Thursday, June 18, 2009

Federal Highway Trust Fund Reauthorization Hits Another Speed Bump

House Transportation and Infrastructure Committee Chairman James Oberstar wants to proceed with a $450 billion, six year reauthorization measure for the Highway Trust Fund, which expires at the end of the current fiscal year on September 30, 2009, and which at the current burn rate will likely run out of cash as soon as August 1, 2009. House Democrats would like to fund the bill by increasing the federal gasoline tax above the current level of $0.184 per gallon, but the Obama administration, including in particular Transportation Secretary Ray LaHood, is opposed to any fuel tax increases.

Last time this sort of impasse came up in Congress, there was a series of three month long interim extensions of funding for highway construction. LaHood is proposing an 18 month extension measure, to give the administration time to figure out how to fund a permanent reauthorization. LaHood's announcement yesterday seriously undercut Oberstar's proposed release today of an 80 page outline of his committee's proposed permanent reauthorization measure, and both Republican and Democratic Representatives on the Transportation and Infrastructure Committee are upset. Ranking Member John Mica raised an eyebrow over the timing of LaHood's announcement in light of the bipartisan agreement on the committee: "It's very unfair to Chairman Oberstar," he said. "He's worked long, hard, and very effectively, and for them to come in at the eleventh hour and undermine him, I've never seen anything like it before. I'm very disappointed."

Meanwhile, Association of Equipment Manufacturers President Dennis Slater spoke out in favor of Oberstar's long term approach to reauthorization, and against a temporary fix for highway construction authorization legislation. "If Congress can make a long term commitment to investing in infrastructure, contractors will be able to make needed investment in capital equipment that will meet the short term need to put people back to work and meet the long term need to repair and update the U. S. infrastructure," Slater remarked. "An efficient and safe transportation network benefits all of us, and we urge swift action by the Committee and the House to consider this vital legislation."
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