Stephen Sandherr, the CEO of the Associated General Contractors, calls the economic stimulus package “the most significant investment in infrastructure in my lifetime,” according to Engineering News Record.

With $130 billion set aside for highways, buildings and other public works projects, the $787.2-billion American Recovery and Reinvestment Act of 2009 is good news for the construction industry.

The biggest surprise in the package was the $8 billion for a new high-speed rail corridor. The biggest disappointment was the $20 billion proposed funding for school construction cut from the final package. School modernization is permitted in the $39 billion set aside for educational purposes, and some of that is likely to be spent on uprading buildings. New school construction is not eligible.

About $35 billion or 11% of the bill’s total funds for actual appropriations outlays will be spent by September 2009. The construction portion of that will go to “shovel-ready” projects. The pace will pick up in 2010, with $110.7 billion in appropriations-related outlays spent (not all construction-related).

The federal DOT has 21 days to formally apportion  highway stimulus funds to the states, but industry officials are hearing that the funds could clear to the states in seven days. States could then put projects out to bid.

For infrastructure funds, the bill set a goal of using at least 50% of the funds on work that can start within 120 days, with “use-it-or-lose-it” mandates in place.

Defense and Veterans Affairs must report to Congress within 30 days on how they plan to spend allocations. The GSA has 45 days to produce its spending report.

For a detailed list of allocations, visit ENR.

Source: ENR