On Jan. 29, the House Committee on Ways and Means, which has jurisdiction over federal financing tools and revenue raising measures, held a hearing on infrastructure financing options. The hearing ran in conjunction with the House Democrats releasing their framework for a broad infrastructure bill. The committee heard from a broad swath of witnesses who reiterated the need for a long-term federally supported surface transportation bill and stated that demand for bond financing in the private sector and amongst investors far outstripped the supply of available bonds. AGC expects the committee, in the coming months, to produce legislation or guidance on how to build on existing and/or expired infrastructure financing tools, such as Private Activity Bonds (PABs) and Build America Bonds, as well as explore revenue options for the highway and transit trust funds. AGC will continue to work with the committee on funding options.
On Jan. 7, the Senate confirmed AGC-backed nominee Jovita Carranza to lead the Small Business Administration (SBA). Administrator Carranza previously served as Treasurer of the United States at the Department of the Treasury under President Trump and served as Deputy Administrator for SBA under President George W. Bush. Prior to these appointments, Administrator Carranza spent 30 years working for the United Parcel Service (UPS). As administrator, she will be a key voice in shaping the administration’s pro-business agenda and advocating on behalf of the nation’s small businesses and contractors.
On Jan. 16, the Senate overwhelmingly passed (89-10) H.R. 5430, the United States-Mexico-Canada Agreement Implementation Act (USMCA). Senate passage of this legislation clears the way for U.S. ratification of the newly negotiated trade pact between the U.S., Canada, and Mexico. Once President Trump signs the deal into law, Canada’s ratification is the final step before full implementation of the agreement. AGC has long supported this measure due to the significant economic impact trade with our North American neighbors has on the construction industry. Implementation of this new agreement will help ensure that trade impacting the construction industry supply chain remains free, fair, and certain.
Trump Administration Proposal to Reform the Federal Environmental Review Process Will Fix Problems with Current Process While Maintaining Environmental Rigor, Construction Officials Say
On Jan. 9, the White House Council on Environmental Quality (CEQ) proposed important steps to streamline the National Environmental Policy Act (NEPA) process, which can be a circuitous, time-intensive, and costly environmental review step for many infrastructure projects. AGC is pleased the proposal appears to set clear timelines for completing reviews as well as clear up ambiguous wording and definitions that have led to litigation and delayed projects over the years – steps recommended by AGC in the prior comment period.
On Dec. 20, President Trump signed two spending packages totaling $1.4 trillion, preventing another year-end government shutdown and providing annual funding to all agencies of the federal government through September 30, 2020. Overall, federal construction accounts saw about a nine percent increase—or $12.4 billion—in funding in comparison to FY2019 funding levels. A full AGC analysis of federal and federal-aid construction accounts for FY2020 can be found here.
On Dec. 19, the House passed H.R. 5430, the United States-Mexico-Canada Agreement Implementation Act (USMCA). The passage of this legislation represents a major first step towards ratification of the newly negotiated trade pact between the U.S., Canada, and Mexico. The Senate is set to consider USMCA in the new year. AGC has long supported this measure due to the significant economic impact trade with our North American neighbors has on the construction industry. Ratification of this new agreement will help ensure that trade impacting the construction industry supply chain remains free, fair, and certain.
On Dec. 19, the Senate passed many non-funding AGC-backed measures as part of the agreement reached to fund the federal government through the remainder of fiscal year (FY) 2020. This measure is expected to become law, pending the President’s signature. This legislation extends authorization for the Terrorism Risk Insurance Program (TRIA) for seven years, as well as the National Flood Insurance Program for one year. These programs provide an important government backstop for natural and man-made disasters that would otherwise prevent commercial construction projects from moving forward. Additionally, this bill addresses many priorities in the tax, healthcare, and retirement space.
As the U.S. House may consider a suite of bills to spur action on per- and polyfluoroalkyl substances (PFAS)—a large and diverse group of chemicals—AGC and industry allies urged policymakers to rely on sound science before enacting a one-size-fits-all approach for properly dealing with the chemicals. Treating all PFAS substances the same, without any regard to science, would lead to unnecessary liability for contractors and result in wide-spread and possibly unnecessary remediation of soil and water. AGC urges that any federal actions on this subject address specific PFASs and take a consistent approach to establish risk-based standards.
On Nov. 19, the House passed AGC-backed legislation to reauthorize the Terrorism Risk Insurance Act (TRIA) for seven years. With private insurers pulling out of the marketplace after the Sept. 11, 2001 attacks, the inability of insurance policyholders to secure terrorism risk insurance contributed to a paralysis in the economy, especially in the construction and real estate finance sectors. Since its initial enactment in 2002, TRIA has served as a vital public-private risk sharing mechanism, ensuring that private terrorism risk insurance coverage remains available at virtually no cost to the taxpayer. The Senate will next consider the legislation, where AGC will continue to press for its passage.