By Ron Thaniel
April 12, 2004

Despite repeated Presidential veto warnings by the White House Office of Management and Budget, the House of Representatives by a vote of 357-65 passed its TEA 21 reauthorization bill, The Transportation Equity Act: A Legacy for Users (TEA LU) (H.R. 3550) on April 2. The action took place as the House adjourned for Easter recess.

The bill would provide $275 billion in federal funding over six years, with $217.4 billion in guaranteed funding for highways and $51.5 billion in guaranteed funding for the transit program. An additional $6 billion would go to a new program supported by the United States Conference of Mayors addressing aging and congested transportation problems deemed to be of regional or national significance.

Before passing the $275 billion bill, the House defeated by a party-line vote of 225-198 a procedural effort to raise the bill's funding level to $318 billion.

The House bill must now be reconciled in a House'senate conference with a $318 billion Senate bill (S. 1072) completed in February under similar veto warnings.

Unlike the Senate bill, H.R. 3550 would bestow thousands of earmark projects on member districts and call for Congress to consider adding additional transportation funds two years from now.

White House Issues Veto Threat

In a statement of policy from the White House Office of Management and Budget "as approved by the Committee, H.R. 3550 would authorize $232 billion for highways and highway safety, which is $20 billion above the President's request, and $52 bill for mass transit, which is $8 billion above the President's request. In total, the House bill authorizes $284 billion in spending on highways, highway safety, and mass transit over the next six years, a full $28 billion above the President's request for the same period. Accordingly, if this legislation were presented to the President in its current form, his senior advisors would recommend that he veto the bill." The White House Office of Management and Budget is disputing the House Transportation and Infrastructure Committee's assignment of a $275 billion cost on its measure, stating the actual cost of the bill as written is $284 billion if all guaranteed funds and extra contract authority for highways are counted, along with obligation limitations plus use of general funds for transit spending.

guaranteed funds and extra contract authority for highways are counted, along with obligation limitations plus use of general funds for transit spending.

As the chart illustrates, the House bill, at $275 billion, is the midpoint between the $318 billion Senate bill and the $256 billion proposed by the Administration.

The Five Core Surface Transportation Programs Proposed Authorizations of appropriations Over Six Years (Administration's Numbers Are As Introduced In SAFETEA — Not Adjusted For FY05 Proposed Budget)

Bride (HBRRP or the Bridge Program)

$22.3 Billion Administration

$23.6 Billion House

$33.7 Billion Senate

The Highway Bridge Replacement and Rehabilitation Program was established by Congress in 1978 to provide federal aid to repair or replace aging bridge infrastructure.

Interstate Maintenance (IM)

$26.0 Billion Administration

$27.6 Billion House

$39.4 Billion Senate

Originally established under ISTEA, the Interstate Maintenance program provides federal funds to maintain and improve the now complete 46,000 mile Interstate system.

National Highway System (NHS)

$31.2 Billion Administration

$33.1 Billion House

$47.8 Billion Senate

The National Highway System provides federal funding for construction and maintenance of the roughly 160,000 miles of roads on the National Highway System including the Interstate system, and designated rural and urban roads, and mostly larger principal arterials.

Congestion Mitigation and Air Quality (CMAQ)

$8.86 Billion Administration

$9.36 Billion House

$13.4 Billion Senate

The Congestion Mitigation and Air Quality Improvement program was created under ISTEA and continued under TEA-21. CMAQ provides a flexible funding source to State and local governments for transportation projects and programs to help meet the requirements of the federal Clean Air Act.

Surface Transportation Program (STP)

$32.7 Billion Administration

$38.6 Billion House

$49.6 Billion Senate

The Surface Transportation Program is the law's most flexible program. STP provides funding for the construction and maintenance of highways and bridges on the Interstate system and other National Highway System roads, as well as for many other highways and transit projects.

To view a side-by'side comparison of the bills visit the Conference's homepage at www.usmayors.org.

The "Reopener" Provision

The House bill includes a "reopener" provision that would halt funding for surface highway projects in 2006 unless Congress redress grievances of 28 states that say they pay more in federal gasoline taxes than they get back in federal assistance for road building and mass transit, commonly known as the 95 percent equity guarantee. The Senate bill does not have this provision.

Second TEA-21 Extension Deadline Looms

An April 30 deadline faces Congress to complete a transportation bill and get it signed by the President. Or else, an additional extension of TEA-21 would be needed to prevent surface transportation programs from expiring. The House and Senate are in recess until April 20, leaving little time to resolve differences between the two bills.