Transportation Could Take Big Hit from Government Shutdown

If no solution is made by the end of this week, a government shutdown will grind Washington to a halt. As Steetsblog reports, that shutdown could cost the transportation sector $100 million per day.

1 minute read

March 3, 2011, 11:00 AM PST

By Nate Berg

"AASHTO spokesperson Tony Dorsey says if the government shuts down, states won't be able to get reimbursed for transportation spending. "If there's a government shutdown, the reimbursement payments are going to stop," he said. "And that amounts to about $100 million a day in transportation dollars."

But some local transportation officials aren't so worried. David Leininger, the CFO of Dallas Area Rapid Transit, told Streetsblog, "In the near term, there's not much direct effect in terms of compensation due us from the feds that would get interrupted. We do receive formula funds and grant reimbursements but I don't think a one- or two-week interruption would affect that." He said if the shutdown dragged on for two or three months, that would be a different story."

Officials claim that Republicans and Democrats are nearing a compromise on the budget that would keep government moving, but others are bracing for the side-effects of a shutdown.

FULL STORY: AASHTO: Government Shutdown Could Cost Transportation Sector $100M/Day

Monday, February 28, 2011 in Streetsblog

Government / Politics Transportation United States Government Shutdown

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