U.S. Chamber Statement on House Transportation Reauthorization Proposal

‘Addressing the Nation’s Transportation Challenges is Key to Economic Growth and Output,’ Kavinoky Says

WASHINGTON, D.C.— U.S. Chamber of Commerce Executive Director of Transportation and Infrastructure, Janet Kavinoky, issued the following statement today regarding the House Transportation and Infrastructure transportation reauthorization proposal:

“We commend Chairman Mica on his new direction for surface transportation and the outline of changes that can deliver a more effective and efficient federal transportation programs. We agree with the Chairman that ‘the American people want the federal government to ensure their hard-earned tax dollars are wisely and effectively invested in improvements for the nation’s infrastructure.’

“Unfortunately, while his legislation tracks the Chamber’s recommendations for reauthorization, it does not in terms of funding. It is clear the Committee has been constrained by the House-passed budget as the investment levels are unacceptable. Cuts will destroy – rather than support – existing jobs and will not enable creation of the additional jobs needed to put the 16.3% of unemployed workers in the construction industry back to work. The 35% cut from current funding as laid out in the House budget will be devastating to construction and related industries—materials, equipment, design and engineering. As important, in the long run, disinvestment results in a less competitive economy and a drag on GDP due to underperforming infrastructure.

“Regardless of reforms, allowing a 35% cut in highway and transit investment will affect the availability and condition of infrastructure, the quality of service, and the capacity to handle future growth. Transportation needs will not disappear but conditions will get worse, and the cost to address them will be higher as materials, labor, and land get more expensive.

“An alternative exists. Recently members of the Senate Environment and Public Works outlined a surface transportation proposal that includes needed policy and program reforms and maintains funding levels at current services. Doing this for two years requires identifying $12 billion in additional resources over the next two years.

“Addressing the nation’s transportation challenges is key to economic growth and output. The United States cannot get back on its feet economically if the surface transportation networks cannot move people and goods efficiently. If doubling exports in the U.S. is going to be an achievable objective to help create jobs, we need to be able to move those exports.

“As the process moves forward, the Chamber pledges to work with the Chairman and the House to advance bold reforms while identifying the resources needed to prevent these drastic funding cuts.”

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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