Remarks by U.S. Transportation Secretary Ray LaHood On the American Recovery and Reinvestment Act At the Center for National Policy

"I want to focus today on the tremendous impact the American Recovery and Reinvestment Act is having – and will continue to have – on our nation's return to economic prosperity."

"Make no mistake: This is landmark legislation – the most sweeping, complex, and ambitious domestic aid package we have enacted in generations. Because we're in a serious recession, many people are looking for a quick fix."

"But it's important to remember that the Recovery Act was designed from the beginning as an 18-month program that rolls out in stages, using well-established procedures wherever possible to channel funds to states and other stakeholders."

"Less than six months into this, I think we have a great deal to show for our investments. There are a lot of moving parts, and it's absolutely essential that we get it right. We must take the time to do everything possible to prevent waste, fraud, or abuse along the way. As Vice President Biden likes to say, 'We don't want the dog to start barking.'"

"On that score, the Recovery Act has been very successful. People can disagree about which projects deserve funding, but so far, in all 50 states and territories, not a single case of serious abuse of funds has been identified. Not one. That's a remarkable achievement for a program moving at this pace – perhaps even unprecedented. And it shows that we're doing this the right way."

"The Government Accountability Office recently reported that recovery funds have helped states avoid major service cuts, tax hikes, and widespread layoffs. Yet it may be hard to grasp how effective this program is because we don't really know how much worse off we'd be without it. And because the full effect of the program will not be felt for several more months."

"But I can tell you this. I talk to governors, mayors, state transportation officials, and private contractors on a weekly basis all over the country, and there is widespread agreement that without these well-timed federal investments in infrastructure and state services, we'd probably be in much worse shape."

"Let's talk about the transportation piece of this. Transportation accounts for roughly 10 percent of United States GDP. The investments we make in this sector – and the jobs we protect or create – are enormously important to our economic recovery."

"Congress gave my Department more than 48 billion dollars in recovery funds to work with. That's equal to nearly two-thirds of our entire annual budget for fiscal 2010. It's an enormous opportunity for us, and we're working overtime to make the most of it."

"To date, we've made nearly half our funds – over 21 billion dollars – available to the states so they can green-light priority projects to rebuild and modernize roads, bridges, transit systems, airports, and seaports."

"We've got real momentum going here. So far, over 6,300 transportation projects have been approved. The Federal Aviation Administration has allocated virtually all its stimulus funds – more than a billion dollars – to airports all over the country. Federal Highways has made nearly two-thirds of its funds available. More than a billion dollars in new Amtrak projects have been approved."

"For public transit, an unprecedented 3.2 billion dollars in grants has already been awarded – and another 5 billion dollars is in the pipeline. And this week, we're going to announce nearly 100 million dollars of grants to help improve dozens of small shipyards around the country."

"This is all work that's happening right now – in cities and towns across America. More than 2,700 road and airport improvement projects, as well as hundreds of transit projects, are under way right now."

"The perception that we haven't moved quickly enough is simply not true. The fact is we've moved money out the door nearly twice as fast we do for some of our regular formula programs. And the states aren't dragging their feet, either. Every state beat the Congressional deadline to obligate 50 percent of their highway stimulus funds within the first 120 days."

"Remember, too, that the outdoor construction season is still ramping up. That means thousands more projects, thousands more jobs, and billions more stimulus dollars are still waiting to be activated."

"So there's an upward curve here. And because bids are generally coming in lower than anticipated, most states will be able to fund additional projects in the future – many more than we expected, in fact."

"In September we'll begin awarding a portion of the eight billion dollars available for inter-city and high-speed passenger rail projects. The response to this program has been tremendous. We've received hundreds of proposals from 40 states and the District of Columbia."

"Next winter, we'll begin awarding an additional 1.5 billion dollars in discretionary grants for multi-modal transportation projects around the country. I'm confident that the economic ripple effect from all this activity will carry us well into next year and beyond. So stay tuned. We're just getting started."

"But there's more to the Recovery Act than the big picture I've described. To really understand how taxpayers and their communities are benefiting, you need a ground-level perspective."

"Take Pennsylvania, for example. The Recovery Act has boosted the state's fiscal 2009 highway and bridge construction program by more than half – adding over a billion dollars to the budget. That means more than 200 infrastructure projects are funded today that would not even be on the books otherwise. It means thousands of private-sector jobs will be saved or created, and lay-offs will be avoided. It means the outdated, structurally deficient bridge the Vice President and I visited in Carlisle can finally be replaced. And it means that Pennsylvania can count on good jobs for months to come."

"Consider this: in April, contractors working in Pennsylvania reported that stimulus funds helped them sustain or create about 130 jobs. By May, the total jumped to over 700 jobs. The job totals this month will be even bigger."

"In state after state, we're seeing a meaningful impact on jobs. The Maryland Department of Transportation has recalled all of its laid-off employees back to work. A private contractor in Massachusetts has brought back nearly its entire workforce – more than 300 people."

"In Missouri, Texas, Colorado, Georgia and elsewhere, this story is being repeated. I have personally met with workers around the country who would not be getting paid this week, without stimulus-funded transportation jobs. And because they are working, they can support their families, pay their bills, and pump some dollars back into their local economy."

"While the Recovery Act cannot make up for all the jobs our economy has shed, every single job these investments help to protect, every worker who's recalled from a layoff, every new college graduate who finds that crucial first job, counts as a victory."

"There have been questions about whether stimulus-funded projects are in the communities that need them most. Let me return to Pennsylvania. Nearly 40 percent of the state's unemployed live in about 40 economically depressed counties. Nearly half of the recovery-funded roadway projects are in just these counties. So these funds are indeed going to workers and their families who are most vulnerable during the recession."

"And that's true around the country. In fact, we've found that half the states have obligated at least half of their recovery highway dollars to economically distressed areas. And I have urged the nation's governors to obligate the funds saved from low bids to highway and transit projects in depressed areas, wherever possible."

"Our cities are benefiting too – making sweeping upgrades to transit facilities and equipment to help fight congestion, reduce emissions, and improve mobility for millions. Ninety percent of recovery funds for transit go to urban areas – cities large and small."

"So cities like South Bend, Indiana can finally replace a century-old transit center with a new multi-modal complex. Minneapolis-St. Paul, Fort Worth, and scores of other cities now have tens of millions of dollars each to buy clean-fuel buses, build new transit facilities, and make delayed repairs."

"I'm confident that five years from now, when we look back on the American Recovery and Reinvestment Act, we will recognize that the investments we made in infrastructure, energy conservation, education, and other vital needs marked a turning point. The American people have said loud and clear that they want us to rebuild our crumbling roads and bridges, and build clean and green public transportation systems to help ease traffic congestion. "

"We're putting Americans to work doing just that. And in the months ahead, we will work with Congress to find creative new ways to finance the kinds of transportation systems and services that Americans need and deserve for the 21st century."

"In closing, I firmly believe that the American Recovery and Reinvestment Act is working, it's on track, and it will continue to benefit our communities for many, many months."

"And I'm proud to say that the U.S. Department of Transportation is leading the way – by showing that government can move quickly, effectively, and ethically to invest in good projects and good jobs in every state in the nation."

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Briefing Room