While the U.S. Postal Service (USPS) finds itself facing a $3 billion FY2001 deficit that has already put a halt all new construction indefinitely, the U.S. Department of Veterans Affairs (VA) is looking forward to an increased of more than half a billion dollars for emergency repairs to VA hospitals over the next two years.

The Postal Service made national headlines April 4 with its announcement that the budget shortfall is forcing it to consider eliminating Saturday mail delivery, consolidating postal facilities, and again raising postage rates. Congressional representatives overseeing hearings on postal reform expressed shock that the USPS could announce such a large overrun now when it was projecting a $150 million surplus just last November.

The USPS had already announced in March that it was stopping construction on more than 800 planned postal facilities. The construction freeze includes projects under design and will affect any contract on or in place as of February 22, 2001.

While USPS did not officially release a dollar estimate for the projects, according to Engineering News Record, its "capital plan approved last fall originally included $670 million in construction work, but was scaled back to $400 million" earlier this year. The actual impact could reach $1 billion.

Although federal construction budget growth is likely to be capped at four percent, federal construction news is not all bad. A U.S. House committee just approved an increase in funding to repair veterans hospitals across the country. The Veterans Hospital Emergency Repair Act, H.R. 811, authorizes additional appropriations of $250 million in FY2002 and $300 million in FY2003.

"There is unanimous support for doing something about VA buildings that may collapse in an earthquake, and while this is certainly not the last thing we will do to authorize funds for repairs and maintenance, it's a good beginning for a number of urgently needed veterans health construction projects," said House Veterans Affairs Committee Chair Chris Smith (R-N.J.).

Copyright 2001 The American Institute of Architects. All rights reserved.