LaHood Seeks Interim Highway Plan

Transportation Secretary Ray LaHood asked Congress for an 18-month highway reauthorization to plug immediate holes in the Highway Trust Fund and detour past a Sept. 30 deadline to complete the reauthorization of the surface transportation bill.

Without an infusion of cash, the Highway Trust Fund could go broke as soon as late August, LaHood said June 17. “If this step is not taken the trust fund will run out of money … and states will be in danger of losing vital transportation funding.”

LaHood ruled out increasing the fuel taxes that replenish the fund. “The administration opposes a gas tax increase during this challenging, recessionary period, which has hit consumers and businesses hard across our country,” he said.

An 18-month reprieve would give the Obama administration and Congress more time to complete a comprehensive multi-year surface transportation bill, LaHood said. Congress has until Sept. 30 to reauthorize the bill or extend the current SAFETEA-LU.

House Transportation and Infrastructure Committee Chairman James L. Oberstar does not want an extension — the previous highway bill was extended 12 times in two years before SAFETEA-LU became law in 2005.

“Delay is unacceptable. This is the moment to move,” the Minnesota Democrat said June 17. “This bill needs major-project emphasis. You don’t get that with extensions.”

Rep. Peter DeFazio, D-Ore., chairman of the House highway and transit subcommittee, warned that extending the current highway law would nullify any gains from the economic stimulus bull. He said that extending the existing legislation leads to a drop in major infrastructure projects. Without a predictable revenue stream over several years, states cannot commit to projects that take several years to complete. Instead HTF money goes to smaller and shorter-term projects that employ fewer people, he said.

“I recognize that there will be concerns raised about this approach,” said LaHood, who met with Oberstar and other members of Congress June 17. “However, with the reality of our fiscal environment and the critical demand to address our infrastructure investments in a smarter, more focused approach, we should not rush legislation.”

“We should work together on a full reauthorization that best meets the demands of the country,” he said. “The first step is making sure that the Highway Trust Fund is solvent. The next step is addressing our transportation priorities over the long term.”

LaHood said he wants the highway bill to focus on “critical reforms” that will help the federal government make better transportation spending decisions through cost-benefit analysis and focus more investments in metropolitan areas to promote the concept of “livability” by offering more transportation choices to “sustainable communities.”

DOT earlier this week expanded an interagency partnership with the Environmental Protection Agency and the Department of Housing and Urban Development to more closely align transportation, environmental and housing policies and to center them on creating sustainable communities.

The highway bill is widely expected to include significant reforms for DOT, narrowing the number of funding programs and perhaps reorganizing its modal structure.

Contact William B. Cassidy at wcassidy@joc.com; Contact R.G. Edmonson at bedmonson@joc.com.