The following information was released by Associated Equipment Distributors (AED):

While most of the country is focused on the debt ceiling debate, another crisis has gone virtually unnoticed. On July 22, Congress allowed the Federal Aviation Administrations (FAA) operating and funding authority to lapse, causing substantial construction industry job losses. Unfortunately, the highway program could be in the same situation on Sept. 30 when the current extension expires.

Since the 2007, expiration of Vision-100, the most recent FAA authorization law, the agency has been operating under short-term extensions, most of which have been routine and uncontroversial. Similarly, the highway program has been operating under a series of temporary continuations since SAFETEA-LU expired on Sept. 30, 2009.

The trouble started when House Transportation and Infrastructure Chairman John Mica (R-FL) unveiled the FAAs 21st extension (H.R. 2553) with cuts to the Essential Air Service (EAS). EAS provides subsidies to remote airports to help airlines recoup service costs. The bill passed the House with bipartisan support, but Senate Commerce, Science and Transportation Committee Chairman Jay Rockefeller (D-WV), the White House, and others quickly announced their strong opposition to Micas plan.

Unfortunately, the FAAs operating authority is stuck in the middle of a high stakes battle between the House and Senate with no end in sight. The result of congressional inaction 241 stop work orders; halted progress on $2.5 billion worth of aviation infrastructure construction projects is affecting 70,000 construction industry jobs (a running list of halted projects can be found here). In fact, it appears increasingly likely that lawmakers could leave for the August recess without resolving the issue.

We want to know how AED members are being affected by the airport project shutdown. If you or your customers have lost business, send an email to [email protected] Be sure to let us know both the financial and jobs impact.

Rough Times Ahead?

The FAA shutdown does not bode well for infrastructure investment legislation, such as a new surface transportation reauthorization bill. Transportation has traditionally been a bipartisan issue, but it is now caught in partisan bickering. Additionally, a new SAFETEA-LU extension will be needed by the end of September to ensure the highway program doesnt lapse. Could we be looking at a highway program shutdown, which will wreak havoc on equipment markets and result in even more construction industry job losses?