New York Times: A Short-Term Fix for Transportation

New York Times: A Short-Term Fix for Transportation
With plans for a six-year, $450 billion transportation bill hung up over the question of how to pay for it, the Obama administration said Wednesday that it wanted to put off the thorniest questions for now. Instead, officials proposed essentially extending the existing law for 18 months and finding a short-term way to pay for highway and transit projects.

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Bloomberg: LaHood Calls for 18-Month Highway-Funding Extension
The U.S. should boost spending on highways and transit by more than half to $450 billion the next six years, the chairman of the House transportation committee said, without saying where the money would come from.  Minnesota Democrat James Oberstar told reporters yesterday he’ll propose legislation for the boost, from the current $286.5 billion, to fix roads and ease congestion. Authority to spend from the highway trust fund for transportation maintenance and construction expires Sept. 30. Fuel-saving cars and declines in driving have reduced gasoline-tax revenue for the fund.  Oberstar’s call for a six-year bill is at odds with a request yesterday from Transportation Secretary Ray LaHood. LaHood asked lawmakers for an 18-month reauthorization to replenish the fund, which would delay a decision on raising gas taxes or finding other ways to pay for highways.  “I don’t see where the money’s coming from yet,” said Greg Cohen, chief executive officer of the American Highway Users Alliance, a Washington-based advocacy group. “That’s the sticking point. And I think the administration sees that.”

Journal of Commerce: LaHood Asks for 18-month Highway 'Authorization'
Transportation Secretary Ray LaHood asked Congress for an 18-month highway reauthorization to plug immediate holes in the Highway Trust Fund and detour past a Sept. 30 deadline to complete the reauthorization of the surface transportation bill.  Without an infusion of cash, the Highway Trust Fund could go broke as soon as late August, LaHood said June 17. “If this step is not taken the trust fund will run out of money … and states will be in danger of losing vital transportation funding.”  LaHood ruled out increasing the fuel taxes that replenish the fund. “The administration opposes a gas tax increase during this challenging, recessionary period, which has hit consumers and businesses hard across our country,” he said.