Debate on FAA Reauthorization Postponed - HTF Fix Not Completed

Senate Majority Leader Harry Reid (D-Nev.) Tuesday pulled the Federal Aviation Administration (FAA) reauthorization bill from Senate consideration after a failed attempt to end a filibuster over concerns about non-aviation related items in the bill. It remains uncertain at this time whether there will be an attempt to work out a compromise and bring the bill back up for consideration at a later date. Authority for the aviation taxes has been temporarily extended until June.

Included in the bill was a provision – sponsored by Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) – to supplement revenues into the Highway Trust Fund to assure that SAFETEA-LU authorized funding is fully available to states in fiscal year 2009.  Earlier this year, the U.S. Treasury forecast that revenues will fall short of meeting next year's SAFETEA-LU guaranteed funding by $3.3 billion.  As a result of this projected shortfall a cut of nearly $13.5 billion or 31 percent in FY 2009 funding is possible. The Baucus/Grassley fix would provide $5.1 billion in additional revenue to meet SAFETEA-LU commitments, with an additional cushion should HTF receipts decline further.