Friday, May 8, 2009

Obama Budget Cuts Will Affect Few Construction Projects

President Obama has proposed $17 billion in cuts of "wasteful" programs in the details of his budget released earlier this week. While Republicans argue that the proposed cuts or elimination of 121 programs represent less that a fraction of 1% of the total budget, it seems the construction industry will be safe from major budget slashing. Two major water infrastructure construction programs will actually receive significant increases. The drinking water loan fund appropriation is proposed to increase from $829 million to $1.5 billion, and the clean water loan fund to increase from $698 million to 2.4 billion.

Meanwhile, legislators from West Virginia and Alaska are rising to the defense of two big federal highway construction projects Obama proposes to cut - $10 million for the Corridor H highway in West Virginia and $9 million for job training and construction of the Denali Access System in Alaska. Right now it looks like construction appropriations are reasonably safe from the budget knife in 2010.
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