Why the Transportation Bill is slowing down
As Congress moves toward reauthorizing surface transportation programs, several key issues remain unresolved, and progress is likely to be delayed until ongoing negotiations on other critical legislation are resolved. A significant concern is the looming shortfall in the Highway Trust Fund, which is projected to run out of funds by 2028 unless new revenue sources are introduced. This funding gap poses a serious challenge to sustaining necessary infrastructure investments.
Another point of contention is the level of funding for transportation projects, as lawmakers debate whether to maintain the historically high levels set by the Infrastructure Investment and Jobs Act (IIJA) of 2021 or return to traditional funding levels. The outcome of this debate will depend largely on broader fiscal discussions and political negotiations.
What this means for the precast concrete industry
The National Precast Concrete Association leadership was recently in Washington, D.C., to advocate for the association’s interests in these policy debates. For the precast concrete industry, the surface transportation bill is especially significant. Federal infrastructure funding drives a large share of state and local government demand for precast products, including culverts, stormwater and wastewater systems, bridge components, and other key elements of the national transportation network.
Permitting reform is still on the table
In addition, while efforts to reform permitting processes for infrastructure and energy projects have stalled, they remain a priority and could be tied to a reauthorization bill. Streamlining these processes is seen as essential to accelerating infrastructure development, and incorporating permitting changes could help gain bipartisan support. On the policy front, a significant divide is emerging between traditional infrastructure priorities, such as roads and bridges, and alternative transportation projects, like transit and non-motorized transportation programs. House Republicans, who control the majority, are focused on road and bridge funding and want to deemphasize transit, pedestrian, and biking initiatives.
Bigger issues could delay progress
In the broader legislative context, Congress faces a frustrating milestone as the Department of Homeland Security (DHS) risks setting a record for the longest-ever funding lapse (i.e., “shutdown”) among federal agencies if an agreement isn’t reached before the planned Congressional recess. With a two-week recess scheduled for Passover and Easter (starting March 27), the Senate is considering staying in session in D.C. if the DHS shutdown remains unresolved, but House Republican leaders currently have no plans to shorten their recess. President Trump has called for Congress to stay in Washington to vote on a DHS funding bill tied to voter ID requirements in the SAVE America Act, which is viewed as crucial by the President. These broader negotiations must be resolved before any significant progress can be made on surface transportation legislation this year.
Mathew Morgan is a Partner at Barnes & Thornburg LLP, a full-service national business law firm providing advice in all the areas required to do business in today’s marketplace. Matt provides companies and trade associations with strategic, legislative and political counsel on a variety of business-related issues, including taxation, trade/tariffs and appropriations matters. Prior to joining Barnes & Thornburg, Matt served in the White House from 2017-2020 as the chief counsel to the Vice President and as a deputy assistant to the President.