UPDATE: President Obama signed a bill to increase the debt ceiling. This includes cuts over the next 10 years, however what these cuts are is unclear. The next step is to create 2012 fiscal budget bills, including the transportation bill, where the cuts will become apparent.
The FAA shut down continues and looks like it won't be resolved until August recess is over.
The news out of Washington has been dominated by the negotiations over raising the nation’s debt ceiling prior to August 2nd. The impacts of this debate for transportation are not clear – but with major cuts proposed for all “domestic discretionary spending” transportation is likely to be hit in the efforts to reduce the federal deficit- which will clearly be part of any deal to increase the debt ceiling.