Showdown on Highway Authorization Extension Likely

With SAFETEA-LU authorization scheduled to expire on September 30, action is necessary to keep the highway and transit programs operating. House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN) announced his intention to move a 3 month extension this week out of Committee with floor consideration next week. Chairman Oberstar opposes a longer extension because he believes it will undermine efforts to enact a six year reauthorization bill. The Senate is preparing to bring to the floor legislation to extend the programs for 18 months until March 2011. Senate committees have already passed the needed legislation, including the Finance Committee which included a $20 billion transfer from the general fund to keep the Highway Trust Fund solvent for the eighteen months. The Senate is supporting the Administration's request to hold off on a multi-year extension until 2011.