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2009 Transportation Bill

LaHood Asks for 18-Month Extension of Four-Year-Old Transpo Law

Transportation Secretary Ray LaHood is asking Congress to extend the existing federal transportation law for 18 months, averting the coming insolvency of the nation's highway trust fund while putting off broad-based transport reform for as long as the Bush administration did in the days surrounding the 2004 election.

610x.jpg Photo: AP

LaHood's request comes at an awkward time for Jim Oberstar (D-MN), chairman of the House transportation committee. Oberstar had planned to release an outline of his priorities for a new transportation bill tomorrow and vowed to oppose any short-term extensions of the Bush-era legislation -- exactly what LaHood is now seeking.

LaHood urged Congress to couple its extension with "critical reforms" to existing federal transportation policy that streamline cost-benefit analyses and help to promote more livable communities. But it's far from clear that such changes could pass Congress by the end of next month, when lawmakers are slated to leave Washington and must come to a decision on shoring up the highway trust fund.

In addition, LaHood's call to effectively postpone debate on long-term transportation policy reform may not sit well with the small but vocal group of lawmakers who would prefer to start a broader discussion this year.

Extending the existing law also puts off a discussion over whether to keep relying on the gas tax to fund transportation improvements or move to a new revenue source -- a politically volatile issue for the Obama team, but one that lawmakers from both parties increasingly say is necessary.

Oberstar plans to stick to his schedule for moving forward on a new transportation bill, his spokesman told Streetsblog. During an invitation-only briefing with reporters earlier today, he called extending the existing law "unacceptable."

LaHood's full statement follows the jump.

This morning, I went to Capitol Hill to brief members of Congresson the situation with the Highway Trust Fund. I am proposing animmediate 18-month highway reauthorization that will replenish theHighway Trust Fund. If this step is not taken the trust fund will runout of money as soon as late August and states will be in danger oflosing the vital transportation funding they need and expect. 

Aspart of this, I am proposing that we enact critical reforms to help usmake better investment decisions with cost-benefit analysis, focus onmore investments in metropolitan areas and promote the concept oflivability to more closely link home and work. The Administrationopposes a gas tax increase during this challenging, recessionaryperiod, which has hit consumers and businesses hard across our country. 

Irecognize that there will be concerns raised about this approach. However, with the reality of our fiscal environment and the criticaldemand to address our infrastructure investments in a smarter, morefocused approach, we should not rush legislation. We should worktogether on a full reauthorization that best meets the demands of thecountry. The first step is making sure that the Highway Trust Fund issolvent. The next step is addressing our transportation prioritiesover the long term.

Update: In an interview with Bloomberg,
LaHood describes his decision as one to "face reality" instead of
"stringing Congress along with three-month or six-month extensions."

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