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ASA Calls Upon Congressional Leadership for State and Local Infrastructure Funding Flexibility

This week, ASA, along with the Transportation Construction Coalition (TCC), called upon congressional leadership for the inclusion of S. 3011/H.R. 5735, a measure to provide greater flexibility to American Rescue Plan (ARP) state and local resources, in the pending pandemic aid package.  The ARP law provided $350 billion in relief funds and $10 billion in capital improvement assistance, which was critical to state and local governments managing pandemic-induced budget shortfalls.  However, as the nation enters the next chapter of the pandemic, the ARP funds lack the flexibility necessary for states and localities to address ongoing transportation needs.

Per their letter, “state and local transportation capital budgets were hit especially hard by the pandemic, as changes in travel patterns caused user-based revenue sources to dwindle.  Many projects were delayed or canceled. However, current law caps states and localities at using a fraction of their ARP funding for highway, public transit, and other surface transportation projects.”

S. 3011 would amend the ARP to allow states and localities to use a greater portion of these resources for these critical improvements.  The legislation has already passed the Senate once via a unanimous consent agreement, and an identical House version, H.R. 5735, has over 150 bipartisan co-sponsors. The legislation would not increase costs to the federal government or the deficit and does not mandate state or local governments change plans or priorities.

ASA supports the inclusion of S. 3011/H.R. 5735 in H.R. 4373 and urges swift passage of the bill.