WASHINGTON — States will not receive highway payments from the federal government starting today because of the Senate’s inability to clear a temporary extension of aid to states, although payments could resume this week, according to market sources.
The American Association of State Highway and Transportation Officials calculated that the halted payments would cost states a total of $2 billion per month. The calculations were based on the regular formula funding to states.
Since the current transportation law expired on Sept. 30, states have been receiving federal highway aid via stopgap legislation. Those short-term extensions of highway programs gave Congress more time to tackle a new multi-year law. The latest extension was set to expire at the end of February, which was yesterday.
The House on Thursday passed a 30-day extension of programs under the expired law — the Safe, Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users — as part of a bill introduced by Rep. Charles Rangel, D-N.Y., to extend unemployment benefits.
But when the bill arrived in the Senate, Kentucky Republican Jim Bunning blocked it on the grounds that it would add to the federal budget deficit. The Senate finished its business for the week Friday without approving the bill.
The last time federal highway programs actually ground to a halt was in the mid-1990s, during a budget standoff between the White House and Congress. Since then, federal transportation reimbursements to states were endangered at least twice, when federal highway trust fund balances fell close to zero.
Congress stepped in both times with general fund transfers to keep the trust fund afloat, but the close calls caused some state transportation departments to pull back on projects and, in at least one case, delay a bond deal.
It’s possible that lawmakers could fix the latest funding crisis by passing a new extension as early as this week, according to sources. But the Senate is not expected to vote on any extension until at least Tuesday. Congressional sources indicated that the provisions could be rolled into a larger bill as soon as today. That measure would include extensions of other expiring provisions.
The Senate and House have already approved so-called jobs bills that include surface transportation extensions and an infusion of $19.5 billion to keep the highway trust fund flush. However, those measures still must have their differences reconciled.
The jobs bills have also been a recent source of disagreement between the two chambers. The Senate bill would provide 58% of the grants from a $932 million program to only four states, based on 2009 earmarks. That provision drew criticism from House and Senate members whose states would not stand to benefit from the provision.
House Transportation and Infrastructure Committee chairman James L. Oberstar, D-Minn., proposed an alternative late Thursday night. His proposal would have the jobs bill distribute the $932 million according to fiscal 2009 highway funding formulas for every state.
