New Federal Legislation

$8 Billion for Highway Trust Fund Awaiting President’s Approval

Earlier this week, the House and Senate voted to transfer $8 billion into the federal Highway Trust Fund, financed by federal fuel tax receipts and distributed to states, after U.S. Department of Transportation (DOT) Secretary Mary Peters warned the trust fund will run out of money by the end of September. The House adopted a fix for the trust fund shortfall before leaving for the August recess, but a Presidential veto threat had prevented adoption of the legislation.

The legislation adopted this week now awaits the President’s signature. State transportation officials and DOT warned of dire consequences for highway projects if Congress did not enact this fix. Since a 1998 budget agreement shifted $8 billion from the trust fund to the Treasury general fund, proponents said this transfer simply returned those funds to an account to be used for their intended purpose.

Plans for a New Federal Transportation Program Underway

On September 4, Sen. Barbara Boxer (D-CA), chair of the Senate Committee on Environment and Public Works, held a field hearing to outline the next steps in developing a new federal transportation program, which she called MAP-21, “Moving Ahead for Progress in the 21st Century.” The current transportation law, SAFETEA-LU, expires on September 30, 2009.

At the hearing, Sen. Boxer identified goals for MAP-21, which include ensuring a federal role in maintaining and enhancing the current system; consolidating the current myriad programs to help refocus and set a national vision; reducing congestion and its impacts; efficient movement of people and goods; safety; sustainable funding; and performance criteria. Both House and Senate committees responsible for developing a new federal transportation program have held preliminary hearings to listen to views on a new bill.

House Preparing to Consider Second Economic Stimulus Package

Next week, in response to the sluggish economy and continuing job losses, the House is expected to take up consideration of a second economic stimulus package that would include funding for infrastructure projects, low-income heating assistance, Medicaid, unemployment insurance extension, and food stamps. The total value of the package is expected to be at least $50 billion. President Bush has not indicated whether he would support a second measure.