By a vote of 217-212 the House passed H.R. 2847, “Jobs for Main Street Act of 2010,” legislation intended to stimulate job growth. Included in the bill are funds for various infrastructure investments including $37.3 billion for transportation programs, of which $27.5 billion is for highways (freight and passenger rail and port projects are also eligible for these funds), $8.4 billion is for transit, $500 million is for Airport Improvement Program grants and $800 million for Amtrak fleet modernization. The highway funds will be distributed to states by the same formula that was used to distribute stimulus funds previously provided in the American Recovery and Reinvestment Act (ARRA). States are not required to provide any matching dollars to be eligible to receive these funds. States would be required to have fifty percent of the funds under contract within 90 days or lose the remaining funds (to be redistributed to states that have met this requirement). The second fifty percent must be under contract within one year or be lost to other successful states. This is a far more stringent requirement than ARRA which required funds to be “obligated” rather than under contract. The bill also places new "Buy American" requirements on transportation projects. Many of the other provisions related to the use of ARRA funds are included. These funds are provided on top of funding that comes through the traditional program.

Also included in the bill is an extension of highway and transit program authorization through September 30, 2010 at current levels and provides additional Highway Trust Fund revenue to fund these programs.  Since SAFETEA-LU expired on September 30, 2009 these programs have been extended on a short-term basis at a funding level that is significantly below the FY 2009 authorized level.  H.R. 2847 will increase funding by $10.7 billion, nearly to the FY 2009 authorized level. The bill also includes provisions to stabilize the Highway Trust Fund.  It restores $19.5 billion in interest payments foregone on the HTF’s previous cash balances, and restores authority for HTF balances to receive interest payments in the future.  The bill alters the way in which long-standing fuel tax exemptions provided to state and local governments are accounted for which are projected to increase HTF balances by about $1.7 billion annually, for a total of $9.8 billion over six years. In addition, as with the stimulus dollars, the legislation waives the requirement that states provide matching revenue to receive these funds.

The bill is not expected to be taken up in the Senate until after the first of the year. Until such time, another short term extension is required to ensure that program funding is not cut off, and, therefore, the House also today passed a sixty day authorization and attached it to the Defense Department appropriation bill which the Senate must now approve. (A separate five day extension was also necessary to allow the Senate time to act on the sixty day measure).

AGC wrote to the House in support of the legislation.  

In our ongoing effort to keep the pressure on Congress to enact a six year transportation reauthorization bill with significantly increased funding levels, the Transportation Construction Coalition (TCC) has scheduled December 10, 2009 as "Phone-In to Congress" Day. While Congress is embroiled in other high profile issues Senators and Representatives must be reminded about the need to address the expired highway and transit program authorization. In our visits on Capitol Hill Senators and Representatives report they are not hearing from people at home. They need to hear from you.

TCC would like to bombard Congressional offices with calls from constituents. To do this the following toll free number has been set up to allow you to call directly to the offices of your Senators and Representative: 1-888-448-2782. While email and letters are helpful, phone calls require an individual to answer and to make note of why you are calling.

Please plan to call on December 10 and ask your employees to call as well and make the following points:

•  (Our state) has huge transportation needs that are not being met including deficient bridges, deteriorating pavements, congested roads and safety hazards.
• In addition, the construction industry has an unemployment rate of over 18 percent.
• Without the certainty of a long term authorization bill, with increased funding levels, construction companies and material suppliers in our state will be forced to lay off additional workers.
• Businesses will not invest in new equipment when there is so much uncertainty about the on- going and future construction market.
• Congress must do its job and delay no longer. Pass a six year transportation authorization bill now and provide the revenue necessary to increase funding to address (our state's) short term need for jobs and long term economic growth.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn) and Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif) held separate news conferences today to call for the inclusion of increased highway and transit funding as part of jobs legislation currently being discussed in both the House and Senate. The news conferences also included the release of an AASHTO survey of state DOTs that identified 7,497 highway projects valued at $47 billion and 2,091 transit, port, rail and other transportation projects valued at $22 billion that are "ready to go" and could be approved for award within 120 days. The American Public Transportation Association also indicated that its members identified additional projects above the AASHTO transit numbers. Senator Boxer said she is co-chairing a Senate leadership group that is putting together jobs legislation and will push for inclusion of funding at this level. Both Chairman Boxer and Chairman Oberstar quoted AGC's statistics on the dire employment situation in the construction industry with now stands at 18.7 percent with 1.6 million construction jobs lost since January 2008. President Obama will hold a "Jobs Summit" at the White House tomorrow. Former AGC President Doug Pitcock will represent the association and present information about the state of the construction economy and call for infrastructure investment as the best way to quickly create new jobs. Both Chairs also indicated that this jobs funding is being discussed separately from addressing the need to pass legislation to reauthorize surface transportation programs and provide new Highway Trust Fund revenue to support long term increased funding levels.