The current extension of highway and transit program authorization expires on March 4, 2011. Failure to pass an extension by that date will result in a shutdown of the Federal Highway Administration (FHWA). This inaction could further result in:
- Stopping Federal reimbursements to states for ongoing highway and bridge construction contracts.
- Forcing states to stop or slow payments to contractors for completed work.
- Forcing states to shutdown ongoing construction projects.
- Preventing states from putting any additional contracts out to bid.
- Slowing down decisions on and payment for change orders.
- Necessitating that states borrow funds in order to meet their contractual obligations to contractors to make progress payments.
- Undermining state bond ratings if they have borrowed funds with repayment contingent on the receipt of future federal payments.