House Passes Legislation to Boost Highway Trust Fund

Despite opposition from leading Democrats and conservative Republicans, the GOP-led House on July 15 passed legislation that would shore up a federal highway account through May by a vote of 367-55.

The bill would approve about $11 billion for the Highway Trust Fund, which the Transportation Department said is poised to run out of money as early as next month.

The legislation advanced despite calls from Democratic leaders urging colleagues to pass a long-term funding fix for transportation programs. Also, the conservative Heritage Action think tank had called on lawmakers to reject the bill over the legislation’s revenue provisions.

The House bill, sponsored by Ways and Means Chairman Dave Camp (R-Mich.), would approve the transfer of $1 billion from the Leaking Underground Storage Tank Trust Fund to keep the highway account solvent.

It also would approve the extension of customs fees until 2024. And it would rely on the accounting practice known as pension smoothing, which allows companies with defined benefit retirement plans to assume higher interest rates when calculating the amount of money needed to contribute for employees’ retirements.

Why I voted Yes on H.R. 5021, the Highway and Transportation Funding Act of 2014. http://t.co/jWLbLdJazF #NY22 — Rep. Richard Hanna (@RepRichardHanna) July 15, 2014

“It is time to act now. State transportation departments have already started delaying or stopping certain highway projects to prepare for the fact that funding may fall short,” Camp said. “Americans across the country deserve to see less gridlock on the roads and from their elected representatives. These policies are straightforward and have a history of bipartisan, bicameral support.”

Earlier this week, the White House offered its support for the GOP highway-funding rescue bill. In a memorandum released by the Office of Management and Budget, the White House said the legislation would provide funding for the trust fund "during the height of the summer construction season and keep Americans at work repairing the nation's crumbling roads, bridges and transit systems."

An insolvent trust fund would prompt DOT to scale back reimbursements to states to pay for large-scale construction projects, a scenario President Obama and Transportation Secretary Anthony Foxx warned about as they toured the country this week. The administration, which offered a four-year, $302 billion legislative transportation proposal earlier this year, has stressed it would prefer Congress to back a long-term highway bill.

"Instead of barely paying our bills in the present, we should be investing in the future," Obama said July 15 at the Turner-Fairbank Highway Research Center in McLean, Va. "This is not an abstract issue. It shouldn't even be a partisan issue."

Reluctantly supported Highway Trust Fund patch, but this is no way to do our nation's business. Here's my statement: http://t.co/409Xmhckf1 — John Dingell (@john_dingell) July 15, 2014

Before the House vote, a coalition of more than 60 groups that included American Trucking Associations, the American Road and Transportation Builders Association, and the International Bridge, Tunnel and Turnpike Association, urged lawmakers to pass the bill to ensure highway projects receive federal funds this summer.

“Keeping the Highway Trust Fund solvent is the first step," the groups said. "We urge Congress to avoid the immediate transportation cliff and improve the long-term fiscal condition of the Highway Trust Fund during 2014."

Senate Democratic leaders who control that chamber have indicated they might take up similar legislation before they leave Washington for their August recess. Camp’s Senate counterpart, Finance Committee Chairman Ron Wyden (D-Ore.), has pledged to push his legislation through the chamber this month.

All but ten Democrats just voted for the Republican-sponsored highway trust fund bill in the House.Lots more - 45 - Republicans said 'no'. — Lisa Desjardins (@LisaDCNN) July 15, 2014

Democrats and Republicans agree on the need to rescue the trust fund before the August break. The trust fund’s road building account relies on revenue from the national gas tax, and the multitude of energy-efficient vehicles has cut into that source of funding. In recent years, Congress has boosted the highway account with funds from the Treasury.