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. 51·çÁ÷ 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. 51·çÁ÷ will continue to work with the committee on funding options.
House Democrat Infrastructure Framework:
Major General Scott A. Spellmon has been nominated to be the next Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers (USACE). If confirmed by the Senate, Maj. Gen. Spellmon will replace the current commander, Lt. Gen. Todd Semonite, whose term expires on May 19, 2020. In his current role as Deputy Commanding General for Civil and Emergency Operations, he has been pivotal in overseeing the implementation of billions of dollars in natural disaster related construction recovery efforts. Confirmation hearings on this nomination are expected in the coming month. If confirmed, 51·çÁ÷ looks forward to continuing to work closely with Maj. Gen. Spellmon and USACE.
The U.S. Department of Transportation (USDOT) is seeking information to help it develop a National Freight Strategic Plan (NFSP) to address the needs of multimodal freight transportation. According to the Department, freight tonnage will increase by 44 percent between 2015 and 2045, placing increased strain on a system that moves approximately 18 billion tons of freight annually across the country via all modes of transportation. USDOT is also seeking information to help shape its ROUTES (Rural Opportunities to Use Transportation for Economic Success) initiative, as 46 percent of the nation’s highway fatalities occur on rural roads and where nearly half of all truck vehicle miles traveled occur. 51·çÁ÷ intends to submit comments on both proposals.
Nicole Nason, Administrator of the Federal Highway Administration (FHWA), will address the Highway and Transportation Division on during 51·çÁ÷’s 2020 Convention in Las Vegas this March. As FHWA Administrator, Nason is currently spearheading development of the Trump administration’s principles on FAST Act reauthorization. A leading traffic safety advocate, Nason headed up the National Transportation Safety Administration (NHTSA) during the George W. Bush administration and served in several other USDOT positions prior to her appointment to lead to organization. During the division meeting, Nason will give her insights into the outlook for reauthorization this year and highlight the Administration’s legislative priorities. Click here for more information and to register for the 2020 51·çÁ÷ Annual Convention.
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 51·çÁ÷ analysis of federal and federal-aid construction accounts for FY2020 can be found here.
51·çÁ÷ joined with our highway construction industry partners in a letter to key Congressional transportation leaders to urge support for allowing federal funding to be used to implement automated enforcement in highway construction work zones. The letter pointed out that most work zone fatalities and injuries can be attributed to speeding in work zones. Speed enforcement is effective at reducing speed, but when it is carried out by a law enforcement officer, that person is placed at risk too. Implementing automated enforcement systems in work zones is successful noting that Maryland’s implementation of automated enforcement in work zones resulted in an 80% reduction in speeding violations and fatalities have dropped by half since the program’s inception. Some states lack resources to implement the technology and federal funds cannot currently be used to support this life-saving technology.
Chairmen of Senate Finance and House T&I Report Progress
Congress has completed action on compromise omnibus appropriations legislation to fund government operations through the remainder of fiscal 2020 and the President has said he will sign the measure before the current continuing resolution expires on December 20. US Department of Transportation (US DOT) programs are included in the deal. The legislation funds the highway and transit programs at FAST Act authorized levels and includes an additional $2.676 billion from the general fund (see chart below). This is the third year in a row that these programs have received supplemental general fund dollars but since the supplemental funding is below last year’s amounts the net result is flat funding for the highway program and a net decrease in transit formula funding. The agreement also cuts transit Capital Investment Grants by $575 million below last year’s level. The Airport Improvement Program will be funded at $3.75 million, $400 million above authorized levels but down $100 million from FY 2019. Congress continues to favor the Build grant program, which funds multi-modal projects, by increasing the funding by $100 million above last year’s level to $1 billion. As this is the final year of FAST Act authorization, 51·çÁ÷ has made reauthorization a priority in this Congress to avoid future disruptions to highway and transit funding.
On Dec. 19, the Senate passed federal funding legislation that the House agreed to on Dec. 17. Pending President Trump’s signature, this measure will fully fund government operations through fiscal year (FY) 2020. Among the many 51·çÁ÷ priorities in this legislation, full funding for surface transportation programs at FAST Act authorized levels and an additional $2.676 billion from the general fund for highway and transit projects were included. Although this marks the third straight year Congress provided general fund dollars above authorized levels, this supplemental amount was slightly decreased in this year’s negotiations, resulting in flat funding for the highway program and a net decrease in transit formula funding. Congress also continues to favor the BUILD grant program, which funds multi-modal projects, by increasing program funding by $100 million above last fiscal year’s level to $1 billion. Additional information on funding for other transportation programs is included in the table below. As this funding is for the final fiscal year authorized by the FAST Act, 51·çÁ÷ will continue to urge Congress to enact a surface transportation reauthorization bill prior to the end of FY 2020 avoid any future disruptions to highway and transit funding.