Jobs legislation funds public works
Published on 03/29/2010
Earlier this month, President Barack Obama signed the HIRE act into law, which provides $17.5 billion in various tax incentives for businesses to hire new workers and moves $20 billion into the highway trust fund.
The highway trust fund is the primary source of federal funding for transportation infrastructure.
"This jobs bill will maintain crucial investments in our roads and our bridges as we head into the spring and summer months, when construction jobs are picking up," said President Obama after signing the act into law.
The legislation extends federal highway funding through SAFETEA-LU, which had expired in September of last year, until the end of the calendar year. The program has been extended repeatedly by lawmakers. On the official blog of the US Secretary of Transportation, Ray LaHood spoke of the benefits of workers being able to continue on highway projects without worrying about forced furloughs.
The act also authorizes $4.6 billion in Build America Bonds, which have to date provided valuable funding for many state and local infrastructure projects.
While the measure was spearheaded by the Democratic caucus, lawmakers from both sides of the aisle have applauded the reallocation of funds for the nation's highways.
U.S. Senator James Inhofe (R-OK) noted that the short-term, unpredictable infusions of funding into the highway system might have resulted in increased costs due to inefficiency, and was pleased to have a more stable source of funds. The act moves $8.7 million in highway contract funds directly to the states' discretion.
Others, while approving the bill, spoke of the need to go further with a more long-term highway authorization bill, akin to the original length of SAFETEA-LU, which lasted for several years after being enacted in 2005.
"This [authorization] bill should provide stable guaranteed funding for our highways from 2011 to 2016," said Greg Cohen, president and CEO of the American Highway Users Alliance.
Subsequent to the passage of the health bill, the House is now considering another jobs package that provides another $18 billion for infrastructure. More public works money may be on the way, given the Democrats' new strategy of passing many small bills instead of concentrating energy on omnibus legislation.
