Bush signs $8 billion highway trust bill
by Robert Fogel
SENIOR LEGISLATIVE DIRECTOR
Following action in the Senate and House, President Bush on Sept. 15 signed H.R. 6532, a bill that transfers $8 billion from the General Fund to the Highway Trust Fund. This measure was adopted to make up for the shortfall in the Highway Trust Fund that had been predicted for a number months and had been exacerbated by less fuel consumption as gasoline prices spiked. NACo supported the legislation.
The Trust Fund shortfall issue had been percolating for some time but only when the size of the shortfall became apparent, and the administration dropped its veto threat, did the legislation move quickly.
The $8 billion infusion is intended to keep the Highway Trust Fund solvent through Sept. 30, 2009, which is the end of FY 2009. That also coincides with the expiration of SAFETEA-LU. Whether $8 billion carries the program until then is somewhat a function of fuel prices and the impact of those prices on demand. The bailout also sharpens the question of how to fund the highway program in the next reauthorization and at what funding levels.
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