The House Appropriations Committee yesterday approved the portion of the economic stimulus legislation which falls within its jurisdiction, including infrastructure funding for various federal programs. The transportation related portion of the bill includes: $30 billion for highways and bridges, $9 billion for transit ($6 billion of which is for bus and equipment purchase), $1.1 billion for AMTRAK, $3 billion for the Airport Improvement Program, $150 million Coast Guard funding to repair or remove bridges on navigable waterways. Separate committees are dealing with other portions of the bill which is expected to be brought up for a vote of the full house on Tuesday, January 27, 2009.

On January 15, the House Democratic Leadership announced details of the American Recovery and Reinvestment Act. Details of the $825 billion package were released by the House Appropriations and Ways and Means Committees. The total package consists of $275 billion in economic recovery tax cuts and $550 billion in targeted investments, coupled with several unprecedented accountability measures. AGC estimates that approximately $150 billion of the spending proposed in this bill would benefit the construction industry.

President-elect Barack Obama plans to nominate Rep. Ray LaHood an Illinois Republican, to be the next Secretary of Transportation, according to media reports and other sources. LaHood has served in the House of Representatives since 1995. He decided to retire at the end of the current Congress after having served seven terms. LaHood is familiar with transportation issues having served on the Transportation and Infrastructure Committee from 1995-2000. In 2001 he became a member of the Appropriations Committee. Prior to being elected to Congress LaHood served as the Chief of Staff to then House Minority Leader Bob Michael. He has a close friendship with Obama's incoming White House chief of staff, Rahm Emanuel, a fellow Representative from Illinois. AGC has been a supporter of Rep. LaHood and has maintained a good working relationship with him over the years. LaHood has always been known for his bipartisan approach to issues and therefore is a perfect candidate to help President-elect Obama fulfill his pledge to include Republicans in his Cabinet. He has already picked current Defense Secretary Robert Gates, a Republican, to stay in the job in his administration. LaHood's Illinois District includes Peoria, home of Caterpillar.

President-elect Barack Obama used a radio address to the nation this past weekend to urge enactment of a new economic stimulus package to create jobs as his first priority in January, calling for "the largest new investment in roads and bridges since President Dwight D. Eisenhower built the Interstate system in the late 1950s."

Today AGC launched a new national effort to ensure that Congress and the President-elect understand the vital need for investing in infrastructure as part of the pending stimulus package. The centerpiece of this effort is, frankly, you. As you will see from the advertisement below, AGC is encouraging people to sign up and indicate their support for badly needed new infrastructure investments. AGC will share this list with members of Congress when they return to work on January 6th, and also will provide it to the President-elect’s transition team.We need your help in ensuring that the full breadth and depth of our support is reflected in this list. So I am asking each of you, please, to reach out to your employees, your suppliers, your subcontractors, and your local government and business community leaders. Encourage them to log on to www.agc.org/letsbuild and sign up. And encourage them to tell their colleagues and co-workers to do the same. With your help, we can make sure Congress and the new Administration understand the value and wisdom of new infrastructure investments.With more than 770,000 construction workers out of work over the last two years, our sector has been one of the hardest hit by the country’s financial challenges. With your help we can make sure our members are put back to work… now, building America’s future. After all, the infrastructure projects our members build will not only put people back to work, they will serve as a crucial foundation for future economic growth.Thank you in advance for your help and support. If you have any questions, please don’t hesitate to contact our Senior Director of Public Affairs, Brian Turmail at (703) 837-5310 or turmailb@agc.org.-Stephen Sandherr, Chief Executive Officer

AGC of America is excited to announce the 2009 Highway & Utilities Contractors Issues Meeting, to be held February 5 -7, 2009 at the La Quinta Resort and Club in Palm Springs, California. This meeting is the premier gathering place for contractors and related businesses involved in every aspect of highway and utility construction to hear about and discuss issues and trends in these markets.

The National Governors Association (NGA) at its national conference this week urged President-elect Obama to consider establishing a national infrastructure bank that could issue bonds to finance infrastructure projects as part of the economic stimulus package currently being developed. During his campaign, Obama proposed creating an infrastructure bank that could issue up to $60 billion in tax-credit bonds, which provide investors with a tax credit instead of interest payments. The proposal is similar to legislation introduced in the 110th Congress by Senate Banking Chairman Christopher Dodd (D-Conn) and Sen. Chuck Hagel (R-Neb). NGA Chairman and Pennsylvania Democratic Gov. Ed Rendell called the infrastructure bank concept an important element in an economic recovery plan. Gov. Rendell has been a leading infrastructure advocate since his days as Mayor of Pennsylvania when he served as Chairman of the Rebuild America Coalition. Rendell has teamed up with California Governor Arnold Schwarzenegger (R) to reestablish the Rebuild America Coalition.

Congressional Democrats, realizing that the opportunity to pass a massive economic stimulus package during the 110th Congress is shrinking due to time constraints, as well as resistance by Senate Republicans and the Bush Administration, are considering whether to convene the week of December 8 to take up a smaller stopgap measure to provide immediate relief to low-income households. Congress may also consider a rescue package for the automotive industry if a consensus can be reached.Congressional leaders have announced that a significantly larger economic stimulus package, upwards of $500 billion, would be taken up for consideration once the 111th Congress convenes on January 6, 2009. Congressional staff is already at work scheduling hearings for early January and is beginning to piece together the major components of the legislation. House Speaker Nancy Pelosi (D-Calif.) and Senate Majority leader Harry Reid (D-Nev.) have both said it is their intention to pass the bill in time for President-elect Obama to sign it into law after his inauguration on January 20.Infrastructure Investment - While details of the package are still under development, it is widely expected that there will be a significant infrastructure investment component. Economic stimulus legislation passed by the House in October included infrastructure funding of $34 billion, including: $12.8 billion for the federal-aid highway program and $3.6 billion for transit projects.AGC has been successful in relaying its message that a significant investment in infrastructure will spur economic development, helping to cultivate support among key Congressional decision-makers to increase investment in road, bridge, flood protection, and water infrastructure projects in the stimulus bill. Support for infrastructure investment is also strongly supported by President-elect Obama, who announced on November 21 a new initiative to save or create 2.5 million jobs in the next two years that includes infrastructure investment, school modernization, and new energy policy initiatives.At a meeting of the National Governors Association (NGA) on December 2, the nation's governors requested that the stimulus package include as much as $136 billion worth of road and bridge repairs projects that are “ready-to-go.” The governors are also asking for direct aid to states experiencing significant budget deficits.Another central component of the measure is expected to be a “green-jobs” program. The may include items such as home weatherizing, installation of “smart meters” designed to reduce home energy use, tax breaks or direct government subsidies for a variety of clean energy projects, including solar arrays, wind farms, biofuels, and clean coal technology.

Speaker of the House Nancy Pelosi (D-CA) notified Representatives today that the House will reconvene in lame duck session on Wednesday November 19. The Senate was already scheduled to meet next week and will convene on Monday November 17. It is unclear if either body will consider an economic stimulus bill. Speaker Pelosi apparently has suggested to Senate Majority Leader Reid (D-NV) that the Senate take up the House passed economic stimulus bill which includes infrastructure funding of $34 billion. However, the Senate attempted to pass its own version of an economic stimulus bill prior to the elections but was unable to do so because of resistance from Senate Republicans and the White House. Republican leaders have continued to press for tax cuts to help the economy and have expressed skepticism about whether public works funding would get into the economy quick enough to be effective in stimulating economic activity or creating jobs.AGC and our construction industry allies continue to point out the significant down turn in non-residential construction activity and to make the case that construction activity can play a significant role in preserving jobs and creating new ones. If you have not done so, please take the time to contact your Congressional delegation through AGC’s Legislative Action Center. Also please use the attached survey to tell us about the outlook for employment in your state and the impact that increased construction funding would have on your employment outlook.

The Senate will return next week in a lame duck session to address several legislative proposals, potentially including economic stimulus legislation. In the House, Speaker Nancy Pelosi (D-CA) has expressed the desire to go back into session to address stimulus legislation but she has not yet officially done so. President–elect Obama, in a press conference this week, urged Congress to pass stimulus legislation as soon as possible. However, President Bush has expressed skepticism about the benefit from this legislation.AGC and our transportation and construction industry allies have been advocating for the inclusion of infrastructure funding as part of the economic stimulus package. Prior to adjournment the House passed a stimulus bill which included $34 billion infrastructure funding, including: $12.8 billion for the federal-aid highway program; $3.6 billion for transit; $600 million for airport capital improvement projects; $7.5 billion for water infrastructure; $5 billion for the U.S. Army Corps of Engineers; $3 billion for public school reconstruction; $500 million for Amtrak; and $1 billion for public housing construction. A Senate bill that included $25 billion in infrastructure spending was blocked from passage on a procedural motion.AGC’s review of economic data and other anecdotal information clearly shows that construction spending is declining, contractors have reduced or will be reducing their work force and investment in new equipment will be significantly reduced. Increased infrastructure spending would help to keep this situation from becoming worse and would benefit the economy in general.Your Senators and Representatives need to hear from you this week. Please go to AGC’s Legislative Action Center and send a message to your elected officials.