angle-double-right calendar

Sign up today to view these articles!

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

House Passes Extension of Federal Spending Authority for Transportation Projects

May 26, 2015, 14:52 PM by SPAN
The U.S. House of Representatives overwhelmingly passed a two-month extension of federal spending authority for transportation projects, delaying decisions over longer-term funding until the Highway Trust Fund is depleted in July.
The bipartisan, 387-35 vote sends the measure to the U.S. Senate for approval. Current authority for road, bridge and rail transit projects was due to expire on May 31.

This two-month extension resulted from lawmakers' inability to agree on a funding formula for a six-year transportation bill that would cost nearly a half trillion dollars, as well as disagreements over an extension through the end of 2015. Because it relies on the remaining money in the Highway Trust Fund, the House measure requires no offsetting savings. Passage by the Senate and signing by the President would avoid disruptions to the busy summer road construction season.  However, this short term extension sets up a new deadline in July, when the trust fund is due to run out again.

The Highway Trust Fund is supplied by fuel taxes that have not changed since 1993.  The fund has experienced chronic shortfalls in recent years due to rising vehicle fuel economy, fewer miles driven and construction cost inflation. Lawmakers from both parties have ruled out a fuel tax hike despite support from trucking and industry. State transportation officials and many lawmakers contend a series of short-term funding patches may keep existing work going, but they do not provide enough long-term funding certainty to launch major new projects. As a result, short term funding extension may cloud the demand outlook for major construction materials, equipment suppliers. 

For more information, please contact Billy Johnson