The House Appropriations Committee has approved the American Recovery and Reinvestment Act of 2009 by a vote of 35 to 22. The Act provides over $43 billion for transportation infrastructure, including highways and bridges, transit and airports. The priority given to projects that can be contracted within 120 days is an indication that cost-effective and verifiable involvement of the private sector through public-private partnerships will be essential to meeting the legislation's ambitious schedule for expenditures. Provisions mandating a requirement for using U.S.-produced steel and paying workers local prevailing wages help ensure a strong linkage between infrastructure investment and economic development. Among its provisions:
$3 billion For Grants-In-Aid For Airports
- Funds are awarded on a discretionary basis for airport improvement projects.
- Grantees must enter into contracts to make use of at least 50 percent of the funds within 120 days after award of grant.
$30 billion For Highway Infrastructure Investment
- Funds are distributed to states by formula, with 45 percent of the funds within each state being sub-allocated by population areas.
- States should give priority to projects that can be contracted within 120 days, are included in the Statewide Transportation Improvement Plan, are projected for completion within three years, and are located within economically distressed areas.
- States must obligate at least 50 percent of the funds within 180 days of distribution, or else the unobligated portion of the 50 percent will be redistributed to other states.
- States must obligate all funds by August 1, 2010, or else the unobligated funds will be redistributed to other states.
- Set asides include $300 million for Indian reservation roads, $250 million for park roads and parkways, $20 million for highway surface transportation and technology training, and $20 million for disadvantaged business enterprises bonding assistance.
- For states failing to obligate all funds by September 30, 2010, the Secretary of Transportation will withhold from those states five percent of certain funds appropriated for fiscal year 2011.
$300 million For Capital Assistance To States – Intercity Passenger Rail Service
- Funds are awarded on a discretionary basis for capital improvements to intercity passenger rail service.
- Preference is given to projects that can be awarded within 180 days of enactment, projects that support the development of intercity high-speed rail service, and FRA compliant locomotives.
$800 million For Amtrak Capital Grants
- Funds distributed by the Secretary of Transportation to Amtrak for projects that repair, rehabilitate, or upgrade railroad assets or infrastructure.
- None of the funds shall be used to subsidize the operating losses of Amtrak.
- Funds are to be awarded not later than seven days after enactment.
$6 billion For Transit Capital Assistance
- Funds will be distributed by existing urban and rural transit formulas (i.e. $5.4 billion for transit in urban communities and $600 million for transit in rural communities).
- Funds will be used to purchase buses and equipment needed to provide additional public transportation service and to make improvements to intermodal and transit facilities.
- For states failing to obligate all funds by September 30, 2010, the Secretary ofTransportation will withhold from those states five percent of certain funds appropriated for fiscal year 2011.
$2 billion For Fixed Guideway Infrastructure Investment
- Funds apportioned by formula not later than seven days after enactment.
- Funds will be used 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.
- For states failing to obligate all funds by September 1, 2010, the Secretary ofTransportation will withhold from those states five percent of certain funds appropriated for fiscal year 2011.
$1 billion For Capital Investment Grants
- Funds are awarded on a discretionary basis with a preference for projects currently in construction or that are able to award contracts within 120 days of enactment.
- Funds will be used for light rail lines, rapid rail, commuter rail, automated fixed guideway systems, or bus-way/high occupancy vehicle facilities.
- Grantees must enter into contracts to make use of at least 50 percent of the funds within 120 days after award of grant.
Miscellaneous Requirements
- Mandates that iron and steel used in construction and repair projects funded under the bill be produced in the United States unless found to be prohibitively expensive.
- Requires that federal contractors and subcontractors pay workers no less than the local prevailing wage.
- Prevents Governor Blagojevich from directing the use of funds provided in the package.
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