Thirty-one transportation associations and groups recently sent a letter to Congressional leaders urging them to repeal a $7.6 billion rescission in Federal-aid highway contract authority scheduled for July 2020.
The rescission occurs under Section 1438 of the Fixing America’s Surface Transportation Act. It would affect balances from programs that states use for highway and bridge projects. As of September, there were $7.6 billion in unobligated balances that would be eliminated by rescission, according to the Federal Highway Administration.
“If the FAST Act rescission is allowed to execute, it will virtually wipe out all remaining contract authority available to states nationwide in the programs subject to the rescission,” the letter said. “In addition, if allowed to take place, the rescission will significantly reduce the budget baseline for surface transportation programs beginning in fiscal year 2021.”
The rescission causes cuts to transportation funding and delays in project construction, the letter said.
Canceling the FAST Act rescission will lead to economic competitiveness, efficient movement of goods, personal mobility, job creation, and improved quality of life, the letter said.
The association’s letter follows a similar one from the House of Representatives Committee on Transportation and Infrastructure earlier this month that also urged Congressional leadership to repeal the rescission.