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Capitol Watch:
House-Passed FY21 Appropriations Package Faces Uphill Battle

By Cecile Entleitner, Associate, Blakey & Agnew

On July 31, the U.S. House of Representatives passed its fiscal year 2021 (FY21) Transportation, Housing and Urban Development (THUD) appropriations bill as part of a six-piece minibus package. The final vote of 217-197 fell, as expected, mostly along party lines. In addition to the Department of Transportation (USDOT), the minibus would also provide FY21 funding for several other departments, including Defense, Commerce, Justice, Labor, Health and Human Services, and Education.

The proposal was approved swiftly through the House Appropriations Committee earlier in July. Subsequently, the House proceeded with two days of Floor debate on the bill, during which it considered a total of 340 amendments. Although lawmakers adopted 19 amendments pertaining to the legislation's transportation provisions, none were particularly controversial or significant to its freight programs or overall funding.

The package includes $107.2 billion in total budgetary resources for USDOT, a $21.1 billion increase in funding compared to fiscal year 2020 levels. Consistent with last year's appropriations, the bill provides $1 billion for the Better Utilizing Investments to Leverage Development (BUILD) grant program, though it would increase certain set-asides directed towards planning grants, resulting in slightly lower funding amounts available for construction grants. Additionally, the legislation increases grant funding for both rail and port investments through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program and the Port Infrastructure Development Program (PIDP). In response to COVID-19, the proposal also provides approximately $26 billion in emergency funding for transportation programs. These emergency designations will likely face additional scrutiny if the bill advances, as they require a 60-vote majority in the Senate as well as the presidential approval.

Gaining President Trump's approval may pose a particular challenge as the White House Office of

Management and Budget (OMB) has issued a veto threat for the House appropriations package. Among other provisions, OMB voiced its opposition to the "new and excessive parameters and timelines" within BUILD as well as "several other" grant programs. The statement also criticized the "excessive" overall funding amounts for USDOT, Highway Trust Fund spending levels, and the $26 billion in emergency designations. It also noted that "the bill should support the FY 2021 Budget Request to provide $1 billion in discretionary budget authority to the Infrastructure For Rebuilding America (INFRA) competitive grant program, which has a proven track record of supporting nationally- and regionally-significant freight and highway congestion relief projects."

As Congress begins its August recess, many key legislative items still remain unresolved. The Senate has not yet introduced any FY21 appropriations bills of its own, nor has it advanced its surface transportation reauthorization proposal since making an early start on the issue in July 2019. Both matters have the same looming deadline of September 30. Though several weeks still remain, lawmakers will likely focus their attention on additional COVID-19 relief legislation and the fast-approaching election. Considering these challenges, most experts believe Congress will opt for a short-term extension of current funding levels and existing surface transportation authorizations to cover infrastructure programs until more comprehensive new legislation can be passed.

Blakey & Agnew, LLC is a public affairs and
communications consulting firm based in
Washington, DC.