As Congress headed for its year-end recess, the House delivered encouraging news to the construction industry, approving a jobs-producing, $154-billion economic-stimulus measure that includes about $47 billion for infrastructure work in several market sectors. The bill, approved on Dec. 16 by a slim 217-212 margin, would be a follow-on to the American Recovery and Reinvestment Act. But the Senate, enmeshed in protracted action on major health-care legislation, will not even take up a jobs bill until it returns in January from its break.

Senate Assistant Majority Leader Richard Durbin (D-Ill.) and Democratic Policy Committee Chairman Byron Dorgan (N.D.) are gathering jobs-bill ideas, Dorgan says. Sen. Debbie Stabenow (D-Mich.) adds, “We are looking very much at the items that the House had...in terms of construction, infrastructure funding, support for states, clean energy.”

House Speaker Nancy Pelosi (D- Calif.) says Democrats hope the chamber’s new jobs measure “will be...signed into law before the President comes to deliver his State of the Union address,” which usually is in late January.

Transportation would receive more than 75% of the House package’s $47.3 billion for infrastructure. Highways get the largest allotment, $27.5 billion. A new jobs bill will keep ARRA momentum going, says John Horsley, executive director of the American Association of State Highway and Transportation Officials. “With the jobless rate in the construction sector at 19.4%, Congress can ill afford to stand by and do nothing,” he adds.

The House bill would apply ARRA’s “Buy America” mandate to projects the new measure funds. The provision drew fire from the Associated General Contractors, Associated Builders and Contractors, U.S. Chamber of Commerce and other groups. Canada’s government, which criticized the ARRA “Buy America” requirements, is reviewing the new bill. International Trade Minister Stockwell Day says, “We will work against any protectionist measure that poses a disadvantage to Canadian industry.”

The House jobs measure also would extend the authorization for surface-transportation programs through Sept. 30 and restore $20 billion to the Highway Trust Fund.

Beside the $47.3 billion for public works, the package includes a $23-billion Education Jobs Fund. States would divide 95% of that aid among local school districts and public colleges for personnel or for upgrading or repairing public-school buildings.

THE HOUSE JOBS BILL INCLUDES:
CATEGORY FUNDING
($ millions)
HIGHWAYS 27,500
TRANSIT URBAN, RURAL FORMULA GRANTS 6,150
TRANSIT NEW FIXED-GUIDEWAY 500
TRANSIT RAIL MODERNIZATION 1,750
AIRPORT GRANTS 500
EPA CLEAN-WATER STATE REVOLVING FUND 1,000
EPA DRINKING-WATER STATE REVOLVING FUND 1,000
BUREAU OF RECLAMATION WATER PROJECTS 100
CORPS OF ENGINEERS CIVIL WORKS 715
DOE LOAN GUARANTEES (Renewables, transmission) 2,000
SCHOOLS­ TAX-CREDIT GRANTS (Repairs) 4,100
HUD HOUSING TRUST FUND(Build, renovate low-income housing) 1,000
HUD PUBLIC-HOUSING CAPITAL FUND (Repairs, rehab) 1,000
TOTAL: 47,315
Source: House, Senate Appropriations, House Transportation and Infrastructure Committees

The bill also contains $3.7 billion for police, firefighter, Americorps, parks, forestry and summer youth jobs as well as for job training and college work-study. In addition, it would extend unemployment and COBRA health-coverage benefits and Medicaid payments.

While construction awaits Senate action on a jobs measure, the industry did see temporary resolution of two other pending issues. Congress passed and President Obama on Dec. 21 signed a 2010 Defense Dept. appropriations bill that also carries a short surface-transportation extension, lasting until Feb. 28. It is the third highway-transit stopgap since Sept. 30, when the 2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users expired.

Obama on Dec. 16 also signed a three-month extension for Federal Aviation Administration programs, including airport construction grants. The FAA stopgap, which runs through March 31, succeeds an extension that was to expire on Dec. 31. Also enacted on Dec. 16 was a $446.8-billion appropriations package that includes money for construction accounts at the Dept. of Transportation, General Services Administration and other agencies through Sept. 30.