Senate Finance Archives - Transportation For America

Congress kicks into high gear on transportation — let’s summarize the action

During an extremely busy week in Congress in several key committees, a long-term transportation bill and a multi-year passenger rail authorization were introduced and passed committees, along with hearings on possible ways to keep our nation’s transportation fund afloat, rural transportation issues, rail safety, and autonomous vehicles.

For those of you who don’t regularly follow Congress, this is often how things go: nothing seems to happen for a long time, and then there’s an explosion of activity all at once. That’s certainly what took place this week in the Senate, with some important ramifications for the future of transportation funding and policy. We hope that Congress shows the same focus when they return from their weeklong July 4th recess.

Four of the five Senate committees with jurisdiction over either transportation policy or funding were active this week. Two notable transportation policy bills (and one yearly spending bill) were advanced out of committees this week, and the Senate made the first big move toward passing a long-term transportation reauthorization ahead of the July 31 expiration of MAP-21, the current law. So what happened, and what should we be expecting next?

Here’s our brief rundown of what you need to know.

First up, in news we haven’t covered here yet, the Senate Appropriations Committee this morning marked up and passed their version of the yearly transportation and housing spending bill that was passed out of the House several weeks ago — a bill that cut TIGER, passenger rail, and transit construction. Unfortunately, the news out of the Senate today was only marginally better. On the plus side, TIGER funding is maintained at this year’s level: $500 million again for competitive grants this upcoming year. But the Senate actually makes deeper cuts to New and Small Starts transit construction than the House did — $520 million in cuts over last year, and $320 million more than the House passed a few weeks ago. Passenger rail funding gets a marginal increase over last year’s level.

While we were hopeful that the Senate could possibly restore some of these cuts made by the House — as had happened in several years past — the consensus by House and Senate Republicans to stick to 2011 budget sequestration-level discretionary funding amounts for all of their FY2016 spending bills result in cuts across the board to discretionary programs like these. All Democrats on the Appropriations Committee opposed this bill.

Smart Growth America offered up this statement on the THUD bill today. T4America is a program of Smart Growth America.

The United States is in the middle of an affordable housing crisis. Rents are rising, the homeownership rate is declining, and federal housing programs are already failing to meet the need for affordable homes. Gutting the HOME program at a time like this is the wrong response. If Congress’s budget caps force this outcome, the budget caps need to be changed.

Logged-in T4America members can read our full THUD summary below:

[member_content]June 24, 2015 — The Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (Transportation-HUD) marked up and reported its FY2016 appropriation bill to the full committee on June 23 without amendment. This is T4America’s short members-only summary of the THUD bill as reported to the full committee. Read the full memo.[/member_content]

Second up was the release and the subsequent committee markup of the Environment and Public Works (EPW) Committee’s six-year transportation bill known as the DRIVE Act. The EPW Committee is responsible for the largest portion of the full bill known as the “highway title” — more on the other portions below. In case you missed any of our posts about the EPW bill over the last few days, you can catch up with those below. Long story short? EPW released a bill with some modest improvements that represents a good starting point for debate, they approved it unanimously in committee while making a few small improvements, and important amendments that could ensure our investments best maintain and improve our transportation system are still outstanding and will hopefully be considered by the full Senate.

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

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

Senate’s new transportation bill is a good start, but more should be done for local communities

The EPW committee marked up and approved this bill unanimously on June 24th without considering amendments (other than a package of amendments in a manager’s mark.) The amendments mentioned below were discussed or offered and withdrawn, and will hopefully be debated on the floor of the Senate. So keep any letters of support coming — this action is still ongoing!

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.

While the Senate Appropriations Committee marked up the transportation & housing spending bill this morning, the Senate Commerce Committee — the committee with jurisdiction over rail policy in the Senate — considered the Railroad Reform, Enhancement, and Efficiency Act — a bill to govern all passenger rail policy and authorize funding for the next several years. The RREEA bill is a good step forward, supported by T4America wholeheartedly:

Statement in response to introduction of the Railroad Reform, Enhancement and Efficiency Act

Senators Wicker and Booker are doing the nation a great service in crafting a bill that ensures Americans will see continued and improving passenger rail service in the years to come. Passenger rail service is vital and growing in popularity, and keeping the system working and safe requires investment. The Wicker-Booker bill embraces both those ideas. It authorizes necessary funding to start to return the system to a state of good repair and make targeted investments to improve service.

The committee markup of the bill known as RREEA was mostly uneventful, and it passed by a unanimous vote with mostly minor amendments and issues raised — some of which were safety-related and expected in the wake of the recent derailment in Philadelphia. The Commerce Committee is also responsible for freight and rail policy for the long-term bill, and we’ve heard that they could be releasing their draft long-term bill shortly after the July 4th recess.

Lastly, both House and Senate committees tasked with finding the funding to pay for the next long-term transportation bill (or finding the money to extend MAP-21 past July 31) held hearings this week to continue their work along those lines. In the case of the House, they were specifically discussing repatriation of corporate earnings as a possible revenue source.

Repatriation is the process by which companies can bring offshore earnings back to the U.S. at a reduced tax rate, and then all or a share of those tax revenues would be directed to the trust fund, providing revenues for a long-term transportation bill. It’s an idea that’s gotten some traction in the Senate — Senators Barbara Boxer and Rand Paul have introduced a proposal — but it’s still a one-time fix that’s still not a fee paid by the users of the transportation system.

A House Ways and Means subcommittee held a hearing today to discuss repatriation, and the overall takeaway from the hearing seemed to be that while repatriation may be the most feasible option after a gas tax increase was ruled out by Ways and Means Chairman Paul Ryan, there’s still little consensus in the House, and many representatives want to tie it to more thorny issues like corporate tax reform, reducing the chances that it could pass quickly or easily.

In the Senate, the Finance Committee held a hearing today as well to discuss the use of public-private partnerships — a growing trend in many states as they look to up-front cash from the private sector to help fund longer-term projects where the private party defers their payment or profits. Despite the way P3s, as they’re known, are frequently invoked as a possible funding solution, almost all the panelists today noted that although having a greater range of financing options will certainly be a boost to many states and cities, P3s won’t be sufficient without also increasing overall revenues. They’re not a panacea.

Which leads us right back to the elephant in the room: finding and agreeing upon a new, stable revenue source that can keep the nation’s transportation fund solvent for years to come. It was indeed a busy week, and we hope that Congress will keep up the momentum when they return from their weeklong July 4th recess.

With GOP victories, SAFETEA-LU team in line to chair Senate committees

With last night’s election, both the Senate and House will see leadership changes in key transportation committees. With the nation’s transportation funding source running near empty and the current law, MAP-21, expiring in the spring, these new committee leaders will have an opportunity to make an impact in the very near term.

First, the Senate, where the Environment and Public Works Committee writes the largest portion of the transportation bill, the “highway title”. Chair Barbara Boxer (D-CA) is expected to yield the gavel to Sen. Jim Inhofe (R-OK). Though the two worked closely together on MAP-21, Inhofe has indicated that he plans to conduct EPW business differently than his predecessor, and it’s unclear at this point exactly how he would stray from the current course.

The next biggest piece of the Senate bill, the “transit title”, is written in the Banking Committee, where Richard Shelby (R-AL) is in line to become chair. The Inhofe-Shelby pairing also led negotiations on SAFETEA-LU – MAP-21’s predecessor – in 2005.

In the House Transportation and Infrastructure Committee, Ranking Member Nick Rahall (D-WV) — amazingly a member of this committee his entire time in Congress — lost re-election to his 20th term, which eliminates the top Democrat on the committee. Rep. Peter DeFazio (D-OR) is next in line for the top Democratic seat on the Committee, and is a familiar and vocal proponent of a strong federal role in transportation.

That covers the policy side of the equation. On the funding side, Utah Sen. Orrin Hatch (R-UT) is projected to take over the Finance Committee, swapping roles with Sen. Ron Wyden (D-OR). On the funding side in the House, Rep. Paul Ryan (R-WI) is expected to take over the Chair of the Ways & Means Committee for retiring Rep. Dave Camp (R-MI).

In the short-term, the biggest battles will come over annual appropriations, setting the spending levels for discretionary programs such as TIGER and Amtrak. The first order of business for Congress when it returns next week is extending the continuing resolution – a temporary funding measure – that expires in December long enough to allow appropriators to hammer out spending levels for the full fiscal year. That will now likely occur under the GOP-controlled Congress early in the next calendar year.

The 800-pound gorilla of questions marks though, is how Congress will fund the nation’s transportation system next year and beyond. Gas tax receipts are dropping, cars are getting more fuel-efficient and driving is leveling off – and most baby boomers haven’t even stopped commuting yet. Although a faction of Republicans has called for the feds to abandon their traditional role and devolve the lion’s share of responsibility and oversight to the states, that idea so far has not gained traction with the full caucus. Though yet another short-term fix was agreed to a few months ago to keep the program going into next year, that funding will be tapped out by Spring 2015, and the trust fund will be near insolvency yet again.

Raising the gas tax may be a non-starter in a GOP Congress, though that remains to be seen. Other revenue ideas have struggled to gain a foothold, including the House GOP proposal during the last reauthorization to boost revenue with fees from expanding oil and gas drilling into formerly protected areas. On the Democrat side, DeFazio has introduced legislation to replace the federal gas tax with a fee at the refinery level that would be indexed to inflation, potentially yielding a more stable funding source.

In all, Tuesday’s election results should make for a fascinating 2015.

Senate, House committees approve short-term rescue of trust fund; long-term solution still needed

The Senate Finance and House Ways and Means committees today each passed similar short-term patches to keep the Highway Trust Fund in the black at least through early 2015. If adopted by the full House and Senate, the move to transfer $10.8 billion to the trust fund will avert immediate disaster, but there’s still heavy work needed to find a long-term funding solution.

Wyden Finance markup

Without this stopgap — if approved — worked out by Chairman Wyden and Chairman Camp and their respective committees, reimbursements to states would have been cut as much as 28 percent starting in just a few weeks, according to the U.S. DOT. But Congress has bought itself only a few months to address the larger problem of long-term solvency.

The House Ways and Means Committee was first to act this morning, marking up their funding patch to keep the trust fund solvent through May 2015 — five months longer than the Senate’s original plan. Senate Finance resumed discussion of its trust fund bail-out this afternoon after making key changes to match the $10.8 billion in the House provision while striking the language specifying an expiration date.

The upshot is that both measures have enough revenue to carry the trust fund into 2015, although Democrats have been pushing to consider a long-term transportation measure before the end of the year. Sen. Tom Carper offered an amendment to reduce the amount of the patch so that it would expire at the end of December, but it was not approved. Overall, the bill passed with just one “no” vote from Senator Carper.

As passed today, the Senate proposal would transfer $9.824 billion in general funds to the Highway Trust Fund, and $1 billion from fund for leaking underground storage tanks. The Senate bill modified some of the many mechanisms of paying this money back from their original proposal, most notably by including the House’s plan for “pension smoothing.”

The real question is how long this revenue cobbled from multiple accounting gimmicks will hold out. May 15 seems optimistic, given how the insolvency point moved sooner and sooner over the course of this year. Last month, the Congressional Budget Office projected we’d need $8 billion just to make it through this year.

Senator Bob Corker (R-TN), who co-introduced a plan to raise the federal gas tax 12 cents over two years, didn’t hide his disappointment in this plan and how Congress is paying for it. “This disgraceful practice of borrowing money to cover a few months of spending and paying for it over a decade is nothing more than generational theft,” he said in this Transport Topics story.

His comments as well as others made today by members of the House and Senate committees could represent a groundswell to find a real long-term funding fix and end the practice of lurching from crisis to crisis. After all, providing funding just for ten months instead of five months doesn’t actually give States the reliability and predictability they need for multi-year contracts and bigger projects — it just ensures that many projects underway or getting started this summer won’t hit the brakes. Think of it this way: States could resurface a road with some confidence, but that multi-year project to replace the deficient old bridge on the same road? Tough to do when you only have funding through May with any certainty.

Even House Transportation Committee Chairman Bill Shuster, who also supports the fix through May, said today, “This bill in no way precludes Congress from continuing to work on addressing a long-term funding solution, and a long-term reauthorization bill remains a top priority for the Transportation Committee.”

“We are pleased that Congress has begun to take the situation seriously and will avoid the economic pain of an insolvent trust fund, at least for the very near term,” said T4America Director James Corless.

“Perhaps the most important outcome is that the debate in both chambers showed a growing discomfort with short-term accounting tricks and a bipartisan desire for a long-term solution. In truth they have only bought themselves a few short months to grapple with an issue they have delayed for years. We look forward to working with Chairman Wyden, Chairman Camp and other leaders as they make good on their promise to work in earnest on a long-term solution to fund the infrastructure our economy and daily lives depend on.”

Attempts for bipartisanship slow down Senate Finance plan for short-term trust fund fix

The Senate Finance Committee plan to rescue the nation’s transportation fund through the end of the year took a slight detour today as Chairman Wyden (D-OR) made some key changes and deferred debate on potentially contentious amendments in the name of trying to reach bipartisan agreement.

Between yesterday and today, Chairman Wyden amended his Preserving American’s Transit and Highways (PATH) Act, which would provide a short-term extension of the federal transportation program and come up with the necessary funds (about $9 billion) to the keep the Highway Trust Fund (HTF) solvent through the end of the year. (The HTF is expected to become insolvent before the end of August.)

The amendments came in the form of a Chairman’s mark – a single package of amendments or legislative language put forth by the Chairman of a committee — which was agreed to by (bipartisan) unanimous consent today in committee, but final consideration was postponed until after the July recess.

“On the Finance Committee, all the Democrats and all the Republicans do not want to slam the brakes on 6,000 road projects, putting thousands of Americans out of work,” said Chairman Wyden this morning. “These modifications move the committee closer to bipartisan agreement.”

But it may yet be difficult to find agreement between the two sides and move a truly bipartisan package out of the committee that staves off insolvency of the trust fund. In the House, Ways and Means Chairman Dave Camp (R-MI) has said, “There is no way tax hikes to pay for more spending will fly in the House.”

All along, Republicans especially, but also Democrats, have asserted that it’s important to protect the historic principle of “user pays” for the trust fund — ensuring that the people using the transportation system are the ones paying for its upkeep or expansion. Yet, the most significant change made to the Chairman’s mark today was removing the increase in heavy truck fees — the only “user fee” in the handful of revenue increases included in the PATH Act that was introduced by Chairman Wyden two days ago. The other four methods of raising money are changes to tax code or accounting maneuvers, which were all largely modified as well.

The Republican ranking member Orrin Hatch (R-UT) made it clear that his party understands the urgency to do something, but are still unlikely to support a plan that won’t pass the House. “It’s important for the committee to get something done, but it’s even more important that we get it done right,” he said.

And, “The last thing we want is for state departments of transportation to be left holding the bag in August,” said Sen. Thune (R-SD).

The Senate Finance Committee is planning to resume discussions on this package again after the congressional recess for Independence Day. Amendments that may be considered at that point include plans for a gas tax increase and indexing it to inflation, creating a new multimodal account, ending the federal program as we know it, and an amendment to defund the extremely popular program that helps get money down to the local level for safer streets (TAP).

We’ll continue to track the developments.

Senate Finance Committee considers a trust fund stopgap, with long-term funding unclear

The Senate Finance Committee Thursday will take up a proposal from Chairman Ron Wyden (D-OR) to keep the Highway Trust Fund solvent through Dec. 31 with a $9 billion transfer from the general budget. The needed revenue would be raised by increasing the allowable tax on heavy trucks and four accounting maneuvers unrelated to transportation.

Chairman Wyden’s stopgap proposal would prevent the projected August insolvency of the nation’s key infrastructure fund and buy time until after the November elections, when Congress could consider a longer-term fix to the beleaguered trust fund.

Unfortunately, the proposal does not have bipartisan support. The top Republican on Senate Finance, Senator Orrin Hatch (R-UT), has indicated he would like the trust fund fix to rely more on spending cuts. Senator Bob Corker (R-TN), who is co-sponsoring a proposal to raise the gas tax with Senator Chris Murphy (D-CT), called the proposal “a complete sham” .

However, with the clock ticking toward an end of promised federal payments to states for their transportation spending, it is the only proposed stopgap on the table that would avoid idling thousands of workers and stalling key projects throughout the country. Senator Barbara Boxer (D-CA), chair of the Senate Environment and Public Works Committee, urged her colleagues on the Finance Committee to pass Wyden’s proposal. “I’m here to send an SOS to Congress because we are facing a transportation government shutdown,” Boxer today said at a press event.

Wyden’s proposal relies on accounting changes over ten years to amass the “savings” that would be transferred immediately from the general fund to cover the next several months of the trust fund outlays. The largest change ($3.7 billion) would require faster disbursement – and collection of taxes owed – on retirement savings of deceased account holders.

The only transportation-related source comes from raising the cap on the surcharge placed on especially heavy trucks, from $550 a year to $1,100. Set to take effect June 30, 2015, it would be the first change to the so-called heavy vehicle use tax since 1984 and is expected to raise up to $1.4 billion over the next 10 years.

Wyden told Transport Topics that he expects Republicans to offer several amendments at the committee hearing, set for 10 a.m. Thursday. “They indicated informally some rough ideas but that’s why we have opened the process,” Wyden said.

In the House, Chairman Dave Camp (R-MI) of the Ways and Means Committee, with jurisdiction over the Highway Trust Fund, has said, “There is no way tax hikes to pay for more spending will fly in the House.” Camp plans to mark up an extension of the transportation program and Highway Trust Fund after the July 4 Congressional recess.

In an encouraging bipartisan move, Senators Corker and Murphy last week proposed raising the gas tax 12 cents over two years, and offsetting that increase by making some current tax breaks permanent. Corker has said the offsets could allow other Republicans to support the proposal because it would not violate Grover Norquist’s Americans for Tax Reform pledge.

Any such long-term solution for transportation funding – which we at Transportation for America certainly support – would have to come through Wyden’s Finance Committee, presumably after a stopgap such as that on the table for tomorrow’s hearing.

Raising the gas tax also would have to pass muster with the White House. In comments Monday, Administration officials did not rule out a gas tax hike but reiterated that corporate tax reform is their preferred pay-for.

“The Administration has not proposed and has no plans to propose an increase in the gas tax,” said White House spokesman Matt Lehrich. “It is critical that we pass a [transportation] bill that not only avoids a short-term funding crisis but provides certainty and lays the groundwork for sustained economic growth. So we appreciate that members on both sides of the aisle continue to recognize the need for a long-term infrastructure bill, and we look forward to continuing to [work] with Congress to get this done.”

Here, you can read a Description of the Chairman’s Mark, and the Joint Commission on Taxation’s Score (JCT Score) of the proposal.