By Emelie Rutherford
The massive economic-stimulus legislation under consideration on Capitol Hill could include funding for a Coast Guard icebreaker, commercial-shipbuilding loans, and military- base-improvement efforts.
Though the economic-recovery package is not expected to include monies for Pentagon weapons programs, lobbyists and influential lawmakers have proposed these homeland-security and military-construction initiatives. Politicians have said the still-morphing legislation, estimated to cost at least $775 billion, will target so-called “shovel-ready” transportation and infrastructure projects that can begin in short order.
President-elect Barack Obama has urged swift action on the legislation that is expected to gel more this week.
House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) included $153 million for a Coast Guard Great Lakes icebreaker and $45 million for the Maritime Administration’s Title XI shipbuilding loan-guarantee program in his recommendation for infrastructure-investment projects in the legislation. The American Shipbuilding Association is lobbying to secure that funding, president Cynthia Brown said.
“Is anything definite, no, but we’re working with members of the Senate and the House,” Brown told Defense Daily.
Oberstar’s proposal says additional “icebreaking capacity is needed on the Great Lakes to provide for safe navigation of ships supplying iron ore and other raw materials to U.S. heavy industries,” and notes commercial ships transport more than $2 billion worth of materials to domestic industries during wintertime.
The influential congressman wants to spend $153 million to buy a sister icebreaker to the USCGC Mackinaw, and notes the Coast Guard has an existing contract with Mackinaw-builder Marinette Marine Corp., which recently was acquired by Italian shipbuilder Fincantieri.
“If funds are made available to construct another Great Lakes icebreaker, the shipyard is expected to hire 50 workers within 30 days to begin construction,” Oberstar’s proposal says. The ship project would crease more than 4,250 jobs–including 150 to 200 direct shipyard jobs–and $750 million of economic activity, the document states.
Brown noted an early version of the economic-recovery package Senate Democratic leaders proposed last year included $925 million for buying a Coast Guard icebreaker–though that vessel was intended for the arctic, not the Great Lakes–but did not include the Title XI funding.
“We are working with the Senate to see if they can urge that the Title XI also be included,” Brown said.
Oberstar’s written proposal seeks support for Title XI loans guarantees for the water transport of goods and passengers between U.S. ports. It notes such “short-sea shipping” can “help eliminate truck traffic and reduce highway congestion,” and requests $30 million for loans to aid the construction of commercial short-sea ships and terminals. It also seeks $15 million for loans for building ocean-renewable energy facilities along coasts.
For military-construction projects in the stimulus package, House Appropriations Defense subcommittee (HAC-D) Chairman John Murtha (D-Pa.) last week suggested $10 billion for U.S. base infrastructure projects, though other lawmakers have cited both smaller and larger figures. Aides said the proposed funding would help cover environmental cleanup at domestic bases.
The HAC-D may craft a formal military-construction recommendation. The panel had planned to gather on the matter last Friday, but canceled the meeting because of a scheduling conflict.
A defense lobbyist said weapons programs are not being seriously considered for the economic-recovery bill in part because they would not give the economy a near-term economic jolt.
Harvard University economics professor Martin Feldstein argued Jan. 7 on Capitol Hill that addition Pentagon spending be considered for the stimulus plan.”Since the defense budget is as large as all of the other discretionary spending combined, it’s surprising to me that defense is not proposed as part of the overall stimulus package,” Feldstein testified before the House Democratic Steering and Policy Committee.
He said the logic of reducing military spending because of weakness in the economy is “backwards,” and additional spending is needed.
“The military have depleted supplies and increased the wear and tear on their equipment; Both supplies and equipment will eventually need to be replaced, so now is a good time to do that,” Feldstein said.