CAWP Legislative News 2-10

Highway Program Extension and Funding at Risk

Because Congress has failed to pass legislation to reauthorize the highway and transit programs since SAFETEA-LU expired on September 30, 2009, these programs have been operating under short term extensions. The latest extension expires on February 28, 2010. In addition, the Highway Trust Fund has insufficient revenue to maintain current funding levels beyond May or June 2010.

Prior to the Christmas holidays, the House passed legislation to remedy this situation through the end of Fiscal Year 2010. The House bill also includes additional funding for transportation intended to stimulate job creation.

This week, the Senate will consider “jobs” legislation which, among other things, will provide an extension of highway and transit program authorization through the end of the calendar year and include a transfer of $19 billion to the Highway Trust Fund to provide the needed revenue to fund the program. Unfortunately, a handful of Republicans, led by Senate Budget Committee Ranking Republican Judd Gregg (R-New Hampshire), are attempting to block the bill, and in particular the highway program fix, over budget disputes.

Failure to pass the extension and the additional program revenue will have direct impact on Federal Highway Administration’s ability to reimburse state DOTs like PENNDOT for on-going construction projects and could result in cancelled lettings.