At a Labor Day event in Milwaukee, Wisconsin, President Obama announced a plan to request an up-front investment of $50 billion for transportation infrastructure. While there are few specific details, AGC has learned from a senior U.S. DOT official that President Obama is committed to moving a six-year surface transportation bill in 2011.
A significant portion of the $50 billion will be available in the first year for investments in highways, transit, airports and rail. It appears these funds are supplemental to funds that would already have been provided for these programs in FY 2011 (beginning October 1, 2010), but it is unclear whether these funds would move as part of reauthorization or as a separate legislative vehicle. The amount allocated to each program is also not specified.
The president indicated that this increased funding will be paired with the administration's vision for reforming existing transportation programs over the next six years. It appears that the proposal will include the long awaited "principles" for reauthorization of SAFETEA-LU the administration has been expected to deliver.
Additional details from the White House are available here.
In response to the Obama Administration's proposal for new transportation investment, AGC noted that countless thousands of construction workers will have a better chance of retaining their jobs, but that the most effective sequel to the stimulus is passage of a fully funded six-year surface transportation bill. AGC's reaction was covered by the LA Times, Baltimore Business Journal and Engineering News-Record.
It is highly unlikely that Congress will do anything in regards to the president's request prior to the November elections. AGC will follow developments closely and provide details as they become available.
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