Airport Construction Projects Receive Temporary Funding Extension

The U.S. Congress enacted a new temporary extension to the aviation legislation on Aug. 5, helping restart billions of dollars worth of airport construction projects, according to the Association of General Contractors (AGC). The extension expires Sept. 16.

“The extension, however, does little more than put off the disagreements among lawmakers over the broader reauthorization of the FAA (Federal Aviation Administration), which has been stalled over labor issues as well as funding levels and subsidies to rural airports,” the AGC states in a release. The association warns that the FAA may face a similar shutdown threat when the extension expires.

AGC CEO Steve Sandherr and U.S. Transportation Secretary Ray LaHood held a news conference in New York City to get $2.5 billion worth of stalled airport construction projects restarted.

The projects were halted in late July after Congress failed to pass an extension to federal aviation legislation because of a dispute over proposed changes to airline union voting rules and subsidies for air service to rural communities. Without the legislation in place, the FAA was unable to fund billions of dollars worth of airport improvement projects.

AGC chief economist Ken Simonson told members of the media that the construction halt will cost 24,000 construction jobs, and threaten another 11,000 jobs in related construction supply businesses and 35,000 jobs in the broader economy.

AGC says it will continue to work towards passage of a multiyear FAA reauthorization bill.