Facing a government shutdown on March 4, President Obama signed a continuing resolution that will fund the government through March 18. The continuing resolution, which originated in the House of Representatives and was reluctantly accepted by Senate Democrats, continues to fund all discretionary programs at FY 2010 levels, but goes a step further in making nearly $4 billion in cuts on an account-by-account basis.
About $1.5 billion worth of cuts are from federal construction accounts. The majority of those cuts come from elimination of earmarks in the Department of Transportation and the Army Corps of Engineers.
The path forward on funding for the remainder of FY 2011 remains unclear. What is known is that President Obama has now interjected the White House in the discussion between the House and Senate. On Wednesday, the President announced that Vice-President Biden along with the White House Chief of Staff and the Director of the Office of Management and Budget have been tasked with working out a budget deal with the House and Senate over the course of the next two weeks. The White House’s engagement in this debate does not guarantee a deal can be struck. Republicans in the House and Senate are standing firm on their pledge to cut FY 2011 funding by $100 billion and are not willing to agree to any deal until Senate Democrats produce a spending bill of their own (which they have shown no inclination to do).
AGC continues to work against many of the cuts to construction spending; urging Members of Congress to work to reform and improve programs rather than just slash spending.
For more information contact Sean O’Neill at oneills@agc.org 202-547-8892
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