In The News

DOT chief LaHood says Recovery Act making dent in recession

U.S. DOT Transportation Secretary Ray LaHood told the National Press Club that the American Recovery and Reinvestment Act (ARRA) is making a dent in the recession and that the jobs being created are making a difference.

“The American Recovery and Reinvestment Act has been on the books for just three months. In that short time, this ground-breaking law has probably done more to energize working men and women, and companies of all sizes, than any other legislation in recent memory.

He said the Act was “more than promises” and was “a program focused on results that puts wages in people’s pockets and gives hope to struggling families and communities.  It is a lifeline for adults who work in construction and have been especially hard hit by the downturn.

“It is an opportunity for minority- and women-owned businesses to compete for contracts that might not otherwise exist.  In fact, the Recovery Act sets a goal that 10 percent of all contract dollars should go to these kinds of firms.  This opens the door to roughly 3.5 billion dollars in potential new business.

“To be sure, the American public, and the media, have a perfect right to question whether the federal government can actually push more than 780 billion dollars out the door quickly enough to fight the recession and make a difference.

He said the money was getting to states more quickly than “routine” programs. “For example, the highway portion of the stimulus package is flowing at the rate of nearly four billion dollars a month — nearly twice as fast as traditional highway dollars.”

“When it comes to rolling out the money, we’re actually ahead of schedule.  As of this week, we’ve made nearly 13 billion dollars available — more than a third of our total formula funds.  Every new project we announce is an immediate signal for states to advertise contracts, and for contractors to begin hiring workers and ordering materials like steel and asphalt.

“In fact, the FAA has already made nearly 100 percent of its recovery funds available for hundreds of airport construction projects all over the country.  And the Federal Transit Administration is about to unleash more than 60 grants, pumping 640 million dollars into urban and rural communities.  On roadway projects, the pace of construction and hiring is about to accelerate, as we enter the peak summer months.

“You may wonder whether the stimulus funds are going where they will do the most good,” he asked, “or whether we’re creating enough jobs to have an impact.”

“I think we have to remember some fundamental principles: every job that puts an unemployed breadwinner back to work so he or she can support a family, is an important job. And it has a ripple effect.

“Every job that attracts a worker who cannot find employment elsewhere, is filling a need, no matter where it happens to be.”

“We’re not just talking about hourly workers – we’re talking about salaried employees like estimators and engineers.  And now, because many of these companies have stimulus contracts, they’re not only able to keep the people that have been with them for years – they’re also hiring new employees – and re-hiring people they laid off earlier.

“As one contractor told me, when his company won a $6 million dollar stimulus job, he was able to put 40 people to work immediately – and had the confidence to go out and buy several new pieces of heavy equipment.

“You may not think that makes a big dent. But you have to remember what would happen if that work were not there. There might be layoffs.  No new purchase orders. And some companies could head into a downward spiral and never recover.

“The CEO from one of the companies I met with is here with us today – Jim Andoga – the president of Austin Bridge & Road, an employee-owned firm.  This company won a highway repair contract that not only allowed them to avoid laying off up to two dozen people – they’ve also started to hire. And one of the men they’ve hired is Willie Fort, who is also here with us today.

“Mr. Fort is a 32-year-old family man, with a wife and four young children. He has been doing outdoor construction work for about 12 years – beginning soon after high school.  Mr. Fort told us that until recently, he was very concerned that he was about to get laid off from his current job, near his home in central Mississippi.

“He’s worked steadily for the last several years —  so a layoff was not something he was used to dealing with. And as the sole breadwinner for his family, a job is essential. Then he learned about the 31 million dollar Austin Bridge highway project just north of Shreveport, Louisiana. And before long, he was hired.  Mr. Fort will oversee the concrete work on this project, along I-49.

“This job is about four hours from home. But Mr. Fort says it’s worth relocating temporarily, because this could mean almost two years of steady work. He plans to return home every two weeks or so, to visit his family.  Best of all, perhaps, Mr. Fort says that thanks to this job, he and his wife can move ahead with plans to buy a house back in Mississippi.

“Mr. Fort says he’s convinced that things would be a lot harder for him, and his friends in the industry, without the stimulus money pouring into these communities.  This is what it’s all about.  There are thousands of men and women like Mr. Fort.  And hundreds of companies like Austin Bridge & Road.

“The more people I meet who are benefiting from the stimulus investments, the more I am convinced that we are restoring confidence to the middle class, and restoring stability to communities affected by the recession.

“The American Recovery and Reinvestment Act is working for America.  It is far more than a set of federal statistics.  It’s a testament to our ability to put government to work for the people, and lay the groundwork for a brighter future for all of us.”

The Trucker staff may be reached to comment at [email protected].