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Happy birthday, infrastructure law

Presented by Delta Air Lines: Delivered every Monday by 10 a.m., Weekly Transportation examines the latest news in transportation and infrastructure politics and policy.
Nov 07, 2022 View in browser
 
POLITICO's Weekly Transportation newsletter logo

By Alex Daugherty and Tanya Snyder

Presented by Delta Air Lines

With help from Oriana Pawlyk

QUICK FIX

— Tomorrow is Election Day. Will $1.2 trillion in infrastructure money make any difference for Democrats' political fates?

— Want a piece of the infrastructure cash pie? Get yourself a lobbyist.

— Labor Secretary Marty Walsh acknowledged that Congress would have to get involved if any freight rail union was poised to strike.

IT'S MONDAY: You're reading Morning Transportation, your Washington policy guide to everything that moves. As always, send tips, pitches, feedback and song lyrics to adaugherty@politico.com . You can find all of us on Twitter: @alextdaugherty , @TSnyderDC and @Oriana0214 .

"Now I'm feelin' love/Got you riding on my love escalator."

 

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Driving the Day

HAPPY BIRTHDAY, INFRASTRUCTURE LAW: Voters go to the polls tomorrow in what will be a referendum on one-party Democratic rule in Washington. But will they be thinking about the $1.2 trillion infrastructure bill, which celebrates its first birthday next week? The White House says $185 billion of that money has been announced so far , but polls show most Americans don't even know the bill ever passed.

The law promises to transform communities with its historic funding for rail, transit, broadband and highways, but infrastructure projects move slowly and most communities won't see the fruits of this investment for years to come. One of the most popular parts of the bill — the $65 billion investment in broadband — is hobbled by the lack of accurate maps showing where help is needed.

How the money is spent: Meanwhile, Democrats' attempts to shape how the money is spent, in ways that go beyond the text of the law, have been met with GOP blowback. Jackson, Miss., was exactly the sort of community President Joe Biden hoped would be transformed by the law — but the state has yet to spend a dime to address the drinking water crisis that's plagued the city for two years.

On the road again: While the bill spends $1 billion to reconnect communities that had been divided by highways and rail lines running through them — usually low-income communities of color — it also allocates $361 billion for roads with none of the strings Democrats had hoped to attach. Officials in some states are thrilled to embark on a highway-building frenzy of the kind many Democrats were hoping to avoid.

— Republicans, meanwhile, have been happy to praise and even take credit when infrastructure dollars land in their districts — even though they voted against the bill.

Read on: Tanya and a quartet of collaborators from around the newsroom bring you our take on the law's first year , complete with infographics by Madi Alexander showing just how — and how fast — the money is being spent.

 

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On K Street

CASH GRAB: Alex and Pro Tech's John Hendel report on the lobbying bonanza related to the infrastructure law , as state and local government lobbying is at its highest level since the aftermath of the 2009 Obama stimulus. States and municipalities are angling for their share of billions in new and shored-up competitive grant programs from DOT and the Commerce Department, which is tasked with overseeing broadband expansion.

"The last time you got a historic shift like this time was roughly 30 years ago," said Rodney Slater, who was U.S. Transportation secretary during the Clinton administration and is now a partner at the lobbying firm Squire Patton Boggs. Slater was referring to a 1998 law that authorized $217 billion for infrastructure investments and laid out much of the current funding structure for the Department of Transportation and its programs.

PLAYING THE GRANT GAME : But the infrastructure law money is still finite. And having an experienced lobbyist is a major boost. Detroit, for example, received $104.6 million in federal dollars to replace I-375, which sliced through the city. Instead of applying for money through the Reconnecting Communities program, which didn't get as much money as Democrats wanted, Detroit sought — and won — money through an existing federal grant program that was given more money by the new law.

"A lot of the blocking-and-tackling type lobbying was done more than a year ago," said Dan McFaul, a partner at Ballard Partners who works on transportation issues. "Many of the efforts were during the months and weeks leading up to the actual passage. Now it's a little more nuanced."

 

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Rail

FINALLY, SOME GOOD NEWS: The International Association of Machinists' District 19 on Saturday approved its contract with freight railroads after having rejected an earlier version in September. The vote "lowers the temperature on the potential for an economically devastating freight rail strike," writes Eleanor Mueller. So far, seven unions have approved their contracts while two have rejected theirs, insisting on paid sick leave and other changes to attendance policies. All eyes will be on the two biggest freight rail unions, the Brotherhood of Locomotive Engineers and Trainmen and the SMART Transportation Division, when they vote whether or not to ratify their contracts in 10 days.

TALKS CONTINUE: Labor Secretary Marty Walsh said Friday he's not "actively involved in negotiations" between freight rail companies, a day before rank-and-file members of one of the involved unions vote on a compromise contract agreement brokered by the White House, Alex reports. However, Walsh said he's constantly talking to unions and rail company leaders.

CONGRESS IS WATCHING: Walsh, in an interview with Bloomberg TV , said if an agreement is not reached, "Congress will have to take action." Congress can get involved to stop a freight rail shutdown through legislation. The threat of legislation from Republicans that would have codified a Presidential Review Board's recommendations for the freight rail industry prompted a late-night tentative agreement between union leaders and freight rail negotiators in September.

AGREEMENT UNCERTAIN: But that tentative agreement appears tenuous right now. Two unions have rejected the compromise since Sept. 15, when eleventh-hour deal-making by the Biden administration averted the threat of an immediate work stoppage. It's possible that a freight rail strike could happen as soon as early December, when the current cooling-off period that prohibits strikes or lockouts ends.

DEFENDING BONUSES : In response to a letter from T&I Republican Reps. Sam Graves of Missouri and Rick Crawford of Arkansas, Amtrak defended bonuses given to senior executives despite declining ridership during the pandemic — payouts that were criticized by unions representing Amtrak employees. In a statement, Amtrak spokesperson Christina Leeds said Amtrak would brief Graves and Crawford on the bonuses and said the bonuses were "recommended to Amtrak by the Government Accounting Office and Congress."

— "We are pleased to offer these incentives as part of our competitive compensation package, helping us attract and retain talent who have the amazing opportunity to rebuild and expand passenger rail," Leeds said. "To earn incentives, Amtrak must achieve a high level of corporate performance in support of our company's strategic plan — and employees must also meet their individual performance goals."

 

DON'T MISS POLITICO'S 2nd ANNUAL DEFENSE SUMMIT ON 11/16: The United States is facing a defining moment in the future of its defense, national security and democratic ideals. The current conflicts and developments around the world are pushing Washington to reshape its defense strategy and how it cooperates with allies. Join POLITICO for our second annual defense summit, "At a Crossroads: America's Defense Strategy" on November 16 in person at the Schuyler DC or join online to hear keynote interviews and panels discussing the road ahead for America's national security. REGISTER HERE .

 
 
The Autobahn

— "U.S. traffic safety is getting worse, while other countries improve." Bloomberg .

— "Metro charts course to bring rail service back to normal." The Washington Post.

— "Planning to fly? You'll need this ID." The New York Times .

— "Buttigieg stumps for Democrats in a 'cost-of-living election.'" POLITICO .

— "Why Uber and Hillary Clinton care about a minimum wage vote in Portland, Maine." POLITICO .

— "Energy, transportation firms gave millions to election deniers after Jan. 6: analysis." The Hill .

— "Here's how the U.S. can stop wasting billions of dollars on each transit project." VICE .

— "Analysis: Airlines reboot as COVID sparks a revolution in one-day business trips." Reuters .

— "Heavier Americans cause United Airlines to block out seats to meet weight requirements." Jalopnik .

— "ICYMI: U.S. urges airlines equip Florida-bound planes to fly over water." Reuters .

Did we miss an event? Let MT know at transpocalendar@politicopro.com . 

 

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At Delta Air Lines our people are our most worthy investment. That's why we are proud to be ranked No. 6 on Forbes' list of World's Best Employers for 2022. We provide industry leading benefits, because caring for our people empowers them to take care of you. Learn more at People & Culture | Delta News Hub

 
 

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