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Fed highway overhaul gains momentum

By Joan Lowy
Associated Press

Washington — A Senate panel cleared legislation Wednesday overhauling federal highway programs, prompting lawmakers to talk of a looming bipartisan consensus that would end years of stalemate on repairing and expanding an aging transportation network.

In a rare show of bipartisanship, 18 members of the Senate Environment and Public Works Committee pushed the legislation forward for further action, even withholding amendments for now.

The two-year transportation plan was drafted by the committee’s Democratic chairwoman, Sen. Barbara Boxer of California, and its senior Republican, Sen. James Inhofe of Oklahoma. The bill’s co-sponsors include the Senate Finance Committee’s Democratic chairman, Sen. Max Baucus of Montana, and its senior Republican, Sen. David Vitter of Louisiana, who are trying to find the money to pay for the plan.

“I don’t think there is any question, if you look at the four of us, that this is the definition of bipartisan work,” Vitter said. “This is a jobs bill, this is an infrastructure bill that is designed to succeed, that can succeed.”

Despite last week’s Senate defeat of President Barack Obama’s $50 billion infrastructure jobs bill, momentum is building for congressional passage of a long-term transportation plan to repair crumbling roads and bridges, move people and freight more efficiently, and boost employment.

House Speaker John Boehner, R-Ohio, recently removed a major roadblock by agreeing to support a continuation of current highway program spending levels. He said Republicans would introduce a six-year transportation plan this month, and he expected House passage before the end of the year.

The Senate bill is a significant departure from the current highway program. It aims to give states more flexibility in choosing what kinds of projects best meet their needs, while at the same time requiring that they show in a more systematic way that they are using their aid to achieve federal goals such as relieving traffic congestion, reducing air pollution and keeping roads and bridges in good repair. It would eliminate or collapse 90 separate highway programs, each with its own pot of money, into about 30 mostly larger pots.

It also would increase spending for a federal transportation loan guarantee program from $122 million a year to $1 billion a year, while reducing the share of money states have to contribute to projects. The federal guarantees can reduce states’ financing cost for large projects through lower interest rates. The lower rates also can attract as much as $30 in private investment for each dollar in federal aid, thus significantly increasing the overall money available for transportation projects, supporters of the program said.

Rep. John Mica, R-Fla., chairman on the House Transportation Committee, hasn’t introduced his plan, but he has described key features that are similar to the Senate bill. For example, he has said he intended to eliminate or collapse all 108 existing federal highway and transit programs into a handful of aid programs to give states more flexibility in choosing projects. He also has said he, too, would increase the loan guarantee program to $1 billion a year and ease state contribution requirements.

“Congress is realizing we need to do something, and Republicans are realizing they can’t just sit there and say no” to appeals for more spending on infrastructure to boost the economy, said Joshua Schank, president of the Eno Transportation Foundation, a nonpartisan think tank.

Two special commissions studying transportation have warned that if the U.S. doesn’t sharply increase spending to repair and improve its infrastructure, the nation will face a future of nightmarish congestion. Current transportation systems — highway, rail and aviation — won’t be able to handle the projected population growth of 100 million more Americans by 2050.

The federal Highway Trust Fund, which pays for highway and transit aid, is spending more money than it takes in, but the backlog of projects still is growing. A recent report by the Carnegie Endowment for Peace estimates that the U.S. transportation system, excluding aviation, adds more than $100 billion annually to the national deficit when deferred maintenance is counted.

Like many issues before Congress, the biggest question mark is where lawmakers will find the money to pay for the overhaul. The Senate bill, including safety and transit programs, would spend $109 billion over two years. Sponsors still are $12 billion short of the money needed to pay for it, although Baucus pledged Wednesday to somehow find the money.

In the House, Republicans have discussed a six-year, $286 billion bill paid for by revenue from expanded oil and natural gas drilling. But there are serious questions whether the money could be raised before it’s spent and whether federal trust fund rules might prevent relying on revenue that’s not directly raised from use of roads and bridges.

“Finding the money is going to be a real challenge,” Schank said, “and presents the largest obstacle to enactment of any legislation.”

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