House and admin agree on HTF solvency fix

On July 28, House Democratic leaders and the Obama administration agreed to push through a $5 billion Highway Trust Fund solvency fix before the August recess.  House Transportation and Infrastructure committee Chairman James Oberstar (D-Mont.) initially requested a $3 billion infusion of funds into the HTF and the administration sought $5 billion-$7 billion.  Oberstar has attempted to keep the funding infusion to a minimum of what is needed in order to keep the pressure on for action on a multi-year reauthorization bill. 

Oberstar has agreed to the higher figure on the condition the U.S. Department of Transportation provides weekly reports on the status of the HTF during the month of August.  The aid will be financed through a transfer from the General Fund of the Treasury, similar to the $8 billion transfer that occurred in September 2008.  It is anticipated that the HTF fix will be part of a package of solvency fixes acted on by Congress before the summer recess, including an extension of unemployment insurances and transfer giving the Federal Housing Administration and the government National Mortgage Association additional lending authority.

Three Senate committees with jurisdiction over parts of the surface transportation bill have passed their respective sections of an 18-month extension of SAFETEA-LU being advanced in the chamber and supported by the administration. Senate Finance committee Chairman Max Baucus (D-Mont.) said that he favors the intragovernmental transfer of monies to help the trust fund, but contends a 12-month or an 18-month extension will be needed eventually. 

William R. Buechner, Ph.D., vice president of Economics and Research for the American Road & Transportation Builders Association, of which NSSGA is a member, said at a media briefing on July 27 that the Obama administration's proposal to delay congressional enactment of a new, six-year federal surface transportation program investment bill until March 2011 could "submarine the entire stimulus effort to use infrastructure investment to create new jobs."
Stimulus investments, he said, will be undercut without near-term action on the federal highway/transit bill. Buechner also said that inaction could have unintended consequences for the economy.  Read more.

NSSGA has issued a Legislative Action Alert urging Congress to act to patch the HTF before the August recess. If you haven't contacted your member of Congress, do so today.  The action alert can be accessed here.