U.S. government awaits effects of stimulus bill

By Lisa Lambert

WASHINGTON (Reuters) - In the past 10 weeks, the U.S. government has allocated billions of dollars for transportation projects under a plan to revive the languishing economy, but the effects of the historic effort may not be seen for months, the Transportation Secretary said on Wednesday.

Of the $48.1 billion the American Recovery and Reinvestment Act gave to the Department of Transportation to invest immediately, some $44.8 billion has already been made available to state and local agencies, said Transportation Secretary Ray LaHood.

Some $8 billion of that has been granted to specific projects in 48 U.S. states and territories "and the figures are increasing every day," he told a hearing at the House of Representatives.

"Our part of the recovery ... will help jump-start the economy," LaHood said to reporters during a recess at the Transportation Committee's hearing on the progress of the stimulus.

"I think as soon as the weather breaks and as soon as these contracts are (signed), you're going to see thousands of people all over America working in good-paying jobs," he added.

Since transportation projects involve construction work outdoors, some agencies have not been able to begin repaving roads and bolstering bridges in the winter weather.

Environmental Protection Agency Administrator Lisa Jackson also testified that of the $7.22 billion the recovery bill granted for the agency's specific programs over the next two years, the EPA has already distributed $1.5 billion to 49 states, the District of Columbia and American Samoa.

Of the $1.2 billion which Jackson called "discretionary," and not being funneled through established programs, "very little of that is on the street right now ... we're dealing with a few upfront issues which have slowed us down just a bit," she said, but did not elaborate on the obstacles.