A share of the $30 billion in stimulus highway construction funds will be a substitute for baseline federal highway construction spending rather than an addition to it. When the current six year federal highway funding program expires in three months the new plan will not be in place yet. Expect Congress, after some delay, to extend funding at the current level for few months at a time using appropriations from general funds to supplement the nearly bankrupt Federal Highway Trust Fund. The funding uncertainty will delay state DOT contract awards later this year and for much of next year.

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