Transportation policy: Obama signs economic stimulus package into law
Jeff Berman, Group News Editor -- Logistics Management, 2/17/2009
WASHINGTON and DENVER—President Barack Obama officially signed the American Recovery and Reinvestment Act of 2009 into law today, paving the way for the United States economy to get back on track. And the role of transportation infrastructure development figures significantly into the bill as a way to stimulate economic growth and job creation.
While the House and Senate versions of the bill were $819 billion and $838 billion, respectively, the final version came in at $789 billion. The amount dedicated to transportation infrastructure investment is $64.1 billion, according to the House Committee on Transportation and Infrastructure.
“We know we cannot build our economic future on the transportation…networks of the past,” said Obama earlier today prior to signing the legislation at the Denver Museum of Nature & Science. “We are remaking the American landscape with the largest new investment into the nation’s infrastructure since Eisenhower built an interstate highway system in the 1950s. Because of this investment nearly 400,000 men and women will go to work rebuilding our crumbling roads and bridges, preparing our faulty dams and levees…upgrading mass transit, building high-speed rail lines that will improve travel and commerce throughout our nation.”
In terms of specific funding allocations dedicated to transportation infrastructure initiatives, highlights of the bill include:
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$27.5 billion for highway and bridge construction projects;
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$8.4 billion for mass transit, public transportation projects;
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$8 billion for high-speed rail projects
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$1.3 billion for aviation projects;
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$4.6 billion for water infrastructure projects undertaken by the U.S. Army Corps of Engineers and $100 million for the Maritime Administration; and
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$1.5 billion for a discretionary program for large multi-modal and intermodal projects in the form of competitive grants to state and local governments for transportation investments—including highway, rail, transit, or port infrastructure.
Regardless of the final amount parsed out for transportation infrastructure, along with the outlay for highway and bridge construction projects, other monies will go towards modernizing existing transit systems, and improving intermodal facilities and public transportation equipment, among other areas.
“Transportation infrastructure pays off in so many ways that the argument for budget busting deficit spending is probably stronger for transportation infrastructure than it is for most anything else,” said Leslie Blakey, Executive Director, Coalition for America’s Gateways and Trade Corridors. “Construction puts people to work and the efficiency of the transportation network improves the ability for us as a country to improve and get more production out of our economy.”
Despite the funding allocated towards transportation infrastructure in this bill, the difference between the final tally and what is needed is wide. In December 2008, the American Association of State Highway and Transportation Officials (AASHTO) said that—based on the results of a survey sent to the Departments of Transportation for the District of Columbia and all 50 states—there are 5,148 “ready-to-go” transportation projects worth more than $64 billion.
AASHTO said that these projects are considered “ready-to-go,” because they could be under contract within 180 days and support an estimated 1.8 million jobs if sufficient funding were available. And the National Governors Association recently informed President Obama that there are currently approximately $150 billion in transportation projects ready to build, with each $1 billion in spending able to produce 40,000 jobs.
The potential for job creation was cited by the House Committee on Transportation and Infrastructure, whom stated that the $64.1 billion of infrastructure investment will “sustain more than 1.8 million jobs and $322 billion of economic activity. [And] each $1 billion of Federal funds invested in infrastructure creates or sustains approximately 34,779 jobs and $6.2 billion in economic activity.”
While the funding currently allocated for highway and bridge construction projects falls short of what is needed, it appears to be a step in the right direction, said Janet Kavinoky, director of transportation infrastructure for the U.S. Chamber of Commerce.
“This is a good start, but there is much more demand out there,” said Kavinoky. “It is a down payment on what Congress has to turn around and do, which is deal with the major re-authorization bills towards the end of this year. I want to see the recipients of this stimulus funding put the dollars out so quickly that it defies the expectations of people who feel the money is not going to go out very fast…and I would like to be able to go back to Congress and say this is why you need to make sure we have very strong authorization bills for highway and transit, for water, and aviation, and additional assistance for rail. The need is clearly out there.”
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Agree with Michael. This bill is all about Nancy Pelosi and her croonies lining the pockets of the lobbiest that rule them. I think it will do little to help the economic situation and only create a greater burden on those of us that actually pay our taxes. FDR had the "New Deal" and now Obama has the "Raw Deal". Wake up voters, you have some owrk to do in the future.....
Tony Andrews - 2009-18-2 16:54:00 EST -
So, Nick, what you are saying is that everyone who is jobless and soon to be homeless is welcome at your house until we find housing and jobs for them?
carol virnala - 2009-18-2 11:58:00 EST -
$8 billion for ONE high speed rail project from L.A. to Las Vegas, Nevada. Who's the Senator from Nevada? Harry Reid, Senate Majority Leader.
The only reason why this "Spendulous Package" was rushed through Congress was the more that citizens learned about what was in it, the more people became against it. Too many pet projects to count. We will be paying the Chinese for the next 30-40 years. With interest, this bill amounts to over $1.2 trillion. More than 30% of our total annual budget for one year! Since this bill, I have become a big fan of term limits. It's time for a wholesale replacement of current members of Congress.
Richard Murphy - 2009-18-2 11:20:00 EST -
Paving the way to America's economic comeback? We'll see about that. I, for one, have not forgotten the lessons from my grandparents. When things are tough, you cut expenses, not add debt that NO one can predict how it will be re-paid.......
Ready to sign the impeachment petition in PA.
Nick Ottaway - 2009-18-2 11:10:00 EST
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