In a frenzied push to end their lame-duck session, Congress gave almost-final approval to a $388.4-billion fiscal 2005 spending package covering most non-defense agencies. The behemoth bill includes the budgets for many key construction programs. As industry analysts dug into the details of the hurriedly constructed measure, they smiled at the winners, such as highway and transit programs and veterans’ health-care facilities, but clenched their teeth at the losers, particularly funding for wastewater treatment plants.

The House approved the legislation Nov. 20 by a 344-51 vote and the Senate passed it the same day, 65-30. But those votes were not quite the last word. The House was slated to return Nov. 24 to strip out a provision that critics said would give appropriations panels the power to view taxpayers’ returns. After that was deleted, the omnibus bill would go to President Bush for his signature.

House Appropriations Committee Chairman C.W. Bill Young (R-Fla.) says the legislation is “a lean and clean package that adheres to the budgetary limits agreed to by the Congress and the President.” To squeeze the measure into the White House’s overall discretionary spending target of $821.9 billion, appropriators imposed a cut of 0.83% on figures they had agreed to. Programs in the State, Commerce and Justice departments section were pared 1.34%.

“This is a lousy way to fund key programs,” says Steve Hall, vice president of government affairs for the American Council of Engineering Cos. “It’s a last resort, but it’s not a good resort.”

“You continue to see the pressures that non-defense, non-homeland security accounts...have in today’s appropriations environment,” says David Schwietert, the Associated General Contractors’ congressional relations director for construction markets and procurement. Things may not get better next year, he suggests. “This may be very indicative of future appropriations cycles and what it means for the construction industry,” he adds.

Senate Appropriations Chairman Ted Stevens (R-Alaska) says the bill marks his “swan song” as committee chief. Both he and Young will step down as chairmen because of limits imposed by their parties. But they will remain powerful members of the spending panels in 2005.

Among the most closely watched figures were those for transportation, particularly highways—the largest non-defense construction program. The $710-million boost in the highway ob-ligation ceiling to $34.4 billion for 2005 looks good to the industry. “We’re pleased...that we have a number enacted for the year,” says Jack Basso, director of management and business development for the American Association of State Highway and Transportation Officials.

Although that total is limited by the eight-month TEA-21 extension, Basso adds, “It certainly creates additional stability and the opportunity to do more planning. So that’s good. And the number even factored by the [0.83%] cut is still an increase over the 2004 level.”

The Federal Transit Administration did well, scoring a 5% increase over last year. And the Federal Aviation Administration’s Airport Improvement Program grants were pegged at $3.47 billion for 2005, up $89 million from 2004.

“We’re pretty happy based on our business lines,” says Larry Bory, HDR’s vice president for federal government relations. Besides overall transportation numbers, he says legislators inserted earmarks for projects HDR is working on, such as a light-rail system in Phoenix.

Bory also cites the gains for the Dept. of Veterans Affairs’ construction accounts, most of which is for VA’s Capital Asset Realignment for Enhanced Services program. That plan aims to upgrade aging facilities and puts more buildings in Sunbelt areas where many veterans live.

The Corps of Engineers’ construction account notched a modest gain, part of an overall civil works allotment of $4.67 billion. The National Waterways Conference had a higher target, says President Worth Hager. “Obviously it’s not $5.5 [billion] in ‘05,” she says. “But I was certainly heartened by what it was.”

EPA’s water infrastructure account, State and Tribal Assistance Grants, took one of the biggest hits, a cut of $304 million. That included a $259-million reduction in aid to state revolving funds for building wastewater treatment plants.

The Association of Metropolitan Sewerage Agencies says the cutback is “further evidence of the federal government’s untenable position that the nation’s water quality does not require federal participation.” It believes that the numbers indicate “that it is time to move in the direction of a dedicated trust fund for clean and safe water in America.”

Among other buildings programs, the Bureau of Prisons facilities account was slashed and the State Dept.’s embassy upgrade program got a small hike. The General Services Administration held about level with 2004. Appropriators earmarked $437 million for four new courthouses, including $311 million for Los Angeles, $62 million for El Paso and $60 million for Las Cruces, N.M. Twelve border stations will get a total of $88 million. A plan to consolidate Food and Drug Administration facilities in Silver Spring, Md., gets an $88-million installment.

ACEC’s Hall also was pleased that appropriators allowed the Bush administration’s “competitive sourcing” plan to continue. That effort permits agencies to consider putting up for bid tens of thousands of jobs categorized at “commercial” and not “inherently governmental.” Hall says that “will open new contracting opportunities for the private sector.”