(The U.S. Department of Transportation issued the following on July 9, 2009.)
WASHINGTON, D.C. — The following is a letter U.S. Transportation Secretary Ray LaHood sent to the nation’s governors on July 9, 2009:
President Obama, Vice President Biden, and I have been focused on expeditiously moving American Reinvestment and Recovery Act projects to help fuel economic recovery in the States. I want to take this opportunity to commend and thank you for all your hard work in meeting the many deadlines and requirements of the Recovery Act. I also want to congratulate your fellow governors, as every State met the June 29 “50-percent obligation” deadline for designated highway projects at least 10 days ahead of schedule.
Today, I write to ask you to redouble your efforts in implementing an important Recovery Act provision: ensuring that priority is being given to projects in economically distressed areas. As of June 24, 26 States have obligated 50 percent or more of their Recovery Act highway funds to economically distressed areas, and six States have obligated 90 percent or more to these areas. While the percent of the Nation’s population residing in economically distressed areas is 37.7 percent, nationally 51.5 percent of all Recovery Act funding has been obligated in economically distressed areas. These numbers clearly indicate that States are working diligently to comply with this provision of the law.
Given that the number and population of economically distressed areas vary across States and that other factors must be considered in selecting projects, we do not expect all States to achieve the same level of economically distressed areas project funding. Overall, we have found that States are in making their best efforts and using the latest available data to quickly invest Recovery Act funds and generate jobs. I appreciate your commitment to this critical issue, given the importance of bringing dollars and jobs to communities that have been hardest hit in this economy.
I am pleased to note that State and Federal transportation officials have cooperated effectively to ensure that Recovery Act projects fulfill both the letter and spirit of the law. As you know, this can be a challenge, particularly given the need to harmonize the various, and sometimes competing, goals of the law. In this regard, the Federal Highway Administration has worked in partnership with the States to provide the tools needed to appropriately balance the requirements of starting and completing projects quickly, maximizing job creation, addressing critical transportation needs and complying with all Federal regulations—and to ensure priority is being given to selecting projects in economically distressed areas.
While it is important to be proud of our achievements, we still have work to do—and we need your continued help to reach our goals. Because many of the project costs are coming in well under initial estimates, we have the opportunity to fund additional work. I urge you, wherever possible, to obligate the funds saved from low bids on your initial Recovery Act projects, for highway and transit projects in economically depressed areas.
We look forward to continuing our productive and successful collaboration with you. Please do not hesitate to contact me or my staff if you have questions or concerns.
Sincerely yours
Ray LaHood
U.S. Secretary of Transportation