Earlier today, the Senate approved a $17.6 billion measure (HR 2847) by a vote of 68-29. The bill also extends federal surface transportation laws through December 31, 2010, injects about $20 billion from the general fund into the Highway Trust Fund (HTF) by crediting back interest earned from HTF revenues, and would reverse last year's multi-billion dollar rescission of state contract authority. Additionally, the bill also expands eligibility for the Build America Bonds program authorized by the American Recovery and Reinvestment Act, which are taxable bonds issued by states and local governments. The bill now moves to the President for his signature, which he is expected to do shortly.
However, even as the Senate cleared the “job’s” bill, the House plans to take up legislation that would alter surface transportation funding distribution. The House measure, H.R. 4853, would alter the method of distributing some of the highway funding contained in the jobs bill (HR 2847). It would also extend, for three months, the authorization for Federal Aviation Administration (FAA) programs, which expires at the end of March. Representative James Oberstar (D-MN), Chairman of the House Transportation Committee has stated that the language in the jobs bill would continue to reward states under those highway spending categories created five years ago. Representative Oberstar’s new language would instead provide funding for programs through regular highway funding formulas that guarantee each state at least some funding.