize the nation’s surface transportation programs. This legislation passed the House Transportation and Infrastructure Committee earlier in the month on a near party-line vote. In addition to the $547 billion included in the legislation for surface transportation programs, the package also includes two other bills to reauthorize the nation’s waste and drinking water programs. While AGC is supportive of the House continuing the reauthorization process, we have reservations about some of the policies contained in the bill, such as a lack of environmental review and permitting reforms and a limitation on the ability to construct new highway capacity. As the legislative process moves forward, AGC will continue to encourage House members to make necessary improvements to the bill that will address these policies concerns.
On June 23, a bipartisan group of senators announced an agreement on a $1.2 trillion infrastructure framework with the White House. The framework—found here —includes $579 billion in new spending to rebuild America’s roads and bridges, improve public transit systems, invest in broadband infrastructure, and upgrade our airports. While this plan does appear to have bipartisan support, the path forward remains unclear, as Speaker Pelosi announced that she would not move similar legislation in the House until the Senate passed both the bipartisan infrastructure bill and partisan reconciliation infrastructure bill. In addition, there are a significant amount of details that have yet to be determined.
On June 16, a bipartisan group of senators—10 Democrats and 10 Republicans— announced an agreement on a $1.2 trillion infrastructure package. The two-page plan includes $579 billion in new spending (on top of reauthorized transportation programs) to rebuild America’s roads and bridges, improve public transit systems, invest in broadband infrastructure, and upgrade our airports. Of that total, $110 billion would be dedicated for roads, bridges, and major projects. The group states the plan would be paid for in part by repurposing unspent COVID relief funds, indexing the gas tax to inflation, implementing a fee on electric vehicles, and adjusting customs user fees. Several of these pay-fors have been rejected in the past by the Biden Administration in talks with Senate Republicans led by Senator Shelley Moore Capito (R-W.Va.).
On June 10, the House Transportation and Infrastructure Committee approved legislation to reauthorize federal-aid highway and transit programs, on a mostly partly line vote. This five-year, $547 billon bill will now go to the full House for a floor vote at a yet to be determined date. An AGC analysis of this legislation as passed by committee may be found here. While AGC is supportive of the investment levels in this legislation, the association has significant concerns with the bill’s significant restrictions to building new highways and expanding highway lanes and lack of environmental review and permit streamlining initiatives, among other things.
Other Senate Committees Must Act on Transit, Rail Programs
On May 20, the Federal Highway Administration (FHWA) released a new initiative to permit, on an experimental basis, contractors to utilize geographic, economic, or other hiring preferences on federal-aid highway projects. This “local hire” initiative will be carried out as a pilot program for a period of 4 years (unless extended) under FHWA’s existing experimental contracting authority. AGC is broadly opposed to local hire preference policies. After yesterday’s pilot program release, AGC CEO Steve Sandherr stated, in part: “[T]he problem with local hire programs, however, is that they solve the symptom and not the problem...too many communities have defunded their career and technical education programs and as a result there are often too few local workers with any interest in construction careers or basic skills that would make them qualified to be hired.”
Supports AASHTO Request for Additional Highway & Bridge Investment
On April 15, AGC, along with the American Association of State Highway and Transportation Officials (AASHTO) and other industry stakeholders, called on Congress to authorize $200 billion in highway and bridge stimulus or “down payment” funding in any infrastructure package, available to be obligated through 2026 at 100 percent federal share. The request also asks that Congress provide $487 billion for the Federal-aid Highway Program as part of the upcoming five-year surface transportation reauthorization due by October 1. According to a recent USDOT report, the current investment backlog for highways and bridges stands at $756 billion. This funding request would finally address this longstanding investment backlog in our nation’s roads and bridges.
Senate Republicans are reportedly preparing a counteroffer to the White House’s $2 trillion infrastructure proposal. West Virginia Senator Shelley Moore Capito and others in a Republican working group have stated that such a proposal would be in the range of $600 to $800 billion, more targeted in scope— focusing on traditional infrastructure such as roads, bridges, ports, airports, broadband, and water infrastructure— and would be funded by unspecified user fees. AGC will continue to monitor Congressional activity on infrastructure and surface transportation reauthorization negotiations.
On April 5, White House Press Secretary Jen Psaki stated that the administration is planning to propose that money from its infrastructure package be paid out through a "competitive bidding process," and that states and other entities would "have to apply for funding for rebuilding the infrastructure in their states or local communities. On April 6, Psaki clarified these comments, noting that while "it will be up to Congress" to shape the bill, the administration expected "a mix" of formula grants and competitive grants. She went on to say "…existing transportation funding flows through formula grants, which gives states a lot of flexibility on how to prioritize and spend their federal dollars based on what their needs are," but that "competitive grants are a more targeted way to direct funds to specific policy goals, often based on criteria set by Congress.” It is assumed that money for transportation infrastructure in the Biden plan will be in addition to a surface transportation reauthorization bill, which provides funding for the core highway and transit state formula programs. AGC will continue to monitor the trajectory of President Biden’s infrastructure proposal.