Senate Approves Short-Term Funding Fix for Highway Trust Fund

On September 10, the Senate adopted legislation (HR 6532) that transfers $8 billion from the U.S. Treasury’s General Fund into the depleted Highway Trust Fund (HTF). The measure amends the bill that was adopted by the House in July by making the transfer of funds effective immediately rather than on September 30. It now heads back to the House where it is expected to be adopted by the end of the week.

While the White House was initially opposed to shifting money from the General Fund into the HTF—the administration had sought authority for the Mass Transit Account of the HTF, which is currently running a surplus, to provide a short-term loan to the Highway Account—its opposition to the measure has soften in recent weeks.

On September 5, U.S Department of Transportation (DOT) Secretary Mary Peters announced that the HTF would run out of money by then end of the month and urged Congress to clear the bill providing monies from the General Fund. High gasoline prices have caused people to drive less and consume less fuel, reducing the federal government’s intake of gas taxes.The DOT had announced that unless a funding infusion was provided to the HTF, it would start reimbursing states weekly on a pro-rated basis based on funds available.

However, final approval of the bill was delayed due to opposition from Senators Tom Coburn (R-OK), Jim DeMint (R-SC) and Judd Gregg (R-NH) who insisted on an opportunity to amend the measure. An agreement was struck allowing debate on the measure, but the three were not allowed the opportunity to amend it.

For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.
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NADO Urges Multi-Year Reauthorization for the Economic Development Administration

SEEKS INCREASED RESOURCES FOR NATIONAL NETWORK OF ECONOMIC DEVELOPMENT DISTRICTS

On September, 9, Leanne Mazer, President of the National Association of Development Organizations (NADO) and Executive Director of the Tri-County Council for Western Maryland, urged Congress today to enact a broad-based reauthorization bill for the Economic Development Administration (EDA).  Mazer served on a panel with David Edgerly, Secretary of the Maryland Department of Business and Economic Development, and Mayor Larry Thoma, City of Elgin (Oklahoma), who is a member of the Association of South Central Oklahoma Governments (ASCOG).

In her testimony before the Senate Environment and Public Works Subcommittee on Transportation and Infrastructure, NADO President Mazer stated that “as the only federal agency focused solely on private sector job creation and sustainability, EDA is a vital resource within the federal portfolio for distressed communities striving to improve their local economies.”  As part of any EDA reauthorization bill, she added, “The members of NADO urge Congress to maintain a robust and vibrant funding level for EDA’s strategic planning, infrastructure and economic adjustment assistance programs.”

“At a time when nearly every American business and community is confronting intense competition from emerging and less developed nations, the federal government should be expanding, not cutting, resources and investments for critical public works infrastructure systems and regional strategic planning,” Mazer continued.  “EDA is the only federal agency with the mission of linking regional strategies and infrastructure investment with regional economic development initiatives.  It is also an agency that invests at the grassroots level, yet helps local communities improve connections to the national and global economies.”

For more information and to access NADO's complete testimony, visit www.nado.org/whatsnew/index.php?nw_id=373.

 
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