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From Capital Partnerships LLC

 

Appropriations Saves the Highway Trust Fund

 

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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