Obama backs second stimulus plan
Published on 02/19/2010
Speaking at a news conference earlier this month, U.S. House Transportation Committee Chairman James Oberstar (D. - Minn.) pushed for a second stimulus bill for the road and highway construction industry. He said that the federal government should spend $69 billion to update the nation's infrastructure and create much-needed jobs for the flagging industry.
In February, the federal government enacted the $787 billion American Reinvestment and Recovery Act (ARRA), which allocated $48 billion to states for transportation projects.
Oberstar and Subcommittee on Highways and Transit Chairman Peter A. DeFazio (D. - Ore.) submitted their proposal in a letter to President Barack Obama prior to the White House's Forum on Jobs and Economic Growth. According to the two Congressmen, money from the first stimulus package has been used on almost 8,000 projects nationwide and has saved or created approximately 210,000 jobs. The ARRA's success, they say, should be expanded since states currently have another $62 billion of 'shovel-ready' projects that can benefit from a second stimulus.
While initially hesitant to spend more federal money on transportation projects, the jobs summit concluded with President Obama advocating an additional $50 billion in infrastructure spending. The White House has proposed that unused money from the Trouble Asset Relief Program, more commonly known as the federal government's 2008 Wall Street bailout, be applied to the second stimulus package.
An assessment of the industry by the Associated General Contractors of America (AGC) predicts that 430,000 construction jobs will be lost nationwide in 2010 if there is a drop in federal stimulus assistance.
The AGC is currently lobbying Congress to pass legislation to replace funding from the recently-expired Safe Accountable Flexible Efficient Transportation Equity Act, which authorizes the investment of federal money in transportation infrastructure projects, and is leading a coalition campaigning for another stimulus.
"Boosting transportation investments will keep thousands of construction workers employed at a time when our economy can scarcely afford more layoffs," said Stephen E. Sandherr, AGC's chief executive officer. "The success of the stimulus in saving countless construction jobs will have been in vain if its sequel is underinvestment in our roads, bridges and transit systems."
In response to President Obama's call for more stimulus spending, Democrats in the U.S. House of Representatives drafted a $150 billion spending plan that sets aside $35 billion for transportation infrastructure projects. The U.S. Senate will not consider a second stimulus until the new year.
