ASA Writes to Treasury Secretary Yellen
ASA, along with the American Road & Transportation Builders Association and the American Association of State Highway and Transportation Officials, sent a letter to Treasury Secretary Yellen this week urging her Department to ensure transportation infrastructure is defined explicitly as a qualifying eligibility in the American Rescue Plan. The Department of the Treasury’s guidance on the measure’s $350 billion in relief funds for state and local governments and $10 billion in capital assistance will be critical. States and local transportation revenues were hit hard by COVID-19, with 49 states publicly projecting declines. State departments of transportation are facing at least $18 billion in estimated revenue shortfall through 2024.
During 2020, 18 states and 24 localities announced delays or cancellations of transportation improvements projects totaling over $12 billion. These real-world impacts of reduced transportation revenues highlight the opportunity presented by the American Rescue Plan’s investment to assist state and local governments with capital and operational challenges. Providing clear guidance and flexibility on the funds’ use for transportation infrastructure will be critical to ensuring funds are used expeditiously and with maximum impact.