State transportation officials are calling for Congress to pass legislation next year that would remove the $15 billion federal volume cap on private-activity bonds for transportation financing, authorize the issuance of tax-credit bonds to fund surface transportation programs, and distribute of 90% of federal transportation funds to the states.

The proposed package, approved last week by the American Association of State Highway and Transportation Officials, echo the U.S. Department of Transportation's recommendation earlier this year to remove the federal limit on private activity bonds that can be issued for infrastructure projects to encourage private sector participation.

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