Warning of potentially devastating results on American construction, the American Association of State Highway and Transportation Officials (AASHTO) dispatched a second letter to Congress this week urging the repeal of an impending $7.6 billion revocation of highway contract authority.
As mandated by the 2015 Fixing America’s Surface Transportation (FAST) Act, the authority will be cancelled on July 1, 2020 if no further action is taken. A 42 organization coalition led by AASHTO is determined not to see that happen, however. They have asked that the repeal be instituted by year’s end.
“It is especially critical to repeal this provision during the current calendar year because in the worst-case scenario, states may be forced to de-obligate existing projects in order to provide the necessary amount of contract authority to be rescinded,” the letter said. “If this happens next spring or summer at the peak of the construction season, the effect would be especially devastating.”
Federal Highway Administration data released last week revealed that the total unobligated balances of state highway funding subject to the rescission stood at a little more than $5.35 billion at the end of September. While cuts were called for under the 2015 FAST Act, AASHTO warns such data shows that these automatic funding cuts could lead to a further minimum of $2 billion yanked from federal-aid highway contract authority held by states next year.
Jim Tymon, executive director of AASHTO, put it another way.
“In short, this is rescinding more federal-aid highway contract authority than states have,” Tymon said. “Once these dollars go away, they will not otherwise be invested in our nation’s transportation system.”
Under the change, AASHTO says that Texas alone would have to return more than $960 million to federal coffers if the rescission goes through. With such financial straits looming, AASHTO has asked that the repeal be pushed through, no matter the source.
“We ask for this action immediately as part of any moving legislation, including FY 2020 appropriations, the National Defense Authorization Act, or another year-end vehicle,” the letter said.