Major domestic steel industry groups on Monday called on Congress to significantly fund state departments of transportation during the next phase of COVID-19 stimulus legislation.
Members of The American Institute of Steel Construction, American Iron and Steel Institute, Steel Manufacturers Association, The Committee on Pipe and Tube Imports and Specialty Steel Industry of North America wrote to U.S. Sens. Mitch McConnell (R-KY) and Chuck Schumer (D-NY) urging them to pass a broad infrastructure package as part of the latest round of efforts to kick-start the economy struggling after the effects of stay-at-home orders to combat the coronavirus.
“As a result of economic hardships in states across the country, DOTs have been forced to delay or cancel key infrastructure projects because of revenue shortfalls and the impact of COVID-19,” the groups wrote. “To ensure that these projects can proceed and create demand for essential products and support good wage jobs used in the transportation sector, the steel industry requests Congress include at least $37 billion for state DOTs in the future relief bill that will be considered by Congress this month. Ensuring that state DOTs have appropriate funding to carry out essential projects is an important first step in our nation’s economic recovery.”
The groups cited the American Association of State Highway Transportation Officials’ estimate that state DOTs will average a 30 percent loss in revenues over the next 18 months. That lost revenue would delay or cancel completely key infrastructure projects that require steel.
“We can put more Americans to work, improve quality of life in our cities, towns and rural areas and drive commerce and medical supplies across our nation by making infrastructure investment a critical component of the next stimulus package by including Buy America provisions and using domestically produced and fabricated steel,” the group wrote. “But, without immediate relief we fear that our national economy, and the steel industry that provides the backbone to that economy, will not recover.”