ATSSA co-leads effort asking Yellen for relief on supply chain challenges

19 associations engaged in infrastructure work seek ARPA funds to help with soaring prices

ATSSA is one of 19 organizations asking Treasury Secretary Janet Yellen to clarify that American Rescue Plan Act (ARPA) funds can be used to help subcontractors and suppliers that are struggling due to supply chain issues brought on by the pandemic.

“At this critical time, as Congress has passed the historic Infrastructure Investment and Jobs Act (IIJA) that will provide impactful infrastructure investment to the nation, we request relief for government agencies and businesses who have and continue to face unprecedented pandemic-induced supply chain delays and shortages that may undercut the anticipated benefits of the IIJA investment,” according to the letter sent to Yellen on Monday.

ATSSA, the Associated General Contractors of America (AGC), the American Association of State Highway and Transportation Officials (AASHTO) and the American Road &Transportation Builders Association (ARTBA) led the effort that was joined by 15 other organizations.

The group asks that the Treasury Department “update its ‘Frequently Asked Questions’ document and regulations for ARPA funds, clarifying that recipient governments can use them to mitigate the effects of supply chain delays and shortages, such as for material price increases and the effects they are having on project costs.”

ATSSA President & CEO Stacy Tetschner sent four letters to officials with state departments of transportation (DOTs) and the Federal Highway Administration (FHWA) this year explaining the challenges faced by ATSSA members in obtaining materials for roadway safety projects and the significant price hikes for the materials.

As the letter to Yellen states, ATSSA surveyed members twice this year to assess the impact of the supply chain challenges on them and found that about 64% were unsure or pessimistic about their ability to meet customers’ needs.

A survey during the summer found that nearly 90% of ATSSA manufacturers and suppliers were experiencing a shortage of raw materials needed to produce roadway safety products.

Monday’s letter to Yellen notes that Federal Reserve Chair Jerome Powell indicated the “supply chain storm” could continue through next year.

The following organizations signed the letter.

• Associated General Contractors of America
• American Association of State Highway and Transportation Officials
• American Road &Transportation Builders Association
• American Traffic Safety Services Association
• American Association of Port Authorities
• American Concrete Pavement Association
• American Concrete Pipe Association
• American Council of Engineering Companies
• American Highway Users Alliance
• American Public Transportation Association
• American Society of Civil Engineers
• Associated Equipment Distributors
• Association of Equipment Manufacturers
• National Asphalt Pavement Association
• National Association of Counties
• National Ready Mixed Concrete Association
• National Stone, Sand, and Gravel Association
• Portland Cement Association
• The Surety & Fidelity Association of America