The Ways and Means Committee, which is responsible for writing the funding portion of the bill, approved their financing plan along almost party lines this morning, 20-17. (Two GOP reps voted against the bill.)

This plan attacks three decades of successful investments in mass transit by ending the historic guarantee for dedicated funding for public transportation — originally started under President Ronald Reagan almost 30 years ago — placing every public transportation system in immediate peril and leaving millions of riders already faced with service cuts and fare increases out in the cold.

The proposal would take away the 2.86 cents out of the total 18.4 cent motor fuel tax currently directed into the transit account of the Highway Trust Fund and redirect that 2.86 cents into highway spending. Transit would no longer have a guaranteed and protected funding source, instead becoming subject to yearly appropriations fights and the need to find offsets for funding — all while highway spending continues to be guaranteed with protected funds for half a decade at a time.

In just 12 hours after hearing the initial news, we gathered signatures from more than 600 groups, notable individuals and elected officials.

More than 75 national organizations signed the letter — including the U.S. Chamber of Commerce, AARP, the American Public Transportation Association, the National Rural Assembly, American Society of Civil Engineers, LOCUS (real estate developers), National Association of Counties— and a huge list of other individuals and state & local groups, including the governors of Oregon and Washington, several state DOTs, state and local Chambers of Commerce, and hundreds of state and local organizations nationwide.

Unfortunately, the committee chose to ignore this broad opposition — including opposition from other groups like the conservative Club for Growth and the American Association of State Highway and Transportation Officials (AASHTO) — and went ahead with their short-sighted plan.

The markup wasn’t quite as contentious as yesterday’s in the Transportation and Infrastructure Committee, though it was about 16 hours shorter. Rep. Earl Blumenauer, with several years of experience on the transportation committee under his belt, took it as his job to educate his fellow members on this finance-focused committee about transportation — many of whom may not have ever taken up the transportation financing portion before due to how rarely it comes up.

Rep. Blumenauer noted that for 30 years, having a Trust Fund in place — a mechanism with some degree of certainty — has been crucial for transit agencies’ “ability to make multiple year commitments that allow them to operate with some degree of certainty.” (For more specific comments, check this Streetsblog Capitol Hill summary of the markup.)

This Ways and Means bill now moves to the House floor, along with the more substantial portion marked up yesterday by the transportation committee. That floor process could begin as early as late next week, but more likely the week of the 13th.

This morning we sent this letter (below) to the Ways and Means Committee and the entire House of Representatives in strong opposition to this House leadership plan to end a 30-year precedent of providing dedicated funding for public transportation from the federal fuel tax.

In less than 12 hours, we gathered signatures from more than 600 groups, notable individuals and elected officials. More than 75 national organizations — including the U.S. Chamber of Commerce, AARP, the American Public Transportation Association, the National Rural Assembly, American Society of Civil Engineers, LOCUS (real estate developers), National Association of Counties— and a huge list of other individuals and state & local groups, including the governors of Oregon and Washington, several state DOTs, state and local Chambers of Commerce, and hundreds of state and local organizations nationwide.

Read the full letter here, where you can see the full list of all groups that signed.

Although Ways and Means markup is about to begin this morning, there’s still time to contact your House rep and let them know that you stand against this raid on transit funding.

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Dear Chairman Camp and Ranking Member Levin:

For the past thirty years, Congress has provided dedicated funding for highway and transit programs through an excise tax on gasoline dedicated to the Highway Trust Fund. This funding structure has successfully provided highway and transit programs with secure, dedicated revenues and budgetary firewalls dating back to the Reagan administration. The success of this approach is without question: The Trust Fund has been critical to our nation’s ability to build an efficient and multimodal transportation system. With record transit ridership, now is not the time to eliminate guaranteed funding for our nation’s public transportation systems, which saved Americans close to $19 billion in congestion costs in 2009. For the first time in thirty years, the pending legislation H.R. 3864, the American Energy and Infrastructure Jobs Financing Act, removes the certainty of a continued revenue source for our transit systems as well as the Congestion Mitigation and Air Quality Program.

Specifically, we are deeply concerned about the provision in H.R. 3864 that would terminate funding from the excise tax on gasoline and replace it with the Alternative Transportation Account. In place of gasoline tax revenues, the legislation would provide a one-time $40 billion transfer of General Fund revenues to the Alternative Transportation Account. Not only is this level of funding insufficient to fully fund the proposed authorized levels for the Alternative Transportation Account, but it would subject transit and CMAQ funding to the annual appropriations process. This change will make it impossible for public transit systems across the country to plan for the future. It will also make it impossible for the FTA to honor grant agreements.

In addition, this legislation does not make clear how the $40 billion in General Fund revenues will be offset in the U.S. budget. As a result of this funding gap, we are concerned that the $40 billion general revenue transfer may not occur leaving transit programs out in the cold.

We strongly encourage the Committee to reject H.R. 3864 and work to continue to fund highway and transit programs through dedicated funding.

Stop the House’s unprecedented assault on public transportation. There are just a few hours left before their vote Friday morning.

Send an urgent message to your representative today.

Will we be stuck waiting for the bus, or just tossed underneath it?

A key House Committee is threatening to kill three decades of successful investments in mass transit — originally started under President Ronald Reagan — by ending the guarantee for dedicated funding for public transportation, leaving millions of riders already faced with service cuts and fare increases out in the cold.

In a stunning development late last night, House leadership and the Ways and Means committee made a shocking attack on transit that would have huge impacts for the millions of people who depend on public transportation each day.

They proposed putting every public transportation system in immediate peril by eliminating guaranteed funding for the Mass Transit Account and forcing transit to go begging before Congress for general funds each year — all while highway spending continues to be guaranteed with protected funds for half a decade at a time.

Get involved. Can you take just a moment and tell your representative that this short-sighted idea is intolerable for their voters?

This incredible move would roll back 30+ years of bipartisan federal transportation policy and reverse a decision made by President Reagan in the 1980’s to fund our nation’s transit system out of a small share of gas tax revenues. This change would mean no more guarantee of funding each year and no long-term stability for public transportation. States, cities, communities and their transit systems could lose billions.

We released a statement earlier today decrying this unprecedented attack on transit.

“We are deeply concerned that if this measure passes, Americans who use public transportation, or who would like that option in the future, will be thrown under the bus,” said James Corless, director of Transportation for America. “This couldn’t come at a worse time for people who need an affordable, reliable way to get to work, or for employers who need workers.” Corless noted the demand for transit has been rising as the economy slowly recovers and people are using public transportation to get to jobs and to avoid volatile gas prices. Over the course of the five-year transportation program, America’s population will continue to age rapidly, and a growing number of seniors will be looking to transit services maintain their independence.

It’s not just us, though. Even the association of state DOT heads submitted a letter to the committee urging them to reconsider their ill-advised plan.

The Mass Transit Account has been in existence since 1982 and AASHTO has continuously supported this account as a critical component of the Highway Trust Fund. AASHTO has long supported the principle that 20 percent of the gas tax revenues that have been put in place since 1982 be allocated to a dedicated mass transit account. We believe that the two complementary accounts need to be maintained in order to support a well-funded, multimodal transportation system.

We respectfully request that the current Highway Trust Fund structure with its two accounts and respective revenue allocations be retained.

Transit is unquestionably a critical component of our nation’s transportation system, and one that millions of people (or voters, if you’re reading, committee members) depend on each day to get around. More people on transit means less congestion, less pollution, and fewer cars on the road.

Tell your representative that this unprecedented attack on transit won’t stand.

Reversing policy begun under President Ronald Reagan, House Ways and Means Committee – at the direction of House leadership — could move Friday to end guaranteed funding for public transportation, and leave even today’s inadequate funding levels in doubt.

The proposal to bar public transit from receiving funds from the federal motor fuels tax is part of a bill coming before the House Ways and Means Committee Friday morning. That bill sets the revenue levels for the five-year surface transportation bill making its way through the House Transportation and Infrastructure committee today.

“We are deeply concerned that if this measure passes, Americans who use public transportation, or who would like that option in the future, will be thrown under the bus,” said James Corless, director of Transportation for America. “This couldn’t come at a worse time for people who need an affordable, reliable way to get to work, or for employers who need workers.” Corless noted the demand for transit has been rising as the economy slowly recovers and people are using public transportation to get to jobs and to avoid volatile gas prices. Over the course of the five-year transportation program, America’s population will continue to age rapidly, and a growing number of seniors will be looking to transit services maintain their independence.

Since Ronald Reagan was president, Congress has supported dedicated funding for both highways and transit. For the last 30 years, transit riders and the services they use have been able to depend on guaranteed funding from a mass transit trust fund replenished by a share of federal gasoline taxes. As congestion rose in urban areas, and rural areas saw their share of car-less, low-income families rise, bipartisan support grew for providing transit as a dependable relief valve. Removing the guaranteed funding would mean that transit would have to compete each year for general fund revenues that are in line for deep cuts in coming years.

“American workers and their employers already are dealing with deep uncertainties in these times of fiscal crisis,” said John Robert Smith, co-chair of Transportation for America and President of Reconnecting America. “As local tax revenues have dropped, transit service is being cut, fares raised, and maintenance is being deferred. Seniors in rural areas are waiting hours for a ride to the doctor, veterans have very few transportation options to get them to VA centers, and workers in cities don’t know when the next bus is coming. Putting these services in jeopardy would be a cruel blow to these Americans.”

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Appearing at an economic recovery news conference Wednesday in Minnesota, House Transportation and Infrastructure Committee Chairman James Oberstar said he will hold a full committee mark-up of a $500 billion, six-year federal surface transportation authorization the week of Labor Day, when Congress returns from its summer recess. Oberstar, D-MN, told Minnesota Public Radio that he expects to have the bill on the floor by the third week of September.

Though the Chairman has been promised by leadership that his transportation bill will come to the floor by the third week of September according to the story, the same obstacles to quick passage still remain. The Ways and Means Committee is responsible for determining how to pay for a bill that’s nearly twice as expensive as the last 6-year bill, and to date, they’ve indicated little willingness to think long and hard about transportation revenue while engaged in the health care and climate debates.

As Ken Orski points out, “only 15 of the 41 committee members have gone on record in a letter to committee Chairman Charles Rangel (D-NY) supporting prompt action (i.e. in September) on a revenue package for the bill.” Regardless, we’ll be watching the markup closely come September.

h/t to Twitter user and T4 partner @cwsjd99

With the House passing a $7 billion patch for the Highway Trust Fund yesterday afternoon to keep it from running out of money before September, we thought it might be useful to post a brief Q&A about the trust fund patch and how the full six-year transportation authorization bill could be affected. The $7 billion patch now moves to the Senate for a vote, probably this afternoon, before reaching President Obama’s desk. The Highway Trust Fund (HTF) provides funds for the federal portion of transportation projects.

If the patch is approved by the Senate, Congress will then be is now facing a much bigger decision before the current transportation bill expires on September 30th: pass a new six-year transportation bill, or pass a short- or long-term extension of SAFETEA-LU, the existing transportation bill.

What is the short-term patch and who supports it?

The short-term patch would repair the trust fund insolvency through a $7 billion cash infusion into the HTF. The funds would be transferred from the General Fund before Congress goes on recess in August and would ensure that states can continue to obligate transportation funds through September 30th, 2009. The patch would address the funding shortfall due to declining gas tax revenues that are no longer sufficient to cover the federal portion of transportation projects.

House Transportation and Infrastructure Committee Chairman Jim Oberstar supported this option and testified before the House Ways and Means Subcommittee on July 23rd asking for the $3 billion patch. (That patch has since been increased to $7 billion to match the Senate’s preferred amount.)

How does this relate to the upcoming expiration of SAFETEA-LU on September 30th?

With this cash infusion Congress could continue to focus on pushing the authorization of a new 6-year surface transportation bill this September. The original $3 billion figure was based on recent estimates made by DOT but both the White House and DOT officials have expressed concern that $5-7 billion is a more accurate figure needed to keep the HTF solvent through September. (The House passed a $7 billion patch.)

What is the extension and who supports it?

An extension would continue SAFETEA-LU policies and funding guarantees for a specified amount of time to allow Congress and the Administration to continue working on a full 6-year comprehensive bill.  A proposed 18-month extension would extend SAFETEA-LU to March 2011. Numerous Senators have stated their preference for an 18-month extension, which is also currently supported by the White House. On July 23rd the Senate Banking Committee became the third Senate committee to approve an 18-month extension bill. Congress is also considering the possibility of a short-term extension of 3, 6, or 12 months in lieu of a longer-term extension.

How would the extension be funded and how does it address the near-term shortfall in HTF funds?

An extension of SAFETEA-LU for any length of time would be paid through gas taxes and a possible General Fund infusion. (More funding from some source would certainly be required, as gas taxes do not cover the current funding levels.)

The Senate Financing Committee Chairman Max Baucus released a funding proposal (S. 1474) on July 21st that would maintain the HTF’s solvency throughout an 18-month extension.  This provision will transfer $26.8 billion from the General Fund to transportation ($22 billion to HTF, $4.8 billion to the mass transit account).  The fund transfer will begin in time to provide near-term funding (through August) before HTF reaches insolvency.

Any questions? Ask away in the comments and we’ll try to answer.

Transportation and Infrastructure Chairman James L. Oberstar, D-Minn., said in an interview that he will not sponsor or support an extension of surface transportation programs if a new long-term authorization bill cannot be completed by the Sept. 30 deadline.

Instead, Oberstar said late Tuesday, he would allow the programs to expire, and lawmakers would have to answer to states that lose their federal transportation support. “It all dies,” Oberstar said.

That threat may be hard to sustain, particularly given the importance of infrastructure spending to create jobs during the current economic recession. Democratic leaders in both chambers would have the final say on the matter.

During the last big battle over federal transportation legislation — which started in 2003 and didn’t end until the bill was signed in August of 2005 — 12 different extensions were filed as lawmakers struggled to write and agree on language for our current transportation bill, SAFETEA-LU.

The extensions on the bill allowed Congress to continue funding surface transportation projects, even as policy for the next five years was being hammered out. Needless to say, things would not be looking good for our transportation system if this Congress couldn’t pass a new bill by September 30 and refused to extend the existing legislation

Ultimately, the House will have to wait on the Senate to pass their own version of the transportation bill, where four separate committees have jurisdiction over different parts of the bill, and early indications are that the Senate may push the work back until 2010.

On top of that, Charles Rangel, the Chairman of the House Ways and Means Committee — which will be in charge of finance on the new transportation bill — has already stated that transportation is not at the top of his committee’s list of issues.

Will Oberstar’s claim bear out? One thing is certain. While House leadership may eventually put pressure on him to pass an extension, the current transportation bill cannot be extended without going through his committee.