Billions of Dollars for Construction in FY 2018 Funding Bill
On March 21, congressional leaders unveiled a funding bill for fiscal year (FY)
2018 that includes at least $10 billion in additional infrastructure
investment—compared to FY 2017 and promised in the Bipartisan
Budget Act of 2018—for roads, bridges, mass transit, airports, ports,
flood control, drinking water and waste water facilities, military
construction, low income housing construction and more. To view summaries of
the various pieces of this legislation, click here and here.
As of publication, the House passed the funding measure on a 256-167 vote
and the Senate is expected to do the same before March 24, or otherwise risk
shutting down the government for the third time in three months. AGC called on
thousands of its social
media grassroots supporters to urge Congress to keep its $10 billion
infrastructure investment promise. AGC pushed for Congress to pass the bill;
however, the association also noted the litany of critical construction issues
that remain unresolved by this bill and Congress, including but not limited to
the need for long-term infrastructure funding, border security and immigration
reform, and multiemployer pension reform. AGC will provide more details on this
FY 2018 funding bill as it continues its review of the legislation.
information, contact Jimmy Christianson at firstname.lastname@example.org.
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Transportation Funding Boosted in FY 2018 Funding Bill
2018 federal government funding bill includes AGC-backed increases in
investment for highway, transit and aviation construction. The bill largely
provides funding at FAST Act-authorized levels from the Highway Trust Fund. In
addition, the bill appropriates $4.4 billion from the general fund for programs
that already receive trust fund dollars.
agreement includes funding as follows:
- Fully funds FAST Act-authorized funding for the Federal-aid highway
program, an increase of $900 million over FY 2017.
- An additional $2.565 billion for federal-aid highway funding (from
the general fund). The biggest portion of this amount—$1.98 billion—will be distributed to states only for highway and
bridge projects under the existing formula; $225 million goes to a new
bridge program for rural states (almost half of the states qualify); $15.8
million is for Puerto Rico Highways; $4.2 million goes to other
territories; and $300 million for Federal and tribal lands.
- $1.5 billion for TIGER Grant Program, which was funded at $500 million
in FY 2017.
- Fully funds FAST Act-authorized funding of
$9.733 billion for mass transit formula grants, signifying no increase from the FY 2017
- An additional $834 million from the general fund for transit
- Provides $2.645 billion in funding for the transit New Start Capital
Grant program, which funds ongoing transit projects with full funding
grant agreements. An additional $232 million is provided for full funding grant
agreements for new transit projects.
- $4.35 billion for the Airport Improvement Program, an increase of
$1 billion from FY 2017.
- $25 million in additional funds for the Railroad Rehabilitation
& Improvement Financing (RRIF) program for credit subsidies.
bill does not include an increase in the Passenger Facility Charge (PFC) from
the current cap of $4.50. The PFC, levied on airline tickets, is used for
airport capital construction projects. The Senate appropriations bill had
proposed an increase of $4.00 in the cap.
For more information, contact Brian Deery at email@example.com.
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Good News for Direct Federal Contractors in FY 2018 Funding Bill
The FY 2018 federal government funding
bill provides good news for direct federal contractors. Specifically, Army, Navy and Air Force
military construction accounts would each see increases under the proposal
compared to the previous fiscal year. The funding bill provides a total of
$10.1 billion – an increase of $2.4 billion or roughly a 31 percent – for
military construction over FY 2017 levels.
The bill also provides $1.4 billion to fund construction and maintenance
for military family housing.
Turning to the Army Corps’ Civil Works Program, the funding bill
would provide $6.83 billion, an increase of $789 million from FY 2017
appropriated funding, and a 36 percent increase above the president’s FY 2018
budget request. The Construction account
is allocated $2.085 billion, more than a doubling the president’s budget
request. Additionally, the bill would allot $1.4 billion in funding from the
Harbor Maintenance Trust Fund and full use of estimated annual revenues from
the Inland Waterways Trust Fund, with at least $399 million for use on
navigation projects in FY 2018.
Overall, construction funding for the
Department of Veterans Affairs (VA) remain flat, slightly below FY 2017
levels. The VA’s major and minor
construction accounts would receive $855 million--$512 million for major
construction and $343 million for minor construction. General Services Administration receives
roughly $700 million for the agency’s construction accounts.
information, contact Jordan Howard at Jordan.Howard@agc.org.
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Commerce Department Publishes Exclusion Process Procedures for Steel and Aluminum Products
AGC Joins Coalition to Help Mitigate Effects of Tariffs on the Construction Industry
On March 19, the Department of Commerce
published its exclusion process procedures (interim final rule) for steel and
aluminum tariffs. The Department’s Bureau of Industry and Security will collect
comments on the interim final rule until May 18, and the Bureau’s website
provides more information about the steel and aluminum exclusion/objection process, as well as
links to downloadable forms. Companies
will need to consider both commenting on the rule (so as to address issues with
the Department’s procedures) and submitting exclusions requests in a prompt
fashion. The new duties go into effect on March
At present, there is still no published
guidance for the country exemption process, but U.S. Trade Representative
Robert Lighthizer indicated to the House Ways and Means Committee yesterday
that the process will likely be concluded by the end of April. Aside
from Canada and Mexico – which are currently exempted due to NAFTA
renegotiations – Argentina,
Australia, Brazil, South Korea, and the EU will also be exempted for now.
Since President Trump signed the steel
and aluminum tariffs, AGC has joined the National Foreign Trade Council’s
Alliance for Competitive Steel and Aluminum Trade (ACSAT), the premier
coalition working collectively to mitigate the tariffs’ effects on a range of
American industries. As the sole
representative of the construction industry within the Coalition, AGC will be
leveraging our engaged membership to collect company specific data, executives’
quotes, and company anecdotes to demonstrate the tariff’s impact on
construction so that we can advocate effectively before members of Congress. If
your company would like to provide this information, please
forward to AGC’s Chief Economist, Ken Simonson.
AGC is diligently monitoring developments in this space and is committed to
helping members navigate this period of confusion.
For more information, contact Collin Janich
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Safety Management Training Course | April 4 - 6, 2018 | Pawtucket, RI
The AGC Safety Management Training Course provides attendees
three days of training on the basic skills needed to manage a company safety
program in the construction industry.
Held just a few times per year at select locations around
the country, the program builds on Focus Four training and prepares attendees
to manage key safety issues on the job site and provides techniques for
delivering basic safety training to field personnel.
Participants will receive intensive instruction and training
that will allow them to return to their firms with readily applicable new
skills to positively impact their company’s safety and health program.
For more information,
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