Congress Passes Highway Bill, Awaits President's Signature

Enlarge Image Recently passed SAFETEA-LU earmarks 35% more funds than its predecessor, TEA-21, and will deliver more than $50 billion in highway construction.

August 3, 2005 — After more than two years of debate and extension after extension, Congress passed long-awaited legislation on July 29 that will reauthorize the nation's federal highway and transit programs.

Passing the house by 412 to 8 and the Senate by 91 to 4, the Safe, Accountable, Flexible and Efficient Transportation Equity Act — A Legacy for Users (SAFETEA-LU) — which evolved from the Transportation Equity Act for the 21st Century (TEA-21) — will provide $286.4 billion in funding for the federal highway, transit, and safety programs over the next six years. President Bush is expected to sign the Act.

"After years of hard work and setbacks, we finally see the passage of a transportation bill that will provide billions more in highway and transit infrastructure improvements, in fact, 30 percent more than the last six-year bill," said Dave Raymond, president of the American Council of Engineering Companies (ACEC), Washington, D.C. "This legislation will keep the nation's engineering and construction industry busy in developing safer roads for the traveling public and improved mobility to support commerce and a growing economy. While our infrastructure needs far outstrip the funding provided in this bill, it is nonetheless a highly constructive step."

According to the American Road & Transportation Builders Association (ARTBA), Washington, D.C., the investment level is $2.5 billion more than the House-passed TEA-21 reauthorization bill and $7.5 billion less than the Senate's version. The bill's investment levels were made possible largely by the reforms enacted last year to the federal tax treatment of ethanol motor fuels. The ethanol tax changes ensured the Highway Trust Fund will be compensated for the sale of ethanol motor fuels and will provide $18.9 billion in new trust fund revenues that will be used by the multi-year reauthorization of TEA-21 to improve the nation's highway infrastructure network.

“The bill embraces a number of significant new policy actions that help lay the foundation for addressing the nation's highway and transit needs,” said Pete Ruane, president and CEO of ARTBA. “For example, the funding increases for state transportation programs made possible are largely the result of the forward-looking ethanol tax policy reforms initiated by the Congress and signed by the President last year. This bill also opens the door to the use of federal tax-exempt bonds to help finance some highway and bridge projects. And it includes provisions that unquestionably will increase safety in highway construction work zones and help get transportation projects completed sooner.”

Congress also approved an extension of administrative expenses for the agencies overseeing the federal surface transportation programs through August 14, reports ARTBA on its web site. The current extension of the highway/transit programs expires July 30, and this latest extension does not provide any new federal highway or transit funds. The measure, however, will allow U.S. Department of Transportation employees to continue to work while the multi-year bill is prepared for President Bush's signature.

SAFETEA-LU includes a number of policy provisions called for in the 2001 ARTBA TEA-21 Reauthorization Task Force Report. For a summary of the conference report, visit the organization's web site.