Although it’s unclear when key congressional committees will come out with bills for TEA-21 reauthorization, members of Congress are already introducing smaller transportation bills as markers for programs or policy changes they favor. The bills are unlikely to survive on their own, but their provisions could find their way into "TEA-3," the successor to the six-year TEA-21 authorization that is set to expire this fall. Two notable initiatives are:

Grassley/Baucus—These members of the Senate Finance Committee have proposed increasing the federal transportation program without raising the gas tax, as members of the House Transportation Committee have proposed. They would do it by shifting most gas tax revenue currently allocated to mass transit to highway programs. Federal funding for mass transit would come largely from a new type of federal bond (the 20-year note would yield tax credits rather than interest). Bond proceeds would be deposited in the federal Mass Transit Account. The senators say this approach could allow an annual federal transit program as large as $10 billion (it is $7.3 billion in 2003). The measure would also tighten collection of existing fuel taxes and devote more revenue from gasohol taxes to transportation.

Pro-transit groups in Washington aren’t convinced about the approach, despite the promise of funding increases. They oppose transit’s being cut off from gas tax revenue, worry that the tax credit bonds are untested and are concerned about having the transit program tied in the future to further issuance of federal debt. Reportedly, Senators Ron Wyden and James Talent are developing a similar approach that would preserve the current highway/transit division of traditional transportation revenues, and use new bonds to augment both programs.

Rep. William Lipinski— Lipinski has introduced legislation to create a national rail infrastructure program, to make public investments in freight railroad projects. Lipinski would devote 10% of import duties, federal diesel fuel tax revenues (both are now slated for the general fund) and other revenues to the new $3 billion program. 80% would be apportioned to states according to a formula based on rail miles and freight tonnage. 20% would be for a discretionary program for projects of national significance.

President Bush’s SAFETEA bill contains provisions that advance the principle of funding rail infrastructure, but does not identify new funding sources for it. Overall, the issue of TEA-21 reauthorization seems caught in limbo for now between the House Transportation Committee’s desire for a big funding increase, and opposition from the Bush Administration and House leadership to any gas tax increase. 

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