US Congress nowhere near a deal as highway fund deadline nears

Washington

US Senate action on legislation to fund the nation's roads and bridges for three years will stretch into the week, just days before a July 31 deadline, putting pressure on both chambers to consider a short-term extension.

The House will need to act on the Senate's ambitious six- year plan to rework infrastructure and highway-safety policy. The Highway Trust Fund would begin to run short during this weekend's start of a scheduled August recess for House members.

House Republican leaders have declared the Senate's funding measure dead on arrival. They have urged the Senate to debate the House bill that would provide funds through Dec 18, leaving time for talks on finding other sources of money for infrastructure.

Failure to act before the end of the month would mean payments to states for road and bridge projects could soon be reduced and spread out, US Transportation Secretary Anthony Foxx said on Friday.

"I hope we don't keep perpetuating the problems, and not looking squarely at what the country needs," Mr Foxx told reporters.

An expiration of highway funding could trigger 4,000 layoffs at the Transportation Department, Mr Foxx said, including employees at the Federal Highway Administration, the National Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration.

As the Highway Trust Fund balance runs low, the US will deliver remaining funds to states based on allocation funding until it's out of money, Mr Foxx said."It's definitely not a small impact," he said.

Mr Foxx said that the Obama administration hasn't taken a position on the Senate bill because it's still being modified. "We're looking carefully at the Senate proposal," he said. "We're taking it seriously."

He said that the administration supports the House package because it allows negotiations to continue on a long-term bill.

The Senate on Friday advanced its bipartisan plan to fund US highways and mass transit for three years. The 51-26 vote on HR 22 will be followed by further Senate action, including procedural votes on amendments to reauthorise the US Export-Import Bank and a proposal by Majority Leader Mitch McConnell to repeal Obamacare.

"Our country needs a multi-year highway bill and we'll get there if we just continue to stick together," Mr McConnell, a Kentucky Republican, said on the Senate floor after the vote.

Republican Senator Ted Cruz of Texas, a presidential candidate, immediately attacked Mr McConnell on the Senate floor for allowing a vote on reauthorising the Ex-Im Bank, which has become a target of conservative Republicans. While Mr McConnell opposes reauthorising the bank, he agreed to allow a vote on it after senators strongly backed Ex-Im in a June 10 test vote. The majority leader said on Friday that he offered the Obamacare repeal because Ex-Im "shouldn't be the only vote" on a highway bill amendment. BLOOMBERG