Government Contracting and Engineering Industry Alert: Highway Bill Passes Senate

Last night, the Senate approved a $10.9 billion bill that will fund highway programs until May 2015. Without this bill, a federal funding cutback of at least one-third would have started today. The plan will be funded by changes in pension accounting and higher customs user fees, neither of which are linked to transportation nor will provide any additional funds to account for inflation in future years. While the bill is not a win for the industry, it is better than the funding reduction that was only hours away.

If you are concerned for our infrastructure, it is imperative to contact your federal representatives to reinforce the importance of this funding and the need for a sustainable source of revenue for these projects in order for the U.S. to maintain its competitive edge. 

Senate Majority Leader Harry Reid said, “[A]s soon as I can get to it,” the Senate will begin considering alternative funding measures that are sustainable. This needs to be a priority for our current and future federal representatives. I encourage you to reach out to your representatives during the upcoming election period to see where they stand on this important issue.

I also encourage you to consider allocating funds to your industry PACs and to urge them to be proactive in assisting representatives with creating a sustainable funding plan for our infrastructure. This issue is too important to sit back and hope our politicians can create a plan on their own.

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If you have any questions or comments about this topic, please contact David E. Shaffer, Director, Government Contracting Industry Group, at Email or 215-441-4600.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.