Highway
Trust Fund Fix Dropped from FAA Bill
As you may have already heard, congressional leaders in both
the House and Senate were forced to drop language from the latest Federal
Aviation Administration (FAA) extension that would have transferred $8 billion
in funding from the General Treasury to the Highway Trust Fund (HTF). The
provision was designed to shore up the projected hole in the HTF in fiscal year
2009.
Although the $8 billion was included in the House version of
the FAA bill, Republicans on the Appropriations and Budget committees made a
last minute, successful push to remove the language from the bill. While
Republicans noted the need to address the HTF shortfall, they objected to the
fact that the funding was being included without any proposed reforms or
long-term solutions. With the GOP objections threatening to derail the
FAA extension – and with the latest continuation of current law slated to
expire at the end of the month – congressional Democrats were
essentially forced to remove the HTF language to ensure that the FAA bill would
pass prior to the extension’s deadline.
In the Senate, a similar scenario played out late yesterday
as Democrats were unable to attach the HTF funding to the upper chamber’s
version of the FAA bill. In the end, the Senate, like the House, approved
a clean three-month extension of the aviation legislation.
As for next steps, Senate Majority Leader Harry Reid (D-NV)
has indicated that the Senate will find another way to fix the trust
fund. Similar sentiments are being expressed by congressional leaders in
the House. It remains to be seen, however, who will take the lead in
addressing the issue, as there is a wide disparity of views among appropriators
and authorizers as to who bears responsibility for fixing the HTF shortfall.
Joe Krahn
Waterman & Associates
900
(p) 202.898.1444
(f) 202.898-0188
jk@wafed.com