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LaHood Offers Plan to Fund Highway Programs
06/26/2009
Transportation Secretary Ray LaHood recently told lawmakers the administration will offer a plan to extend financing of current highway programs for 18 months.
An estimated $13 billion to $17 billion will be needed under the plan to make up a shortfall in federal gas tax revenues, which fund highway and transit programs.
Meanwhile, 43 House Democrats recently urged President Barack Obama to drop the plan they say will delay an increase in aid to highway and transit projects. They support legislation proposed by U.S. Rep. James Oberstar, the Democratic chairman of the Transportation and Infrastructure Committee. Oberstar has proposed a six-year, $500 billion bill to overhaul transportation programs.
Oberstar wants Congress to pass the bill by Oct. 1, which is when the current law that authorizes transportation programs expires. The highways and transit subcommittee plans to bring the bill before the full House for a vote next month.
A decline in driving due to the poor economy has reduced gas tax revenue, the main source of income for the federal Highway Trust Fund. The fund, which pays for highway and transit construction, is forecast to go broke on Aug. 21 unless Congress acts to make up the shortfall.
LaHood has said the administration is open to suggestions on how to fund the extension but opposes raising the gas tax in the current recession.
