Morning Brief: Congress Strikes Transportation Deal

Congressional leaders announced that a deal has been struck to pass a new transportation bill (WashPost). The final deal is based upon a two-year bill passed by the Senate. In the final compromise, Republicans gave up demands for congressional approval for the Keystone oil pipeline and a rollback of new coal restrictions.

Democrats agreed to cut $1.4 billion in conservation funding and allow states greater spending discretion. The deal does not address the gap between spending and revenue from the 18.4 cents per gallon federal gas tax, last changed in 1993. The measure will likely be combined with a renewal of the temporary cut to Stafford student loan interest rates (The Hill).

The first Renewing America Progress Report and Infographic Scorecard, released last week, assesses the current state of U.S. transportation infrastructure policy. The report concluded that, even with passage of the bill, “the United States will struggle simply to maintain, much less improve, its transportation infrastructure.”

Infrastructure. Read more on how upgrading the nation’s aging network of roads, bridges, airports, railways, and water systems is essential to maintaining U.S. competitiveness.

Airbus Expected to Announce Alabama Assembly Line

Europe’s Airbus is expected to announce plans to build a commercial jet assembly line in Mobile, Alabama (Bloomberg). In 2005, Mobile was the intended location for Airbus’s parent, EADS, to build refueling tankers for the U.S. Air Force, but that contract was lost to Boeing (NYT). An aviation consultant observed that “Airbus is trying to do the smart thing, which is to bring production to places that are closer to customers. Another advantage is that Americans in general are lower paid, so you can get cheap labor in the U.S.”

International trade and investment. Read more from leading analysts on the debate over next steps in U.S. trade policy.

Tracking RIM’s Stark Decline

In 2008, Canada’s Research in Motion, maker of the BlackBerry, controlled over half of the U.S. smartphone market, and had an $80 billion market capitalization. However, the company, in a stark change of fortunes, is expected to report an operating loss today (WSJ). Analysts say RIM became overly confident in its own products and its hold over customers. With tension between co-CEOs over how to respond to competition from the iPhone and Android-based smartphones that offered increased functionality, RIM—like Nokia—was slow to respond to competitors’ innovations.

Innovation. Read more on how the U.S. capacity to innovate could play a chief role in economic growth.

The Morning Brief is compiled by Renewing America contributor Steven J. Markovich.