The Senate narrowly rejected a $60 billion transportation spending bill proposed by President Obama on Thursday, as many Republicans said they supported improving the nation’s infrastructure but balked at raising taxes.
Hours earlier, House Speaker John Boehner said he would pass a bill by the end of 2011 that combines the “expansion of American-made energy production with initiatives to repair and improve infrastructure and reform the way infrastructure money is spent.”
Boehner and Rep. John Mica, R-Fla., have hinted at tapping oil income to fund the House’s two-year, $109 billion transportation plan.
The infrastructure legislation proposed by Obama would have spent $50 billion on transportation and $10 billion to create a national infrastructure bank. The proposal, defeated 51-49, would have been funded through a 0.7 percent tax on incomes over $1 million.