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The American Council of Engineering Companies (ACEC) has joined 18 other stakeholder groups in asking Treasury Secretary Janet Yellen to authorize the use of state and local fiscal recovery funds under the American Rescue Plan to mitigate the effects of supply chain delays and shortages.
The letter notes the materials, products, and equipment price increases and the effects they are having on project costs, which could diminish the expected benefits of the recently enacted Infrastructure Investment and Jobs Act. Supply chain disruptions have increased the cost and lengthened the delivery times for construction materials such as manufactured steel, steel and plastic piping, paint, concrete materials, and many other items.
The letter recommends that the Treasury Department issue clarifying guidance that recipient governments can use Rescue Plan funds 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.
Click here to view the letter.