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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.

Transportation funding: summer’s biggest blockbuster

Suddenly, transportation funding is the topic de jour.

Last night, the House debated the measure that will set transportation spending levels for the coming fiscal year, the Transportation, Housing and Urban Development bill. Among other controversial provisions, the bill would cut the popular TIGER grant program from $600 million today to $100 million. (You can read our full summary of the bill here.)

The TIGER cuts drew opposing statements from 13 Democrats and from the Obama Administration, which has called for an increase of TIGER funds to $1.25 billion. The Administration Monday declared its opposition to the THUD measure, citing in part a TIGER funding cut that “would reduce an already highly competitive grant program and its ability to support innovative projects across the United States.”

Meanwhile, both the House and the Senate are scrambling to find new ways to keep the highway trust fund solvent. With tax increases off the table in an election year as an expected shut-off of funding for new projects looms, both houses appear to be searching for short-term measures to plug the gap between lagging gas tax receipts and current spending levels.

As you may have heard, House Republicans have proposed to find the money by eliminating Saturday postal service and applying the savings (potentially up to $2 billion a year) to help fund the Highway Trust Fund. Interestingly, Postmaster General Patrick Donahoe, who has himself pushed to cut Saturday service, told interviewed by the Washington Post earlier this week that he was delighted by the idea.

However, this plan is not widely supported by either party. More than three-dozen House Republicans have signed a letter stating their opposition to five-day delivery service, and House Democrats do not see this as a viable fix for the funding gap.

In the Senate, Senator Harry Reid (D-NV) and Senator Rand Paul (R-KY) have created a bipartisan plan that includes a one-time tax “holiday” for multinational corporations to bring profits home from overseas with a lucrative tax deduction. Such a move would yield a windfall of $20 billion to $30 billion over the next two years, they estimate.

While that would be enough to cover the projected trust-fund shortfall for a year or two, it would not solve the longterm problem. It also has drawn opposition from other key leaders who fear a longterm hit to the treasury if the profit repatriation is not tied to comprehensive corporate tax reform – changes that are far too complex to work through before the looming deadline.

Stay tuned. It’s going to an interesting summer.