Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In

The Senate took a major step forward last night in its battle with the House over transportation funding, releasing a plan to give $26.8 billion to the dwindling highway trust fund and -- perhaps most importantly, for the long term -- to restore the fund's ability to keep the interest it earns.

max_baucus.highres.jpgSenate Finance Committee Chairman Max Baucus (D-MT) (Photo: Baucus '08)

The Senate plan, forged by Finance Committee Chairman Max Baucus (D-MT), was endorsed by two of the chamber's more progressive transportation-minded members, Commerce Committee Chairman Jay Rockefeller (D-WV) and Robert Menendez (D-NJ).

The legislation would send $22 billion to the highway trust fund, slightly more than needed to keep it solvent until the Obama administration's proposed stopgap transportation law expires in 2011.

The nation's mass transit account, which is not facing the same imminent insolvency as highway programs, nonetheless would receive $4.8 billion under Baucus' bill.

In a statement released last night, Menendez touted that investment in mass transit as a good omen:

This robust investment in masstransit amounts to an investment in the foundation for 21st Centuryeconomic security. It is not only a sector that creates jobs, but it helpslower energy costs, cleans the air we breathe and saves commuters time andmoney. It is tremendously important to ensure that when we replenish thetransportation trust funds, transit gets its historical share, and thislegislation accomplishes that. This positions us to make significantinvestments in transit projects in the forthcoming transportationreauthorization bill.

Baucus' bill is likely to clear the Senate by the end of the month, but the House remains in a holding pattern. Transportation committee chairman Jim Oberstar (D-MN) is still marshaling his colleagues in favor of a new six-year transport bill before September 30, and while he may be open to agreement on a fix to keep the trust fund flush until then, a long-term rescue will be difficult to sell.

Interestingly, however, the Senate's decision to restore interest-accruing powers to the trust fund represents a victory of sorts for Oberstar. The House transport chairman contended in early June that rescuing the highway program would be a matter of reversing the 1998 deal that blocked the trust fund from keeping the interest it earns.

Baucus' bill also would restore the money that was taken from the trust fund between 1989 and 2004 to pay for emergency spending bills, a move that Oberstar might ordinarily endorse.

But the clash over passing new transportation legislation this year has changed the political calculus for Democrats, increasing the chances that the issue won't be resolved until after Labor Day.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Advocates: Congress Must Stop Trump From Illegally Holding Back Sustainable Transportation Funds

Congress has a chance to restore order, seize back their power of the purse, and stop Trump from "pocket-rescinding" hundreds of millions for good transportation projects.

September 26, 2025

Friday Video: You Should Care That Your Car Is Spying On You

Yes, every device we own is probably harvesting our data. But the car might be the worst offender.

September 26, 2025

The State of Friday’s Headlines

Transit agencies from Rhode Island to San Francisco are facing budget shortfalls as a variety of factors create a perfect storm.

September 26, 2025

Revitalizing Cities With Small-Scale Manufacturing

One Rust Belt city is pursuing an innovative strategy to attract economic development and enhance urban livability.

September 26, 2025

The Real Reason the Far Right is Demanding Action on Transportation Violence

A series of brutal deaths on U.S. roads and trains is sparking outrage on the far right – and a push for some disturbing policy solutions that will only make our country more violent.

September 25, 2025

Everyone to Congress: Stand Up and Fight for the Infrastructure Funding You Allocated (And Your Constituents Need)

"The president has made it clear that programs outside the administration’s narrow vision for transportation will not be faithfully implemented," advocates said this week — and it's time for congress to stand up and defend their will.

September 25, 2025
See all posts