No highway funding deal, but Iowa’s Grassley sees progress

CEDAR RAPIDS - Congress won't complete work on a highway funding bill before it leaves Washington for its August recess, but Sen. Chuck Grassley is encouraged by progress on a House-Senate compromise that could lead to the first long-term transportation bill since 2005.

The Iowa Republican conceded that Congress is 'kicking the can down the road” because the two chambers couldn't reach agreement on a highway funding bill. The Senate approved a six-year plan, but the House wouldn't go along because it wasn't fully funded and relied on future tax and fee increases to provide federal funds for state and local projects.

So the Senate passed the 35th short-term extension of the transportation bill to keep funding flowing until Oct. 29, Grassley said Wednesday in a conference calls with Iowa reporters.

As a result of the Senate passing a six-year bill, Grassley said the House Transportation Committee is moving a long-term bill that should lead a conference committee agreement between the chambers when they come back in September.

That may not be easy, however, because the chambers don't agree on how to fund transportation. They agree on not raising the user fee-style motor fuel tax. The House leaders have talked about finding funds by overhauling corporate taxes. Senate leaders proposed an increase on mortgage fees and TSA fees among other things. Those measures would fund the six-year Senate plan for three years.

Grassley's not the only one disappointed in not accomplishing more than a short-term fix. Second District Rep. Dave Loebsack, an Iowa City Democrat, earlier this week called on the GOP House leaders to bring a long-term highway bill up for a vote before adjourning for the August recess.

'It is beyond irresponsible for Republican leaders in the House to go on recess without passing a long-term bill that invests in our nation's infrastructure,” Loebsack said. He called a long-term funding plan necessary to address transportation needs, create jobs and support economic development across Iowa and the country.

'Another short-term, shortsighted extension will only cause more uncertainty, keeping state and local governments from being able to effectively plan for future projects,” Loebsack said.