The failure of the congressional “supercommittee” to agree on a deficit-reduction plan is affecting construction budgets, according to the Associated General Contractors of America.
The committee of six Republicans and six Democrats was charged to create a plan to cut at least $1.2 trillion from the budget. When the group announced its failure Nov. 21, it triggered 10 years of automatic cuts that will begin in January 2013.
The reductions will affect both domestic and defense funding.
“The failure to get an agreement adds more uncertainty for our industry,” Jeffrey Shoaf, executive director of the Associated General Contractors, “[which] is still suffering with double-digit unemployment. And we can scarcely afford more uncertainty.”