While the budget for family housing construction is to remain at the same $1.3 billion designated in the previous budget, other facets of the nation's construction industry are in for big changes. An issue that is high on AGC's list of priorities is the proposed 20% cut in Army Corps Construction. The reduction would leave the allocated funds for that segment at $1.35 billion--$350 million less than the FY 2002 figure. Funding for community development grants by the US Department of Housing and Urban Development will be $300 million less than the $5 billion allotted in FY 2002. "With construction representing 8% of the GDP and about 5% of total employment, we firmly believe that a commitment to construction programs shows commitment to economic growth."

News on the construction front, however, was not all bad. General construction by the federal government's real estate arm the General Services Administration is set to increase to $401 million, which is $14 million more than the FY 2002 funding, and the Family Housing Construction allotment of funds is to remain at the FY 2003 figure of $1.3 billion.