For 25 years, Jay Hansen has been the lead lobbyist for the asphalt paving industry and deeply involved in every major construction legislation before Congress. I asked Jay to share with LICA members some of his thoughts on Congress and the industry before his retirement later this month.
What are the biggest challenges facing the construction industry in this new Congress?
The 118th Congress will be conducting oversight hearings on how IIJA funds are being spent and the impact of supply chain disruptions, inflation, and workforce issues are having on improving our nation’s surface transportation infrastructure. It is important to show progress in this area because many GOP members opposed IIJA and may seek to cut the program’s funding levels in this new Congress.
Next would be the debt limit issue. The Federal government is expected to hit the statutory debt limit this summer. House Republicans are seeking to cut spending in order to raise the debt limit. So far the President and Congressional GOP members have taken Social Security, Medicare, defense spending, and tax increases off the table. That means domestic discretionary programs could be on the chopping block and that includes transportation investments.
Lastly, Congress must pass an FAA reauthorization bill before September 30, 2023. The Congressional committees responsible for drafting the legislation are currently seeking input from stakeholders and other members of Congress. While not a huge market for our industry, reauthorization of the FAA programs will be a good indication of where the 118th Congress stands on the issue of infrastructure investment.
Over your career you have worked to protect and increase revenue in the Highway Trust Fund? What future changes do you see in how the federal government funds road and bridge construction?
When Congress passed TEA-21, the Highway Trust Fund collected more than it spent. We worked to ensure all the revenue was dedicated to highway investment and the balances would be spent down. We did such a good job that by the end of SAFETEA-LU, the Highway Trust Fund was technically bankrupt and required regular infusion of general fund revenues to keep the program whole. Today, the highway trust fund generates about $50 billion in gas tax revenues annually which pays for highway and transit programs. In 2023, the Federal-aid Highway program is set to spend $70 billion alone. Key Members of Congress are looking at a vehicle-mile travelled fee to replace the fossil fuel tax as a way to get back to a user fee-based program. Travel to Florida or Virginia and you can see how such a program would work with gantries overhead collecting a fee from a transponder such as SunPass or EZPASS on your windshield as you travel down the highway. I think this is the future and stakeholder groups are already working in Washington to implement such a program nationally.
You have worked with some strong congressional advocates for infrastructure: Senator Robert Byrd (D-WV), Rep. Bud Shuster (R-PA), Rep. Earl Blumenauer (D-OR) to name a few. Can you identify some current infrastructure leaders we should keep an eye on?
On the House side watch Speaker McCarthy. He is no fan of IIJA and clearly has his sights on cutting spending. Also watch Rep. Sam Graves (R-MO), chair of the House Transportation & Infrastructure Committee who is trying to bring his committee and the House of Representatives back into relevancy on infrastructure legislation. All the major infrastructure bills passed during the 117th Congress were drafted in the Senate. Can Rep. Graves bring his caucus together on an FAA reauthorization bill and actually go to conference with the Senate with the backing of his colleagues?
On the Senate side, Majority Leader Schumer and Minority Leader McConnell have worked together to help pass IIJA and not one but two omnibus appropriation bills that significantly boosted funding for infrastructure. Can they do it again in 2023 in a divided Congress and a presidential election less than two years from now?