Stimulus Compromise Includes Reduced Transportation Funding

House and Senate conferees last night agreed to a $789 billion economic stimulus bill that includes funding for transportation infrastructure programs. The House will vote on the compromise tomorrow and the Senate soon after. While the actual legislative language is not yet available summaries of the agreement have been released. AGC's CEO Steve Sandherr participated in a conference call this morning with Transportation Secretary Ray LaHood who gave the following details concerning transportation funding.  $27.5 billion for high & bridge formula funding (below the $30 billion House) $1.5 billion for discretionary competitive grant program for surface transportation (Senate proposed $5.5 billion) $8.4 billion public transportation (below $12 billion in the House) $850 Amtrak capital grants (USDOT), $450 million Amtrak security upgrades (DHS) $8 billion for construction of high speed rail projects (increase from $2 billion in Senate bill) $1.1 billion Airport Improvement Grants (less than $3 billion in House) The "use or lose" deadline for states to obligate the first 50 percent of their apportionment was set at 120 days, a compromise between the 90 day House limit and 180 day Senate limit. Unobligated funds from the first 50 percent will be redistributed to states that have used their funds. All of the funds must be obligated one year after enactment, as was proposed in the Senate. It is unclear what happens to the unused second portion of the funds. The House bill redistributed these funds to the states, the Senate bill puts these unobligated funds in the new discretionary grants program. Secretary LaHood pointed out that the big increase in funding for high speed rail reflects President Obama's desire to build a national high speed rail network. Secretary LaHood also reported that he and White House Chief of Staff Rahm Emanuel met yesterday with state DOT heads from around the country to emphasize the need to put this funding to work immediately. LaHood also reported that he has established a high level team within US DOT to monitor the use of these funds and to work with states to eliminate any road blocks to contract awards. Secretary LaHood also indicated that he views this funding as only a first step in addressing transportation infrastructure needs and that reauthorization of SAFETEA-LU before September 30, 2009 is a priority. He said he has already met with House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN) who committed to meeting that deadline.