President Obama signed the American Recovery and Reinvestment Act of 2009 on February 17, providing more than $49 billion in transportation infrastructure funding for highways, bridges, transit and airports. A majority of the funds will be distributed to states using existing transportation funding formulas, while other grants are available through competitive application processes.

Pennsylvania Transportation Secretary Allen Biehler, testifying before the Pennsylvania House Appropriations Committee last week, stated that PennDOT stands to receive at least $1.026 billion for roads and bridges and $343 million for transit, with $233 million of the transit money going directly to urban systems. As in most states, PennDOT has identified a number of important transportation infrastructure projects that could commence within the next three months in order to maximize the immediate effect on the local economy. Candidate projects include rehabilitation of the Girard Point Bridge in Philadelphia, work to widen PA-28 near Pittsburgh and rehabilitation of Broad Street SEPTA subway stations in Philadelphia. In compiling a final list of projects, PennDOT is required to meet with metropolitan and regional planning organizations.

The American Recovery and Reinvestment Act of 2009 will serve as a bridge for transportation funding until later this year when Congress considers another six-year bill authorizing federal transportation spending. The Act contains detailed requirements as to how the funding can be spent and how the grant application processes will be administered. Among its provisions:

$27.5 Billion for Highway Infrastructure Investment

  • Funds are distributed to states by formula for the restoration, repair and construction of highways and for certain passenger and freight rail transportation and port infrastructure projects. Thirty percent of the funds are suballocated within each state by population area.
  • Of the funds not suballocated by population area, states must obligate at least 50 percent within 120 days of distribution, or else the Secretary of Transportation will redistribute the unobligated portion of the 50 percent to compliant states.
  • Any funds not obligated by states within one year of distribution will be redistributed to compliant states. The Secretary of Transportation may grant an extension of this one-year period to states that encountered extreme conditions or extenuating circumstances in distributing the funds.
  • Three percent of the funds apportioned to states shall be set aside for transportation enhancement activities.
  • States should give priority to projects that are projected for completion within three years and are located in economically distressed areas.
  • Set asides include:
    • $105 million for the Puerto Rico highway program
    • $45 million for the territorial highway program
    • $60 million in competitive grants for capital expenditures for ferry boats and ferry boat terminals
    • $310 million for the Indian Reservation Roads program
    • $170 million for the Park Roads and Parkways program
    • $60 million for the Forest Highway Program
    • $10 million for the Refuge Roads program
    • $20 million for highway surface transportation and technology training
    • $20 million for disadvantaged business enterprise bonding

$1.5 Billion for Supplemental Discretionary Grants for a National Surface Transportation System

  • The Secretary of Transportation will distribute funds as discretionary grants to state and local governments or transit agencies on a competitive basis for projects that will have a significant impact on the nation, a metropolitan area or a region.
  • Eligible projects consist of those included under Title 23 of the US Code (interstates, overpasses, bridges) and those included under Chapter 53 of Title 49 of the US Code (public transportation, passenger and freight rail, port infrastructure).
  • The Secretary of Transportation will ensure an equitable geographic distribution of funds and an appropriate balance addressing urban and rural needs. Individual grants will be not less than $20 million (unless waived by the Secretary) and not greater than $300 million.
  • Not more than 20 percent of the funds may be awarded to projects in a single state.
  • Priority will be given to projects that require federal funds in order to complete an overall financing package and to projects that are expected to be completed within three years of enactment.
  • The Secretary ofTransportation will publish the criteria for grant applications within 90 days of enactment, require all applications for funds to be> submitted within 180 days of publishing the criteria, and announce all projects to be funded not later than one year after enactment.
  • All projects must comply with the applicable prevailing wage law.

$8 Billion for Capital Assistance for High-Speed Rail Corridors and Intercity Passenger Rail Service

  • The Secretary of Transportation will give priority to projects that support the development of intercity high-speed rail service.
  • Within 120 days of enactment, the Secretary of Transportation will issue interim guidance to applicants covering grant terms, conditions and procedures until final regulations are issued.

$1.3 Billion for Capital Grants to the National Railroad Passenger Corporation

  • Allows the Secretary of Transportation to make capital grants to Amtrak, $450 million of which will be used for capital security grants.
  • Priority for the non-security funds is given to projects for the repair and upgrade of railroad assets and infrastructure and to capital projects that expand passenger rail capacity, with not more than 60 percent of the funds for use along the Northeast Corridor.
  • Funds will be awarded within 30 days of enactment and may not be used to subsidize Amtrak's operating losses.

$6.9 Billion for Transit Capital Assistance

  • Funds are distributed by existing urban and rural transit formulas for capital projects to develop and revitalize public transportation systems. Funds will be used to purchase buses and equipment needed to provide additional public transportation services and to make improvements to intermodal and transit facilities.
  • States and urbanized areas receiving grants must obligate at least 50 percent of the funds within 180 days of distribution, or else the Secretary of Transportation will redistribute the unobligated portion of the 50 percent to compliant grantees using whatever method the Secretary deems appropriate.
  • Any funds not obligated by states or urbanized areas within one year of distribution will be transferred to compliant grantees using whatever method the Secretary of Transportation deems appropriate. The Secretary may grant an extension of this one-year period to grantees that encountered extenuating circumstances in distributing the funds.

$750 Million for Fixed Guideway Infrastructure Investment

  • Funds are apportioned by formula not later than 21 days after enactment for capital projects to modernize or improve existing fixed guideway systems, including the purchase and rehabilitation of rolling stock, track, line equipment, structures, preventative maintenance, and other operational and maintenance equipment and facilities.
  • Grantees must obligate at least 50 percent of the funds within 180 days of distribution, or else the Secretary of Transportation will redistribute the unobligated portion of the 50 percent to compliant grantees using whatever method the Secretary deems appropriate.
  • Any funds not obligated by grantees within one year of distribution will be transferred to compliant grantees using whatever method the Secretary of Transportation deems appropriate. The Secretary may grant an extension of this one-year period to grantees that encountered extenuating circumstances.

$750 Million for Transit Capital Investment Grants

  • Funds are distributed by the Secretary of Transportation on a competitive basis for new commuter-rail or other light-rail systems to increase public use of mass transit.
  • Priority is given to projects that are currently in construction or are able to obligate funds within 150 days of enactment.

$1.1 Billion for Grants-in-Aid for Airports

  • Funds are distributed by the Secretary of Transportation on a competitive basis for airport improvement projects and installing runway incursion prevention devices.
  • Priority will be given to projects in which grants will supplement other forms of funding and to projects that can be completed within two years of enactment.
  • The Secretary of Transportation will award at least 50 percent of the funds within 120 days of enactment and all funds within one year of enactment.

$200 Million for Supplemental Funding for Airport Facilities and Equipment

  • Funds are available through grants and cooperative or other transaction agreements for improvements to airport power systems, control centers, and navigation and landing equipment.
  • Priority is given to projects that can be completed within two years of enactment.
  • Within 60 days of enactment, the FAA will establish a process for applying, reviewing and awarding grants.

$1 Billion for Aviation Security

  • Funds for the procurement and installation of checked baggage explosive detection systems and checkpoint explosives detection equipment.
  • The Secretary of Homeland Security will report a plan for expenditure of these funds within 45 days of enactment.

FEMA — State and Local Programs

  • $150 million for Public Transportation Security Assistance and Railroad Security Assistance.
  • $150 million for Port Security Grants.

Other Provisions

  • All iron, steel and manufactured goods used in the above projects must be produced in the United States unless there is insufficient quantity or quality of such goods or unless doing so would increase the cost of the overall project by more than 25 percent.
  • All laborers employed in the above projects must be paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the Secretary of Labor.