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$130 Billion for Construction in the Economic Stimulus Bill: Where It Will Be Spent
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February 23, 2009
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By Barbara Werther and David Beck
Howrey LLP
The American Recovery and Reinvestment Act, the economic stimulus bill signed into law last week by President Obama, provides more than $130 billion for construction-related spending.
The spending covers a wide range of projects, including roads, public transportation, federal buildings and hospitals. With a requirement that much of the $130 billion be obligated by September 30, 2010, the legislation has the potential to immediately impact the construction industry and to provide significant opportunities in an otherwise slow economy.
Following is a summary of the legislation’s significant construction-related spending, categorized by which government agency will be responsible for procurement:
General Services Administration
|  | $4.5 billion to convert federal buildings to high-performance green buildings.
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| | $750 million for the construction, improvement and operation of federal buildings and U.S. courthouses.
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| | $300 million for the construction, improvement and operation of border stations and land ports of entry.
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Army Corps of Engineers
| | $2 billion for energy and water development-related projects. At least $200 million of this must be for water-related environmental infrastructure assistance.
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| | $375 million for Mississippi River and tributaries flood damage reduction projects.
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| | $2.1 billion for the maintenance, improvement and operation of existing energy and water development projects.
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Department of Defense
| | $4.24 billion for the construction, modernization and improvement of military facilities. This includes the construction and repair of military medical facilities and investments to improve the energy efficiency of existing facilities.
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| | $2.33 billion for facilities projects such as child development centers, housing and other quality of life projects.
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| | $1.33 billion for the construction of hospitals.
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| | $1 billion for non-recurring maintenance of veterans' hospitals, including energy projects.
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Department of Energy
| | $5 billion for home weatherization assistance.
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| | $4.5 billion to modernize the electricity grid and to enhance the security and reliability of energy infrastructure.
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| | $6 billion in both defense and non-defense environmental clean-up.
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Department of Homeland Security
| | $420 million for the construction of U.S. Customs and Border Protection facilities at border points of entry.
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| | $142 million for the alteration or removal of obstructive bridges. Bidding will be through the U.S. Coast Guard.
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| | $210 million for the construction, modification and/or upgrade of non-federal fire stations.
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| | $200 million for construction and related costs to consolidate the Department of Homeland Security.
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Department of the Interior
| | $1.334 billion for the construction, reconstruction, decommissioning and repair of roads, bridges, trails, property and facilities; for energy efficiency retrofits of existing facilities; and for improvements to schools operated by the Bureau of Indian Affairs.
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Department of Health and Human Services
| | $1 billion for the construction and renovation of non-federal research facilities.
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| | $500 million for the construction and renovation of National Institutes of Health buildings and facilities.
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Department of Transportation
| | $27.5 billion for the construction and reconstruction of highways.
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| | $1.5 billion in grants for highways, bridges, transit, rail, seaports and other projects, with the Department of Transportation to choose which projects will be funded.
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| | $9.3 billion for railroads, including $1.3 billion for Amtrak and high speed rail.
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| | $1.1 billion in grants for airport improvements.
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| | $200 million for Federal Aviation Administration infrastructure, including air traffic control centers, terminal radar approach facilities, and navigation and landing equipment.
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At the state level, legislation recently was introduced in Maryland to build a new 24,000 seat soccer stadium for DC United in Prince George’s County. The plan, which will be introduced in the Maryland Assembly this spring, requires DC United to pay 25 percent of the projected cost of $195 million, with the remaining 75 percent to be paid with tax revenues generated by the stadium in the years ahead.
The legislation is expected to pass in June or July of 2009, with bidding for the project to begin shortly afterward.
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For more information about the issues covered in this report, please contact Barbara Werther in our Washington office at 202-383-6852 or at wertherb@howrey.com, David Beck in our Washington office at 202-383-7491 or at beckd@howrey.com, or contact your Howrey attorney. For more information about Howrey’s Construction Practice Group, click here.
©2009 Howrey LLP
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