Highway and Transit Reauthorization

When Congress returns next week from its summer recess it must take action to ensure continuation of the highway and transit program. SAFETEA-LU expires on September 30, 2009 and Congress must take action before that time to avoid funding disruptions. This current reauthorization effort is even more difficult than it has been in the past because the balance in the Highway Trust Fund (HTF) has been spent down. Congress has had to provide two infusions of general fund revenue, totaling $15 billion, to ensure there is enough revenue to reimburse states for on-going construction projects through the end of FY2009. The Senate is expected to bring up legislation reported from Committee just prior to the recess to extend authorization for 18 months until March 2011. The bill also includes an additional general fund transfer to ensure the HTF remains solvent during that time period. The Obama Administration supports an 18-month extension of authorization for the program coupled with an additional infusion of general fund revenue to keep the programs at a steady funding level. Meanwhile, House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) is pressing for Congress to continue to work on the multi-year reauthorization. A draft bill has been reported out of subcommittee and the full Committee will be addressing the bill soon. AGC continues to advocate the need for six-year reauthorization legislation with significantly increased revenues to address the nation's growing transportation infrastructure deficit, while working to ensure there is no disruption in program funding in the interim.