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.