State Officials Cheer Obama Transport Funding Plan

The trade group that represents transportation executives for state governments cheered President Obama's plan to seek $50 billion in new spending for transport infrastructure before the end of this year.

Obama met with some state governors, big city mayors and former U.S. transportation secretaries Oct. 11 to build momentum for a plan he first announced on Labor Day to tie the $50 billion to a new six-year surface transportation program.

Several reports say administration officials also made clear that the president now wants Congress to take up the big upfront spending piece of his plan when lawmakers return for their lame-duck session after the Nov. 2 elections.

"We are pleased that the president wants to press for enactment of a $50 billion down payment on a long-term transportation bill in the lame duck session," said John Horsley, executive director of the American Association of State Highway and Transportation Officials.

The $50 billion, if approved, could start to kick in as transportation construction projects from the 2009 economic stimulus program are winding down. Without some new funding in place soon, state departments of transportation would lose a lot of the federal money they were used to in the past two years. "Unless there is an initiative like the president's to continue investment in transportation, you will see 300,000 construction related jobs lost by the end of next year," Horsley said.

Current federal surface programs like road and bridge spending from the Highway Trust Fund are set to expire at the end of this year, so Congress is expected to extend them yet again until it can enact replacement legislation.

Some policy experts say it could take many months for Congress to hammer out a new six-year transportation spending program, especially if the elections shift control of the House of Representatives to Republicans who would want to draw up their own plans. A short-term extension that includes added funding measures could bridge the gap.

Obama says the extra $50 billion would go upgrade highways, build out more of the passenger rail network between cities and improve airports. A Treasury study also details how infrastructure investments improve freight shipping around the country and the nation's ability to export goods abroad.