Senator Boxer Archives - Transportation For America

UPDATED: Senate reaches preliminary agreement on a long-term transportation bill

A group of key Senate leaders announced yesterday that they’d reached agreement on a bipartisan six-year transportation bill with three years of guaranteed funding. While it’s encouraging to see this agreement ten days before MAP-21 expires on July 31, forthcoming negotiations over the actual details of the bill will be crucial as most Senators have not yet seen the policy or funding language.

Senator McCcnnell announcing deal 2015-07-21 Senator Boxer announcing deal 2015-07-21

UPDATED Thursday 9:30 a.m.: Late Wednesday, the Senate reached cloture on the transportation reauthorization bill. It got just the required number of votes to pass, 60-38. We’ll move on to discussing and debating the bill today.

UPDATED Wednesday 5:30 p.m.: Yesterday (Tuesday) afternoon, a few hours after this bill was announced on the Senate floor, the Senate failed to pass a “cloture” vote to begin debate of the bill. Senate Democrats were unwilling to begin considering and debating a bill they’d had less than a few hours to read, and a few Republicans voted against cloture as well because of objections to particular funding mechanisms.

Senators McConnell, Boxer and the others assembling the funding mechanisms were only able to find sufficient funding for three years, using a mix of funding offsets that included selling oil from the nation’s strategic reserves, lowering the dividend paid to banks that join the Federal Reserve, and tinkering with fees from the TSA. You can read the full text of the bill here (pdf), a summary of the provisions from the EPW majority, and a summary of the funding mechanisms.

Stay tuned as we watch the Senate for more. Though a vote was mentioned to reporters as a possibility today by numerous Senators, the Senate recessed this afternoon at 4:30 p.m. (Wednesday) without any movement on the bill. There’s still a possibility they could return tonight for a vote, but the more likely option is Thursday.

Original post: Speaking on the Senate floor yesterday, Senators McConnell (R-KY), Reid (D-NV), Boxer (D-CA) and Inhofe (R-OK) announced their agreement on a long-term transportation bill that cobbles together sufficient revenue to carry the policy forward for three years.

The four Senators (and especially Senators McConnell and Boxer) had been “hammering out the details” over the last few days according to an article in The Hill this morning, and today Senator McConnell announced the deal on a “six year highway authorization that will allow for planning for important projects around the country…a long-term bill that’s in the best interests of our country.” (Note: Sen. McConnell repeatedly called the bill a six-year authorization with only three years of guaranteed funding.)

What’s next?

While an agreement has been reached in principle and procedural vote will be taken this afternoon at 4 p.m to consider debate on the bill, it’s far from a done deal at this point, and Senate Democrats will especially be curious to see the details of a bill that the rank and file (and possibly some of the leadership and relevant committee chairs) have not read at all yet.

It’s also notable that the Banking Committee and Finance Committees haven’t independently passed their portions of the full bill yet, so those committee members will be especially interested to see what the bill contains for their areas of jurisdiction.

After Sen. McConnell spoke, the two key Democratic negotiators in the Senate got up and made it clear that while the agreement is a step forward, they need to know more about what’s in the bill before they can proceed.

“We can’t go forward on a bill until we’ve read it and studied it,” said Senator Reid, one of the two main Democratic negotiators on the deal. “We need to look at this document,” he said. The other key negotiator in Democratic leadership, Senator Boxer, urged her colleagues to get the text posted as soon as possible. “We want to see the text — get the text up,” she said.

The vote coming today at 4 p.m. (originally scheduled earlier in the day but moved back during this time) will be a procedural vote to bring the bill to the floor and begin debate. That doesn’t mean there will be a vote on the final bill anytime soon — especially considering that all of the Senate Democrats who spoke made it clear that there’s still work to be done and that they need to carefully study the bill first.

We’ll be watching the vote this afternoon, so stay tuned, and follow us on Twitter to stay regularly updated.

Senate Committee rolls forward with speedy markup of six-year transportation bill

In a committee markup where the phrase “doing the Lord’s work” was invoked by numerous members on both sides of the aisle, the Senate Environment and Public Works Committee sped through a markup of their draft six-year transportation bill in less than an hour this morning, approving it by a unanimous vote with no amendments, save for a manager’s package of amendments agreed to in advance.

One thing was abundantly clear from the beginning of this morning’s committee markup of the DRIVE Act: the EPW Committee members are eager to get their portion of the bill completed and moved forward as soon as possible.

Led by Chairman Jim Inhofe (R-OK) and Ranking Member Barbara Boxer (D-CA), the committee opened with remarks of praise from Senators. From our vantage point most committee members sounded delighted to support the six-year bill with slightly increased funding levels over MAP-21.

“There’s no reason we can’t do this now if it’s a priority. We need to prove it’s a priority by passing this full six-year bill,” said Senator David Vitter (R-LA).

Senator Tom Carper (D-DE) was one of the first to bring up the elephant in the room. “The next challenge is to figure out how to pay for it,” he said. While that issue is out of EPW’s hands (Senate Finance and House Ways and Means will address the funding question), they did briefly discuss some possibilities. “One of the ideas I’ve heard consistently is to find a way to fix our roads and bridges and transit systems in a more cost-effective way,” Sen. Carper added.

The head of the Senate Finance Committee is Sen. Orrin Hatch (R-UT). During his remarks in the markup, EPW Member Jeff Sessions (R-AL) said, “I saw Senator Hatch in the hallway on the way over, and I said, you gonna find our money? And he said ‘yes.'”

It was certainly encouraging that there was no vocal opposition to any of the positive improvements this bill makes over its predecessor: providing all Transportation Alternatives program (TAP) funding to local governments, considering the needs of all users when designing and constructing road projects, changing the cost thresholds to enable more local governments have access to low-cost federal loans, providing support to smart transit-oriented development, or allowing cities to use the innovative NACTO street design manual even if their state does not allow it, along with a few others.

Though some members, just like us at T4America, are still hoping to improve the bill further, especially in providing better access and a greater share of funds for local governments of all size.

A handful of members referenced amendments or provisions they hoped to incorporate into the bill, but none were formally offered or voted on. Senator Roger Wicker (R-MS) spoke briefly about the Innovation in Surface Transportation Act, sponsored by himself and Senator Cory Booker (D-NJ), which would create a small grant program in each state to give local communities of all size greater access to federal transportation funds to complete merit-based projects.

“It’s been something that local officials have been very excited about, very hopeful about, and I’m sure there will be some disappointment that it’s not in the manager’s mark,” Wicker said. “It’s a worthy suggestion and a worthy project not to increase one penny of the spending in this bill, but to set aside a small portion of this bill” for this program to award dollars to local communities based on a competitive process to judge them on the merits.

That manager’s mark (a single group of amendments) makes a few small improvements. A small program of demonstration grants to “accelerate the deployment and adoption of transportation research” was amended to ensure local communities and metropolitan planning organizations were eligible for them — not just states.

Another change in the manager’s amendment will ensure that 100 percent of the $850 million TAP funding that helps make walking and biking safer will be be distributed to and spent in local communities. A provision in the draft bill allowing states to “flex” 50 percent of that funding to other needs was struck — guaranteeing that all $850 million will be spent on local priority projects to improve biking and walking. And a small change was made to take safety into account when designing any projects on the National Highway System.

Senator Boxer was delighted at the unanimity from the Committee.

“I’m just so happy after hearing comments from everyone. Yes there will be struggles about how to pay, but Eisenhower said it well: we can’t be a secure nation unless we have an infrastructure that works.”

The Committee approved the bill by a unanimous vote, but the Senate Banking, Commerce and Finance Committees still have to draft and vote on their portions of the bill. With the July 31 expiration of MAP-21 (and the insolvency of the transportation trust fund) looming, it’ll be an uphill battle to get a full bill passed by the Senate before the deadline, but we will be watching closely.

Members can read our full summary of the EPW bill below.

[member_content] Feature graphic - epw drive act June 24, 2015 — The Senate Environment and Public Works Committee (EPW) released its six-year MAP-21 reauthorization proposal on June 22, 2015. The DRIVE Act is a start, but needs much more work to reform — and reinvigorate — the federal transportation program in ways that will boost today’s economy and ensure future prosperity. This memo provides an overview of the key provisions included in the proposal, as well as funding levels for key programs.

Read the full members-only memo here.[/member_content]

Statement on the release of the Senate’s long-term transportation reauthorization proposal

Senate EPW bill represents progress toward passage of a long-term bill and a good starting point for debate and improvements.

James Corless, director of Transportation for America, issued this statement in response to today’s release of the Senate Environment and Public Works Committee’s Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act to reauthorize the federal transportation program:

“First, I want to thank Senator Inhofe (R-OK) and Senator Boxer (D-CA) for their work in getting a long-term transportation bill moving forward in Congress ahead of the July 31st expiration of the current program. Local communities desperately need the stable, dependable funding provided by a multi-year bill.

The DRIVE Act takes several important steps to address gaps and build on policies adopted in MAP-21. For one, it increases the share of funding directly provided to local communities through the Surface Transportation Program and the Transportation Alternatives Program. It takes steps to help communities become more resilient in the face of natural disasters and a changing climate. It opens up low-interest financing to support smart economic development along public transit lines, and lowers the cost thresholds to help local communities qualify for low-cost federal TIFIA loans. And it would ensure all modes of transportation are accounted for in the design of highway projects.

While this bill provides a positive starting point, there are other areas where Congress can and should do better.

The next surface transportation authorization should improve transparency and accountability, and focus on how we pick transportation projects and measure the success of those investments. The new freight program and the major projects competitive grant provision should be broadened to allow multimodal projects to be eligible. And more emphasis must be placed on investments that promote access to jobs and economic opportunity for working Americans, particularly those that are struggling the most to make ends meet.

The bill should also do more to provide communities of all sizes with greater access to the resources they need to support economic prosperity and competitiveness. The Innovation In Surface Transportation Act, introduced by Senators Wicker (R-MS) and Booker (D-NJ) earlier this year, would be a great place to start. That bill, to be considered as an amendment during committee markup, would create a competitive transportation grant program in each state, allowing communities to compete for a larger share of federal funding on the merits — incentivizing innovation and rewarding smart decision-making and efficiency.

We recognize that this legislation is just the first step in a longer process. The DRIVE Act serves as a positive beginning for further work as it progresses through the Senate and is joined by the work of the other Committees. We appreciate the efforts of Senators Inhofe and Boxer to advance a long-term transportation bill that begins addressing the need to strengthen local economies through smart investments in infrastructure. We applaud them for their work to advance a long-term transportation program, and we are committed to working with them toward that goal.”

Members can read our full summary of the EPW bill below.

Read the full members-only memo here.[/member_content]

May 31st transportation funding deadline looming over lawmakers

We’re only three weeks away from the expiration of MAP-21, the transportation law of the land, and Congress still does not have a solid plan for renewing or extending it — or for keeping the nation’s transportation fund solvent past the first days of summer.

Well, we’re here. Seems like just yesterday we were writing the news that Congress had finally passed a new transportation law. But that law, MAP-21, the Moving Ahead for Progress in the 21^st Century Act, was only two years in length instead of the customary six, and it will expire at the end of the month after its first short-term extension concludes. Congress is no closer to agreeing on a multi-year replacement than they were when they kicked the can down the road last summer. To complicate matters, the temporary funding patch that Congress passed in 2014 to keep the Highway Trust Fund solvent will run dry by mid-July, according to USDOT projections.

So far, Congress has not hatched a concrete plan to reauthorize MAP-21 and find a long-term stable funding source, but lawmakers do have some ideas.

In February, Rep. Earl Blumenauer (D-OR) introduced a bill that would nearly double the federal gas tax over the next three years to help fund a long-term transportation bill.

Last month, a bipartisan group of Representatives led by Reps. Renacci (R-OH) and Pascrell (D- NJ) introduced The Bridge to Sustainable Infrastructure Act, which seeks to raise the gas tax by indexing it to inflation by January 2016. The gas tax would then rise every three years unless Congress finds another funding source for the Highway Trust Fund, ultimately guaranteeing 10 years of funding for the transportation program. This bill is the only plan with any bipartisan support that proposes to raise user fees (i.e., the gas tax) in any way. It currently has 20 cosponsors: eight Republicans and 12 Democrats.

Several lawmakers and the Obama Administration have proposed using a one-time repatriation of corporate profits as a source of funding. Barbara Boxer (D-CA) and Rand Paul (R-KY) introduced a bill that would encourage corporations holding profits overseas to return these profits to the US through voluntary “tax holiday” at a decreased tax rate of 6.5 percent. The Obama Administration’s plan would force companies to return their overseas money to the U.S. and pay a 14 percent tax rate on that money. Both repatriation proposals would transfer a portion of the earnings from the tax on returned corporate profits to the transportation trust fund.

Reps. John Delaney (D-MD) and Richard Hanna (R-NY) introduced a bill that would tax overseas profits by 8.75 percent, and would potentially raise $170 billion for the Highway Trust Fund.

What will happen before May 31?

Several lawmakers have sounded the alarm on finding a plan to reauthorize MAP-21 and keep the Highway Trust Fund solvent before the May 31^st deadline passes.

U.S. Transportation Secretary Anthony Foxx called the short-term extensions that several lawmakers have proposed an “outrage,” saying that a long-term plan was necessary so transportation planners could be sure that they’d have the funding needed to move forward with long-term plans.

Senate Minority Leader Harry Reid (D-NV) is rallying fellow Democrats in the Senate to block a Republican-backed trade deal until the Senate deals with funding the Highway Trust Fund (and the Foreign Intelligence Surveillance Act). Senate Majority Leader Mitch McConnell (R-KY), meanwhile, also cited the need to address MAP-21, calling it a “must-do” item that needs to be completed by Memorial Day.

Over in the House, Majority Leader Kevin McCarthy (R-CA) sent a memo to his fellow House Republicans that urged them to act to keep the Highway Trust Fund solvent, which is set to go broke by midsummer. He said that any proposals to increase the gas tax, however, would be dead on arrival this Congress.

Next year’s budget

Whether Congress reauthorizes MAP-21 and extends the Highway Trust Fund will affect funding for next year’s budget for all transportation and housing programs. The House’s Transportation, Housing and Urban Development subcommittee released a transportation budget that proposes heavy cuts to TIGER, New Starts and Amtrak capital funding while holding steady funding levels for highways and other programs. The full House is expected to consider the Committee’s transportation appropriation bill upon return from a weeklong recess. The Senate Appropriations Committee has yet to release their proposed fiscal year 2016 transportation budget. While slow on the uptick, we expect this Congress to be more active on transportation items over the coming summer months. Stay tuned.

Obama budget cues start of serious negotiations over transportation funding

With the release of his budget proposal yesterday, President Obama at last offered some specifics on his plan to use the repatriation of taxable corporate profits to fund transportation. In doing so, he staked out a starting point for real-world negotiations over a possible six-year transportation bill – the first time such a prospect has seemed remotely realistic in six years.

His gambit joins a burgeoning set of transportation funding proposals in Congress (more about these later in this post), another hopeful sign that lawmakers are taking the issue seriously.

The less good news, of course, is that those negotiations over tax reform and transportation funding – to say nothing of policy – are almost certain to last beyond the May 31 expiration of the current law, MAP-21. That means another extension and lingering uncertainty until this can be wrestled to the ground.

With the addition of revenues from taxing American profits parked overseas, the Obama budget looks to invest $94.7 billion in fiscal 2016, nearly double today’s level of just over $50 billion. Invested along the lines of his GROW America Act, this would represent a 25 percent increase for the highway program and more than 70 percent for transit, which today is wildly oversubscribed.

All told, the Obama plan would authorize $478 billion for a six-year program of investment, $176 billion over the levels of MAP-21, and $76 billion more than the four-year version of GROW America released last spring. About $240 billion of that is from expected gas tax revenue. Placing a mandatory 14 percent tax on roughly $2 trillion in earnings held abroad by U.S. multinationals would yield about $238 billion, the Administration estimates.

The plan would make the TIGER grant program a permanent feature, funded at $1.25 billion a year, and would continue funding planning grants for planning walkable neighborhoods around transit stops. It also would establish passenger rail and multimodal accounts within the former Highway Trust Fund (HTF), now reconstituted as the Transportation Trust Fund. It would create a multimodal freight program, funded at $1 billion in 2016, and continue to promote the accelerated, inter-agency reviews to get projects moving faster.

While Republicans criticized many features of the Administration budget, the notion of using corporate tax reform to fund transportation seems to have growing bipartisan support, as support for raising the gas tax struggles to take hold.

Last week, the unlikely pairing of Sens. Rand Paul (R-KY) and Barbara Boxer (D-CA) announced they would introduce the “Invest in Transportation Act”, a plan to offer an enticement tax rate of 6.5 percent on corporate earnings returned to the U.S. from abroad, with all proceeds going to the Highway Trust Fund. Because it is voluntary, the exact amount is uncertain, but the senators have said they hope it can make up for flat or declining gas tax revenues.

On the House side, Reps. John Delaney (D-MD) and Richard Hanna (R-NY) have introduced the Infrastructure 2.0 Act, (HR 625), under which existing overseas profits would be subject to a mandatory, one-time 8.75 percent tax. This is expected to yield $120 billion, sending enough of that to the Highway Trust Fund to cover the gap between anticipated gas tax in-take and spending at current levels plus modest growth.

The bill also directs $50 billion of the $120 billion to capitalize an infrastructure bank called the American Infrastructure Fund (AIF) that could provide financing to transportation, energy, communications, water and education projects. Rep. Delaney establishes an AIF in another bill submitted last year along with Rep. Mike Fitzpatrick (R-PA), who reintroduced their “Partnership to Build America Act” (HR 413) on Jan 20. State and local government entities, nonprofit infrastructure providers, private parties, and public-private partnerships all would be eligible to apply for AIF financing. Through bond sales, the fund would be leveraged at a 15:1 ratio to provide up to $750 billion in loans or guarantees.

Not everyone in Congress has given up on the bird-in-the-hand funding source – the gas tax. Rep. Earl Blumenauer (D-OR), is set to reintroduce his UPDATE Act, which would hike the per-gallon tax by 15 cents, with 5 cent increases unfolding over the next three years, and index the overall tax to inflation. In the Senate, Senator Tom Carper (D-DE) is working with a bipartisan group to introduce a gas-tax bill, expected later this month.

Although more of an aspirational bill than a funding measure, Senator Bernie Sanders (I-VT) last week introduced his Rebuild America Act. Designed to illustrate the scale of investment the senator says we need, it calls for providing an additional $1 trillion in infrastructure investments over the next five years for roads, bridges and transit, passenger rail, airports, water infrastructure, marine ports and inland waterways, national parks infrastructure, and broadband and electrical grid upgrades.

It would add $735 billion to surface transportation investments over the next 8 years, with an additional $75 billion a year for the HTF. It also would capitalize a National Infrastructure Bank with $5 billion per year for fiscal 2015-19, estimated to stimulate more than $250 billion in investments. It provide for $2 billion more for TIFIA loans and $5 billion a year for TIGER.

And it makes all the other proposals look like skinflints in comparison.

At last, Congress and the White House appear to have moved transportation to a front-burner issue this year. With the Obama proposal as a strong starting place, here’s hoping negotiations proceed swiftly and in good faith so our communities can continue to plan, maintain and build for continued prosperity.

Senate passes plan to postpone transportation insolvency to the end of the year, sends it to House

Late Tuesday evening, the Senate modified and approved a measure transferring about $8 billion from the general fund to keep the Highway Trust Fund solvent until the end of the year. But because two amendments were made, it’ll return to the House for further action before any final deal can be approved on postponing insolvency of the nation’s transportation program. The House will have to act fast: the long August recess is scheduled to begin in just three days.

Conventional wisdom had held that the Senate would adopt the House-passed bill as-is so they could finish up well before recess begins later this week. However, a strong bipartisan group supported amendments to eliminate the most controversial accounting gimmick and cut the length of the patch in half to keep the pressure on to find a long-term fix as soon as possible.

“Today’s votes held some positive signs for the future of our nation’s transportation system,” said James Corless in T4Amercia’s full statement after the vote tonight. “The Senate overwhelmingly rejected a move to dismantle our key infrastructure fund, and instead challenged themselves to take up a long-term funding solution this year.”

Two of the four amendments considered were approved before the final bill was passed. The first, from Senators Wyden and Hatch and approved 71-26, replaced the House revenue sources with the bipartisan ones agreed to by the Senate Finance Committee several weeks ago.

Once this first amendment passed, guaranteeing that the bill would return to the House, it might have made it easier for Senators on the fence to support the second amendment. That second amendment, from Senators Carper, Corker and Boxer, entirely eliminated the controversial “pension smoothing” provisions from the House bill, cutting about $2.9 billion from the patch and keeping up the urgency on finding a long-term funding solution.

The most passionate speech of the day came from Senator Bob Corker on that very topic. Senator Corker, who is also pushing an actual long-term funding plan with Senator Murphy to raise the gas tax — was incredulous at the idea that the Senate and specifically his Republican colleagues would support a plan to take ten years of funds from an accounting maneuver like pension smoothing to pay for ten months of an extension, calling it “generational theft.”

“We’re taking a finance gimmick out of this bill. … It forces us to deal with a long-term solution, which we should have done a long time ago,” he said.

An amendment from Sen. Mike Lee (R-UT) to dramatically defund the federal program by cutting the gas tax from 18.4 to 3.7 cents failed overwhelmingly, drawing only 28 votes. Lee argued, correctly, that the existing program is out-moded and fails to give local communities the resources and latitude to meet their needs, but we — and a large majority of the Senate, clearly— strongly disagree that the solution is to take the resources away altogether.

The solution — one that we would hope to see as part of any long-term funding discussion — is forward-looking policy reform that gives local leaders more of a say in how the money gets spent. Local results and accountability are what will win and keep support for the program among the American people.

We are pleased to see so many Senators take a principled stand in support of the highway trust fund and an ongoing federal role in supporting our communities and their economic future. We especially recognize the leadership of Senators Wyden, Hatch, Carper, Corker and Boxer in forging their plan and rallying support. We hope this can spur the conversation to find a long-term solution as soon as possible, and we look forward to working with the leaders in both chambers.

Action will move back to the House tomorrow in these last few days before recess begins, so stay tuned.