The outlook for getting a highway authorization bill passed in this Congress is cloudy. The bottom line is that we have an uphill battle and therefore a strong grassroots initiative is vital over the August recess to focus the attention of Congress on the need to get the bill done. Your Senators and representative need to hear from you. You can send a letter by going to AGC's Legislative Action Center by clicking here.

In conjunction with our coalition partners, the Transportation Construction Coalition (TCC) and American for Transportation Mobility (ATM), AGC has developed grass roots tools to assist members and chapters in getting the message out such as:

- Op-Ed pieces
- Social Media Tactics
- Reauthorization Fact Sheet
- Sample letters to the editor on specific topics
- Tips for Contacting Members of Congress
- How to request a Meeting with a Member of Congress
- What Congestion Means to Your Town
- Suggestions for Holding a successful media event
- Sample Advertisements

All can be accessed here.

AGC and our coalition partners have also developed some advertisements which can be used on billboards, in local publications, on websites and in other key areas. AGC, ATM and TCC will be running these ads in key locations.

By a vote of 251-167, the House today approved the FY 2011 transportation appropriations bill. Included in the bill is $45.2 billion for the federal-aid highway program, an increase of $4.1 billion (10 percent) over the 2010 funding level of $41.1 billion. The transit program is funded at $11.3 billion, an increase of $575 million over this year's level of $10.7 billion. The Airport Improvement Program remains at this year's level of $3.5 billion. High speed and intercity passenger rail is funded at $1.4 billion, a cut of $1.1 billion below the FY 2010 level.

An amendment offered by Rep. Peter DeFazio (D-Ore.) was approved eliminating the transfer of $200 million from the highway program to a new "Livable Communities" grant program administered by DOT linking transportation and land use planning. The Obama Administration asked for this funding as part of its budget request. Rep. DeFazio argued that this new program should be addressed as part of an overall reauthorization bill and not be considered as part of an appropriations bill. AGC and the Transportation Construction Coalition contacted House members in support of the DeFazio amendment.

The appropriations bill is an important part of the annual funding process; however, it does not solve the underlying problem of not having authorization legislation in place, and it does not address the revenue shortage in the Highway Trust Fund. The highway and transit programs are currently operating under a short term authorization that expires on December 30, 2010. If a long term reauthorization measure is not enacted by that date, Congress must again approve a short term extension to avoid a shutdown in highway and transit funding. Highway Trust Fund revenue is insufficient to support the funding level that was approved by the House. In March 2010, $20 billion was transferred from the general fund to ensure that the Highway Trust Fund could meet its obligations. That funding is projected to support the current funding levels through August 2011. Congress will have to take action to further shore up the Highway Trust Fund to support the increased funding levels in the House bill.

The Senate Appropriations Committee last week passed its version of the FY2011 transportation funding bill. Funding for the transportation programs in the Senate bill is at much lower levels than the House bill, as follows: highway program $41.9 million, transit program $10.6 billion, airport Improvement program $3.5 billion and high speed rail $1 billion. The Senate is not scheduled to take up the measure until after the Congressional summer recess.

AGC participated in a town hall-style meeting with U.S. Department of Transportation's top leaders who addressed the next long-term transportation bill. This meeting was the final event in the Department's series of "listening tours" leading up to release of its principles the surface transportation reauthorization.

The senior DOT officials provided very few specifics about their current thoughts regarding various aspects of a surface transportation bill and provided no answer when asked when they will release their principles. DOT officials did however pledge their support for a long-term funding authorization and expressed the need to expedite the process of approving and finishing construction projects.

The Congressional Democratic leadership met with President Obama at the White House this week to discuss the legislative agenda for the remaining weeks before the Congressional summer recess. While vowing to continue to emphasize job creation and economic recovery, not included in the discussions were passing additional stimulus legislation with transportation funding or moving the long-stalled multiyear surface transportation reauthorization legislation.

AGC's CEO Steve Sandherr participated in a town hall meeting called by House republican leadership with the leaders of the business community to discuss steps that can be taken to create jobs. Sandherr reminded the participants about the depressed state of the construction industry and made the following points:
• Infrastructure investment must be a national priority so that free trade is not restricted by transportation delays.
• Private investment finances 70% of construction projects and maintaining the tax cuts enacted during the Bush Administration is necessary to provide needed capital for investment.
• A moratorium on new federal regulations should be implemented to remove uncertainty, cost of compliance, and increased business costs.

** Action Requested **

 Time is running short for Congress to take action on a multi-year highway and transit reauthorization bill. SAFETEA-LU authorization expired on September 30, 2009 and the program has been operating under short term extensions ever since. In addition, the Highway Trust Fund is depleted and infusions of general fund revenue have been needed for it to meet its obligations. Members of Congress will be home next week for the Fourth of July recess and also in August. This is an excellent time to make them aware of the impact this lack of action by Congress is having on your state's highway construction program. 

AGC and our Transportation Construction Coalition partners have created a grassroots toolkit for your use in discussing this issue with your Senators and Representatives, urging them to pass a long-term, well-funded surface transportation bill when they return to Washington.

 You may access the grassroots toolkit by clicking here. http://transportationconstructioncoalition.org/grass-roots-kit.htm

Materials include:

• Information about the pending highway and transit funding crisis
• Background on the surface transportation legislation and its current status
• Talking points on why Congress needs to act on highway legislation
• List of key questions to ask members of Congress about their support for fixing traffic, improving road conditions and safety
• Instructions on how to arrange meetings with members of Congress in the home district, attend local town halls
• State by state TRIP fact sheets about local highway funding needs
• Traffic congestion information from the Texas Transportation Institute
• Tips for contacting members of Congress by letter or email

 On the web page, you'll also find a form that will allow you to report any progress you make over the July 4^th Recess.  TCC's goal is to make sure every member of Congress hears about the need for a surface transportation bill.

We hope you will find these resources helpful as we all work to show Congress the value of investing in our nation's transportation systems. The TCC plans a second phase of this effort for the August recess, which will include an aggressive media campaign to raise awareness of this important issue. More information is forthcoming.

Please let me know at deeryb@agc.org if you have any questions. We urge you to take advantage of these resources and report back on any progress.

The House Appropriations Subcommittee on Transportation today marked-up the FY 2011 transportation spending bill.  The bill provides $45.2 billion for the highway program, an increase of more than $4 billion over this year's funding level of $41.07 billion and  President Obama's budget request of $42.36 Billion. The bill also would provide $11.3 billion for transit program funding, a $500 million increase over the President's budget request.

 The bill also provides $3.5 billion for the Airport Improvement Program, the same amount as appropriated in previous years and $1.4 billion for high-speed passenger rail, a $400 million dollar increase from the President's budget request but a $1.1 billion decrease from FY 2010.  In addition, the bill provides $400 million for TIGER Grant programs while failing to provide the $4 billion requested by the President for a National Infrastructure Innovation and Finance Fund.

 At this time it is unclear if or when the full committee will consider the transportation spending bill.  If they fail to act prior to the end of FY 2010 the transportation programs will continue to operate at current funding levels. Congress must also act to provide the necessary authorization as the current short term extension expires on December 31, 2010 the end of the first quarter of FY 2011. In addition, more revenue will be needed in the Highway Trust Fund as the current revenue will only support funding through mid 2011.

Following months of AGC and other transportation construction stakeholders successfully lobbying Congress and the administration to restore $8.7 billion of rescinded highway contract authority, the House of Representatives is poised to take $2 billion of that unobligated money away to offset a $10 billion appropriation to preserve teachers' jobs included in the House supplemental appropriations bill. 

The intent of the bill is to provide funding for U.S. troops; however, the House Appropriations Committee added additional funding that required an offset of $11.7 billion.  As co-chair of the Transportation Construction Coalition, AGC sent a letter to Congress opposing the House supplemental proposal, and argued that the rescission creates further uncertainty in an already-suffering transportation construction marketplace. AGC also argued that it raises questions about future federal transportation investment commitments.

Congress approved a bill to extend aviation programs and excise taxes through Aug. 1. The short-term extension will give lawmakers another month to attempt to finalize a multi-year FAA reauthorization bill.

Both the House and Senate have passed long-term authorization bills but they are very different. An attempt was made to pass a longer term extension to allow time for compromise legislation to be negotiated, but that effort failed. Upon its return Congress will hopefully get to work on resolving the different bills.