States See Extension Of Transportation Aid AASHTO says highway bill lasting only six months would delay $2.1 billion in projects
The clock is ticking for the federal highway program and the construction firms that rely on it. State transportation agencies are anxiously keeping one eye on Congress, hoping lawmakers will avert a cutoff of federal highway funds looming on Sept. 30. That deadline stems from the 1998 Transportation Equity Act for the 21st Century. The massive bill that has pumped more than $220 billion into highway and transit programs since its 1998 enactment expires on that date. Past multiyear highway bills also ran out before Congress passed new ones and money continued to flow. But this time, things are different: TEA-21 has a provision that prevents the Federal Highway Administration from reimbursing states for funding obligations they incur after the statutes last day.
If that worst case comes true, "Wed be demobilizing projects," says Douglas B. MacDonald, Washington Transportation Secretary. "Thered be all kinds of craziness in the project delivery system. All that does is cost taxpayers money."