AGC Highlights Concerns with Redirecting Construction Funds

On Feb. 15, the president issued a national emergency declaration to redirect approximately $6.7 billion towards the construction of barriers along the southern border.  Redirected funds include: $2.5 billion from Department of Defense (DOD) counterdrug activities; nearly $600 million from the Treasury Forfeiture Fund; and $3.6 billion from military construction projects.  As of publication, neither the White House nor any federal agency has identified specific military construction projects—or any other specific federal construction projects for that matter—that would see funds redirected to construction along the southern border. AGC urged Acting Secretary of Defense Shanahan to avoid redirecting funds from long-anticipated or active construction contract solicitations and ensure fair and open competition rules remain in place for any contracts utilizing redirected funds.

To date, 16 states have filed suit against the President asking courts to invalidate the order. Democratic members in the House and Senate have declared their intent to introduce a resolution of disapproval that would invalidate the declaration.  If the resolution passes both chambers, the Administration has singled that the president would veto it. AGC will continue to monitor this emergency declaration as more developments occur and will further review.

For more information, contact Jordan Howard at [email protected] or (703) 837-5368.