The transportation and infrastructure investments of the American Recovery and
Reinvestment Act of 2009 (P.L. 111-5) (Recovery Act), have already played a key role in
putting Americans back to work. Federal agencies, states, and their local partners have
demonstrated they can deliver transportation and infrastructure projects and create urgently
needed employment in the tight timeframes set forth in the Recovery Act.
I am pleased to report that, as of September 30, 2009, 67 percent of highway and
transit formula funds have been put to bid -- that's $22.8 billion for 9,104 projects. Fifty-three
percent of highway and transit formula funds are under contract, totaling $18.2 billion for 7,594
projects. Forty-six percent of these funds are associated with 6,700 projects underway all
across the nation, totaling $15.9 billion.
We have also seen progress in putting to work Recovery Act funds for Clean Water
State Revolving Fund (SRF) projects. States and their local partners have put out to bid 48
percent of the total available formula funds, have signed contracts worth 30 percent of these
funds, and work is underway on projects associated with 23 percent of these funds.
Monitoring the percentage of allocated funds associated with projects out to bid, under
contract, and underway helps us measure the Recovery Act's progress. Critics of the
Recovery Act focus exclusively on the amount of outlays of Federal funds. This approach
does not provide a good sense of Recovery Act progress because these projects primarily
operate on a reimbursement mode. For example, states seek reimbursement for Clean Water
SRF projects after construction is underway. Federal outlays, therefore, come months after
jobs are created and necessary infrastructure projects have begun. Knowing how many funds
are associated with projects out to bid, under contract, and underway better captures the
extent to which Recovery Act funds have arrived on Main Street.
Against this backdrop, I commend Chairwoman Johnson for scheduling this oversight
hearing to hear from federal, state, and local officials who are implementing programs
receiving water resources infrastructure funding under the Recovery Act.
To provide additional insight into what progress has been made to date, I would like to
share the results of the vigorous oversight that the committee has conducted. Just ten days
after the Recovery Act was signed into law, the committee requested transparency and
accountability information directly from states, metropolitan planning organizations (MPOs),
and public transit agencies, on their use of transportation and environmental infrastructure
formula funds. Those recipients have reported regularly to the committee.
The Recovery Act provided $4 billion for Clean Water SRF projects. According to the
most recent submissions received by the committee, as of September 30, 2009, a total of 873
Clean Water SRF projects in 43 states have been put out to bid, totaling $1.8 billion. That's 48
percent of the total available formula funds for Clean Water SRF projects.
Of these 873 projects that have been put out to bid, 530 Clean Water SRF projects in
40 states are already under contract. These projects under contract total $1.1 billion.
Work has begun on 394 projects in 36 states, totaling $872 million.
While I am encouraged by these numbers, the Environmental Protection Agency (EPA)
and their State partners must do more to ensure the quick and efficient use of these funds.
The committee also requested that all federal agencies implementing programs that
receive Recovery Act funds under the Committee's jurisdiction provide a table of specific
Recovery Act projects. As of October 16, 2009, Federal agencies under the committee's
jurisdiction have announced 13,313 transportation and non-transportation projects totaling
$42.5 billion, representing 66 percent of the total available funds. Funds have been committed
for 12,866 projects totaling $36.4 billion, representing 57 percent of the total available funds.
Of the $4.7 billion in funding provided to EPA under the Recovery Act, EPA has
committed $4.6 billion for the Clean Water SRF, Superfund cleanup, and Brownfields program.
This represents 98 percent of the total available funds.
Of the $4.6 billion in funding provided to the Corps under the Recovery Act, the Corps
has committed $2.3 billion for 744 projects. This represents nearly 50 percent of the total
available funds.
This transparency and accountability information speaks for itself: federal agencies,
states, and their local partners are putting Americans back to work in family-wage, construction
jobs all across the nation.
We have also seen bids for infrastructure projects coming in much lower than expected.
This bid savings has allowed federal agencies, states, and local communities to stretch
Recovery Act funds even further, resulting in more projects, and in turn putting even more
Americans to work.
Throughout development of the Recovery Act, I emphasized the importance of
transparency and accountability and ensured that the transportation and infrastructure
provisions would be subject to the most rigorous transparency and accountability requirements
of the Act. I am pleased that the Obama administration adopted many of these ideas, not just
for transportation, but for all programs funded under the Act.
I also promised that the committee would vigorously oversee implementation of the
Recovery Act. The committee will continue to require periodic direct reporting to the
committee by recipients of transportation and infrastructure funds under the Recovery Act as
well as federal agencies implementing Recovery Act programs under the committee's
jurisdiction, to ensure that the funds are invested quickly, efficiently, and in harmony with the
job-creating purposes of the Act. In addition, the committee will continue to hold public
hearings to examine the successes and challenges under the Act.
While much work remains, I am pleased with the progress that has been made since
enactment of the Recovery Act. I look forward to hearing the testimony of today's witnesses
and discussing what is being done to ensure that Recovery Act funds will continue to create
good, family-wage jobs as quickly as possible, while at the same time improving our
deteriorating infrastructure and laying the foundation for future economic growth.