The Bush administration proposed a $247 billion, six-year highway and transit program on May 14 that faces a rough road in the U.S. Congress where some lawmakers want to spend billions more.
The plan, the largest transport funding proposal ever, would not increase gasoline taxes or index them for inflation to increase funding for construction programs.
It seeks a bigger contribution from state governments and business to pay for these projects, a theme that has cut across the administration’s long-term funding proposals for rail and other transportation priorities.
"The funding part is going to be probably the most controversial," Transportation Department Secretary Norman Mineta said, noting that among other initiatives
to leverage federal dollars, the bill would create a new class oftax-exempt bonds for highways.
"We could always use more money but our purpose is really to take the resources that are available and try to stretch them as much as possible. What we’re trying to do is bring more players to the table."
The White House plan has already been countered by a proposal in the U.S. House of Representatives to spend $375 billion over six years.
Industry groups warned that the administration’s proposal failed to meet its own estimate of funds needed to improve the nation’s clogged highways.
Under the Bush plan, "highway funding would not equal 2003 levels until 2007," the American Highway Users Alliance, which represents truckers, bus companies and motorists, said in a statement, citing a cut proposed in the 2004 budget plan.
Highway programs are funded by the federal Highway Trust Fund, which is supported by gasoline taxes paid by motorists. House lawmakers are pushing for a hike in that levy to help pay for their plan.
The administration plan would: streamline the environmental review process for construction projects and put a time limit on legal appeals and other reviews; double highway safety funding and include incentives for states to pass tough seat belt laws to reduce the country’s 43,000 traffic deaths annually; spend $46 billion for transit programs designed to relieve traffic congestion and reduce air pollution, and encourage use of cleaner and more fuel-efficient vehicles.
