Rep. Pappas Helps Prevent Loss of $7.6 Billion in Highway Funding for States

WASHINGTON, DC - Today, the House Appropriations Committee announced that the House will vote on a repeal of the FAST Act rescission, protecting states from a $7.6 billion loss in highway funding, following a letter Congressmen Chris Pappas (D-NH) and Don Young (R-AK) led calling on House leadership to take immediate action.

With the Fixing America's Surface Transportation (FAST) Act provision set to kick in next year, states were set to lose $7.6 billion in unobligated highway contract authority for transportation and infrastructure projects if Congressional action was not taken.

Congressmen Pappas and Young currently both serve on the House Transportation and Infrastructure Committee.

"I'm pleased to see that the Continuing Resolution introduced today will include a provision to avert the loss of billions in badly-needed federal funding for state transportation projects," said Congressman Pappas. "Federal-state partnerships play a critical role in maintaining and rebuilding our infrastructure, and immediate action was necessary to safeguard these funds. I am proud to see that our bipartisan effort encouraged the House to work together to ensure states like New Hampshire get the resources we need to rebuild our nation and support good jobs."

You can find a signed copy of the letter HERE and the full text below:

Dear Speaker Pelosi and Leader McCarthy,

As the first session of the 116th Congress is nearing its end, we will likely be finalizing several important pieces of legislation that will be signed into law. We write to respectfully request that we address the upcoming rescission of $7.6 billion from the last highway bill in one of those bills.

Section 1438 of the Fixing America's Surface Transportation (FAST) Act would rescind $7.6 billion in unobligated federal-aid highway contract authority on July 1, 2020. This provision was included as a budget offset in the last highway bill, although some have characterized it as gimmick, the real-world impacts on states' budgets are drastic.

According to the American Association of State Highway and Transportation Officials, states have approximately $7.9 billion in unobligated contract authority. This rescission will remove nearly all of this authority. Across the board, states will lose precious dollars needed for investment in infrastructure projects. In fact, California will see their contract authority reduced by $280 million and Texas will lose $960 million in contract authority. Every state will lose millions in contract authority, with 37 states losing over $50 million.

States have already started planning for the next construction season next summer. This provision must be addressed soon to ensure that states have enough time to plan for the coming year without disruption. Every one of these dollars represent vital jobs and needed investment in our economy and the movement of goods. These investments will be threatened if we do not act.

We stand ready to work with you to ensure that Congress takes the urgent action that these impending cuts demand.