Senate Panel Passes 18-Month Highway Funding Extension
A Senate committee passed an 18-month extension to the federal highway-funding law, rejecting calls for a longer, more expensive plan, Bloomberg reported.
The 18-1 vote by the Senate Environment and Public Works Committee Wednesday Washington would extend a $286.5 billion highway law approved in 2005 by an additional 18 months beyond its Sept. 30 expiration date, Bloomberg said.
The measure must next clear other committees and the full Congress.
The U.S. Chamber of Commerce wanted Congress to approve a multiyear extension with an increase in the 18.4-cent federal gasoline tax, saying the shorter-term plan would be too slow in tackling road gridlock, Bloomberg said.
The Obama administration and Transportation Secretary Ray LaHood back the 18-month extension, and lawmakers are trying to settle differences over how best to renew the highway law and ensure construction dollars keep flowing to states during a recession.
About 90% of the federal highway dollars come from gasoline levies, and higher-mileage vehicles and declines in driving have led to a drop in gasoline-tax revenue for the highway trust fund, Bloomberg reported.
Congress approved an $8 billion highway-fund bailout in September to keep the it solvent, but LaHood said last month the fund could run out of money by late August.
