Obama Asks for $302 Billion to Fix Bridges and Potholes
The Obama administration sent to Congress legislation that would provide $302 billion for road and transit projects over four years, a measure needed to keep the U.S. Highway Trust Fund from running dry.
The Transportation Department proposal would boost the highway fund $87 billion above current levels to generate more money for deficient bridges and aging transit systems. The bill also addresses the General Motors Co. (GM) ignition-switch recall by raising almost 10-fold to $300 million the maximum fine on carmakers that fail to quickly recall deficient vehicles.
Congressional transportation leaders in both parties have said they want to pursue six-year measures, though there is little consensus on how to finance the proposals. The Transportation Department has said the Highway Trust Fund -- which relies on gasoline and diesel-fuel taxes -- may not be able to meet its obligations as soon as this year. That risks leading states to slow or halt work in a recovering economy.
We need to pass a bill that avoids the destructive collapse in funding that would threaten hundreds of thousands of jobs and inflict unnecessary damage on our economy, Transportation Secretary Anthony Foxx said on a conference call with reporters today.
The funding proposal is in line with President Barack Obamas February budget request. House and Senate panels are drafting their own bills and there are no plans in Congress to consider the presidents proposed way to help pay for it: a temporary tax increase on overseas earnings by companies.
Foxx said his proposal will create millions of new jobs. The financing approach could catch hold after House Ways and Means Committee Chairman Dave Camp, a Michigan Republican, also proposed a similar tax boost on businesses to fund highway construction, Foxx said.
The proposal also includes a provision raising the civil penalties for automakers failing to act quickly on vehicle recalls. House and Senate committees are probing GMs recall of 2.59 million cars for an ignition-switch defect now linked to the deaths of 13 people and may later advance legislation boosting the current civil penalty maximum of $35 million.
We do feel like the penalties could be set higher to ensure when a violation occurs it is more than a rounding error, Foxx said.
David Friedman, the acting administrator of the National Highway Traffic Safety Administration, said the measure also will give the federal government new authority to require removal of the cars when a defect is first discovered, and mandate that rental car companies comply with recalls.
Senator Barbara Boxer, chairwoman of the Environment and Public Works Committee, said this month she is preparing a six-year measure to provide the same amount of money annually as the current two-year, $105 billion bill expiring in September, plus inflation. The California Democrat said the bill wont address funding, and she said she hopes an agreement on that can be worked out within a few months.
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Obama Asks for $302 Billion to Fix Bridges and Potholes