Senate Appropriations Committee approves FY 2009 transportation funding legislation

The Senate Appropriations Committee July 11 approved FY 2009 transportation funding legislation which fully funds the highway and transit programs at the SAFTEA-LU authorized levels. The Committee included in the bill a provision to transfer $8.017 billion from general revenue to the Highway Trust Fund (HTF) providing the revenue necessary to fully fund the programs. Absent this transfer of funds the highway program would have to be cut by 34%. The bill provides $41.2 billion for the highway program (the same amount as in FY 08) and $10.2 billion for transit (7.7% above the FY 08 level). Also included in the bill is funding for the Airport Improvement Program at $3.515 billion (the same amount as in FY 08).

While the measure passed on voice vote, the transportation appropriations bill must still be approved by the full Senate where it could face opposition. Just prior to the Fourth of July recess, objections from Senate Budget Committee Ranking Republican Judd Gregg (N.H.) and Senator Jim DeMint (R-S.C.) prevented the HTF fix from being included in FAA extension legislation. At that time AGC and its transportation and construction allies worked in support of an effort lead by Senate Environment Committee Chairman Barbara Boxer (D-Calif.) and Committee Ranking Republican Jim Inhofe (Okla.) to have senators sign a letter in support of the fix. If either of your Senators did not sign the letter you are requested to contact them through AGC's Legislative Action Center at 2008 Prevent Highway Trust Fund Insolvency to ask for their support of the HTF fix.

The $8.017 billion figure was selected because that is the amount that was taken from the Highway Trust Fund in 1998 when TEA-21 legislation was enacted as a tradeoff for funding guarantees and firewalls. At that time the HTF had a substantial balance.

The House Appropriation Transportation Subcommittee previously approved its version of the FY 2009 transportation funding measure that fully funds the highway and transit programs at the SAFTEA-LU authorized levels, however, that bill did not include a provision transferring funds to the HTF. Full committee markup of the bill in the House had been scheduled for the week of July 7 but has since been canceled. It is unclear when it will be brought up.