In the US, the Senate Environment & Public Works Committee has made a key move by approving a six-year reauthorisation of the federal highway programme. This is a landmark political step and is likely to have been the subject of much cross-party negotiation. The move will be of major importance for the transportation construction industry, which has suffered badly from low levels of business in recent years. This six-year package will provide a major stimulus to business for contractors and equipment firms alike, providing new jobs, as well as helping deliver much needed improvements to the US transportation network. It is worth noting that the US Interstate system has been a key component in the country’s financial strength since 1956 when its construction began. And the importance of the US highway network for the country’s economy has not gone unnoticed in other countries with China in particular seeking to emulate the system.
This highway bill would deliver a substantial increase to the budget for the highway programme. For the fiscal year 2015 this would be US$38,441,000,000, rising to $42,594,000,000 for the fiscal year 2020. The bill would provide, “Long-term funding certainty for state and local governments to support multi-year transportation project investments.”
Other key points are that, “The existing consolidated core highway program structure from MAP-21 is maintained including: the National Highway Performance Programme; the Highway Safety Improvement Program; the Surface Transportation Program; and the Congestion Mitigation and Air Quality Improvement Programme.”
Industry bodies have expressed their views on the importance of this announcement, with The2764 International Bridge, Tunnel and Turnpike Association (IBTTA) saying the reauthorisation is crucial for the future of the US. The president of the American Road Transportation & Builders Association (ARTBA), Pete Ruane, said the body is particularly pleased by the measure’s provisions to establish a dedicated freight programme and to improve the transparency of how federal highway and bridge funds are utilised. However, Ruane cautioned, “It is now time for members of the House and Senate leadership, and the respective tax committees, to get serious about addressing the Highway Trust Fund’s recurring revenue shortfall. As this process moves forward, Congress needs to be clear there is nothing fiscally responsible about investment levels that fail to improve the conditions of the nation’s roads and bridges, or allow traffic congestion to get worse. Furthermore, it is totally irresponsible to repeatedly march the Highway
Trust Fund to the brink of insolvency.”
This highway bill would deliver a substantial increase to the budget for the highway programme. For the fiscal year 2015 this would be US$38,441,000,000, rising to $42,594,000,000 for the fiscal year 2020. The bill would provide, “Long-term funding certainty for state and local governments to support multi-year transportation project investments.”
Other key points are that, “The existing consolidated core highway program structure from MAP-21 is maintained including: the National Highway Performance Programme; the Highway Safety Improvement Program; the Surface Transportation Program; and the Congestion Mitigation and Air Quality Improvement Programme.”
Industry bodies have expressed their views on the importance of this announcement, with The
Trust Fund to the brink of insolvency.”
