Late last week, the U.S. House and Senate passed a short-term transportation funding bill that President Obama signed into law on Friday, March 30, as the authorization to spend money on transportation programs and levy federal fuel taxes was set to expire on March 31, 2012.
The 90-day funding extension of federal highway and transit aid is the latest temporary measure in the transportation funding saga as the ninth extension of the law that expired in 2009. From an economic development perspective, the short-term funding extension comes at a very critical time as most of the country is experiencing unseasonably warm weather which has accelerated the construction season, highlighting the need for certainty in this area to support the construction industry and economies dependent on related projects.
Although various proposals have been considered for long-term funding plans, none have garnered enough support to advance. Congress has until June 30 to agree on a new bill, when the newly approved extension of federal highway authority expires. For more, read The Associated Press story here.
