Oberstar Caves To $5 Billion Short Term Highway Trust Fund Fix

Look for the House to pass a bill this week including an infusion of $5 billion from the general Treasury into the Highway Trust Fund to keep it solvent while Congress is in recess for five weeks between Friday and Labor Day. Oberstar still wants a six year reauthorization before the end of September, while Senate leadership wants an 18 month temporary extension to work on new funding sources to augment or replace shrinking motor fuel tax revenues. Oberstar initially wanted to press for his six year extension of the fund by limiting temporary cash assistance to $3 billion, but gave in to the $5 billion figure sought by the Obama administration and Congressional leadership in return for avoiding a vote on the 18 month extension proposal at least until after Congress reconvenes in September. Senate Finance Committee Chairman Max Baucus is on board with the $5 billion very temporary fund transfer. So, the suspense about future highway, transit and bridge construction projects remains.