WASHINGTON - President Obama's fiscal 2010 budget request proposes what some see as an enormous and potentially damaging shift in the way state and local transportation projects are funded, and the idea is already drawing opposition from key lawmakers.

The Obama administration's budget summary that was released Thursday proposed moving the funds for transportation programs out from under a so-called firewall, and into a year-to-year discretionary spending system that would make them subject to an unpredictable annual appropriations process. Currently, those programs are funded through the highway trust fund, which mostly consists of gasoline and diesel fuel tax revenues.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.