LOS ANGELES—Congress is nearing approval of a new transportation bill after years of indecision and short-term fixes. Last week, Congress voted to approve a $325 billion long-term transportation bill for projects over the next six years. The former long-term transportation bill expired 10 years ago, and has been delayed because Congress has not been able to identify the “ways and means” to fund the much-needed road and highway infrastructure improvements, according to Los Angeles-based IBISWorld. Since the previous expiration, the government body has passed a series of short-term bills to fund projects.

“Forgoing upgrades to roads and delaying the modernization of highway routes has resulted in crowded transit mediums and slower traffic speeds. Additionally, kicking the can down the road has prompted those state municipals dependent on federal funding to delay or suspend highway, transit and railroad construction projects,” Deonta Smith, a procurement research analyst at IBISWorld, tells GlobeSt.com. “The development of these transportation mediums are necessary for economic growth, national connectivity, metropolitan accessibility and environmental protection. Moreover, further delaying these projects will cost state municipals more in the long run as the price of related construction projects management services are projected to increase. IBISWorld projects that the price of Construction Project Management Services will increase at an average annual rate of 2.9% over the three years to 2018. Lastly, the delay of road and highway construction projects has limited the scope of city planning efforts as the cost of paving new roads and transportation routes has been rising. IBISWorld expects the price of land preparation, asphalt paving, right-of-way maintenance and quality and safety inspection services to increase at annualized rates of 1.9%, 1.4%, 1.2% and 1.2%, respectively from 2015 to 2018.”

Increasing the Federal gas tax as a way to fund the work is at the center of the debate, but, according to IBISWorld, this solution would be harmful to our recovering economy, while not increasing the tax would add to our federal deficit. Although a proposal has passed, Congress still hasn't resolved the funding issue. “While the passed proposal is considered bipartisan and lays the framework for a long-term solution, the House Ways and Means Committee still has to determine how to fund the bill,” says Smith. “Identifying ways and means to fund the bill has been the greatest hurdle for congress thus far, so it is likely that another short-term will be put in place while a decision is made on whether or not the fuel tax should be increased.”