The Consolidated Appropriations Act 2016 was signed into law on December 18, 2015, which includes a $1.1 trillion omnibus spending bill that funds the government until September 30, 2016, as well as a $680 billion tax package. On December 4, 2015, the same day the Highway Trust Fund was set to expire, the Fixing America’s Surface Transportation (FAST) Act was signed into law. What does this mean for construction in 2016 and beyond?
THE FAST ACT
Let’s take a closer look at the Fixing America’s Surface Transportation (FAST) Act. It’s been 10 years in the making—no more band-aids—providing a federal partner for long-term funding (5 years) with $61 billion to invest in the nation’s public transportation systems and authorizing more than $300 billion to repair and rebuild our nation’s roads, bridges, and highways. Not since 2005 has there been a certainty for planning to make progress on the critical projects needed to shape up our transportation infrastructure.
In addition, the FAST Act will mostly maintain current programs and make way for some new provisions, such as streamlining the approval process for infrastructure and manufacturing projects, plus establishing a new National Surface Transportation and Innovative Finance Bureau to act as a one-stop-shop for states and local governments to receive federal funding, financing, or technical help.
Omnibus2
SPENDING BILL SIGNED
The Consolidated Appropriations Act 2016, referred to as the Omnibus Bill, contains 12 appropriations and additional legislative language, such as reforms to the Visa Waiver program, a lifting of the ban on U.S. oil exports, and the reauthorization of U.S. intelligence activities. With respect to construction, the spending bill contains the following:
Transportation: The bill includes $18.7 billion in discretionary appropriations for the Department of Transportation (DOT). The bill also provides DOT with $56.4 billion in “obligation limitation” funding for surface transportation and safety programs. Within this total, the legislation provides $500 million for the Transportation Investment Generating Economic Recovery (TIGER) program, which funds competitive grants for state and local road, transit, port, and railroad construction projects.
Highways: The bill provides the full amount authorized by the recently enacted FAST legislation–$42.4 billion. This funding will provide for critical construction and improvements to the nation’s roadways to improve safety, lessen travel times, and help increase commerce to boost our economy.
Transit: The bill contains $11.8 billion for the Federal Transit Administration (FTA), meeting the level authorized by the FAST legislation. The legislation allows $9.3 billion in state and local transit grant funding from the Mass Transit Account of the Highway Trust Fund, to help local communities build, maintain, and ensure the safety of their mass transit systems. The legislation also provides a total of $2.2 billion for Capital Investment Grants (New Starts), full funding for state and local “Small Starts” grants, and funding for all current “Full Funding Grant Agreement” projects within the FTA. These programs provide competitive grants for major transit investments, including rapid rail, light rail, rapid transit, and commuter rail, that are planned and operated by local communities.
Michael Melaniphy, American Public Transportation Association (APTA) president and CEO, states: “A well-funded, long-term surface transportation authorization is critical to the economic competitiveness and prosperity of our nation’s communities. To sum it up, wherever public transportation goes, community grows.” Hopefully, growing communities will mean growth in economic prosperity and ultimately an increase in construction needs and jobs. ■
For More Information: For more about the Fixing America’s Surface Transportation Act, visit www.transportation.gov/fastact. For detailed information on the 12 appropriations, check out the U.S. House of Representatives Committee on Appropriations at appropriations.house.gov.
_________________________________________________________________________
Modern Contractor Solutions – January 2016
Did you enjoy this article?
Subscribe to the FREE Digital Edition of Modern Contractor Solutions magazine.
BUTTON_ClickHere