Rep. Tom Reed (R-Corning)
WASHINGTON – Lawmakers in Washington are busy this week trying to hammer out a plan that will provide spending for federal highway projects following August 1, when the money in the current federal Highway Trust Fund is set to run out. But despite the desire to come up with a six-year transportation spending plan, the most likely outcome will be one that simply extends the current transportation bill until the end of this year.
That’s according to congressman Tom Reed (R-Corning), who on Monday told WRFA that while lawmakers in Washington want to come up with a long-term transportation bill that adequately provides enough funding for all the projects that need attention, it’s unlikely any final plan will be in place before the Aug. 1 deadline.
“We’ve been working to try and find a long-term bill, minimum four years but ideally six years, for our highway trust fund infrastructure needs in America,” Reed said. “But the honest truth is that we’re looking at another extension of the [current] highway bill through the end of this year. I know the Ways and Means committee is hoping for the best for a long-term bill, but preparing for that short-term approach for the rest of the year by marking up that bill this week.”
In March, President Obama offered a spending plan that would cost $478 billion over six years. However, lawmakers in Washington have balked at that number, and instead are pushing for a plan that spends just $300 billion over six years. But lawmakers on both sides of the aisle are still trying to identify funding for the package. While Democrats and even some Republicans have pushed for an increase in the gas tax, Congressman Reed says its not something he’s willing to get behind.
“I do not support raising the gas tax. To me, as a talk and listen to so many people across the district and as we’re seeing gas prices going down, people are beginning to see the benefits of lower gas prices. By allowing them to keep more money in their back pocket, I don’t think it’s appropriate at this point in time to take that money away from them in regard to a higher tax.”
Instead, Reed would prefer a plan that draws in funding from taxes and fees on foreign profits of U.S. corporations. That’s a bipartisan solution that was recently hashed out by Senators Rob Portman (R-Ohio) and Charles Schumer (D-N.Y.), and which has also gained support from some key GOP members in the House. The new system would result in a large, one-time tax windfall that Congress could invest in infrastructure.
Some critics say that while the Portman-Schumer plan would provide a lot of money for medium-term spending, the foreign tax reform windfall eventually would run out. Instead, they are pushing for an increase in the federal gas tax, which they say will pay for the nation’s infrastructure for many years to come. The tax is currently at 18.4 cent-per-gallon, but hasn’t seen an increase since 1993.
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