Summary
HR 3617 extends the current federal authorization for spending on federal -aid highways, transit projects and highway safety, until the end of the year.
The bill does not address the rescission of $8.7 billion in contracting authority scheduled to take place next week by the Federal Highway Adminstration. This enacted in the 2005 SAFETEA-LU and amended in 2007.
Analysis
Preventing rescission is critical. Pulling $8.7 billion from these projects means that on October 1 they will effectively shut down.
The import is clear and should be more widely discussed. Shutting down these projects puts the traveling public at risk. A great deal of these funds are designated in improving highway safety such as bridge and other infrastructure work.
Hopefully the Senate will address the rescission matter. The Senate has a proposal approved by three committees that would extend funding for 18 months as requested by the Administration.
Failure to address the issue means real dollar loss for state transportation projects, and would negate the positive effects of the recovery act. Translated that means that states will suffer in terms of job creation and related spending.
Proving once again that Congress can talk but not walk.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
