Next Monday, the Senate will hold a cloture vote on whether to allow debate to proceed on the Reid substitute for the so-called "jobs" legislation. Senate Majority Leader Harry Reid (D-Nev.) decided to abandon a bipartisan "jobs" package negotiated by Senators Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa).

Instead, Reid has put forward a scaled back version that would:

• Extend highway program authorization through December 31, 2010 at current funding levels.
• Provide additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011.
• Restore highway spending authority that was cut on September 30, 2009, due to a budget rescission in SAFETEA-LU.
• Exempt workers hired in 2010 that have been unemployed for at least 60 days from Social Security payroll taxes.
• Allow public bodies to convert tax credit bonds to Build America Bonds.
• Extend 2008 and 2009 section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.

Unlike the House "jobs" legislation, neither Senate versions contain additional infrastructure funding, although there have been discussions about moving additional "Jobs" legislation in the future.   AGC has been visiting Senate offices urging support for cloture and for final passage of the bill. If you have not yet done so, please call your Senators and tell them the following:

• Please vote for cloture to allow consideration of the "jobs" bill to proceed and vote in favor of final passage of the bill.
• Failure to approve this legislation by February 28 could result in our state losing millions in highway funding, undermine our state's ability to reimburse contractors for ongoing contracts, stall future contract lettings and undermine the outlook for reauthorization of the federal aid highway program.
• Build America Bonds have allowed states and local governments to pay for vital infrastructure like schools, water projects, port expansions  and transportation projects that also create jobs.
• With the unemployment rate in the construction industry at nearly 25 percent, a disruption in highway and other infrastructure funding and will make this situation worse. This legislation is necessary to save construction jobs and will lead to more hiring.

On Wednesday, AGC pushed for infrastructure funding during a media call with Senator Barbara Boxer (D-Calif.).  Read more here.

The endgame for the Senate "jobs bill" is still uncertain.  AGC has learned that the Senate is considering breaking up a jobs package into two or more separate bills.  The first piece likely to be considered will extend SAFETEA-LU through December 31, 2010 and provide a $20 billion infusion for the Highway Trust Fund to maintain its solvency through that extension.  Other provisions being considered include extension of Build America Bonds, new jobs tax credits, and various small business incentives.

The second piece of legislation will address other infrastructure investment programs.  AGC continues to communicate with the Senate the urgent need to provide a significant investment in infrastructure in order to meet the early spring construction season. The authors of the infrastructure portion of the Jobs bill, Senators Dick Durbin (D-Ill.) and Byron Dorgan (D-N.D.), have signaled that additional funding for highways, transit, airport improvements, high speed rail and school construction will be included in the final package.  However, the level at which those programs will be funded is yet to be determined. AGC and other industry partners have strongly urged the Senate to provide at least the level of funding that was provided in the House passed "Jobs for Main Street Act" ($27.5 billion for highways, $8.4 for transit).

In terms of funding for water infrastructure, AGC is working with Senators Ben Cardin (D-Md.) and Sheldon Whitehouse (D-R.I.) in circulating a letter to Senate leadership that seeks inclusion of $3 billion for Clean Water State Revolving Funds and $3 billion for Drinking Water State Revolving Funds in the infrastructure piece of the jobs package.

For more information, contact Sean O'Neill at (202) 547-8892 or oneills@agc.org.

Yesterday a broad coalition of members of Congress, industry experts, and stakeholders called on Congress and the Obama Administration to create a National Infrastructure Bank to help fund infrastructure projects of regional and national importance.  AGC attended the event and stressed that the infrastructure bank concept must be part of a larger comprehensive approach to tackling infrastructure investment, including robust multi-year funding and significant regulatory reforms. It must also be created separate and apart from jobs legislation currently being drafted in the Senate.

The proposed National Infrastructure Bank would be designed to help improve the nation's roads and highways, bridges, ports, rail (freight and passenger), drinking and waste water treatment plants, smart grid, broadband and schools. AGC believes that an infrastructure bank should be capitalized with general fund revenue to assist individual or groups of states with financing, particularly for mega projects. Infrastructure bank financing should be available as low interest loans to help states finance projects or to assist in leveraging private funds.

Senate Democrats are in the process of assembling a "jobs bill" that will likely be ready for consideration after they finish health care reform.

Senators Dick Durbin (D-Ill.) and Byron Dorgan (D-N.D.) are writing the jobs bill after receiving over 100 job creation ideas from their colleagues and various Senate committees. Similar to the House-passed jobs bill, which included over $40 billion for infrastructure, infrastructure spending will likely be a major component of the Senate package. AGC continues to meet with Senate leaders to ensure that any infrastructure spending included in the final package is targeted to existing programs that can have an immediate impact in the construction industry.

Senate Democrats hope to move a "jobs" package in the coming weeks. Senate Majority Whip Richard Durbin (D-Ill.) has been working with House leaders and a group of senators to craft a bill that is expected to include funding for a variety of infrastructure programs.

The bill is also likely to be the vehicle for extending highway and transit program authorization through the end of 2010. The House passed a $150 billion "jobs" bill prior to the Christmas recess. It included $48.3 billion for infrastructure, $26.7 billion for state aid and $79 billion in emergency spending for unemployment benefits, Medicaid assistance and the like. The bill also extends the highway program through September 30, 2010. The Senate bill pays for the infrastructure and state aid with repaid TARP funds, the emergency spending is not paid for and the highway extension is paid for through an intergovernmental transfer.  The Senate has not decided if it will take up the House bill and or if it will  instead draft its own legislation. House Republicans and likely Senate Republicans oppose using TARP to pay for the infrastructure portion.

For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

On July 29, the Energy and Water Development and Related Agencies Appropriations Act, 2010 passed the full Senate by a vote of 85-9 with six senators not voting. This bill contains the FY2010 funding for the U.S. Army Corps of Engineers as well as the Bureau of Reclamation. The next step is for the House and Senate to reconcile the differences between the two in conference committee.

On July 8, the Senate Energy and Water Appropriations Subcommittee reported a $34.27 billion package that is $643 million below President Obama's budget request and nearly $476 million above the FY 2009 omnibus enacted level. The House Appropriations Committee reported its $33.3 billion bill on July 9. The Senate's bill would provide $5.4 billion for the Army Corps of Engineers, slightly less that the House figure of $5.54. This represents a modest increase of approximately $139 million over the FY 2009 and an approximate increase of $416 million over the Obama Administration's request of $5.1 billion.

The Bureau of Reclamation would receive $1.13 billion, slightly more than the House bill figure of $1.08 billion. This represents an approximately $38 million decrease from FY 2009, but an approximate $17 million increase above the administration request.

AGC will continue to advocate for increased investment in the water resources development missions of the Corps of Engineers and the Bureau of Reclamation as this legislation continues through the Congress.

• To review the House FY 2010 Appropriations table click here.
• To review the list of the House FY 2010 projects click here.
• To read the House Bill Summary click here.
• To read the Senate Bill Summary click here.

House and Senate leaders are moving on legislation to fund the Army Corps of Engineers, Bureau of Reclamation and the Department of Energy for FY 2010.

The House Appropriations Committee reported a $33.3 billion bill on July 9. The total amount approved for the U.S. Army Corps of Engineers Civil Works program is $5.54 billion for FY 2010. This represents a modest increase of $139 million over the FY 2009 and an increase of $416 million over the Obama administration's request of $5.1 billion. The Bureau of Reclamation would receive $1.08 billion in funding for FY 2010, representing a $38 million decrease from FY 2009, but a $17 million increase above the administration request.

On July 8, the Senate Energy and Water Appropriations Subcommittee moved forward a $34.27 billion package that is $643 million below President Obama's budget request and nearly $476 million above the FY 2009 omnibus enacted level. The Senate's bill would provide $5.4 billion for the Army Corps of Engineers, slightly less that the House figure. The Bureau of Reclamation would receive $1.13 billion, slightly more than the House bill.

AGC will continue to advocate for increased investment in the water resources development missions of the Corps of Engineers and the Bureau of Reclamation as this legislation continues through the Congress.

To review the House FY 2010 Appropriations table click here.
To review the list of the House FY 2010 projects click here.
To read the House Bill Summary click here.
To read the Senate Bill Summary click here.

On June 25, the House Energy & Water Development Subcommittee reported a $33.3 billion bill funding the Army Corps of Engineers and Bureau of Reclamation and the Department of Energy for FY 2010. This funding amount represents a decrease of $1.1 billion below the President's budget request and $39 million above the amount appropriated in FY 2009.

The total amount approved for the U.S. Army Corps of Engineers Civil Works program is $5.541 billion for FY 2010. This represents a modest increase of $139 million over the FY 2009 and an increase of $416 million over the Obama Administration's request of $5.1 billion.

The Bureau of Reclamation would receive $1.08 billion in funding for FY 2010, representing a $38 million decrease from FY 2009, but a $17 million increase above the Administration request.

Representative Ed Pastor (D-Ariz.), the acting Subcommittee Chairman, addressed concerns about the insolvency of the Inland Waterways Trust Fund, stating that if this issue is not addressed, "…the level of investment must be adjusted to the available resources-resulting in increased costs to existing projects as they are suspended, as well as the deferral of new projects in need of recapitalization. The bill urges the Administration to pursue this issue with the relevant authorizing committees."

AGC will continue to advocate for increased investment in the water resources development missions of the Corps of Engineers and the Bureau of Reclamation as this legislation continues through the House and Senate process.

To review the FY 2010 Appropriations table click here.
To review the list of FY 2010 projects click here.
To read Acting Chairman Pastor's Statement click here.

On June 23, 2009, the House Appropriations Committee approved a Military Construction and Veterans Affairs funding bill that totals $77.9 billion for FY 2010. This is $239 million more than the President's request and $5.0 billion more than fiscal year 2009. The bill provides $48.2 billion in advance appropriations for fiscal year 2011 for three medical accounts of the Department of Veterans Affairs: Medical Services; Medical Support and Compliance; and Medical Facilities, and also provides $24.6 billion for the Military Construction, Family Housing and BRAC programs.

The Military Construction portion of the bill fully funds BRAC 2005 at $7.5 billion, provides an increase of $140 million for BRAC 1990 to enhance the cleanup of installations closed in prior BRAC rounds and provides for the modernization of training facilities, as well as the building of child care centers, barracks and homes. It also provides funds to support additional requirements for operations in Afghanistan at $1.4 billion. This bill includes two major military construction initiatives: $450 million to accelerate the Army's program to modernize troop housing facilities for trainees; and $200 million for a Guard and Reserve initiative to address critical unfunded requirements. This funding will go toward critical unfunded requirements for Army and Air National Guard, as well as the Army, Navy, Marine Corps and Air Force Reserves.

The VA portion of the bill provides $1.9 billion for Department of Veterans Affairs construction, $127 million above the budget request and $256 million above 2009. The bill will provide needed funding for five ongoing major construction projects, planning and design funding for seven new projects, and funding for approximately 100 minor construction projects that can be completed in fiscal year 2010. The National Cemetery Administration is funded at $250 million, an increase of $20 million above the fiscal year 2009 appropriation and $8 million above the budget request.

AGC strongly supports increased investment in our nation's military programs and veterans' facilities and will continue to advocate for increased funding as the bill moves to the Senate for additional consideration.

To review the FY 2010 Appropriations table click here.
To review the list of FY 2010 projects click here.
To read Chairman Edwards' Statement click here.

The House Transportation and Infrastructure Committee released details today of reauthorization legislation, the Surface Transportation Authorization Act of 2009. The legislation is a 6 year $500 billion bill that will replace the current authorization, SAFETEA-LU, which is due to expire on September 30. The Chairman of the Committee, James Oberstar (D-Minn.), will introduce the full authorization legislation as early as tomorrow and has billed it as a transformation in the way the federal government funds the nation's transportation infrastructure.

The documents released today include a blueprint for investment and reform, a framework of principles for federal surface transportation and an executive summary, which are all available on the AGC Web site.  All of the documents and future updates can be found here.

The blueprint of the legislation indicates a reduced number of federal programs but keeps most of the eligibility for them.  It does not address any specifics on formula funding. The blueprint states that there would be project streamlining, but new environmental concerns exist, such as carbon reduction and livability. Finally, the plan would centralize national planning to include all transportation modes.

The Committee is planning a markup of the legislation next Wednesday, June, 24, and has indicated that the process will be bipartisan.