Concerns Shared About Appropriations Delays; Infrastructure Law Guidance
The letters have been sent. The question is: What kind of response, if any, will they get?
Several state and local governmental associations earlier this month sent a letter to House and Senate leaders urging Congress to immediately approve appropriations for federal fiscal year (FY) 2022. They explained that without dedicated funding, many programs, including those authorized by the Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58), also known as the Bipartisan Infrastructure Law, will be limited to last year’s levels.
“Many programs designed to bolster economic recovery and support critical state, territory and local infrastructure projects will be unnecessarily delayed or severely hampered,” the associations explained, adding that lacking actions, governmental recipients cannot access the nearly 20% funding increase for highway formula programs and more than 30% increase for public transit formula programs. They further added that the Department of Transportation expects that about $45 billion in competitive resources provided for in the first year of the act will go unrealized if Congress fails to enact a 2022 federal spending law.
“We urge lawmakers to negotiate in good faith to advance FY 2022 spending legislation and instill confidence in our residents as we navigate through the ongoing pandemic,” according to the letter. “Congress must ensure that these new (IIJA) resources are made available to state, territory and local governments as intended under the law." The letter was signed by the executive directors of the U.S. Conference of Mayors, National League of Cities, National Association of Counties, International City/County Management Association, Council of State Legislatures, National Governors Association, and the National Conference of State Legislatures.
Meanwhile, Sen. Mitch McConnell (R-Kent.) and Sen. Shelley Moore Capito (R-W.V.) sent their own letter to governors regarding a Dec. 16, 2021, memorandum from the Federal Highway Administration (FHWA) entitled “Policy on Using Bipartisan Infrastructure Law Resources to Build a Better America.” Although a key component of the law is that it provides flexibility to states to enable them to use funding in a manner that effectively addresses each state’s unique needs, the senators contend that the FHWA guidance “attempts to implement a wish list of policies not reflected in the IIJA,” such as discouraging projects that increase highway capacity and prioritizing projects that advance non-motorized transportation options (e.g., those with bike lanes), which differ from the provisions negotiated and agreed to in the law.
“Nothing in the IIJA provides FHWA with the authority to dictate how states should use their federal formula funding, nor prioritizes public transit or bike paths over new roads and bridges,” the senators contend. “The FHWA memorandum is an internal document, has no effect of law, and states should treat it as such.” While the memorandum does promote other options, it does note that in most cases, “federal-aid highway and federal lands funding resources made available through the BIL should be used to repair and maintain existing transportation infrastructure before making new investments in highway expansions for additional general purpose capacity.”
The concerns in these letters are real. Now let’s see if any action is taken on them.
Join us for our following Thompson Grants events:
Thompson Grants Workshop: Federal Grant Reporting - 2022 Update| Feb. 23, 2022 | Virtual Event
Federal Grants Forum For State & Local Governments | March 2-3, 2022 | Virtual Event
Nonprofit Legal, Finance, and Grants Conference | March 16-18, 2022 | Washington, D.C.
