December 22, 2009

The Senate might still be in session, but SGA is taking a break until January. Enjoy the last Washington Update of 2009 and happy holidays!

New Infrastructure Funding Expected in a "Jobs Bill" Next Year
SURFACE TRANSPORTATION PROGRAMS EXPECTED TO GET AN EXTENSION

Both President Obama and Congressional leaders have expressed support for increased infrastructure spending in an effort to improve lagging unemployment rates. Before wrapping up business for the year, the House approved the Jobs for Main Street Act of 2010 by a vote of 217-212. The Senate is expected to take up the bill in January with the hope of getting it to the President's desk no later than early February.

The House bill would provide $37.3 billion for transportation programs, including $27.5 billion for highways and $8.4 billion for transit. Similar to the American Recovery and Reinvestment Act, the jobs bill provides 100% federal match for funding, 3% set-aside for Transportation Enhancements, and allows for sub-allocation to metropolitan areas. There is also flexibility for up to 10 percent of transit funding to be used for operating expenses. In addition to funding, the legislation incorporates the Surface Transportation Extension Act of 2009, which extends SAFETEA-LU through September 30, 2010. This would provide surface transportation programs with $53.3 billion, which was the level assumed in the FY 2010 budget resolution. Approximately $19.5 billion in interest payments to the Highway Trust Fund would also be restored by the legislation.

Transportation for America had pushed for the jobs bill to prioritize road and bridge maintenance, which can be spent quicker and creates more jobs than new capacity, as well as a higher metropolitan sub-allocation. While T4America will continue to push for these changes in the Senate version, the coalition applauded the inclusion of flexibility for transit operating support and the 9-month SAFETEA-LU extension. Congress had been contemplating a two-year extension of current transportation law, which would have postponed for too long the major policy changes that are needed to meet the transportation needs of the 21st century.

The House was able to act quickly on this bill by amending HR 2847, the FY 2010 appropriations legislation for the Departments of Commerce, Justice and Science and using it as a vehicle for the jobs bill. The Senate is expected to begin working on the bill shortly after the New Year.

Congress Approves Final FY2010 Appropriations Bill
MEASURE INCLUDES EXTENSION OF SAFETEA-LU

The final FY 2010 appropriations bill was approved by the House, 395-34, last Wednesday. The Defense spending bill traditionally provides funding for the Pentagon and war operations, but was also used as a vehicle this year for all remaining year-end business. The legislation extends several unrelated policies until February 28, 2010, including the current national surface transportation law, SAFETEA-LU. This extension gives Congress time to approve their jobs bill, which includes an additional extension and significant infrastructure funding. It also pushes the expiration of the current authorization until after the Administration releases their FY 2011 budget request.

On Saturday, the Senate voted 88-10 to approve the $636 billion FY 2010 Defense spending bill and the President is expected to sign the legislation into law soon. In the meantime, transportation programs have been extended by another continuing resolution until December 23.

Congress Approves Omnibus Spending Package with THUD Bill as Vehicle
$67.9 BILLION IN DISCRETIONARY FUNDING INCLUDED IN TRANSPORTATION-HUD BILL

Congress has approved an omnibus spending package encompassing 6 of the 12 annual spending bills for FY 2010. The conference report on the FY 2010 Transportation, Housing and Urban Development spending bill was used as the vehicle for moving the measure. The overall legislation provides $446.8 billion in discretionary spending, with $67.9 billion included for Transportation and HUD programs. This is a $13.4 billion increase over the fiscal 2009 level.

Transportation
The transportation language included in the final agreement is similar to the Administration's request. The bill provides $41 billion for highways, $10.7 billion for transit, $1.6 billion for Amtrak, and in a significant bump over the Administration's request, $2.5 billion for high-speed rail projects. The bill also includes $600 million for grants to support significant multi-modal transportation projects.

The final conference report does not include language regarding a National Infrastructure Bank as proposed by the Administration. The Conference Committee cited the complexity of the issue as the reason for leaving it out of the appropriations bill for FY 2010. Other new changes include a mandate for Amtrak to implement a policy for checking firearms, a separate account for the Amtrak Inspector General to fund oversight of the national passenger rail system and new authority for the Federal Transit Administration to enter into multi-year federal funding commitments to keep large transit projects moving. Finally, language from Senator Mark Warner was included that instructs U.S. DOT to start the process of developing and tracking progress on a set of national transportation performance measures, a move Smart Growth America applauded.

Housing and Urban Development
The Housing and Urban Development section of the conference bill includes $4.45 billion for Community Development Block Grants, which is more than what was provided in the Senate bill, but slightly less than what was requested by the Administration. The Administration's new Sustainable Communities Initiative receives $150 million, as requested, most of which will be used to fund a competitive sustainable planning grants program. The funding for the new sustainability program will be a set aside within the Community Development Block Grant program.

Several programs received funding in the omnibus package, despite the Administration's request to cancel funding. This includes the Brownfields Economic Development Initiative (BEDI) program, which received $17.5 million, which Smart Growth America advocated in support of funding, and HOPE VI, which received $200 million. The Administration's new Choice Neighborhoods program that is intended to replace HOPE VI was provided with $65 million.

*Up to this amount can be transferred from high-speed rail funds

Secretary LaHood Announces First Funding through New Livability Initiative
$280 MILLION AVAILABLE FOR STREETCAR AND BUS PROJECTS

The first funding through the new Livability Initiative at the Department of Transportation was announced on December 1. Transportation Secretary Ray LaHood said that $280 million would be made available in early 2010 for a variety of urban circulator projects, including streetcars, buses, and bus facilities. This is the first funding for the development of sustainable communities to come out of the new interagency partnership between the Department of Transportation, Department of Housing and Urban Development and Environmental Protection Agency.

The money for these grants will come from two sources: unallocated discretionary New Starts/Small Starts Program funds and unallocated discretionary Bus and Bus Facility funds. Approximately $130 million will be available from the first pot of money, but will be limited to a maximum of $25 million per project. Projects eligible for this pot of money will focus on streetcar and bus projects to promote walkable, mixed-use development. From the second pot, $150 million will be available will projects that focus on providing job-access and neighborhood redevelopment.

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