Delay on Transportation Act Seems Likely

The House Ways & Means Committee has announced they will not take up a renewal of the soon to expire Surface Transportation authorization until after they have finished with Health Care Reform.

With Health Care now looking like it will extend into at least September (with the August Recess) it appears unlikely that Transportation will be not be finalized in time to prevent a lapse in September.

Look for an extension of current programs at current funding levels.

However, the Administration has proposed an 18 month extension.

Also complicating matters is the shortage in the Highway Trust fund that will begin to reduce spending next month if this is not fixed.

Transportation uncertainty is likely to delay transportation construction in states as they are unlikely to be able to make long-term project plans with uncertain funding.

Firms are likely to see lower new starts until this issue is respolved on a long term basis.