Congress Begins to Address Surface Transportation Reauthorization, Far From Consensus

Congress began the process of addressing the Surface Transportation Reauthorization bill that expires on September 30. Three committees delved into the issue this week: the House Ways and Means Subcommittee examined surface transportation needs; Senate Environment Public Works Committee considered an 18 month extension; and the House Transportation and Infrastructure Subcommittee approved a six year transportation reauthorization. However, the chambers and committees have different approaches and goals. AGC supports additional funding to ensure Highway Trust Fund solvency and passage of a multi-year surface transportation reauthorization before September 30. The House Subcommittees on Oversight and Select Revenue Measures held a hearing on highway and transit investment needs in the short- and long-term.  The hearing was the first of an expected series of hearings to consider revenue options not only to fund the short-term Highway Trust Fund solvency crisis, but also to pay for a multi-year surface transportation reauthorization bill.  U.S. Department of Transportation Undersecretary for Policy Roy Kienitz testified that the Highway Account of the Highway Trust Fund will require an additional $5-7 billion in order to pay all of its bills on time through the end of the current fiscal year ending September 30, and that $8-10 billion is needed to cover the anticipated cash shortfall through FY 2010. Finally, he recommended that Congress enact an 18-month extension of the current surface transportation authorization along with a $20 billion cash infusion to sustain the Highway Trust Fund through March 2011, delaying consideration of a multi-year reauthorization bill. The House Subcommittee on Highways and Transit approved a $450 billion, six-year surface transportation authorization bill to replace SAFETEA-LU.  The proposal would shift additional funds to transit projects as well as dedicate $50 billion for high-speed passenger rail initiatives to be funded outside the Highway Trust Fund. The legislation lacks details on a financing mechanism as well as other policy changes. In the Senate, many Environment and Public Works (EPW) Committee leaders support an 18-month extension of authorization for the federal highway and transit, but oppose including policy objectives in the short term extension. The exception would be Senator George Voinovich (R-Ohio), who aggressively supports the six year option that was marked up in the Transportation and Infrastructure Committee yesterday.