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If a state fails to meet the deadline, the FTA is prohibited by federal law from obligating any funds to public transportation agencies throughout that state until certification is achieved.
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The bill is projected to bring about $2.37 billion to help complete the 20-mile rail by extending the half-percent excise tax surcharge on Oahu for another three years, although the mayor of Honolulu would like it extended to five years.
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If no solution is found by Sept. 15, the federal government could demand that Honolulu return more than $800 million it has already spent and withhold the rest of a promised $1.5 billion funding package.
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The Honolulu Authority for Rapid Transportation has a September 15 deadline to submit its financial plan to the Federal Transit Administration.
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Recipients of Federal funding for public transportation projects would be allowed to identify specific FTA regulations, practices, procedures, or guidance documents that may be an impediment to the use of a P3 or private investment in that project.
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All projects must comply with Buy America regulations, which require that all iron, steel, or manufactured products be produced in the U.S., as well as final assembly of vehicles.
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The package would fund alternative transportation by instituting a payroll tax of one-tenth of a percent of wages. In 2018, officials expect to raise $103 million for public transit in metro areas and rural communities.
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Sears is responsible for oversight of the firm’s operations in Washington, Oregon, Hawaii and the South Pacific.
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The project was expected to cost $5.2 billion just a few years ago but is now estimated to cost as much as $10 billion with financing. The city’s latest figures project a $1.384 billion shortfall from now to 2024.
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APTA and the transit industry is calling on the Trump Administration and Congress to reject these cuts and reaffirm its support for these programs as part of the FY18 budget process
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