Supporting the Cornyn Amendment in the Infrastructure Investment and Jobs Act
The American Rescue Plan (ARP) provided states and localities with $350 billion in relief funds and $10 billion in capital improvement assistance at a time of critical need. The COVID-19 pandemic ripped a gaping hole in the budgets of many local governments, making this assistance crucial for many workers and businesses across the nation. However, the funds lack clear guidance to states and localities on their applicability. State and local transportation capital budgets were especially hard hit during the pandemic, as changes in travel patterns caused user-based revenue sources to dwindle. Many projects were delayed or canceled, however states and localities remain unsure as to whether the ARP funding can be used for highway and other surface transportation projects. The Cornyn-Padilla amendment #2155 to the Infrastructure Investment and Jobs Act (IIJA) would amend the ARP to provide states and localities the flexibility to use the funds as Congress intended. The amendment would not increase costs to the federal government or the deficit and does not mandate state or local governments change their plans or priorities. It simply provides clarity on congressional intent.