In this issue:

On the previous day, the Senate had moved forward on the bill with a key test vote after more than a week of contentious floor debate. Monday's vote was followed by a prime-time news conference by President Obama, who spoke of his ongoing efforts at bipartisanship while pressing the need for quick action by Congress.

Though the Senate bill is relatively close in total cost to the one passed by the House, there are significant differences in priorities between the House and Senate versions that suggest difficult negotiations between the two chambers. The House has committed to finishing the bill prior to leaving for its traditional week-long Presidents Day recess, and lawmakers are optimistic about meeting the time frame.

However, House Speaker Nancy Pelosi and other House members have indicated unhappiness over Senate cuts in some funding for states and education. President Obama, who will likely be active in the conference negotiations, has indicated the same concerns. Sen. Arlen Specter (R-Pa.), who was instrumental in the passage of the bill, said he would not support increases in funding or changes to the ratio of tax cuts to spending that might be proposed in the conference. The Nelson-Collins compromise eliminated funding for school construction and modernization and cut funding for federal green building programs in half. Cuts to state funding for health care could indirectly affect planning programs as states may cut other programs to offset mandatory entitlement spending. The narrow margin of support in the Senate will require deft handling of the negotiation to maintain the support necessary to overcome a Republican filibuster.

Transportation spending emerged intact from the Senate compromise despite efforts to cut funds for transit, rail, and a new multimodal discretionary program. Transportation funding may still prove contentious in conference negotiations. The House and Senate versions of the bill differ by $3.6 billion in funding for public transportation. When considering the bill last month, the House adopted an amendment to boost transit funding to $12 billion, and though several senators indicated a need to increase funding, the Senate bill fell short at $8.4 billion. Senate funding for public transportation does not support the New Starts program, and the bills also differ in support for high speed rail.

Also potentially under fire is a $5.5 billion competitive grant program in the Senate bill that would focus on larger-scale projects that will take as long as three years to be completed. The provision was not included in the House bill, and is opposed by some lawmakers who prefer to funnel money through existing programs.

The speed of transportation spending may also be a hurdle in the conference negotiation. While the House and Senate largely agree on funding levels for transportation and other infrastructure in their versions of the economic recovery plan, they differ on how quickly funds must be obligated. The Senate provides for 180 days to allocate most funds (with some projects allowed an even longer window for obligation), but the House gives only 90, and differences remain in the "use-it-or-lose-it" provisions of the bill. The final legislation will also have to address how much funding flows to local governments. The Senate legislation requires that no less than 40 percent of highway funds go to local areas under the Surface Transportation Program (STP) formula. This funding mechanism helps provide accountability and ensures that transportation dollars address the most pressing local needs.

There are also differences between the competing versions for other critical planning programs. The Senate bill provides significantly less funding for housing and community development, with no funding for Community Development Block Grants and about half the funding for the HUD Neighborhood Stabilization program called for in the House bill. The Senate legislation also provides less funding for public housing capital funds. Both bills provide funding for a new Energy Efficiency and Conservation Block Grant program created in the 2007 energy bill.

Here is a full list of proposed funding for key programs:

Economic Recovery Act Side-by-Side House, Senate, and Conference Bills (pdf)

For more information on planning programs in the stimulus, contact APA at govtaffairs@planning.org.