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Federal Highway Administration

Federal Transportation Law Expired Over the Weekend: What’s Next?

9:24 AM PST on March 1, 2010

A new month begins today without rules in place to govern federal transportation programs, thanks to an objection by Sen. Jim Bunning (R-KY) to quick approval of a short-term extension of existing law.

natchez_trace_parkway_sign.jpgThe Natchez Trace Parkway, where trail construction is set to stall today thanks to inaction on federal transport law. (Photo: TheFunTimesGuide.com)

The
consequences of the delay could include forced furloughs for nearly
2,000 U.S. DOT employees, according to an agency release this morning,
as well as a shutdown of federal funding for road, bridge, bike-ped,
and transit projects. The processing of money for stimulus construction
work and state-based road safety groups such as Mothers Against Drunk
Driving (MADD) are also set for an interruption.

Nevertheless, the situation remains fluid. House transportation
committee chairman Jim Oberstar (D-MN) has secured a promise that
future Senate legislation will assuage his panel's frustration with a provision in the pending jobs bill that would apply 2009 earmarks to $932 million in 2010 transportation grants.

That agreement helps pave the way for House passage of the Senate jobs bill,
perhaps as soon as Tuesday. If both chambers can agree quickly on that
jobs bill, which would extend the 2005 federal transport law until
2011, the flow of federal funding for local projects likely would turn
back on without senators having to break through Bunning's one-man
filibuster.

"We hope Congress can move
this legislation as early in the week as possible so reimbursements to
the states can resume," John Horsley, executive director of the
American Association of State Highway and
Transportation Officials (AASHTO), said in a statement late Friday.

In
the meantime, Oberstar's committee has released a rundown of how the
imperiled extension would affect U.S. infrastructure programs. Check it
out after the jump.

Consequences of Expiration of Federal Surface Transportation Programs

Highway Funding

-No reimbursements to States for Federal highway funds. The FederalHighway Administration (FHWA) will not be able to approve any newexpenditures from the Highway Trust Fund beginning on Sunday, February28th. This will prohibit FHWA from reimbursing States for any Federalhighway funds that they commit. Based on FHWA Trust Fund projections,this will impact a total of $768 million in highway outlays for theweek ending March 5th.

Highway Safety Funding

-No new MCSAP or New Entrant grants. The shutdown of the Federal MotorCarrier Safety Administration (FMCSA) will prevent the agency fromentering into new obligations for its 11 grant programs and fundingvouchers for work performed during the duration of the lapsedauthority. In particular, two highly visible programs, the MotorCarrier Safety Assistance Program (MCSAP) grants and the New Entrantgrants, would be greatly affected. The MCSAP program provides fundingto States to reduce the number and severity of crashes and hazardousmaterial incidents involving commercial motor vehicles. The New Entrantprogram provides funds to States to prevent unsafe motor carriercompanies from entering the industry. Based on FHWA Trust Fundprojections, this will impact a total of $10 million in FMCSA outlaysfor the week ending March 5th.

- All of NHTSA's Statehighway safety grant programs would shut down. In addition to thefurlough of its personnel, the National Highway Traffic SafetyAdministration (NHTSA) will shut down operations of Highway SafetyResearch and Development, National Driver Register, and Highway SafetyGrants and will stop paying all bills for the programs under theseaccounts. Based on FHWA Trust Fund projections, this will impact atotal of $16 million in NHTSA outlays for the week ending March 5th.

Transit Funding

-No ability to commit additional Federal transit funds. The FederalTransit Administration (FTA) will be unable to approve any new transitgrants from all transit programs that are funded out of the HighwayTrust Fund. This will prohibit States, transit agencies andmetropolitan planning organizations (MPOs) from receiving funds fromany of the following programs: Bus and Bus Facilities, Urban and RuralFormula, Metropolitan and Statewide Planning, Fixed GuidewayModernization, Formula Grants for Elderly and Disabled, Job Access andReverse Commute, New Freedom, and Transit in the Parks. Based on FHWATrust Fund projections, this will impact a total of $157 million in FTAoutlays for the week ending March 5th.

Furloughs

-Shutdown of Federal agencies and furloughs of more than 4,000 Federalemployees. The entire FHWA, the entire FMCSA, some portions of NHTSA,and some portions of the Research and Innovative TechnologyAdministration (RITA), will cease operations and furlough theiremployees (totaling more than 4,000 employees) beginning on Monday,March 1st.

American Recovery and Reinvestment Act (ARRA)

-ARRA "Recovery Act" Impact: Due to the furlough of FHWA employees, anyremaining obligation of highway funds by States may not be processed.This could cause States to lose some unspent ARRA funds, since on March2nd ARRA requires the redistribution of any highway funds not obligatedby a State.

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