On April 15, AGC, along with the American Association of State Highway and Transportation Officials (AASHTO) and other industry stakeholders, called on Congress to authorize $200 billion in highway and bridge stimulus or “down payment” funding in any infrastructure package, available to be obligated through 2026 at 100 percent federal share. The request also asks that Congress provide $487 billion for the Federal-aid Highway Program as part of the upcoming five-year surface transportation reauthorization due by October 1. According to a recent USDOT report, the current investment backlog for highways and bridges stands at $756 billion. This funding request would finally address this longstanding investment backlog in our nation’s roads and bridges.

Senate Republicans are reportedly preparing a counteroffer to the White House’s $2 trillion infrastructure proposal. West Virginia Senator Shelley Moore Capito and others in a Republican working group have stated that such a proposal would be in the range of $600 to $800 billion, more targeted in scope— focusing on traditional infrastructure such as roads, bridges, ports, airports, broadband, and water infrastructure— and would be funded by unspecified user fees. AGC will continue to monitor Congressional activity on infrastructure and surface transportation reauthorization negotiations.

On April 5, White House Press Secretary Jen Psaki stated that the administration is planning to propose that money from its infrastructure package be paid out through a "competitive bidding process," and that states and other entities would "have to apply for funding for rebuilding the infrastructure in their states or local communities. On April 6, Psaki clarified these comments, noting that while "it will be up to Congress" to shape the bill, the administration expected "a mix" of formula grants and competitive grants. She went on to say "…existing transportation funding flows through formula grants, which gives states a lot of flexibility on how to prioritize and spend their federal dollars based on what their needs are," but that "competitive grants are a more targeted way to direct funds to specific policy goals, often based on criteria set by Congress.” It is assumed that money for transportation infrastructure in the Biden plan will be in addition to a surface transportation reauthorization bill, which provides funding for the core highway and transit state formula programs. AGC will continue to monitor the trajectory of President Biden’s infrastructure proposal.

On March 31, President Joe Biden released the American Jobs Plan, a $2 trillion, wide-ranging infrastructure proposal that seeks to invest in all modes of transportation, water, electric, broadband, public buildings, manufacturing, and much more. On the transportation front, Biden is proposing $621 billion in “additional” investment, including:

President Biden is expected to put forth his proposal for a multi-trillion investment in infrastructure on March 31. The proposal is expected to include significant investments in a broad range of construction projects including roads, bridges, public transit, airports, drinking water and wastewater, schools, renewable energy, broadband and more. In addition to physical infrastructure, proposal is anticipated to include significant investments in “human infrastructure,” including but not limited to free community colleges, universal pre-kindergarten and paid family leave. AGC welcomes sorely-needed public and private construction investment that can generate long-term benefits for our economy, communities and national security. However, AGC remains concerned about the possibility of unpredictable and impracticable federal requirements being attached to those investments that, in turn, could significantly diminish its buying power and create barriers to full and open competition.

Transportation Secretary Buttigieg Testifies Lays Out Bold Vision for Infrastructure Investment

Short Answer: It’s Not Clear

House Democrats unveiled their long-awaited plan to revive earmarks – or “congressionally directed spending” as they are rebranded. The plan would allow members of Congress to direct money in the annual spending bills that would benefit specific projects in their district. The ban on this practice had resulted in this spending authority being ceded to the U.S. Department of Transportation (U.S. DOT) through discretionary grants. Following that announcement, House Transportation and Infrastructure Committee Chairman Peter DeFazio noted that earmarks would be included in the upcoming surface transportation bill and that additional details would be coming later this month. The Senate is separately working out a plan to restore earmarks however the path forward is less clear. AGC will continue to track this issue as further details are released.

On February 27, the U.S. House passed President Biden’s $1.9T COVID-relief bill by a 219-212 vote, mostly along party lines. The measure is now soon to be considered by the Senate. On the infrastructure front, the package would provide: $30 billion to public transit programs, $8 billion to airports and $1.5 billion to Amtrak. The vast majority of those funds would go to maintaining existing operations, not capital construction. The measure would also provide $350 billion for state and local governments.

Carper Reiterates Memorial Day Goal for Committee Passage of Bill