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Rail News Home Rail Industry Trends

5/12/2005



Rail News: Rail Industry Trends

Senate about to approve TEA-21 reauthorization legislation


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After extending the Transportation Equity Act for the 21st Century (TEA-21) bill six times during the past year and a half, Congress is closer to passing reauthorization legislation. The Senate has been debating its version of the bill, H.R. 3, this week and could approve the legislation today.

The Senate recently OK’d a substitute amendment proposed by Sen. James Inhofe (R-Okla.) that increases funding by $9.9 billion, bringing the bill’s total funding level to $293.8 billion. During the next six years, transit would receive $53.8 billion.

However, if the Senate approves H.R. 3, there might be a roadblock to passage. President George W. Bush has said he would veto any reauthorization bill that totals more than $284 billion.

"Offering American taxpayers an artificially inflated six-year highway, transit and safety authorization bill means promising to spend money that doesn’t exist," said U.S. Transportation Secretary Norman Mineta in a prepared statement. "If the Congress chooses to irresponsibly add billions to the cost of the bill, it is setting itself up to raise gas taxes or risk bankrupting the Highway Trust Fund in the very near future. Neither option is acceptable."

Last month, the House passed its version, Transportation Equity Act, A Legacy for Users (TEA-LU), which would authorize $284 billion for federal transit and highway programs, including $52.3 billion for transit.

After the Senate OKs its legislation, a Senate and House conference committee will work to resolve differences between the two bills.