Americans for Transportation Mobility Letter Supporting SAFETEA-LU Extension and Highway Trust Fund Transfer

February 22, 2010

TO THE MEMBERS OF THE UNITED STATES SENATE:

The Americans for Transportation Mobility (ATM) coalition strongly urges you to extend SAFETEA-LU through the end of the 2010 calendar year at fiscal year 2009 levels, and to provide a $19.6 billion general fund transfer to the Highway Trust Fund before the end of February. While we continue to support Congressional efforts to enact a well-funded, long-term surface transportation bill, the absence of progress on such a bill makes an extension and funds transfer essential to creating and sustaining needed jobs associated with transportation construction this year and maintaining the nation's transportation infrastructure.

SAFETEA-LU expired last September and has since been operating on a series of short-term extensions – the latest of which expires on February 28. The uncertainty generated by these shortterm extensions and the health of the Highway Trust Fund is leading to many delayed or cancelled longer-term projects throughout the country. The jobs impact of this situation has rippled throughout the economy. Workers at design and engineering firms, construction companies, equipment manufacturers, and materials providers have lost their jobs and even more positions are on the line due to uncertainty in federal funding.

Without long-term certainty, states will be unable to plan for the upcoming construction season, which will lead to unnecessary job loss at a time when unemployment is already at historic highs. In order to protect these much needed highway and transit projects and jobs, Congress must provide continuity for both the programs and the Highway Trust Fund, which will fall below the necessary $4 billion budgetary threshold by May and be insolvent by August.

Without this infusion to the Highway Trust Fund to repay lost interest since 1998, the underlying programs for 2011 will face a 50 percent cut from 2010 levels. The loss of approximately $20 billion in construction activity would cause some 200,000 direct construction job losses and 400,000 indirect and induced job losses. Moreover, failure to extend the programs and shore up the Highway Trust Fund would force a slowdown in federal reimbursement to states, which will create uncertainty for contractors and could lead to significant job losses.

To help prevent further job loss and ensure vital transportation investments continue, the ATM Coalition strongly urges you to extend SAFETEA-LU through December 2010 at fiscal year 2009 levels and provide a general fund transfer of $19.6 billion to the Highway Trust Fund in legislation that can be sent to the President's desk before the end of February.

Sincerely,

Americans for Transportation Mobility