Investment In Infrastructure Continues Amid Political Turmoil

By: ryan sharpe, director of government affairs and communications

After years of neglecting our crumbling infrastructure, both our federal and state governments are continuing to make massive Investments in our transportation and water infrastructure, highlighted by the enactment of a 2023 federal budget which increases transportation spending by $3.4 billion over last year and delivers more than $1.7 billion for enhancing water infrastructure.

The $1.7 trillion spending plan that was signed into law late last year increases spending for highways by $2.3 billion, boosts funding for mass transit by $704 million and provides an additional $5 million for airports which is nearly triple the amount allocated two years ago. Additionally, the budget plan appropriates $2.7 billion for water infrastructure which is on top of the $5.25 billion allocated for water in the Infrastructure Investment and Jobs Act (IIJA).

Speaking of the IIJA, at the end of last year it was announced that funds from the IIJA will be used to provide a $292 million federal pay for about half of the $600 million cost to build a concrete tunnel casing to carry trains on the Manhattan side of the river. grant to help pay for the first major step in the construction of a new rail tunnel under the Hudson River. The new rail tunnel is part of the $30 billion Gateway Program to rebuild and rehabilitate the rail infrastructure along the Northeast Corridor between New Jersey and New York City. Gateway is designed to increase capacity for the most heavily used passenger line in the country with work expected to continue into the 2030’s. The grant will

Infrastructure funding also continues to be at the forefront in the State Legislature. In the past few months, the Legislature approved the allocation of over $2 billion in loans for water infrastructure projects and approved the Fiscal Year 2023 Financial Plan for the New Jersey Infrastructure Bank (I-Bank).

Another measure that cleared a Senate Committee in December would create the Community Hazard Assistance Mitigation Program (CHAMP) to fund resiliency and hazard mitigation projects through the I-Bank. The legislation also includes a $500,000 appropriation to set up the program.

In addition, legislation supported by UTCA to extend the eligibility period for contractors to seek reimbursement for unprecedented material cost escalation continues to advance. Under S-2909/A-4792, certain New Jersey Department of Transportation (DOT) projects bid before December 1, 2021 would be eligible for reimbursement.

Under current law, the program only covers contracts for which bids were submitted by April 1, 2020 which excludes the period in which material cost increases were most acute. While the program is only open to Small Business Enterprises (SBE’s) and applies to DOT contracts, UTCA is currently working with lawmakers to craft legislation that expands cost escalation to more contractors and additional project owners.

The past few months also saw the proposed expansion of the New Jersey Turnpike Hudson County Extension making news again with stakeholders lining up both for and against the plan to widen the number of lanes between Turnpike exits 14 and 14A, replace the Newark Bay Bridge, and create a three-lane road in both directions between exit 14A and Columbus Drive in Jersey City.

Despite opposition from environmental activists and local politicians, Governor Murphy has not backed down from supporting the project which he has said is needed. In addition, State Senator Brian Stack, who is also a Hudson County mayor, joined the UTCA, labor organizations and many other groups in supporting this proposal which is vital to the state and region’s economy and quality of life.

Another positive development coming from Trenton was the Governor’s decision to pull back from his mandate that would have required schools, apartment buildings, and commercial, industrial and manufacturing facilities to convert their gas boilers to electricity by 2025.

UTCA was a part of a diverse coalition of labor and business organizations that successfully opposed this costly mandate that would have dramatically increased the cost of heating and resulted in higher property taxes. The plan, which was a part of Gov. Murphy’s larger plan to transition to 100% clean energy by 2050, was withdrawn by the New Jersey Department of Environmental Protection in December.

On the political front, the Republicans took control of the House of Representatives despite a lackluster showing in the fall elections. The Senate remains under Democratic control and indications are that President Biden, who recently turned 80, will seek re-election to a second term next year. However, several prominent Democrats have been jockeying to line up support in the event he chooses not to run. Potential candidates include Governor Phil Murphy, New Jersey’s U.S. Senator, Cory Booker, Vice-President Kamala Harris and U.S. Transportation Secretary Pete Buttigieg.

On the Republican side, Former President Donald Trump has already declared his intentions to seek a return to the White House while other Republicans that could run include Florida Gover- nor Ron DeSantis, former Vice-President, Mike Pence, and former Ambassador and South Carolina Governor, Nikki Haley.

In New Jersey, both the State Senate and Assembly are up for election this year in new districts that were created by the redrawing of legislative boundaries that took place last year. The new legislative map will likely result in the re-election of most incumbents but has created a path for the Republicans to take control of one or both houses of the Legislature for the first time in decades.

In addition, the race to replace the term-limited Gov. Murphy continues to heat up with various candidates poised to join 2021 GOP candidate Jack Ciattarelli in the race. In fact, Jersey City Mayor Steve Fulop’s announcement that he won’t seek re-election has been interpreted by many as a sign that he will throw his hat in the ring for Governor in 2025.

The election year positioning in New Jersey and the hyper partisan atmosphere in Washington will continue to play a major role in policy affecting our industry. As such, we will be watching closely and, regardless of which party is in control, we will continue to advocate fiercely on issues that will impact on our members and the infrastructure construction industry.