AGC Urges Protection for Military Construction Funds from Redirection to Wall

On February 15, 2019, Donald Trump 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
• $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.

The Associated General Contractors of America urged Acting Secretary of Defense Patrick 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.

Reporting by MilitaryTimes.com says if military construction funds are tapped, some potential projects whose funds could be targeted for redirecting include:

• a new vehicle maintenance shop at Camp Arifjan in Kuwait
• dry-dock repairs at Joint Base Pearl Harbor-Hickam in Hawaii
• F-35 hangar improvements at Luke Air Force Base in Arizona
• Ongoing hospital construction at Landstuhl Regional Medical Center in Germany
• New family housing builds in South Korea, Italy and Wisconsin

"Specifically, as you contemplate reprogramming unobligated funds from Department of Defense (DOD) construction programs, I urge you to: 1) avoid redirecting funds from long-anticipated or active construction contract solicitations; and 2) ensure fair and open competition rules remain in place for any contracts utilizing reprogrammed or transferred funds," wrote Stephen Sandherr, AGC CEO, in a letter to Shanahan.

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.

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