On October 13th, House Speaker Nancy Pelosi (D-CA) convened a forum with economic experts to discuss an economic recovery plan for the nation.  She announced that she would be calling on the appropriate committee chairmen to conduct hearings on various portions of an economic recovery package in the upcoming weeks.AGC has been working with Congressional leaders, Federal agency officials and state and local organizations to determine the current needs for infrastructure investment that would be included in a comprehensive stimulus package. Such legislation will be an uphill battle for us this year. One stimulus measure failed a procedural vote in the Senate earlier this month, and the odds are stacked against another large package passing this year in the Senate, as it is unlikely that Senate Republicans will change their minds. Finally, President Bush has said he would veto a large stimulus package should it include funds for unemployment benefits and infrastructure investment. AGC will continue to work with Congressional leaders and the White House to make the case that additional investment in infrastructure provides tangible and ongoing stimulus for the economy.

House Speaker Nancy Pelosi (D-Calif.) convened a forum with economic experts to discuss an economic recovery plan for the nation on Monday.  Prior to the meeting, AGC sent a letter to Speaker Pelosi urging her to consider economic stimulus initiatives that will positively impact economic activity, including provisions to boost the construction industry.

On October 13 AGC sent a letter outlining the benefits and the needs for infrastructure investment in a stimulus package.  AGC also issued a press release congratulating the House leadership for considering infrastructure investment in such package. AGC will continue to push for infrastructure investment in any further stimulus package.The letter and press release are in response to the Speaker of the House, Nancy Pelosi (R-CA), calling House democrat leadership to Washington for an economic forum on October 13. The forum was with leading economists to help Congress develop an economic recovery plan that focuses on creating jobs and strengthening the economy. Reports of the $150 billion stimulus include $25 billion for roads, bridges and other infrastructure in addition to tax rebates, money for food stamps, and unemployment benefits.In late September, the House passed an economic stimulus bill (264-158) which included approximately $34 billion for infrastructure investment, 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 similar bill in the Senate failed on a procedural vote (52-42).The Speaker has indicated a lame-duck session of Congress two weeks after the election is possible and Senate leadership announced a post-election session beginning November 17. During this time it is possible for Congress to readdress an economic stimulus package.

Despite AGC's success in getting the House and Senate to finally draft stimulus bills with infrastructure investment, the 110th Congress adjourned on October 3 without passing stimulus legislation.   AGC worked over the past year to convince Congress and the White House to include construction investment programs in any economic stimulus proposals by meeting with congressional leaders, writing a strong message to both the House and Senate and signing onto letters from transportation related coalitions.  Senate leadership left open the possibility of returning for a "lame duck" session following the elections, but the House did not. Depending on the economy, Speaker Pelosi has suggested that the House may return following the elections to try again to enact a stimulus bill.In late September, the House passed an economic stimulus bill (264-158) which included approximately $34 billion for infrastructure investment, 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.The Senate also took up an economic stimulus bill which would have provided about $25 billion in infrastructure spending. Proposed spending items included $8 billion for the highway program; $2 billion for transit; $400 million for airport capital improvement projects; $500 million for the U.S. Army Corps of Engineers; $600 million for wastewater infrastructure; $800 million for rural facilities construction; $350 million for Amtrak; $2 billion for public school reconstruction; and $770 million for federal building and facilities construction. The Senate bill failed on a procedural vote (52-42).Congress also failed to enact an appropriations bill to fund the Department of Transportation and other major federal construction programs for FY 2009. Therefore, DOT and other programs were included in a continuing resolution (CR), which provides funding at the 2008 level through March 6, 2009. The CR, which was signed into law on September 30, included three of the 12 annual appropriations measures Congress was able to complete prior to the end of the FY, including Military Construction and Veterans Affairs, Defense and Homeland Security Appropriations Acts, as well as a disaster relief package. Congress will need to take additional action before March 6 to fund federal construction programs for the remainder of FY 2009.

One of the major issues the 111th Congress will face in January 2009 is the reauthorization of the federal surface transportation programs. SAFETEA-LU expires on September 30, 2009 which leaves the new Congress and the new Administration only nine months in which to draft and approve legislation to carry these programs into the future. A key issue to be addressed will be how to fund highway and transit projects. With the Highway Trust Fund's balance essentially at zero, new revenue will be necessary to provide the amount of funding necessary to address current and future demands.There will be many new members of Congress next year who will not be familiar with the Highway Trust Fund, the federal-aid Highway program, transportation infrastructure needs and the impact of transportation on America's quality of life. In order to educate Congress on the issues related to highway and transit funding, AGC worked in support of the American Highway Users Alliance to create a publication entitled “The Road to Congress.”Copies of “The Road to Congress” have been provided to AGC Chapters and the grass roots network to share with candidates running for office and their staffs. This publication will also be useful during visits with members of Congress before the election and in the months prior to considering of the reauthorization legislation. For more information or to request a copy of the “Road to Congress,” contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

On October 3, the President signed the Emergency Economic Stabilization Act (EESA) of 2008. Members led the charge and AGC was one of the first business groups to become engaged in the debate. AGC greatly appreciates its members' 4,000 letters and unknown number of phone calls in support of this legislation.

A continuing resolution signed into law September 30 funds the federal government through March 6, 2009 and includes a provision that extends the Department of Homeland Security's E-Verify program. The E-Verify program offers employers an online tool to verify the legal status of workers and remains voluntary for new hires. AGC supported a 5-year extension of E-Verify, but is concerned about the accuracy and reliability of the program.  The extension prevents the program from expiring.The extension passed as a stand alone bill in the House only to fail to receive consideration in the Senate. Congress will need to address the short-tem extension early next year and it will likely become the launch pad for additional immigration reform debates.States may address the short-term extension by passing mandatory employment verification laws early next year. States that pass separate verification laws will negatively impact employers working in multiple states. AGC continues to advocate for comprehensive immigration reform, which would include federal preemption of immigration laws. Immigration is a federal issue and federal legislation must preempt the patchwork of conflicting and onerous state and local ordinances that have been and may be enacted.

Regarding the presidential race, pundits are pretty clear about the uphill battle McCain faces.  Charlie Cook, publisher of the Cook Report summed it up as follows: “Since early September this race has shifted rather dramatically in Obama's favor. As long as the focus is almost exclusively on the economy, this race is almost unwinnable for McCain. It would take a major external event, the proverbial October Surprise, to shift the spotlight to national security or some other subject that would allow McCain to highlight his strengths.”  As of October 8, all major national polls on average show Obama up 5.6%.

The Senate Wednesday by a vote of 74 to 25 passed its version of the Emergency Economic Stabilization Act (EESA) of 2008 as an amendment to a tax extenders package, H.R. 1424.  In addition to the inclusion of a tax extenders package that includes business and energy tax extenders, the alternative minimum tax (AMT) patch, and additional disaster assistance, the primary difference between the bill the House defeated Monday and the Senate-passed bill is an increase in the FDIC insurance coverage to a maximum of $250,000.

The House and Senate have approved a sweeping set of acquisition reforms, some of which had been under consideration for the past two years. Provisions in the fiscal 2009 Defense authorization bill (S. 3001) would increase competition in contracting, tightening regulations on interagency procurements and mandate the establishment of a database to monitor companies that have faced criminal and civil actions.