Highway spending bill on track for passage this year

House overwhelmingly votes its support for $284 billion funding authorization. Now it's on to the Senate.

By James A. Cooke, Executive Editor -- Logistics Management, 3/1/2005

WASHINGTON, D.C.—Prospects appear brighter for passage of a bill appropriating money to construct, expand, and repave the nation's roadways.

Last year, differences between the White House and the Congress over funding stalled the legislation. Both the House and Senate wanted more than $300 billion dollars for six years, while the Bush administration agreed to $256 billion.

This year, President Bush has proposed spending $284 billion on highways over six years. For fiscal year 2006, the president's budget would spend $60.6 billion, a 4.1 percent increase from 2005. Because the budget includes money for other transportation items, the amount specifically allocated for highways would total $34.7 billion.

Key House members had said they would support the level of funding proposed by the White House. Earlier this month, the full House approved that amount by a 417–9 vote. "The American people deserve solutions to the problems of congestion, crumbling roads, and delayed shipments of freight," said Transportation and Infrastructure Committee chair Rep. Don Young (R-Alaska.) in a statement.

A contentious issue that could delay passage is how to apportion federal dollars among the states. The government taxes diesel fuel and gasoline to generate revenues for the highway trust fund, which is supposed to pay for infrastructure improvements. Currently, states get back on average 90.5 percent of the money they contribute to that fund.

But some lawmakers have complained that their states are "donors," contributing more to the highway trust fund than they receive in federal aid. Some House members want to raise the average refund level to 92 percent, and a few are lobbying for 95 percent. According to Darrin Roth, director of highway operations for the American Trucking Associations, the House bill would require Congress to reconsider state funding apportionment two years from now.

The final version of the bill could also include a provision codifying the current hours-of-service (HOS) regulations. Last year, the Federal Motor Carrier Safety Administration issued new rules on the number of hours that a truck driver could operate a big rig. But safety advocates challenged the rules in court on the grounds that they don't actually improve safety.

"The hours-of-service issue may end up as a rider to the bill," says Gary F. Petty, president of the National Private Truck Council. "The administration is exploring the idea of putting the final HOS rules into law by Congressional enactment, thereby mooting the court claims."

When Congress couldn't agree with the White House on funding last year, it passed temporary legislation extending the current appropriation level until May 31.Lawmakers are anxious to adopt a permanent solution before then.

The chances of that happening appear to be good. "This time the Senate will agree to the House appropriation amount, which is the number the White House wants," says Patrick O'Connor of Kent & O'Connor, a lobbying firm that represents the International Warehouse Logistics Association. "Because they [the White House and Congress] are in sync, we could have a bill by Memorial Day."