Skip to main content
Tag

economy

Why shortages of a $1 chip sparked crisis in the global economy

By General Posts

by Bloomberg from https://auto.economictimes.indiatimes.com

The chip crunch was born out of an understandable miscalculation as the coronavirus pandemic hit last year. When Covid-19 began spreading from China to the rest of the world, many companies anticipated people would cut back as times got tough.

To understand why the $450 billion semiconductor industry has lurched into crisis, a helpful place to start is a one-dollar part called a display driver.

Hundreds of different kinds of chips make up the global silicon industry, with the flashiest ones from Qualcomm Inc. and Intel Corp. going for $100 apiece to more than $1,000. Those run powerful computers or the shiny smartphone in your pocket. A display driver is mundane by contrast: Its sole purpose is to convey basic instructions for illuminating the screen on your phone, monitor or navigation system.

The trouble for the chip industry — and increasingly companies beyond tech, like automakers — is that there aren’t enough display drivers to go around. Firms that make them can’t keep up with surging demand so prices are spiking. That’s contributing to short supplies and increasing costs for liquid crystal display panels, essential components for making televisions and laptops, as well as cars, airplanes and high-end refrigerators.

“It’s not like you can just make do. If you have everything else, but you don’t have a display driver, then you can’t build your product,” says Stacy Rasgon, who covers the semiconductor industry for Sanford C. Bernstein.

Now the crunch in a handful of such seemingly insignificant parts — power management chips are also in short supply, for example — is cascading through the global economy. Automakers like Ford Motor Co., Nissan Motor Co. and Volkswagen AG have already scaled back production, leading to estimates for more than $60 billion in lost revenue for the industry this year.

The situation is likely to get worse before it gets better. A rare winter storm in Texas knocked out swaths of U.S. production. A fire at a key Japan factory will shut the facility for a month. Samsung Electronics Co. warned of a “serious imbalance” in the industry, while Taiwan Semiconductor Manufacturing Co. said it can’t keep up with demand despite running factories at more than 100% of capacity.

“I have never seen anything like this in the past 20 years since our company’s founding,” said Jordan Wu, co-founder and chief executive officer of Himax Technologies Co., a leading supplier of display drivers. “Every application is short of chips.”

2021-semiconductors-chips-shortage-inline
The chip crunch was born out of an understandable miscalculation as the coronavirus pandemic hit last year. When Covid-19 began spreading from China to the rest of the world, many companies anticipated people would cut back as times got tough.

“I slashed all my projections. I was using the financial crisis as the model,” says Rasgon. “But demand was just really resilient.”

People stuck at home started buying technology — and then kept buying. They purchased better computers and bigger displays so they could work remotely. They got their kids new laptops for distance learning. They scooped up 4K televisions, game consoles, milk frothers, air fryers and immersion blenders to make life under quarantine more palatable. The pandemic turned into an extended Black Friday onlinepalooza.

Automakers were blindsided. They shut factories during the lockdown while demand crashed because no one could get to showrooms. They told suppliers to stop shipping components, including the chips that are increasingly essential for cars.

Then late last year, demand began to pick up. People wanted to get out and they didn’t want to use public transportation. Automakers reopened factories and went hat in hand to chipmakers like TSMC and Samsung. Their response? Back of the line. They couldn’t make chips fast enough for their still-loyal customers.

A year of poor planning led to carmakers’ massive chip shortage
Himax’s Jordan Wu is in the middle of the tech industry’s tempest. On a recent March morning, the bespectacled 61-year-old agreed to meet at his Taipei office to discuss the shortages and why they are so challenging to resolve. He was eager enough to talk that interview was scheduled for the same morning Bloomberg News requested it, with two of his staff joining in person and another two dialing in by phone. He wore a mask throughout the interview, speaking carefully and articulately.

Wu founded Himax in 2001 with his brother Biing-seng, now the company’s chairman. They started out making driver ICs (for integrated circuits), as they’re known in the industry, for notebook computers and monitors. They went public in 2006 and grew with the computer industry, expanding into smartphones, tablets and touch screens. Their chips are now used in scores of products, from phones and televisions to automobiles.

Wu explained that he can’t make more display drivers by pushing his workforce harder. Himax designs display drivers and then has them manufactured at a foundry like TSMC or United Microelectronics Corp. His chips are made on what’s artfully called “mature node” technology, equipment at least a couple generations behind the cutting-edge processes. These machines etch lines in silicon at a width of 16 nanometers or more, compared with 5 nanometers for high-end chips.?

The chip’s makers have seen their shares soar with strong demand
The bottleneck is that these mature chip-making lines are running flat out. Wu says the pandemic drove such strong demand that manufacturing partners can’t make enough display drivers for all the panels that go into computers, televisions and game consoles — plus all the new products that companies are putting screens into, like refrigerators, smart thermometers and car-entertainment systems.

There’s been a particular squeeze in driver ICs for automotive systems because they’re usually made on 8-inch silicon wafers, rather than more advanced 12-inch wafers. Sumco Corp., one of the leading wafer manufacturers, reported production capacity for 8-inch equipment lines was about 5,000 wafers a month in 2020 — less than it was in 2017.

No one is building more mature-node manufacturing lines because it doesn’t make economic sense. The existing lines are fully depreciated and fine-tuned for almost perfect yields, meaning basic display drivers can be made for less than a dollar and more advanced versions for not much more. Buying new equipment and starting off at lower yields would mean much higher expenses.

“Building new capacity is too expensive,” Wu says. Peers like Novatek Microelectronics Corp., also based in Taiwan, have the same constraints.

That shortfall is showing up in a spike in LCD prices. A 50-inch LCD panel for televisions doubled in price between January 2020 and this March. Bloomberg Intelligence’s Matthew Kanterman projects that LCD prices will keep rising at least until the third quarter. There is a “a dire shortage” of display driver chips, he said.

LCD Prices Are Surging
Aggravating the situation is a lack of glass. Major glass makers reported accidents at their production sites, including a blackout at a Nippon Electric Glass Co.’s factory in December and an explosion at AGC Fine Techno Korea’s factory in January. Production will likely remain constrained at least through summer this year, display consultancy DSCC Co-founder Yoshio Tamura said.

On April 1, I-O Data Device Inc., a major Japanese computer peripherals maker, raised the price of their 26 LCD monitors by 5,000 yen on average, the biggest increase since they began selling the monitors two decades ago. A spokeswoman said the company can’t make any profit without the increases due to rising costs for components.

All of this has been a boon to Himax’s business. Sales are surging and its stock price has tripled since November.

But the CEO isn’t celebrating. His whole business is built around giving customers what they want, so his inability to meet their requests at such a critical time is frustrating. He doesn’t expect the crunch, especially for automotive components, to end any time soon.

“We have not reached a position where we can see the light at the end of tunnel yet,” Wu said.

2020 pandemic left indelible mark on motorcycle world

By General Posts

by Bud Wilkinson from https://www.rep-am.com

It’s stating the obvious to say that 2020 was quite a year. While the number of miles covered on two wheels may not have changed appreciably from previous years for many motorcyclists, the places traveled probably did due to the cancellation of so many motorcycle shows and other events because of the COVID-19 pandemic.

In venturing out, the wise and respectful among us always carried face masks, kept group size small and kept physically distant at all times. Others acted irresponsibly and selfishly, placing themselves and everyone they came in contact with at risk.

It was while out gathering a “My Ride” classic car feature for the newspaper back in early fall that I came across a coronavirus skeptic. As I walked up the owner’s driveway, my camera bag slung over my shoulder and a mask covering my mouth and nose, he appeared out of his garage maskless. Coming to within inches of my face, he scowled and declared of COVID-19, “It’s a hoax. It’ll be gone Nov. 4,” a reference to the day after the presidential election.

Stepping back, I responded that I wasn’t there to discuss the pandemic and asked if he would please keep at least six feet away; debating in my head whether I should just turn around, walk back to the truck and drive off. I stayed and did the story.

Here it is just after Christmas, and people are still dying at a considerable rate because of coronavirus. The death toll in the U.S. is now close to 325,000. Some hoax. So many people have succumbed that we’ve become inured to the toll.

COVID-19 certainly took a toll this year on the motorcycle industry, which wasn’t exactly in sterling shape before the pandemic. Here in Connecticut, the Stamford-based “American Iron” magazine suspended publication in July, sparking outrage among readers who failed to get refunds on their subscriptions.

In Falls Village, the popular riding destination Toymakers Cafe pulled the plug in early September, leaving its many regulars bereft and clueless as to what to do and where to ride on Sunday mornings.

The pandemic has impacted the industry in other ways, too.

The promoter of the Progressive International Motorcycle Shows tour announced in late September it was moving outside – scrapping the long-running indoor tour slate in winter in favor of outside venues in warmer weather. Since the last Ride-CT column, the newly branded IMS Outdoors tour has announced its 2021 itinerary, including a visit to Brooklyn over Labor Day weekend.

Getting into mid-town Manhattan for the indoor show every December at the Jacob K. Javits Convention Center was a sufficient chore. The prediction here is that Brooklyn will be a bridge too far for many riders who regularly attended the indoor show. The specific site in the borough hasn’t been announced.

Meanwhile, the pandemic has prompted Harley-Davidson to delay the unveiling of its 2021 model-year motorcycles until mid-January, and then do the reveal in an online event.

Having gotten a new CEO earlier this year in Jochen Zeitz and faced with plummeting sales, Harley-Davidson is engaged in a sizable shakeup. The number of models that the company offers is being significantly reduced and the dealership lineup is being culled.

During 2020, Hudson Valley Harley-Davidson in Nanuet, N.Y., Southampton Harley-Davidson in Southampton, Mass., Wilkins Harley-Davidson in Essex Junction, Vt., and Heritage Harley-Davidson in Concord, N.H., were among the brand’s stores in the Northeast that closed.

Consolidation continued, too, with Chad Clark and Bryan Castor buying Gengras Harley-Davidson in East Hartford and renaming it Hartford Harley-Davidson. They already owned Old School Harley-Davidson in Ellington, Conn., Spitzie’s Harley-Davidson of Albany in New York, and Sheldon’s Harley-Davidson in Auburn, Mass.

Watching Harley-Davidson’s maneuvering and speculating on its future fortunes has become something of a sport in recent years, and that will continue in 2021. While it’s hard to predict just how 2021 will play out, there already are a couple of signs representing optimism.

A new dealership selling KTM models, Colonial Power and Sport, is opening in New Milford. Another dealer in our area is planning to add more brands to its showroom next month, but can’t make an announcement until the incoming brands receive confirmation of the store’s credit line from the bank.

With vaccines for COVID-19 now being rolled out, maybe 2021 will be an improvement over the year now ending. Maybe by late summer we’ll be able to attend motorcycle shows again, be able to gather with more friends, and be able to roam wherever without quarantine or testing requirements.

End of the road for Hawkesbury’s legendary Harley Davidson dealership

By General Posts

from https://www.cbc.ca

For 41 years, Goulet Motosports a gathering place for bikers, non-bikers alike

An iconic motorcycle shop in Hawkesbury, Ont., has reached the end of the road after a ride that spanned more than four decades.

Goulet Motosports, a Harley Davidson dealership, will close Oct. 31.

“It is with nostalgia that I write this but also with pride to have had the chance to lead a retailer that has grown so much in our small town,” store owner Sophie Goulet wrote in a French post on the company’s Facebook page on Thursday.

“What a wild and exciting ride it has been, meeting wonderful people, attending meetings, travelling to many cities and much more.”

Goulet, who took ownership of the family business from her parents in 2001, said the decision to close wasn’t linked to the performance of the dealership, but is the result of weak regional demand for motorcycles.

The news sent shock waves through the small town around 95 kilometres east of Ottawa and beyond. Hundreds of people responded to the Goulet’s Facebook post, with many expressing their sadness and sharing stories of visiting the store.

Yves Charlebois, who has been working at the dealership for eight of its more than 40 years, said it served as a gathering place for bikers and non-bikers alike.

“Just to think about that, the fact that … this place is going to be empty and nothing in it and no customers and no bikers coming in town, I just can’t get my head over it,” he said. “It’s much more than a dealership.”

Goulet Motosports is well-established in the community, sponsoring community events such as the Hawkesbury Bike Fest, which brings together Harley enthusiasts from far and wide.

The dealership also raises money for local institutions, such as the Hawkesbury General Hospital.

Other local business owners are concerned the loss the dealership may have an economic impact on tourism.

“Our terrace on the weekend is always full. Because of [the dealership] closing, we’re gonna lose a lot,” said Marie-Êve Côté, restaurant manager at the Moonshine BBQ Smokehouse.

No masks required as 250,000 expected at 10-day Sturgis Motorcycle Rally. Here’s what to know.

By General Posts

by Joel Shannon from https://news.yahoo.com

One of the largest events since the beginning of the pandemic has begun in South Dakota: More than 250,000 people are expected at the iconic Sturgis Motorcycle Rally.

That’s scaled down from previous years, where about half-a-million people have descended on the city of about 7,000 for an event that has developed a reputation as an anything-goes festival.

While the 80-year tradition isn’t as raucous as it once was, festivalgoers will be largely free of social distancing restrictions common elsewhere in the country during this year’s 10-day festival.

Bikers flocking to the small town from around the country won’t face quarantining requirements if they are from a coronavirus hot spot.

And masks? They’re encouraged – not required.

So far, few people are heeding that encouragement, according to an Associated Press reporter at the event.

Many who rode their bikes into Sturgis on Friday expressed defiance at the rules and restrictions that have marked life in much of the world during the pandemic.

“Screw COVID,” read the design on one T-shirt being hawked. “I went to Sturgis.”

Local officials have made efforts to scale down the event, but some expect restriction-weary bikers to flock to Sturgis in large numbers.

“It’s the biggest single event that’s going on in the United States that didn’t get canceled,” said Rod Woodruff, who operates the largest campground and concert venue that lies outside the bounds of the city.

“A lot of people think it’s going to be bigger than ever.”

In addition to normal concerns about crime, many locals are worried the huge crowds and lack of social distancing rules will lead to an unmanageable outbreak of COVID-19.

What is Sturgis?

The rally may be known for rowdy, drunken and naked shenanigans, but in recent years longtime attendees complain it has lost its edge.

First-time visitors might be excused for thinking the rally isn’t much more than an excuse to create one of the world’s largest open-air shopping malls. There’s usually corporate sponsorships, licensed T-shirt vendors, insurance companies and lawyers.

Most attendees in recent years are professionals with too much to lose if they get arrested. The top three professions at Sturgis are doctors, lawyers and accountants, city officials have said in previous years.

That’s translated to big money for the local economy. Last year, the rally brought in about $1.3 million in tax revenue for South Dakota, according to the state Department of Revenue.

Is the event risky during a pandemic?

While outdoor events are widely believed to be lower risk than indoor ones, the unprecedented size of the gathering is prompting serious concerns.

“You’re just adding fuel to a fire,” epidemiologist Dr. John Brownstein, told ABC News. “South Dakota is already experiencing increases in transmission. COVID is not under control in South Dakota; it’s just not.”

Among Brownstein’s worries: That attendees could become infected at the event and spread it across the nation as they return home – and that the rural health care system doesn’t have the ability to handle a possible local surge in cases.

Many locals seem to share in the concern. When asked earlier this year whether the iconic motorcycle rally should be held, their answer was an overwhelming “no.”

More than half of the community expressed their feelings in a survey. A sizable majority of 62% asked city officials to postpone the rally.

Several steps have been taken to reduce risk, local media reports: The Community Center will not be hosting vendors inside as in the past, according to NewsCenter 1. And Sturgis High School will not offer shower services nor host the annual pancake breakfast as in the past.

Mayor Mark Carstensen on Thursday told CNN the city is setting up sanitation stations and giving out masks, although they aren’t mandated.

Why are local leaders allowing the event to go on?

Businesses pressured the City Council to proceed and Sturgis officials say the rally would happen whether they wanted it or not. So they opted to try to scale it back, canceling city-hosted events and slashing advertising for the rally.

Daniel Ainslie, Sturgis’ city manager, said the city received a letter sent by attorneys for an outside business containing threats of litigation unless the rally moved forward. It suggested the city did not have the right to cancel the rally because previous court rulings found that the rally is not produced by a single organizer.

For his part, Woodruff said he felt he had little choice but to proceed with the rally. He employs hundreds of people in August and a smaller full-time staff.

“We spend money for 355 days of the year without any return on it, hoping people show up for nine days,” he said. “We’re a nine-day business.”

What are the rules in South Dakota about masks, social distancing?

Gov. Kristi Noem has taken a relaxed approach to the pandemic. Even as Republican governors in states like Texas have moved to require people to wear masks, Noem didn’t require physical distancing or masks at the July 3 celebration at Mount Rushmore, which President Donald Trump attended.

She supported holding the Sturgis rally, tweeting Thursday: “I trusted my people, they trusted me, and South Dakota is in a good spot in our fight against COVID-19. The #Sturgis motorcycle rally starts this weekend, and we’re excited for visitors to see what our great state has to offer!”

Motorcycles Sales Bounce Back Post Pandemic Slump

By General Posts

by Sabrina Giacomini from https://www.rideapart.com

Rising from the ashes.

To say that 2020 has been an eventful year so far is an understatement. “2020, written by Stephen King” is probably the best description of this year’s events we found so far. Of course, with a pandemic forcing most of the global population into lockdown, the health crisis was bound to have an impact on the motorcycle industry.

For several manufacturers, between suspended production and customers shying away from the dealers, the months of April and May 2020 have been challenging to say the least. Thankfully, with life gradually resuming, so are sales, and the numbers are bouncing back.

Things Are Going Better Than Expected:

An increasing number of people and publications suggest that the pandemic will encourage more people to turn to motorcycles and scooters for transportation—the perfect type of commuter for social distancing.

In the U.S., buyers didn’t waste any time running for the hills—literally—as soon as COVID-19 poked its ugly head. Honda, BMW, Suzuki, and Yamaha’s North American branches reported that sales are thriving since the beginning of the year, particularly in the off-road segment. For instance, American Honda Motor Co. confirmed that motorcycle sales for May 2020 have more than doubled over May 2019—both in the road and off-road segments (+103% and +172% respectively). For BMW North America, while official sales numbers were not disclosed, the spokesperson did say that May 2020 sales were far exceeding last year’s.

The European market is showing a similar, positive trend. Italian sales numbers for June 2020 show a 37-percent increase over June 2019—not even over the catastrophic month of May 2020. More bikes and scooters sold in Italy post-pandemic than last year, back when nobody had even heard of a coronavirus. A total of 39,085 motorcycles, scooters, and mopeds have been registered in Italy in June.

The market is also on the mend in India where local branches are finally seeing the light at the end of the tunnel. Though the June sales numbers remain significantly below the 2019 numbers, they are on the rise after the May 2020 slump. For Honda Motorcycle & Scooter India, the 210,879 units moved in June represent a 153 percent increase in sales over May. For Hero, sales increased by a staggering 300 percent between the two months. Royal Enfield is also back in the green with a total of 38,065 motorcycles sold in June versus 18,429 in May.

Despite a rocky start to 2020, it looks like the motorcycle industry is faring far better than we initially anticipated.

Harley’s New Rewire Strategy Is A Bad Idea

By General Posts

by Justin Hughes from https://www.rideapart.com

Why refocus the brand on capturing a rapidly shrinking demographic?

Earlier this week we reported on Harley-Davidson’s latest change in direction: to abandon some of their more ambitious ideas and focus on growing the core brand, with their core bikes, in the US. While models like the LiveWire, Bronx, and Pan America are already far enough down the pipeline to continue, beyond that we can expect nothing more than cruisers, baggers, and tourers from Harley for the foreseeable future. That’s too bad.

As an amateur radio operator, I have often heard the derogatory joke that the average age of one who participates in the hobby is “dead.” Sadly, that is beginning to apply more and more to the average age of a typical Harley rider. There are always exceptions. I’ve had my radio license since I was 15, and I’m actually considering an 80s or 90s Harley for a future project bike. But even I have a bit of gray in my hair and beard, something you will see in the vast majority of Harley enthusiasts. We’re only getting older.

From the investors’ perspective, I get it. They’re not in it for the bikes or the culture. They’re in it for the money, and especially these days the money isn’t there. Shareholder Impala Asset Management has been arguing for a while that a change in direction is needed, and chose to act during the recent management shakeup at Harley. While we hoped this might be good for Harley, it looks like they have chosen to take what it sees as the safe path, prioritizing short term profit over the long term survival of the company.

Given the crazy economic condition of the world right now, maybe that’s the right choice for now. It’s not like there will be any long term plans if the company doesn’t survive the next year, for example. Its existing models won’t save the company, though. While used Harleys are cheap, new ones are still expensive. Harley is essentially competing with itself, with all the used bikes out there that are may not be quite as good as the latest and greatest, but are certainly far less expensive. Harley tried some entry-level bikes with the Street series, but hasn’t seen the success they had hoped for.

Of course, there’s also the fact that there are other types of motorcycles in the world than cruisers, and that’s what most younger riders want. We like the LiveWire. We’re genuinely excited about the Bronx and Pan America. Even here, though, I’m worried. For example, while Harley has not yet announced pricing for the Pan America, some suspect it could be in the ballpark of $19,000. Why would the serious adventure rider spend that much on a new, untested Harley when they can pick up the tried and true BMW R 1250 GS for $17,895? Again, we don’t know that the Harley will cost more than the BMW, but if it does, it will essentially doom its sales to failure before it even gets into the showroom. The same goes for the Bronx, where riders would be more likely to go with a Yamaha MT-09 or even a smaller Triumph Street Triple.

It’s possible that the intention of the Harley Rewire is damage control for the current economic situation. Cutting research and development of new models is a natural choice in these circumstances. I just hope this is a temporary step until the world stabilizes again, and that we’ll eventually see some of the new models that Harley has put the brakes on. I want to see Harley survive as much as the next American motorcycle rider.

Denver Motorcycle Show reinforces industry’s new focus

By General Posts

The Progressive International Motorcycle Show rolled through Denver last weekend, and if memory serves, it was the first appearance in a half-decade or so.

Colorado once had a major part in non-Harley-centric motorcycle drama. The Copper Mountain Cycle Jam was a giant event that featured the AMA Supermoto circuit amongst the high Rockies and brought thousands from out-of-state. Pikes Peak International Raceway was home to an AMA SuperBike round that featured some great racing on the unconventional race course. There was even of a round national vintage racing with AHRMA at Pueblo.

Those days, and that motorcycle industry is gone, casualties of the Great Recession and a millennial generation hooked on phones, not speed and adventure.

So when the IMS came to town, it was a solid look at how the industry is trying to recast itself.

The first clear observation was the number of women. Women have always been the great, untapped market. And between gear, smaller bikes and dropping some of the macho facade, the industry seems to be getting it. The attendees certainly did.

The second was the focus on new riders. The Motorcycle Safety Foundation demo area and multi-brand new rider section took up a third of the floor. You can’t get people hooked on riding if you don’t get them on a bike first. And the industry is finally putting the full-court press on making that happen with young, old, men and women all hopping on the wide range of demo alternatives. And actually riding, on an indoor course set-up just to train new riders.

The motorcycle industry is not alone in the current active sports paradox. The technology in current bikes makes them safer, more accessible and more exciting than ever. Bikes are ever more sophisticated, with electronics and computing power surpassing desktop computers of a generation ago. With the sophistication has come costs that put many potential riders in a gig economy out of the market when bound by student loan debt, sky high rents and $150/month phone bills.

But if the Denver show is any indication, the industry is listening and trying.

2019 federal spending package increases infrastructure funding

By General Posts

It took a while, but a 2019 spending package was finally approved by Congress, signed by President Trump, and enacted February 15. In addition to the $1.375 billion for southwest border barriers, the package also includes full-year 2019 funding levels for important federal infrastructure programs, including the Department of Transportation (DOT) and the Environmental Protection Agency (EPA), the Engineering News-Record reports.

The 2019 package is the second year of a two-year, bipartisan House-Senate budget deal that included a pledge to raise overall federal infrastructure spending by $20 billion over 2017 levels. It sets the federal-aid highway obligation ceiling at $45.3 billion, up $1 billion, or 2 percent, from 2018 and equal to the amount authorized in the 2015 Fixing America’s Surface Transportation Act (FAST Act), which comes from the Highway Trust Fund.

The legislation also contains $3.25 billion more from the general fund for highways, up from $2.525 billion in 2018. A 2019 “bonus” amount includes $2.73 billion for states, up from $1.98 billion in 2018, and $475 million for bridge replacement and rehabilitation, more than double the 2018 amount.

Better Utilizing Investments to Leverage Development (BUILD) grants received $900 million for 2019, down 40 percent from 2018, but it was not discontinued as President Trump suggested. The program was originally called Transportation Investment Generating Economic Recovery, or TIGER.

The Federal Transit Administration will receive $13.4 billion for 2019, down $67 million from 2018, with transit formula grants getting $9.9 billion and capital investment grants receiving $2.5 billion, down from $2.6 billion in 2018. An additional $700 million, down from $834 million in 2018, goes for transit infrastructure grants, which include bus facilities and “state of good repair” projects.

The Federal Aviation Administration’s Airport Improvement Program was frozen at 2018’s $3.35 billion, an amount that comes from the Airport and Airway Trust Fund. Lawmakers also tapped the general fund for an additional $500 million in FAA discretionary airport grants, down 50 percent from 2018.

The EPA’s water infrastructure account will receive $3.6 billion, a 1 percent increase over 2018 levels. Clean Water State Revolving Funds (SRFs) will receive $1.7 billion and Drinking Water SRFs will get $1.2 billion.