ACEC recently sent out the following message to state offices:
No doubt many of you have seen or heard reports about federal transportation funding and the status of the Highway Trust Fund. I want to briefly update you on the situation and let you know how ACEC is responding.
On Friday, Secretary of Transportation Mary Peters contacted your respective DOT heads to inform them that the balance of the Highway Trust Fund has been nearly depleted, due in large part to lower gas tax revenues and higher construction costs during the summer months. I’ve attached a copy of the fact sheet released by her office. At current spending rates, we will start the new fiscal year on October 1 with a zero balance in the Trust Fund, and spending levels for the next fiscal year are higher than projected revenues. The Highway Trust Fund will not have cash available to fully reimburse states for highway expenditures. This is severely disruptive to state highway programs and state DOTs are already making plans to cancel or postpone projects.
The one positive development in the announcement is the fact that the Administration has dropped its opposition to the legislative fix that ACEC and our industry allies have lobbied for over the past couple of months. H.R. 6532 provides an $8 billion transfer from the General Fund to the Highway Trust Fund – in effect a reimbursement for revenues lost by the Trust Fund during the final negotiations of TEA-21 in 1998 – which would restore the shortfall and avert funding cuts to the states. We scored an initial win in July when the House passed the bill with an overwhelming 387-37 vote. The bill is now pending in the Senate, where efforts to pass it yesterday and today by “unanimous consent” have been blocked by two individual Senators: Jim DeMint (R-SC) and Judd Gregg (R-NH).
We’re sending a letter from ACEC President Dave Raymond to the Senate leadership supporting immediate passage of H.R. 6532. We’re also working closely with our industry allies in this lobbying effort – right now, this is one of the few issues that must be resolved before Congress adjourns at the end of the month, so everyone is working this hard. It’s unclear when the bill might come up again for consideration, either as a stand-alone measure or attached to some other piece of legislation.
We will be alerting the membership very soon to urge them to contact their Senators and press for action, and we’ll keep you posted as new information becomes available. In the interim, as always, please let me know if we can answer any questions that you might have, or help to respond to individual member firm inquiries or concerns.
When the alert is sent out we will ask our members to support their effort.