Federal Funding In Place through September 30 for All Federal Agencies

Sequester Remains But Agencies Gain Some Flexibility & Includes Increased Transportation Funding Following a strong personal push by AGC lobbyists and a grassroots effort by AGC members, the Senate included increased funding levels for federal highway and transit programs for the remainder of fiscal year 2013.  The bill, H.R. 933, the Consolidated and Continuing Appropriations Act of 2013, survived a cloture vote of 63-36 (less than 60 yes votes would have killed the bill) and ultimately passed the Senate by a vote of 73-26.  The funding measure then easily passed by the House of Representatives today by a vote of 318-109.   It now goes to the president for his signature.  Passage of the bill maintains the MAP-21 authorized funding levels of $109 billion for two years.  Without the Senate including the increased levels in their bill, it was estimated to shortchange highway funding by $555 million and transit funding by $117 million. The bill was partly a continuing resolution and an omnibus appropriations bill as it included five individual appropriations bills: Defense, Military Construction/Veterans Affairs, Agriculture, Homeland Security, and Commerce/Justice/State.  H.R. 933 leaves in place the $85 billion in cuts from the March 1 sequester, but by changing the account-level priorities within each agency in the five individual appropriations bills, the respective agencies can lessen some of the more disruptive effects of the sequester. For the other bills not included in either version of the package, H.R. 933 simply extends the existing continuing resolution (Public Law 112-175) through the end of the fiscal year on Sept. 30, 2013.  Unfortunately, the prohibition on new starts for federal construction projects continues for those agencies not included in the five individual appropriations bills. Also included in the bill was funding for the Clean Water Drinking Water State Revolving Funds (SRF). The Clean Water SRF received $1.45 billion and the Drinking Water SRF received $908.7 million – a total cut for the SRFs of $27.5 million, or a 1 percent reduction from FY12. It is important to remember, however, that last Congress, the House Interior/Environment Appropriations Subcommittee approved a 53 percent cut in its FY 2013 bill for the Clean Water SRF and a cut of nearly 10 percent for the Drinking Water SRF. The Rural Utilities Service Rural Water and Waste Disposal Loan Program, however was one of the few winners, receiving $524.4 million, an increase of $11.4 million, or 2 percent, over FY 2012. As the House and Senate begin fiscal year 2014 appropriations process, AGC will continue to advocate for Congress to provide adequate investment levels for federal construction programs. For more information, please contact Sean O’Neill at (202) 547-8892 or oneills@agc.org.