U.s. Transportation Agencies to Lay Off 2,000 as Funds Expire

March 1st, 2010|Sasha James
State

Employees will be furloughed without pay because a funding measure stalled in Congress, the department said in a statement today. The affected workers are in the Federal Highway Administration, the Federal Motor Carrier Safety Administration the National Highway Traffic Safety Administration and the Innovative Technology Administration.

The furloughs are necessary because the Senate failed to complete action on a bill to extend unemployment benefits, according to the statement. Among provisions in the measure was an extension of authorization to spend money from the federal Highway Trust Fund, which bankrolls spending for parts of the Transportation Department.

“As American families are struggling in tough economic times, I am keenly disappointed that political games are putting a stop to important construction projects around the country,” U.S. Transportation Secretary Ray LaHood said in the statement.

NHTSA, the agency that oversees automotive safety, will lay off workers that administer programs aimed at reducing fatalities from drunk driving, distracted driving and motorcycle crashes. Staff at the agencys Office of Defects Investigation, which is handling the recalls of millions of Toyota Motor Corp. vehicles, wont be directly affected.

Bunnings Opposition

Senator Jim Bunning, a Kentucky Republican, blocked the unemployment-benefits extension Feb. 25, demanding lawmakers offset its $10 billion cost to prevent it from adding to the governments $1.6 trillion deficit.

Construction projects will be affected by the legislative delay because the Federal Highway Administration wont be able to reimburse states until the bill passes, according to the statement. Among more than 40 projects affected is a $50 million bridge replacement in the District of Columbia, according to a list the department provided.

NHTSA is under congressional scrutiny over whether its defects investigators responded quickly enough to consumer reports of unintended acceleration that led to Toyotas recalls of more than 8 million vehicles worldwide. Lawmakers also questioned during hearings on Feb. 23 and 24 whether funding and staffing levels were adequate. Transportation Department Inspector General Calvin Scovel opened an audit Feb. 19 of NHTSAs defects investigations office.

The legislation blocked by Bunning would have provided a one-month extension for unemployment benefits, including subsidies to help the jobless buy health insurance through the Cobra program. Under Cobra, the unemployed may buy coverage from their former employers for 18 months with the government paying part of the cost, currently 65 percent.

To contact the reporters on this story: Jeff Plungis in Washington at jplungis@bloomber.net

Last Updated: March 1, 2010 00:00 EST

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