TAKE ACTION: Oppose Looming Cuts of $4 Billion in Federal Construction Funding Through Sequestration

Tell Congress to avert the across-the-board and indiscriminate cuts totaling $4 billion to federal construction accounts for FY 2013 scheduled to occur under sequestration.  Unless Congress enacts a repeal or delay by March 1, sequestration—spending cuts totaling $85 billion for the rest of FY 2013, and about $1.2 trillion over 10 years—will begin. On Wednesday, AGC sent a letter to Congress strongly urging members to consider the importance of continued construction investment that will ensure America’s federal infrastructure and facilities receive required maintenance and meet future economic and population demands.  AGC noted the potential impact the cuts could have on specific federal construction accounts and the continued uncertainty for the funding of federal construction programs because of short-term budget fixes, such as continuing resolutions, have on the industry. According to AGC’s recently updated report, Sequestration and Its Possible Impacts on Construction, the cuts to federal construction accounts could exceed $4 billion—which would occur over the next seven months. The AGC report details the federal programs that would be subject to cuts as well as federal programs exempt from those cuts. AGC previously held a free webinar hosted by Smith, Currie & Hancock, for members on the possible impacts of the sequestration cuts, including federal construction contracting agencies’ possible changes in their contracting behavior. This week, Smith, Currie & Hancock released an alert updating their clients on the current state of sequestration.  In addition, according to a recent Wells Fargo Securities’ Economics Group report, sequestration “will harm certain states disproportionately.”  The Wells Fargo report details the overall impact of sequestration on states, providing a more local perspective on the relative impact sequestration could have on your state. Last week, Senate Majority Leader Harry Reid (D-Nev.) proposed replacing sequestration with an even balance of spending cuts and tax revenues, which includes a 30 percent minimum tax rate for personal income over $1 million, known as the Buffet Tax.  President Obama has not introduced his own sequester replacement proposal, but is supportive of the Senate Democrats’ proposal. Last Congress, House Republicans passed a bill that would have replaced the defense cuts in the sequester with other spending cuts – specifically  to the president’s health care law and food stamp program – among  other things. AGC has consistently argued for the sequester to be delayed through FY 2013 in order to provide our industry a small level of certainty until a grand bargain can be reached that truly reforms and prioritizes discretionary spending programs and preserves entitlement programs for multiple generations without unfairly raising taxes on our job creators. Again, please TAKE ACTION and inform your members of Congress about sequestration’s impact on your business and the construction industry. For more information, please contact Jimmy Christianson at (703) 837-5325 or christiansonj@agc.org.