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Lawmakers and construction executives are turning their attention to the next federal highway bill before the current authorization expires later this year.
Associated Equipment Distributors, an international trade organization based in Schaumburg, Illinois, hosted leaders of the House Transportation and Infrastructure Committee on March 2 ahead of CONEXPO in Las Vegas to discuss the next reauthorization of surface transport.
Committee Chairman Sam Graves, R-Mo., and Ranking Member Rick Larsen, D-Wash., rallied industry members to pressure their lawmakers to sign the next highway bill before the current law expires on Sept. 30.
Congress faces pressure to renew the program as a $1.2 Trillion Jobs and Infrastructure Investment Act is nearing the end of its authorization period this fall at the end of the fiscal year. Construction executives have said the next package could include higher investment levels and help extend the current transport construction cycle.
Here, Daniel Fisher, AED’s senior vice president of government and external affairs, talks to Construction Dive about the status of the bill, details of the upcoming legislation and challenges ahead of the deadline.
This interview has been edited for brevity and clarity.
CONSTRUCTION DIVE: What is the status of the permit invoice?
DANIEL FISHER: The current surface transportation law will apply until September 30, 2026.
Daniel Fisher
Courtesy of partner equipment dealers
Congress must act before the expiration to avoid a lapse in the authorization of the highway program, which would create great uncertainty for road and bridge projects. Bipartisan leadership on the House Transportation and Infrastructure Committee is currently drafting a surface transportation reauthorization bill with the hope that the legislation will clear the committee this spring.
The Senate Environment and Public Works Committee, which has primary jurisdiction over the federally-aided highway program in that chamber, will likely draft its own bill for consideration.
What do you expect to see there?
AED expects the next surface transportation bill to be five years, hoping to increase funding. We would like to see a bill of about $550 billion.
The legislation will focus on roads and bridges as well as transit and rail. We also expect permitting reform provisions, building on previous attempts to expedite environmental reviews.
Also, we will likely see a national registration fee for electric vehicles to ensure they pay Highway trust fund.
What obstacles do you see?
There are several obstacles.
One is the calendar. There are limited legislative days between now and Sept. 30, and without a bill in either chamber, lawmakers will have to work quickly to complete their work in a timely manner.
The second is funding. The road trust fund deficit must be addressed.
The Congressional Budget Office projects that the Highway Trust Fund will be depleted by 2028, with a cumulative deficit reaching $280 billion by 2034. To ensure the continued solvency of the Highway Trust Fund, Congress will need to identify alternative revenue sources or continue to rely on transfers from the General Fund.
Finally, there is politics. With a deeply divided House and needing 60 votes in the Senate, the legislation will have to be truly bipartisan. Keeping this bipartisan coalition together throughout the process is difficult and could be a leadership challenge.
What do you hope to get out of it?
For equipment dealers, we want a fully funded long-term invoice. The longer the duration and the greater the investment, the more security contractors will have to purchase new equipment.
What would you say to contractors looking at this? What was the general tone of the conversation at this event?
The overall tone of the event was very positive.
It is clear that Chairman Graves and Ranking Member Larsen are committed to moving a bipartisan surface transportation reauthorization through the House in the coming months. Both have been through many reauthorizations and understand what needs to be done and what needs to be done to get to the finish line.
It won’t be easy, but it will take the involvement of the entire construction industry to push the legislation across the finish line by reaching out to lawmakers, coming to Washington, DC, to meet and argue for the urgency to complete work on this bill before the end of the fiscal year on September 30.
