An Associated Press (AP) analysis found that the $20 billion spent in American Recovery and Reinvestment Act (ARRA) funds for transportation projects has had no effect on local unemployment rates. The White House, the Washington-based American Association of State Highway and Transportation Officials (AASHTO) and Smart Growth America (SGA) say the AP analysis is flawed.

The AP analysis, which is based on Transportation Department data on more than $21 billion in stimulus projects in every state and the District of Columbia, and the Labor Department's monthly unemployment data, assessed the effects of road and bridge spending on local unemployment and construction employment, according to an AP report. The analysis did not try to measure results of the broader aid that also was in the ARRA, such as tax cuts, unemployment benefits or money for states.

The AP's analysis found there was nearly no connection between stimulus money and the number of construction workers hired or fired since Congress passed the recovery program, even within the construction industry, which stood to benefit most from transportation money…

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