Standard & Poor’s said the U.S. government’s inability to provide long-term infrastructure and transportation funding could create another credit crisis.
The warning from the rating agency, which downgraded the U.S. credit rating in August, comes as Congress struggles to approve a multiyear surface transportation bill. Congress on March 29 approved a three-month extension of highway funding after the House failed to pass its five-year, $260 billion plan to match the Senate’s already approved two-year, $109 billion bill.
S&P warns “reduced or unpredictable federal support and lower demand could result in deferred maintenance projects that would keep our nation’s transportation infrastructure in good repair,” according to The Fiscal Times. Few transportation analysts expect Congress to approve a plan by the end of the year, making it difficult for state transportation agencies to commit to long-term projects.