Senate Takes On Highway Trust Fund Bill

WASHINGTON — Senate Majority Leader Harry Reid announced the chamber will consider on July 29 a House-passed bill that would shore up the Highway Trust Fund for 10 months, as well as several proposed changes to the bill. UPDATE: Senate passes amended bill.

“Senators should expect five roll call votes this evening … we’ll notify when those votes are scheduled,” Reid (D-Nev.) said on the floor.

The House GOP bill would approve nearly $11 billion to boost the trust fund through May. Most of the funding would come from the accounting practice known as pension smoothing, which allows companies to reduce required contributions to their retirement plans as a way of inflating their taxable income temporarily.

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Four amendments are expected to get a vote. They include a proposal offered by Finance Committee Chairman Ron Wyden (D-Ore.) that would scale back on the pension-smoothing. Then an amendment from a group led by Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) would authorize funding until December.

Sen. Mike Lee (R-Utah) also is calling for reducing the federal gas tax from 18.4 cents per gallon to 3.7 cents over a five-year period and grant most highway spending authority to the states. Finally, Sen. Pat Toomey (R-Pa.) is offering an amendment that would speed up infrastructure rebuilding projects after natural disasters hit communities.

According to the rules of debate approved by Senate leaders, a minimum of 60 votes are required for amendments to be adopted. Vote on passage of the bill also would require 60 votes.

Senior Democratic senators are expected to oppose the House GOP bill. If the legislation is amended, it then returns to the GOP-led House for its consideration. On July 29, House Speaker John Boehner (R-Ohio) said his caucus would reject changes to the bill. 

The bill passed the House earlier this month by a vote of 367-55. 

According to the Department of Transportation, the trust fund is projected to run out of money next month. DOT leaders have indicated they plan to reduce the flow of reimbursements to states for highway projects by Aug. 1 if the fund is not boosted.