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Energy & Transportation Update


An Information Service of the AFI Energy and Transportation Committee

November 14, 2002
Volume III, Number 12

House Approves Continuing Resolution that Could Potentially Cut Highway Funding

On November 13, 2002, the House passed (by a vote of 270-143) a new short-term continuing resolution (HJRes 124, "new CR") that would extend the current CR (HJRes 123) and keep the federal government running until January 11, 2003. If approved by the Senate, the new CR would continue funding all federal programs at their FY2002 level — except the federal aid highway program. FY2002 funding for the Transportation Equity Act for the Twenty-first Century (TEA-21) was $31.8 billion. Under the current and new CRs, highway program spending is set at an annualized rate of $31.8 billion, but a cap is set at $27.7 billion. Therefore, allocations under the CRs are based on the $31.8 billion level, but once the cap of $27.7 billion is reached, highway funding ceases. However, the Office of Management and Budget has assured House transportation committee members it would be impossible to reach the obligation cap of $27.7 billion prior to mid-August 2003, well beyond the expiration date of the CR. House Transportation and Infrastructure Committee Chairman, Don Young (R-Alaska), was outraged the $27.7 billion cap provision remained in the new CR. Chairman Young argued he had an agreement with appropriators and House leadership that the cap would be dropped from any subsequent CRs. Reportedly, there is another verbal agreement between Young and House leadership and appropriators to drop the cap language in any further CRs. If the new CR is approved by the Senate, it will allow Congress to put off appropriations work until next year when the Republicans have control of both chambers. It is likely the Senate will vote on the new CR sometime this week or next week.

NCSL has sent a letter to Congress urging a restoration of the full $31.8 billion. The letter can be accessed at http://www.ncsl.org/statefed/OMB10_10.htm

NCSL Staff:

Eileen Doherty
Committee Director
Energy and Transportation Committees
(202)624-8687

Laurie Holmes
Committee Assistant
Energy and Transportation Committees
(202)624-8695

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