DOT Stimulus Spending Jumps in Early July

The Department of Transportation paid out another $82 million in stimulus project funds in the week ending July 3, escalating how quickly it is pushing money out to cover bills for work it and states earlier approved.

The Obama administration is under fire from critics who say the Recovery Act is injecting its stimulus too slowly into the economy, and both President Obama and Vice President Biden have said they want it to move faster.

Transportation Secretary Ray LaHood said early on that his department would start with a fast round of project submissions and approvals, and actual spending would rise quickly as the construction season ramps up this summer and bills come in for payment.

The largest chunk of DOT money is allocated to a highway and bridge repair program that is fixing infrastructure on interstates and other highways across the nation. That program also allows states to freight include rail and port projects, and some are parceling out stimulus funds to those sectors as well.

DOT also has money targeted for airport projects, and said nearly all of it is committee. It has a provision that exempts airport revenue bonds from the alternative minimum tax for two years, and said the Port of Seattle used that to restart a garage project.

As of July 3, DOT said it had made $20.742 billion available for states to draw on for approved projects, and paid out $523 million. A week earlier, DOT had paid out $441 million on $20.462 billion in available funds, which was a spending jump of about $72 million from June 19.

In the past month, DOT’s payouts have tripled from $176 million as of June 5 to the latest level of $523 million. They rose nearly 19 percent in the last week alone. For details of DOT’s latest stimulus efforts, see http://www.recovery.gov/?q=content/agency-summary&agency_code=69 <http://www.recovery.gov/?q=content/agency-summary&amp;agency_code=69>

In the past month, DOT’s payouts have tripled from $176 million as of June 5 to the latest level of $523 million. They rose nearly 19 percent in the last week alone.

States are still turning in projects for approvals, and while some of this initial “shovel-ready” construction under the stimulus could take into next year to complete and fully pay out, some will wrap up within weeks. Highway travelers are finding construction cones and jersey barriers out in force across the country.