Congress Paves the Road to Temporarily Fund Transit Bill

Reference to NAIOP National Headquarters
For more information, http://www.naiop.org

 

The Senate is expected to vote this week in favor of a bill (already approved by the House) that would temporarily add nearly $11 billion to the Highway Trust Fund. Due to expire in September, the Highway Trust Fund, which provides funding for road construction and repair, could actually run out of money in August, according to estimates from the Department of Transportation.

Federal investment in transportation has a significant impact on commercial real estate development. A recent NAIOP survey finds that 77 percent of NAIOP members support the association’s advocacy efforts to reauthorize the massive transportation bill known as “MAP 21.”

Weighing in on the possible early depletion of funds, President Obama noted that 700,000 jobs could be at risk, resulting in the temporary halt or permanent stoppage of 100,000 projects across the country.

A particular issue of contention between transportation advocates and lawmakers is the possibility of increasing the gas tax – a key revenue source of the Highway Trust Fund which has not been raised since 1993. At its current rate, the gas tax will generate $34 billion per year for infrastructure spending, though Congress is looking to spend $50 billion per year to upgrade the nation’s beleaguered system of highways and roads.

NAIOP’s Government Affairs team continues to meet with Democrats and Republicans in both the House and Senate, and their staffs, to secure long-term funding for transportation and infrastructure projects.

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