In its first analysis of the Highway Trust Fund, following passage of the long-term highway & transit bill known as the FAST Act, the Congressional Budget Office reports that in fiscal year 2021 (the last year of the act’s authorization) the trust fund balance will be zero and that the government will need $113 billion in additional revenue to maintain funding for the ensuing six years. This analysis vividly demonstrates the challenges facing federal surface transportation programs in the future.
The Federal Highway Administration (FHWA) sent a letter on Jan. 8 to its state field offices directing them to comply with a provision (section 192) in the fiscal year 2016 Omnibus Appropriations Act –signed into law in December 2015 – requiring states to certify that three conditions have been satisfied on each federally assisted highway project before it can allow the use of contract provisions that specify a “geographic, economic, or any other hiring preference.” The three conditions states must certify are present before using a local hire preference include:
Congress’s repeated failure to increase the federal gas tax has resulted in eighteen states enacting laws to increase or reform their taxes to provide additional funding for transportation infrastructure since 2013. The recently signed-into-law transportation bill, the FAST Act, does provide five years of slightly increased funding for federal-aid highway and transit programs but fails to address the long-term solvency of the Highway Trust Fund – continuing to place the burden on states to find additional funding for transportation infrastructure.
Passage Expected Before Christmas
On Wednesday, Congressional leaders released a $1.1 trillion omnibus appropriations bill that will fund federal agencies and programs for the remainder of fiscal year (FY) 2016. Overall, the bill includes mostly good news for construction accounts, as many see increases compared to FY 2015 levels and others receive significantly smaller cuts than Congress initially wanted. The omnibus bill provides nearly $121 billion for federal construction accounts as tracked by ż. This is an increase of approximately $8 billion from fiscal year 2015 and $15 billion less than the administration’s fiscal year 2016 budget request. To give time for passage of this final spending package, Congress passed another short-term funding bill—called a continuing resolution—that will fund the government through Dec. 22. The House is expected to pass the omnibus bill on Friday, with a vote in the Senate to follow shortly thereafter.
Contact Your Senators & Ask Them to Support the FAST Act
This afternoon by a vote of 359-65 passed the conference report to HR. 22, the Fixing America’s Surface Transportation (FAST) Act, which is the first long-term transportation bill in more than a decade. The Senate is now expected to take up the FAST Act and, if they are successful in clearing potential procedural votes, they will vote on final passage later this evening. Please visit Hardhats for Highways and urge them to support the FAST Act when it comes to the Senate floor for a vote. Please also take a moment to thank your Representative for their support of the bill. If the Senate is able to pass the bill this evening, it appears the president will sign it prior to the expiration of the current extension tomorrow.
Contact your Congressmen and Tell Them to Support a Long-Term Bill
This week, select members of the House and Senate –called conferees – began negotiations on resolving the differences between the two chambers’ long-term highway & transit bills. However, with funding levels and duration yet to be agreed upon, negotiations are off to a slow start, which could result in yet another short-term extension if Congress does not reach a deal by November 20. ż – along with our members and chapters – has been a leader in the reauthorization process and advocated for the construction industry’s priorities in a letter to all conferees, detailing which provisions and policies should be included in a final transportation bill. Please visit Hardhats for Highways and send a letter to your members of Congress, urging them to support a long-term highway & transit bill.
Save the Date! Nov. 3-5, 2016 | Phoenix, Arizona
Last week, over 100 construction company owners, suppliers and industry partners who perform work in the highway & transit markets attended the 2015 ż Highway Contractors Conference. The two-day meeting featured presentations and discussions on drones, workforce issues, transportation funding, technology updates and project delivery.
Extension Through Nov. 20
This week saw significant progress in moving a multi-year highway & transit bill. Following passage of the Surface Transportation Reauthorization and Reform Act of 2015 (STRRA) in the Transportation & Infrastructure Committee last week, the full House is expected to consider the bill next week.
Visit ż’s Action Center at www.agc.org/TakeAction
One of the numerous issues ż is working on in the highway & transit bill is to provide some relief from hours of service restrictions on construction industry drivers. For the past 20 years, current law has provided a limited construction industry exemption which has had no negative impact on driver safety. The Federal Motor Carrier Safety Administration recently provided an additional similar exemption for certain construction material deliveries. ż is seeking to modernize the existing exemption to meet the challenges of construction material and equipment delivery.
Meet with Reps. Next Week
This week there were encouraging reports out of the House Transportation & Infrastructure Committee that they plan to finalize and move their long-term highway & transit bill before the end of October. Committee Chairman Bill Shuster (R-Pa.) and Ranking Democrat Peter DeFazio (D-Ore.) met today to continue negotiations with the goal of announcing a mark-up the week of Oct. 26. It is unclear what funding levels the House bill will provide, due in large part to the breakdown in negotiations last week between Ways & Means Chairman Paul Ryan and Senator Charles Schumer, who had been negotiating a bipartisan compromise on how U.S. corporations are taxed on their overseas assets and using that revenue to fund a transportation bill.