Lawmakers and construction executives are turning their attention to the next federal highway bill ahead of the current authorization’s expiration later this year.
Associated Equipment Distributors, a Schaumburg, Illinois-based international trade organization, on March 2 hosted leaders from the House Transportation & Infrastructure Committee ahead of CONEXPO in Las Vegas to discuss the upcoming surface transportation reauthorization.
Committee Chairman Sam Graves, R-Mo., and Ranking Member Rick Larsen, D-Wash., rallied industry members to press their legislators to sign the next highway bill before the current law expires on Sept. 30.
Congress faces pressure to renew the program as the $1.2 trillion Infrastructure Investment and Jobs Act approaches the end of its authorization period this fall at the end of the fiscal year. Construction executives have said the next package could include higher investment levels and help extend the current transportation construction cycle.
Here, Daniel Fisher, AED senior vice president of government and external affairs, talks with Construction Dive about the status of the bill, details of the next legislation and challenges ahead of the deadline.
This interview has been edited for brevity and clarity.
CONSTRUCTION DIVE: What is the status of the authorization bill?
DANIEL FISHER: The current surface transportation law runs through Sept. 30, 2026.
Daniel Fisher
Courtesy of Associated Equipment Distributors
Congress must act before expiration to prevent a lapse in the highway program’s authorization, which would create a great deal of uncertainty for road and bridge projects. Currently, the House Transportation & Infrastructure Committee’s bipartisan leadership is drafting a surface transportation reauthorization bill with the hope of having the legislation approved by the committee this spring.
The Senate Environment and Public Works Committee, which has primary jurisdiction over the federal-aid highway program in that chamber, will likely draft its own bill for consideration.
What do you expect to see in it?
AED expects the next surface transportation bill to be five years, hopefully with an increase in funding. We’d like to see a bill in the $550 billion range.
The legislation will focus on roads and bridges, as well as transit and rail. We also expect permitting reform provisions, building upon prior attempts to expedite environmental reviews.
Additionally, we’ll likely see a national registration fee for electric vehicles to ensure they pay into the Highway Trust Fund.
What are the hurdles you see?
There are several hurdles.
One is the calendar. There’s limited legislative days between now and Sept. 30, and without a bill in either chamber, lawmakers will have to work expeditiously to complete its work in a timely manner.
Second is funding. The Highway Trust Fund shortfall needs to be addressed.
The Congressional Budget Office projects the Highway Trust Fund will be depleted by 2028, with a cumulative shortfall reaching $280 billion by 2034. To ensure the Highway Trust Fund’s continued solvency, Congress will need to identify alternative revenue streams or continue to rely on General Fund transfers.
Finally, there’s politics. With a narrowly divided House and needing 60 votes in the Senate, the legislation will have to be truly bipartisan. Keeping that bipartisan coalition together through the entire process is difficult and could be a challenge for leadership.
What do you hope to get out of it?
For equipment dealers, we want a fully-funded, long-term bill. The longer the duration and the greater the investment, the more certainty contractors will have to purchase new equipment.
What would you say to contractors watching this? What was the overall tone of the conversation at this event?
The overall tone of the event was very positive.
It’s clear Chairman Graves and Ranking Member Larsen are committed to moving a bipartisan surface transportation reauthorization through the House in the coming months. They’ve both been through many reauthorizations and understand what needs to be done and the give and take required to get it across the finish line.
It won’t be easy, but it will take the involvement of the entire construction sector to push legislation across the finish line by contacting lawmakers, coming to Washington, D.C., for meetings and making the case as to urgency for completing work on this bill before the end of the fiscal year on Sept. 30.
