This rescission is mandated by the 2005 federal surface transportation authorization law known as "SAFETEA-LU" (as amended by the 2007 energy law). The Federal Highway Administration notified state transportation departments in late August how to proceed with identifying the amounts they will rescind. (see Aug. 28 AASHTO Journal story)

"If implemented, the rescission would undermine budding economic progress from the investment of stimulus funds under the American Recovery and Reinvestment Act," states the letter, signed by California Gov. Arnold Schwarzenegger and New Jersey Gov. Jon Corzine, the chairman and vice chairman of NGA's Economic Development and Commerce Committee. "Congress passed the rescission provision well before our nation fell into recession. Eliminating the rescission would allow states to continue leveraging their annual contract authority with ARRA dollars to create well-paying construction jobs and build and maintain surface transportation infrastructure critical to our national economy."

The letter concludes, "We urge Congress to help stimulate economic recovery and support the fiscal capacity of states to plan and fund critical surface transportation programs by repealing the impending $8.7 billion rescission as soon as possible."

John Horsley, AASHTO executive director, praised the governors for speaking out on behalf of their state transportation programs. The rescission is strongly opposed by AASHTO, which has been urging key members of Congress to repeal the provision before Sept. 30.

"We have received assurances by key senators that they will act to repeal this rescission, which would have devastating consequences on numerous state DOTs," Horsley said. "We look forward to seeing action in the next 12 days to enact the repeal so the states can continue to proceed with spending all of the federal transportation dollars they have been allocated."