House Passes Transportation Funding Legislation

In spite of a veto threat from the Bush Administration, the U.S. House of Representatives April 2 passed a six-year, $275 billion surface transportation reauthorization bill by a vote of 357 to 65.  The Transportation Equity Act: A Legacy for Users (TEA-LU), H.R. 3550, would provide approximately $217.4 billion for highway programs, $51.5 billion for transit, and $6 billion for behavioral and motor carrier safety programs in guaranteed funding over six years.

The legislation is $100 billion less than House Transportation and Infrastructure (T&I) Committee Chairman Don Young (R-AK) proposed in his original bill, but under pressure from the White House and House leadership to reduce the bill’s overall funding level the T&I Committee and the full House were forced to consider legislation at the $275 billion level. 

A key provision of H.R. 3550 would require Congress to enact legislation by September 30, 2005 that would ensure that states receive a minimum rate of return of 95 percent on their contributions to the Highway Trust Fund by 2009 or face a shut down of the federal highway program.  This provision is popular with many members of Congress who believe that the political climate may be more acceptable to increased funding following the November elections and who want more equity between the states for federal transportation funds.  

A House-Senate conference committee must now develop compromise legislation based on H.R. 3550 and the $318 billion Senate-passed bill, S. 1072.  With many of the policy provisions within these two bills nearly identical, the key issues up for debate will continue to be the overall funding level and how the funding is distributed to the states.  The current deadline for TEA-21 reauthorization legislation to become law is April 30

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