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TEA-21 Extended Into May 2005
As the fifth extension of the Transportation Equity Act for the 21st Century (TEA-21) was set to expire on September 30, 2004, Congress approved legislation that would extend the federal surface transportation program until May 31, 2005. The extension provides slightly more funding for highway, transit, and motor carrier safety programs than was provided in FY 2004, extends the TEA-21 budgetary “firewalls” that ensure that highway user fee revenues are used only for highway and transit purposes, and redirects the revenue from the 2.5 cents per gallon ethanol motor fuels excise from the federal General Fund to the Highway Trust Fund. Although this extension authorizes eight months of spending in FY 2005, the appropriations process actually determines the FY 2005 funding levels for the federal transportation program. These spending levels have not yet been determined, but the House Appropriations Committee has recommended FY 2005 investment levels of $34.6 billion for the highway program and $7.25 billion for the transit program and the Senate Appropriations Committee has recommended $34.9 billion for highways and $7.75 billion for transit.
For more than a year Congress has attempted to reauthorize TEA-21, which originally expired on September 30, 2003. Although both the House and Senate have passed their respective versions of reauthorization legislation, a House-Senate conference committee has been unable to reach a compromise on a six-year reauthorization bill. Several key issues remain unresolved including the overall funding levels contained in the bill and how the funding would be distributed to states. The House-passed bill includes a total six-year authorization of $284 billion, the Senate bill includes $318 billion, and the compromise levels that have been discussed are between $299 billion and $301 billion.
With Congress adjourning in order to campaign and a potentially brief “lame-duck” legislative session planned following the November 2 elections, it appears unlikely that a six-year TEA-21 reauthorization bill will pass Congress this year.
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