Letter to Transit Industry about Surface Transportation Lapse
May 12, 2015
As you know, the most recent Congressional extension of the current surface transportation authorization, Moving Ahead for Progress in the 21st Century, is set to expire in less than 3 weeks on May 31.
As you may recall from the 2-day surface authorization lapse that occurred in March 2010, while revenue will still be deposited in the Highway Trust Fund, if Congress does not act prior to May 31 , no new contract authority will be available for capital projects, essential maintenance, or operational support.
As a result, it is likely that some agencies would be forced to reduce vital transit services or cut routes. However, the Federal Transit Administration would continue to have the ability to reimburse grantees for costs obligated prior to the authorization lapsing subject to the availability of funds in the Mass Transit Account.
As you may know, the Administration’s GROW AMERICA proposal and FY 2016 budget request call on Congress to enact a 6-year, $4 78 billion surface transportation reauthorization proposal in an effort to provide long-term stability. Not only does this proposal provide States and local transit agencies with extended funding certainty, it also increases overall transportation investment by 45 percent, providing funding growth and smart policy reforms to strengthen the American economy.
Please do not hesitate to contact me if I can provide additional information or assistance on this matter.
Therese W. McMillan
StatesArizona, Arkansas, Colorado, Kansas, Louisiana, New Mexico, Oklahoma, Texas
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