The House Transportation and Infrastructure Committee held a hearing today entitled: “Recovery Act: 160-Day Progress Report for Transportation and Infrastructure Programs.” The committee heard from the EPA, U.S. Army Corps of Engineers, Government Accountability Office, U.S. Coast Guard, and General Services Administration. Concerns focused on improper use of stimulus funds to balance state budgets or replace regular departmental funding, the law’s provision against funding “new-start” projects (projects that have not been previously funded) and the slow rate of stimulus spending.

Chairman James Oberstar (D-MN) was pleased that 59% of the stimulus funds that fall under the Transportation and Infrastructure Committee’s jurisdiction have been obligated, within the “use it or lose it” parameters of the American Reinvestment and Recovery Act of 2009 which require 50% of the available stimulus funds to be obligated within the first 90 days. He lamented, however, that the Senate changed the original committee language of the bill, which would have required the funds to be contracted: “Changing ‘contracted’ to ‘obligated’ gave [the states] an escape hatch. We were undercut by Senators and OMB who said it was too burdensome to the states. For the highways projects, the states just signed off.” Ranking Member John Mica (R-FL) pointed out that as of July 27, of the $48 billion allocated to state Departments of Transportation, only $919 million had been spent.

Mazie Hirono (D-HI), Henry Brown (R-SC) and Chairman Oberstar (D-MN) all supported amending the law to allow funding for new-start projects (projects that have never before received funding). Hirono (D-HI) complained that Hawaii has several important projects in the pipeline that could put people to work but are prohibited from receiving stimulus funds.

Wyoming and Iowa have been the most expeditious states in using stimulus funds, with 72% and 58% of projects underway, respectively. Hawaii, South Carolina, and Florida rank at the bottom; however, Katherine Siggerud, Managing Director of Physical Infrastructure Issues at the Government Accountability Office (GAO) pointed out, that Florida is spending a higher portion on more complex projects long-term projects that take longer to bid.

States must obligate 100% of their allotted stimulus funds before the next Recovery Act deadline, which is in March 2010. The House Transportation and Infrastructure Committee will hold its next Recovery Act progress report in September 2009.