The Road Ahead

Working toward economic recovery with speed and watchfulness. By King Gee, Associate Administrator for Infrastructure, Federal Highway Administration

“ARRA projects will lead to the hiring of new workers and the prevention of layoffs”
-King Gee

The Federal Highway Administration (FHWA) is playing a pivotal role in the nation’s economic recovery and in laying the groundwork for tomorrow’s transportation system. Over the past several months, FHWA has taken center stage as a lead agency in the implementation of the American Recovery and Reinvestment Act (ARRA) enacted by President Obama on February 17, 2009.

Creating and saving jobs
ARRA focuses on job preservation and creation through infrastructure investment by providing $27.5 billion for highways and bridges. Through investment in highway and bridge projects alone, ARRA is expected to create or save hundreds of thousands of jobs, through direct and indirect sources. First, there is the direct impact of building new roads and fixing old ones, leading to employment for people who would otherwise be out of work. The ARRA projects will lead to the hiring of new workers and the prevention of layoffs at firms that would otherwise not have enough work to keep good workers on.

Infrastructure investments
FHWA began preparing for this rapid infusion of federal dollars in our nation's roads and bridges as early as December 2008, when news of the President-elect’s intentions became clear. The agency assisted in drafting legislation, prepared guidance and tools to support implementation, and helped states prepare their program of projects for advancement – even advising states to take preparatory steps before the legislation was passed. Priority goes to projects that can be completed within three years and are physically located in the most economically distressed parts of the country. The resurfacing and reconstruction of roads, repair and replacement of bridges, and other projects that have been ready for months or years but have been deferred due to insufficient funds will be able to move forward now. Matching funds are optional and therefore projects can be fully funded with ARRA resources.

The funds were made available to states on March 3, 2009, well ahead of the 21-day deadline specified in the law. In the weeks since, states have moved at a swift and steady pace to move transportation projects forward. In just 48 days after the ARRA was passed, nearly 2200 projects had been approved and nearly a dozen states had obligated more than 50 percent of their ARRA funds for highways and bridges – well ahead of the 120-day deadline. Many projects have been let or started. Construction on others will start soon.

Accountability and transparency
While it is highly anticipated that ARRA funding will be spent quickly for projects to bring people back to work – the expectation that every dollar will be accounted for is equally pressing. ARRA is not only about the size and number of projects and how fast investments are made – but how effectively and responsibly investments are made. While the FHWA is committed to providing maximum flexibility under the regulations to advance projects, the agency is fully committed to providing accountability and transparency as directed by the President.

ARRA is accompanied by stringent reporting requirements for states on how their selection of road and bridge projects contribute to economic recovery. Governors must first certify that the projects selected in their states will create or save jobs. States must report to FHWA on the progress of their projects and on how the money is being spent.

Accountability and transparency are both key tenets of ARRA, and are satisfied through our agency’s website, www.fhwa.dot.gov/economicrecovery, which features daily updates to state-by-state obligations and offers links to state websites with project-specific information. FHWA is undertaking extra efforts to increase the oversight of ARRA funds and is prepared for increased scrutiny on the part of federal government oversight agencies to ensure that funds are spent properly.

The future of transportation
The transportation community must move quickly and effectively, and certainly it will because of the great need that exists for highway and bridge improvements. The health of the economy and transportation system is too important. Moreover, the work being done now is not just for jobs today but also for transportation’s future. ARRA is being implemented with speed, transparency, and accountability – but it is no less essential that the nation’s transportation infrastructure is being renewed.

The reinvestment in American infrastructure made possible by ARRA will make America’s highways and bridges – and transit, rail and aviation operations – better able to deliver the mobility on which the nation and our economy depend.