News

No Action on Highway Reauthorization – Gas Tax Renewal Could Be a Potential Problem

Upon completion of the debt ceiling legislation, Congress adjourned for its summer recess without taking up long-term highway and transit reauthorization legislation. While both the House Transportation and Infrastructure Committee (T&I) and the Senate Environment and Public Works Committee (EPW) have released outlines of what will be included in their bills, neither has actually released legislative proposals. EPW Chair Barbara Boxer (D-CA) had hoped her committee would be able to mark up a bill prior to the recess, however, that did not happen. The primary reason for the delay is that the bipartisan leadership of the EPW Committee wants to do a two-year bill that will maintain current funding levels. To do this, additional Highway Trust Fund revenue must be found. The Republican leadership wants the funding identified before taking action on the bill. Senate Majority Leader Harry Reid (D-NV) said this week the Senate needs to work on reauthorization when it returns. Senator Reid said he has spoken with Senate Finance Committee Chair Max Baucus (D-MT), whose committee is responsible for identifying additional revenue sources, and they agree additional sources can be found. Reauthorization will become an acute problem when Congress returns, because the latest short-term extension expires on September 30, 2011. Without additional revenue, the highway and transit programs are facing a cut of as much as 35 percent from current levels. In addition, authority for collecting the federal motor fuels tax also expires on September 30. Failure to act will result in the federal tax not being collected, further depleting the resources of the Highway Trust Fund. You are strongly encouraged to use the August recess as an opportunity to contact both of your Senators and your Representatives to urge action on transportation reauthorization. Personal visits are the best way to communicate this message. In addition, visit AGC’s Legislation Action Center to send a letter to your Representatives. For more information, please contact Brian Deery at (703) 837-5319 or deeryb@agc.org.