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A Nationally-Recognized Resource in
Infrastructure Financing |
August 1, 2009 |
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Appropriations Saves the Highway Trust Fund |
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July 30, 2009, the Senate passed HR 3357, by a vote of 79-17. The
legislation will keep the Highway Trust Fund solvent through the end of the
fiscal year on September 30, 2009. The fund provides money to states for
mass transit and the interstate highway system. The Fund was expected to run
short in August. As a result of the legislation, $7 billion will be
transferred from the General Fund of the Treasury to the Highway Trust Fund,
increasing the federal deficit accordingly. The fund generates revenue
through excise taxes on gas, truck taxes, and heavy vehicle use.
There were a number of other proposed solutions that were
rejected. Senator Vitter of Louisiana (R) proposed an amendment that would
bring the necessary funds from unused stimulus money. The amendment was
defeated 42-55. Chairman of the House Transportation and Infrastructure
committee James Oberstar (D-Minn.) preferred a smaller, $3 billion, infusion
to keep pressure on law makers. Ultimately, the $7 billion addition from the
treasury was the preferred course of action.
The legislation also provided unlimited funds to the
Unemployment Trust Fund and increased loan guarantees under the Mutual
Mortgage Insurance Fund and Government National Mortgage Association. This
is the second year the Highway Trust Fund has run out of money and Congress
has had to supplement the Fund from the Treasury.
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Capital
Partnerships We are a full service government
relations firm specializing in infrastructure policy and financing.
Providing individualized and creative service, we leverage a
lifetime of high level relationships critical to client
success.
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