Both the House and Senate have voted to approve a continuing resolution (CR) that will continue funding for federal agencies through Sept. 30. The measure now goes to the White House, where President Obama is expected to sign it.

The House approved the CR March 21 by a 318-109 vote, a day after Senate passed it 73-26.

The measure appropriates funds to federal government agencies through the remainder of the current Fiscal Year (FY) 2013. Had the previous CR been allowed to expire March 27, the government would have shut down.

The approved resolution incorporates a number of adjustments to the original House version, such as fully funding MAP-21 FTA Formula and Bus programs, at $8.478 billion. It also provides $4 million to fund the new FTA transit safety program established under MAP-21 and includes technical corrections to the appropriations language for transit research and the New Starts program.

The CR does not alter the sequestration process, so, despite the restoration of MAP-21 Formula and Bus funding, those programs funded from the General Fund—including New Starts, FTA Research, FTA Administration, Hurricane Sandy Emergency Relief, and Amtrak—will still face cuts in funding of approximately 5 percent from the agreed-on FY 2013 levels. Sequestration cuts to the New Starts program will potentially affect even those projects with Full Funding Grant Agreements.

Budget Deliberations
Also on March 21, the House ended debate on the House Budget Resolution. The non-binding resolution passed the House by a vote of 221-207, largely on party lines.

The House Budget aims to balance the federal budget within a 10-year window, by FY 2023. As previously noted, the House Budget assumes no General Fund transfers to the Highway Trust Fund (HTF) in future fiscal years and restricts future transportation investments to tax receipts dedicated to the HTF. However, it does not alter any funding assumptions related to MAP-21 funding or programs in 2014.

The Senate began debate the same day on the Senate Budget Resolution, which passed through the Senate Budget Committee late last week along party lines. The Senate Budget Committee’s proposal continues to promote General Fund investment in transportation and infrastructure projects, with a one-time $50 billion infusion for capital investments in highways and public transit, as part of a larger $100 billion infrastructure package.

Neither the House or Senate budget resolutions address the need for a longer-term funding solution to the HTF shortfall.

Municipal Bonds
The Senate Budget Resolution also suggests the possibility of a cap being placed on tax expenditures in the future as part of any tax reform debate—which could include a cap on the exemption for interest earned on municipal bonds.

APTA recently joined the National Association of Counties and 57 other organizations in a letter to Senate Majority Leader Harry Reid (D-NV) and Senate Minority Leader Mitch McConnell (R-KY) to express concern over the proposal and outlined the negative affects it would have on infrastructure investment. APTA will continue to monitor developments on tax reform and weigh in accordingly, should the committees of jurisdiction attempt to limit the municipal bond interest exemption as part of any tax reform measure.

More information will be available on the APTA website.