As you know, the most recent
Congressional extension of the current surface transportation authorization,
Moving Ahead for Progress in the 21st Century, is set to expire in less than 3
weeks on July 31.
As you may recall from the 2-day
surface authorization lapse that occurred in March 2010, while revenue will
still be deposited in the Highway Trust Fund, if Congress does not act prior to
July 31, no new contract authority will be available for capital projects,
essential maintenance, or operational support.
As a result, it is likely that
some agencies would be forced to reduce vital transit services or cut routes.
However, the Federal Transit Administration would continue to have the ability
to reimburse grantees for costs obligated prior to the authorization lapsing
subject to the availability of funds in the Mass Transit Account. If Congress
doesn’t take appropriate action the highway account would reach critical levels
requiring cash management in this coming August and the Mass Transit account
would reach similar critical levels this fall.
As you may know, the
Administration’s GROW AMERICA proposal and FY 2016 budget would request a call
on Congress to enact a 6-year, $478 billion surface transportation reauthorization
proposal in an effort to provide long-term stability. Not only does this
proposal provide States and local transit agencies with extended funding
certainty, it also increases overall transportation investment by 45 percent,
providing funding growth and smart policy reforms to strengthen the American
Please do not hesitate to contact
me if I can provide additional information or assistance on this matter.