In a significant announcement, former President Donald J. Trump has returned H.R. 131, known as the Finish the Arkansas Valley Conduit Act, without his approval. This legislation pertains to the Arkansas Valley Conduit (AVC), a crucial water pipeline project designed to deliver municipal and industrial water to communities in southeastern Colorado.
The Arkansas Valley Conduit was initially authorized as part of the Fryingpan-Arkansas Project in 1962, under a bill signed by President Kennedy. However, the project remained unconstructed for decades due to economic challenges. Originally, the project's funding was to be sourced from the Federal Government, with local users responsible for repaying the costs, plus interest, over a 50-year period after construction.
Despite the initial plan, local participants struggled to meet their repayment obligations. In 2009, President Obama addressed these concerns by signing the Omnibus Public Land Management Act, which reduced the repayment requirement from 100% to 35%. This act also allowed miscellaneous revenues from the Fryingpan-Arkansas Project to count towards the AVC's cost-sharing requirements. However, construction on the AVC did not commence until 14 years later, following the State of Colorado's approval of $100 million in loans and grants.
The current bill, H.R. 131, proposes to extend the repayment period of the already reduced obligation by an additional 25 years, resulting in a total repayment timeframe of 75 years. Furthermore, the legislation aims to reduce the interest rate on these repayments by half. To date, over $249 million has already been spent on the Arkansas Valley Conduit, with total projected costs estimated at around $1.3 billion.
Trump expressed strong opposition to H.R. 131, arguing that it perpetuates failed policies that transfer excessive costs onto federal taxpayers for a project that was initially designed to be funded by local communities. He stated, "Enough is enough. My Administration is committed to preventing American taxpayers from funding expensive and unreliable policies."
In his statement, Trump emphasized the necessity of ending costly taxpayer handouts and restoring fiscal sanity as essential for the economic growth and overall financial health of the nation. Consequently, he has decided to return H.R. 131 to the House of Representatives without his approval, underscoring his commitment to fiscal responsibility and prudent governance.