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Senate on the verge of passing a multi-year transportation bill

After several contentious procedural votes to keep the bill moving forward over the past week, the Senate is likely to be taking a final vote on their three-year transportation bill at some point before the end of the week. Here’s a short update on where things currently stand.

First, here are the six most useful tidbits to know right now:

  1. The Senate is a few more procedural votes away from a final vote on their three-year transportation bill.
  2. Little in the bill has substantially changed since it was first introduced, though a few fixes were made to issues in the first draft having to do with transit funding and complete streets language.
  3. The contentious amendment to reauthorize the Export-Import Bank through 2019 was approved and included in the base bill last night.
  4. The first manager’s package of amendments has been moved to consideration, though nothing has actually been approved yet.
  5. Whether this long-term bill passes the Senate this week or not, there will likely be an extension to MAP-21 for 3 to 5 months. This is intended to provide time for the House and Senate to negotiate a final agreement.
  6. Including the Wicker-Booker amendment to increase transportation funding going directly to local communities is still our best chance to improve this bill.  Getting more support for this amendment from other Senators is the best method to have it included in a manager’s package or as one of the few (if any) amendments considered on the floor. But the prospects are not good without more support. We’re working hard to drive up sponsors — Sen. Durbin from Illinois and Sen. Peters from Michigan hopped on as co-sponsors yesterday! — but we still need your help. Send another letter, or make a phone call as soon as possible.

After one failed vote early last week, the overall Senate transportation bill passed a cloture motion late last week that cleared the way for the bill to be considered and debated on the Senate floor.

Before they can take a final vote on the bill, the Senate has to work through the amendment process. Because of Sen. McConnell’s parliamentary actions to “fill the amendment tree,” we don’t forsee the usual open amendment process playing out where individual amendments are offered on the floor and debated. Instead, for the most part, any amendments to the bill will have to be included in the manager’s package to be voted on all at once or adopted by unanimous consent.

Last night, the Senate took small steps toward a final vote by successfully voting to include a reauthorization of the Export-Import Bank in the base bill and begin the debate on the manager’s package of amendments. Whether there is a third manager’s package or not, once they are approved, it clears the way to take a final cloture vote to halt debate on the underlying bill and move to a vote on final passage.

If that passes, we’ll have 30 hours of debate on the bill before a vote on final passage sometime before Friday night.

As to MAP-21’s expiration, the House already passed a five-month extension. However, the House has now agreed to move a shorter 3-month extension tomorrow and Speaker John Boehner has said they are leaving town after the vote for August recess. We expect the Senate to take up and pass the House’s 3-month patch and very likely pass their multi-year surface transportation authorization package this week as well.

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 21st 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 31st 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.