Senate Finishes Work Before Full August Recess

The Senate finished work last week on a $26 billion package that contains state aid, extension of Medicaid funding and funds to avert teacher layoffs, and confirmed Solicitor General Elena Kagan to the Supreme Court.  The passage of the state aid package required the House to return to the Capitol to pass the Senate version before they can resume their August recess. The administration has no plan at the moment to push for additional construction stimulus. While Congress was able to finish work on these issues, many of the issues specific to AGC and the construction industry must wait until September or later.  SAFETEA-LU authorization expired on September 30, 2009, and the highway program is operating under short term extensions, the latest of which expires at the end of the year.  Senate Majority Leader Harry Reid (D-Nev.) announced this week he may attempt to pass an energy bill as early as September. The Senate bill includes oil-spill and other energy provisions, but could be expanded to include provisions on promoting renewable energy sources and possibly caps on greenhouse gases, although it is unlikely. Congress also failed to move legislation meant to help small businesses. The bill was bogged down by how big the tax provisions should have been, but is expected to see action in the Senate when Congress returns in September. The bill is expected to include funds for community banks to make loans to small businesses and tax cuts, including quicker write-offs for depreciation. For more information, contact Jim Young at (202) 547-0133 or youngj@agc.org.