With less than two months remaining before the U.S. federal surface transportation law expires on Sept. 30, the Associated General Contractors (AGC) of America is sounding the alarm over growing uncertainty surrounding the next generation of infrastructure funding.
At the centre of the debate is the BUILD America 250 Act, a five-year, U.S. $580-billion transportation reauthorization bill that would provide funding and policy direction for highways, bridges, transit systems, rail programs and transportation safety initiatives through fiscal year 2031.
The legislation cleared the House Transportation and Infrastructure Committee in May by a bipartisan 62-2 vote, but it remains stalled awaiting action by the full House and has yet to begin moving through the Senate.
The delay has heightened concerns across the construction industry, where contractors, labour organizations and transportation stakeholders fear a lapse in long-term funding authority could disrupt projects, jeopardize jobs and undermine economic growth.
AGC officials have warned repeatedly in recent weeks that Congress must act before the current authorization expires or risk creating uncertainty throughout the infrastructure sector.
Surface transportation bills are among the most important pieces of infrastructure legislation passed by Congress. They establish federal funding levels for highway construction, bridge rehabilitation, public transit, freight networks, rail programs and safety initiatives. States rely on these multi-year authorizations to plan and deliver major capital projects.
The BUILD America 250 Act would continue funding core transportation programs while also providing significant investment in bridges, freight corridors, rail systems and highway safety.
Supporters argue transportation investment is not simply about roads and bridges. It also supports economic competitiveness, freight movement, business productivity and employment.
According to the AGC, highway construction remains one of the strongest segments of the U.S. construction market at a time when several private-sector construction categories are experiencing slower growth.
Public transportation infrastructure projects have helped sustain construction activity, support demand for construction materials and equipment and create jobs in nearly every state.
Construction employment increased by 64,000 jobs over the last year, with some of the strongest growth occurring in heavy and civil engineering construction, the sector most dependent on highway, bridge and transit funding.
The path of the legislation has become entangled in political debates over federal transportation priorities. The Donald Trump administration has proposed reducing mass transit funding, eliminating certain electric vehicle and bicycle infrastructure grants and reshaping federal transportation spending programs.
The proposals have sparked opposition from transit advocates and industry organizations who have urged lawmakers to reject transit funding reductions.
However, as Congress debates future priorities, the lack of a legislative timetable has increased fears that lawmakers may miss the deadline and be forced to rely on a temporary extension.
Some industry leaders have suggested Congress could avoid an immediate funding cliff through a short-term extension of the current law. But the AGC argues such an approach would merely postpone uncertainty rather than resolve it.
The AGC says transportation agencies typically plan projects years in advance. Contractors hire workers, purchase equipment and secure materials based on anticipated funding streams, so when uncertainty emerges, there can be a ripple effect through the construction supply chain as agencies often delay project approvals and contractors become reluctant to make major investments.
Projects could be delayed or postponed. Procurement of materials such as cement, concrete, steel and aggregates could slow. Engineering firms, equipment suppliers and contractors could face reduced workloads and communities awaiting infrastructure improvements could see upgrades pushed further into the future.
AGC chief economist Ken Simonson has cautioned current construction employment gains may fade if lawmakers fail to provide long-term certainty before the September deadline.
Heavy and civil engineering employment, which includes many highway and transit workers, is especially vulnerable to a lapse in federal support.
Compounding industry frustration is evidence voters overwhelmingly want Congress to complete the legislation.
A nationwide survey commissioned by the AGC and conducted with Morning Consult found 78 per cent of voters want Congress to pass a new highway, bridge and transit funding bill before Sept. 30.
The survey of more than 10,000 voters also found 78 per cent believe passing a transportation bill on time should be a national priority, while 76 per cent said they are more likely to support elected officials who help get a new bill enacted.
Jeffrey Shoaf, chief executive officer of the AGC, says lawmakers should take note of the poll results.
“The overwhelming support for a new bill should be seen as a bipartisan call on the House of Representatives to pass Build America 250,” he states. “The House committee took the lead, now the full House needs to act. The polling shows that Congress has a chance to unite the country by investing in a bill that creates jobs, improves safety and enhances economic growth.”
The poll also highlighted widespread dissatisfaction with current transportation infrastructure. More than half of voters reported experiencing a road, bridge or traffic problem in the previous two months, while 27 per cent said their vehicle had been damaged by a pothole.
In response, AGC has launched a nationwide advocacy effort called America’s Moving Forward, aimed at educating voters and lawmakers about the benefits of long-term transportation funding. The campaign includes digital advertising, social media outreach and grassroots engagement in key congressional districts and has generated more than 30,000 letters to members of Congress.
