New public works money absent in Senate jobs bill
Published on 02/19/2010
Frustrating the hopes of infrastructure advocates, the U.S. Senate's jobs bill, known as the Hiring Incentives to Restore Employment (HIRE) Act, will contain no new federal dollars for public works projects. After discussions on a variety of proposals, the body will consider a pared-down package of bills presented by Senate Majority Leader Harry Reid (D-NV) in the last week of February.
Senator Reid's $15 billion HIRE plan includes just two public works-related proposals. Most notably, it extends the federal highway trust fund with an account of $19.5 billion allocated from the general fund through the end of the calendar year. The bill will also allocate $2 billion for the Build American Bonds program.
The bill also includes a variety of tax credits and exemptions for businesses that hire new employees in 2010.
Senate Republicans are opposing the HIRE bill, labeling it fiscally irresponsible.
"I want to warn my colleagues not to be distracted by those who call this draft legislation a 'jobs' bill, because the reality is that this plan doesn't create more jobs, just more government and more debt," said Senator Judd Gregg (R-NH). "A perfect example is the highway extension plan, which transfers $47 billion from the Treasury's General Fund to the Highway Trust Fund over the next 10 years, adding to the nation's debt burden. In 2010 alone, a $19.5 billion transfer will instantly increase the federal debt by that amount. The Highway Trust Fund is insolvent, and instead of attempting to fix the problem, this draft bill would simply kick the can down the road and ask our children to pay for these transfers, with interest."
The GOP opposition is so strong that there is even discussion of a potential GOP filibuster when the debate is opened on the Senate floor.
The Senate Democrat caucus, however, has staunchly defended the infrastructure spending provisions with the backing of construction advocacy groups.
"If this HIRE Act is not passed...we'll see thousands of projects grind to a halt and thousands of jobs lost," said William Millar, President of the American Public Transportation Association.
Also drawing the Republicans' ire was the fact that Senator Reid's smaller HIRE bill undercut the larger bipartisan HIRE proposal crafted by Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, and the panel's ranking minority member, Sen. Charles Grassley (R-IA), that came with a $85 billion price tag over the next ten years.
While HIRE contains no new infrastructure spending, Senator Barbara Boxer (D-CA) has indicated that if the bill is approved by Congress, the body may take on a second jobs package that includes more infrastructure spending.
