House Passed $787 Billion Stimulus Bill, Senate to Vote Later Today
The U.S. House of Representatives voted on final passage of the American Recovery and Economic Act of 2009 this afternoon. The conference report passed 246-183. The Senate is currently debating and plans to vote on the $787 billion economic stimulus bill later today. The legislation is set to arrive on President Obama's desk no later than Monday -- the target Democratic leaders set last month for enacting it into law.
The compromise bill is made up of four broad categories:
- tax breaks for individuals and businesses;
- investments in health care and alternative energy;
- funding for "shovel-ready" infrastructure projects; and
- aid to state and local governments, including expanded benefits for individuals who are unemployed and lack health insurance.
Current estimates from the Congressional Budget Office suggest just under 65% of the $787 billion will be spent in the first eighteen months after enactment of the bill.
In particular, IRF members will be interested in the infrastructure funding included in the stimulus package. The bill contains several provisions to modernize roads, bridges, transit and waterways. The conference report includes $48 billion in highway, rail, transit and air transportation investments. The conference report provides the following:
Highways:
$27.5 billion was included in the conference report for the modernization of roads and bridges. This funding is a supplement in addition to highway funds already that appropriated for the 2009 fiscal year. Much of this funding will be distributed as grants using a formula set in current highway authorization law.
Half of the funding can be used on activities eligible under Federal-aid Highway Program’s Surface Transportation Program. The other half will be distributed to states in the same ration provided for in the 2008 SAFETEA-LU Reauthorization bill. In addition, the conference report provides that priority may be given to projects that are projected for completion in a three year time frame and are located in economically distressed areas.
Within the $27.5 billion for highways, the bill includes the following set-asides:
- $1.64 billion is set aside for transportation enhancement programs at national parks, forests and wildlife refuges, in addition to transportation investments for Indian tribes, among other things.
The remaining $25.86 billion will be distributed a follows:
- Roughly 70% of the formula funding provided for highway investments will be directed to states while 30% will be sub-allocated to local governments. Funding should be distributed to state Departments of Transportation within 21 days of enactment.
- Half of the funding directed to state governments must be obligated within 120 days of the grants’ distribution. The second half of the funding will be available for obligation for a full year from the date of enactment.
- Local governments’ funding distributions will be exempt from the 120 day obligation but are subject to the one year obligation for all funds.
- Highway funds made available in this bill are up to 100% federal and subject to federal laws and regulations.
Mass Transit:
The bill includes $8.4 billion for investments in public transportation.
Competitive Grants for Transportation:
The bill includes $1.5 billion for competitive grants to state and local governments for transportation investments. These grants will go to many different kinds of transportation investments – including highway, transit, rail or port infrastructure - but the bill requires that projects must have a significant impact on the nation, a region, or a metropolitan area. Grants under this designation shall not be less than $20 million or more than $300,000 million.
The Secretary of Transportation must create regulations and requirements for funding within 90 days of enactment. Applications for competitive grants will be accepted for 180 days after regulations are set by the Secretary. Grants for this funding will be made from the $1.5 billion appropriated directly to the program and must be awarded within one year of enactment. Priority will be given to projects that require a contribution of federal funds in order get financing and to projects expected to be completed within three years of enactment of this law.
Aviation:
The bill includes $1.3 billion for investments in our air transportation system.
Railroads:
The bill includes $9.3 billion for investments in rail transportation including Amtrak, High Speed and Intercity Rails.
Summary
The Recovery and Reinvestment Act addresses the challenges of the United States’ crumbling infrastructure by focusing on ready-to-go repairs and maintenance that aims to make its infrastructure systems more resilient and secure. This bill will not replace the need to redouble our efforts to ensure a timely and expedient reauthorization of the federal transportation bill later this year.