[Congressional Record (Bound Edition), Volume 149 (2003), Part 12]
[Extensions of Remarks]
[Pages 16840-16842]
[From the U.S. Government Publishing Office, www.gpo.gov]




              INTRODUCING THE REBUILD AMERICA ACT OF 2003

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                        Thursday, June 26, 2003

  Mr. OBERSTAR. Mr. Speaker, today Cong. Jerry Costello, Lincoln Davis, 
other Members of the Committee on Transportation and Infrastructure, 
and I have introduced the ``Rebuild America Act of 2003''.
  In the 107th Congress, the Democrats on Transportation and 
Infrastructure Committee introduced similar legislation to invest in 
the safety and security of the Nation's infrastructure. At that time, 
we were alarmed by the negative effects that the policies of the Bush 
Administration were having on our Nation's economy. Now, almost two 
years later, our concerns have been proven correct.
  Figures released earlier this month show that the national 
unemployment rate has increased from 4.2 percent in January 2001 to 6.1 
percent, the highest level since July 1994. Further since January 2001, 
the number of people unemployed has increased from 5.95 million to 9 
million--an increase of more than 3 million, or more than 50 percent.
  Moreover, workers who have lost their jobs are having more trouble 
finding new jobs. The average length of unemployment is now almost 20 
weeks, the longest it has been in nearly two decades. In the past two 
years, the number of workers who have been unemployed for longer than 
six months has increased by 1.3 million to nearly 1.9 million--an 
increase of more than 216 percent. One-half of the unemployed are out 
of work for more than 10 weeks and one in five have been out of work 
for more than six months.
  The response of the Bush Administration has been tax breaks for the 
wealthy. And once those are enacted into law, pass more tax breaks for 
the wealthy. The Administration could have developed a bipartisan plan 
to use the surplus it inherited to invest in our Nation's 
infrastructure, shore up the Social Security Trust Fund, and pay down 
the national debt, however, it has squandered each of those 
opportunities. Instead, the Administration continues to pursue policies 
that favor only a small portion of the population (the ultra-wealthy) 
and push our economy further and further into debt and recession. As 
the economy continues to founder, the need for legislation that will 
create jobs has become even more apparent.
  Unlike the Republican ``trickle down'' approach to the economy, the 
Rebuild America

[[Page 16841]]

Act of 2003 stimulates the economy by creating jobs--especially jobs in 
nonresidential construction--and rebuilding our Nation's 
infrastructure. This bill provides $50 billion to enhance the safety, 
security, and efficiency of our Nation's infrastructure, including 
improvements to rail, highway, transit, aviation, maritime, water 
resources, environmental, and public building infrastructure. By 
leveraging Federal infrastructure investments, the 10-year cost to the 
Federal Treasury would be less than $34 billion.
  Moreover, the bill fully offsets this $34 billion cost to the 
Treasury by cracking down on abusive corporate tax shelters (e.g., 
Enron), preventing American corporations from avoiding paying U.S. 
taxes by moving to a foreign country, and extending customs user fees.
  According to the U.S. Department of Transportation, each $1 billion 
in new infrastructure investment creates 47,500 jobs and $6.2 billion 
in economic activity. The bill will create more than two million jobs--
virtually eliminating the job losses that have occurred since the Bush 
Administration came into office--and restore more than $310 billion to 
our economy. Moreover, in the wake of the September 11, 2001 terrorist 
attacks, the bill gives priority to infrastructure investments that 
focus on enhanced security for our Nation's transportation and 
environmental infrastructure systems.
  By ensuring that the funds are invested in ready-to-go projects, the 
bill will provide a much-needed jumpstart to our economy. The bill 
provides funds for each of the critical areas of our Nation's 
transportation and environmental infrastructure, including: $8 billion 
for highways and transit; $3 billion for airports; $21.5 billion for 
rail including high-speed rail, freight rail, and Amtrak; $13 billion 
for environmental infrastructure including wastewater, drinking water, 
wet weather, and Corps of Engineers projects; $2.5 billion for port 
security; and $2 billion for economic development and public buildings.
  In addition, this infrastructure investment will increase business 
productivity by reducing the costs of producing goods in virtually all 
industrial sectors of the economy. Increased productivity results in 
increased demand for labor, capital, and raw materials and generally 
leads to lower product prices and increased sales. Also, the bill takes 
into account the fiscal crises that the states are currently facing and 
allows recipients of the funds an extended period of time to meet their 
state and local match requirements.
  Simply put, this bill will strengthen the fabric of our Nation's 
infrastructure while creating jobs for the millions of people who have 
lost their jobs under the Bush Administration. This investment will 
specifically help unemployed construction workers. The number of 
unemployed private construction workers is 715,000--an 80 percent 
increase over the comparable period in the last year of the Clinton 
Administration. The unemployment rate for construction workers is now 
8.4 percent, more than 68 percent higher than the rate in May 2000. A 
recent national survey found that transportation construction 
contractors hire employees within three weeks of obtaining a project 
contract. These employees begin receiving paychecks within two weeks of 
hiring. By giving priority to those projects that can award bids within 
90 days of enactment, the bill ensures that this money is readily 
dispersed to needed projects that will get people working again.
  This investment will also help address the disproportionate effect 
that the increase in unemployment has had on people of color. The rate 
of unemployment for African Americans is 10.8 percent--twice the rate 
for whites. The unemployment rate for Hispanic Americans is 8.2 
percent--more than 50 percent higher than the rate for whites. Under 
the existing highway, transit, and aviation laws, as a general rule, 
states, cities, and transportation authorities are required to provide 
at least 10 percent of the amounts made available to Disadvantaged 
Business Enterprises, including minority- and women-owned businesses.
  There are thousands of projects that are ready to begin construction 
in all sectors of our transportation and infrastructure systems. For 
example, a survey of the state Departments of Transportation by the 
American Association of State Highway and Transportation Officials 
found that, as of April 2003, the states have 2,710 projects, totaling 
$17.1 billion, that are ready to go to construction within 90 days if 
additional funding is made available.
  Accordingly, the bill provides $5 billion in additional authority for 
Federal-aid highway capital investments and gives states the authority 
to obligate $5 billion of existing budget authority (contract 
authority) in state highway accounts. This proposal would create more 
than 237,500 jobs and $31 billion of economic activity.
  Similarly, a survey of transit authorities by the American Public 
Transportation Association found that public transportation authorities 
have $12 billion in projects that are ready to go to construction 
within 90 days if additional funding is made available. Accordingly, 
the bill provides $3 billion in transit and operating grants and would 
create more than 142,500 jobs and $18.6 billion of economic activity.
  In aviation, an Airport Council International survey of airport 
authorities estimates that $5 billion is needed to install explosive 
detection systems at U.S. airports. In addition, the Federal Aviation 
Administration has deferred millions of dollars for airport capacity 
and safety projects because of the diversion of airport improvement 
program (AIP) funds to security projects. To address these issues, the 
bill provides $3 billion for airport development projects, including $2 
billion for AIP grants to enhance airport safety, efficiency, and 
capacity, and $1 billion for airport security grants to reconfigure 
airports to accommodate explosive detection systems. This proposal 
would create more than 142,500 jobs and $18.6 billion of economic 
activity.
  In the area of high-speed rail, there are currently several corridors 
that are completing environmental analyses of high-speed rail projects 
and are ready to go to construction. The bill provides funding for 
these projects through the issuance of $14 billion in tax credit bonds 
for construction of infrastructure and the acquisition of rolling stock 
for two high-speed rail corridors. This proposal would create more than 
665,000 jobs and $86 billion of economic activity.
  For passenger rail, Amtrak has identified approximately $8 billion of 
capital needs for the reconstruction and rehabilitation of the 
Northeast Corridor and other station upgrades and for the acquisition 
and rehabilitation of rolling stock. With regard to the infrastructure 
needs of short line and regional railroads, a recent study concluded 
that it will take approximately $7 billion of capital investment to 
rehabilitate the track, bridges, and other elements of their 
infrastructure to enable them to carry the 286,000-pound railcar that 
is becoming the industry standard.
  In order to address these needs, the bill provides $7.5 billion for 
capital investment for passenger and freight rail, including: $2.5 
billion for capital investment for Amtrak; $500 million for direct 
grants to short-line and regional railroads to improve their 
infrastructure; and $250 million for grants to provide the credit risk 
premium for at least $5 billion in loans and loan guarantees for 
freight railroad infrastructure projects under the Railroad 
Rehabilitation and Improvement Financing (RRIF) program. This proposal 
would create more than 356,000 jobs and $46.5 billion of economic 
activity.
  Our Nation's environmental and infrastructure also has a backlog of 
important projects in need of funding. The Congressional Budget Office 
estimates that there is an annual investment need of between $11.6 
billion and $20.1 billion to ensure a safe, clean supply of drinking 
water, and an additional need of an annual investment of between $13 
billion and $20.9 billion in wastewater treatment. Further, a survey 
conducted by the Association of Metropolitan Sewerage Agencies found 
that, in just 58 communities, wastewater treatment facilities have more 
than $4 billion of wastewater treatment projects that are ready to go 
to construction if funding is made available.
  This bill provides a total of $11.5 billion for wastewater and 
drinking water infrastructure investment, including: $10 billion to 
construct, rehabilitate, and restore the Nation's wastewater and 
drinking water infrastructure through the existing State Revolving Fund 
(SRF) programs ($8.5 billion for the Clean Water SRF and $1.5 billion 
for the Safe Drinking Water SRF), and $1.5 billion for wet weather 
overflow grants for planning, design, and construction of treatment 
works to address combined sewer and sanitary sewer overflows. This 
proposal would create more than 546,000 jobs and $71 billion of 
economic activity.
  In the area of marine transportation, the Coast Guard estimates that 
it will cost approximately $6 billion over the next 10 years for ports 
and vessel owners to comply with security standards that the Coast 
Guard will prescribe under the Maritime Transportation Security Act. To 
date, only $370 million has been appropriated to fund port security 
grants. In 2002, ports and marine facility operators submitted 712 
proposals, totaling more than $600 million, which were denied funding 
because of the lack of available resources. The requests for port 
security funding were seven times greater than the available funding.
  This bill begins to address this funding shortfall by providing $2.5 
billion for port security grants to ports and marine facility operators 
for their costs to implement facility and port security plans pursuant 
to the Maritime Transportation Security Act of 2002. This proposal 
would create more than 118,000 jobs and $15.5 billion of economic 
activity.

[[Page 16842]]

  The Nation's water resources are also in need of investment to both 
protect and improve the quality water related infrastructure services, 
such as hydropower facilities, ports, dams, and water supply 
facilities. The Corps of Engineers has identified a need to assess and 
improve security at 372 critical infrastructure projects, and those 
efforts have not yet been completed. The Corps also has an unfunded 
operation and maintenance backlog of more than $1 billion.
  To address these needs, the bill provides $1.5 billion to fund 
investment in currently authorized water resources infrastructure 
projects. This proposal would create more than 71,000 jobs and $9.3 
billion of economic activity.
  There is also considerable unmet need in the area of economic 
development. Certain communities and regions of the country suffer from 
chronic economic distress. These communities and regions often have 
unemployment, poverty, and outmigration rates that are more than 150 
percent of the national average. These economically distressed 
communities and regions rely on Federal investments to complete basic 
transportation and public infrastructure projects. The Economic 
Development Administration and existing regional commissions have no 
shortage of requests for assistance, but are woefully underfunded, and 
face drastic budget cuts under the Administration's FY2004 budget 
proposal.
  This bill addresses this severe underfunding by providing $1.5 
billion in grants to economically distressed communities for economic 
development infrastructure projects. Grants are administered through 
the Economic Development Administration ($1 billion), the Appalachian 
Regional Commission ($150 million), the Delta Regional Authority ($150 
million), and the Northern Great Plains Regional Commission ($150 
million). This proposal would create more than 71,000 jobs and $9.3 
billion of economic activity.
  Further, the General Services Administration (GSA)-controlled 
inventory of 1,860 existing Federal buildings is aging and requires 
extensive repair and renovation to ensure that Federal employees are 
housed in safe, modern facilities. GSA estimates that it needs $5 
billion over the next five years to fund the necessary repair, 
alterations, and rehabilitation of Federal buildings and it currently 
has approximately 5,500 work items pending for repair and alteration. 
The bill provides $500 million for repair and alteration of Federal 
buildings and would create more than 23,000 jobs and $3.1 billion of 
economic activity.
  This package of infrastructure, transportation, and environmental 
investment and security enhancement makes sound economic sense. It 
provides funds where they are needed most and will get America working 
again. Our Nation needs an economic stimulus program that creates jobs 
in hard hit sectors of our economy, rehabilitates our basic 
infrastructure to allow us to remain competitive in world markets, 
addresses the infrastructure security needs of our transportation and 
environmental systems, and helps to revive our stagnant economy. Let us 
start by passing this bill.

                          ____________________