CAWP News Issue 4-09

U.S. Senate and House Pass Highway Trust Fund Fix

By a vote of 79-17 the Senate passed legislation to transfer $7 billion of general fund revenue to the Highway Trust Fund to provide enough revenue to ensure state transportation departments will continue receiving full reimbursements for federal-aid highway projects through September, the end of the current federal fiscal year. The House approved the measure on Wednesday by a vote of 363-68. The bill now goes to the President who is expected to sign it.

Congress must still take action to extend spending authorization beyond September 30 when SAFETEA-LU expires. That issue will have to be addressed in September following the Congressional recess. The Obama Administration and some members of the U.S. Senate are pushing to extend the current authorization of the federal highway and public transportation programs until March 2011.

CAWP and AGC support timely action on a federal surface transportation reauthorization bill this year. From the construction industry's perspective, continuity and a multi-year program is vital. The construction industry makes decisions about investment in new equipment and in retaining and training a workforce based on its best projection about where the market will be over the long term. In addition, a multi-year reauthorization bill is the only way that the U.S. can truly begin to address our long-term transportation needs.