The Republican-controlled House of Representatives was poised on
Tuesday to approve a $10 billion infusion for the fund, enough to
keep money flowing to road, bridge and transit projects at least
through the end of May 2015.
Without new money, the Department of Transportation has said it will
start to cut back federal funding for projects by nearly a third on
August 1, putting hundreds of thousands of jobs at risk. Congress
begins a five-week summer recess that same day.
White House support for the 10-month extension has annoyed some
Democrats who are opposed because it would push decisions on
long-term funding to a newly elected Congress next year.
Obama weighed in on the issue shortly after taking a wild ride in a
car simulator at a highway research center in McClean, Virginia,
near Washington.
"The good news is there are bipartisan bills in both the House and
the Senate that would help with a short-term fix. And I support
that. At the very least, Congress should be keeping people on the
job who are already there right now," Obama said.
"But all this does is set us up for the same crisis a few months
from now. So Congress shouldn’t pat itself on the back for averting
disaster for a few months, kicking the can down the road for a few
months, careening from crisis to crisis when it comes to something
as basic as our infrastructure."
The Highway Trust Fund, which has been supported by fuel tax
revenues since its inception in 1956, has run chronically short of
money in recent years because of higher construction costs and
improved vehicle fuel economy. Trucking firms and many other
industry groups favor an increase in fuel tax rates, which have
remained unchanged since 1993.
House Republicans have ruled that out, and their temporary measure
would be funded by revenues from pension accounting changes and
increased customs fees, which have received support from both
Democrats and Republicans in the past.
The Senate Finance Committee has approved a similar extension, with
some different offsets to improve tax compliance. Both versions
would also transfer $1 billion in existing money to construction
projects from a fund for cleanup of leaking underground fuel storage
tanks.
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CARS OF THE FUTURE
During his visit at the research center, Obama touted work on
so-called vehicle-to-vehicle and vehicle-to-infrastructure
communication technology to improve navigation. The technology
allows cars, trucks and other vehicles to send real-time information
wirelessly, an innovation researchers hope can help reduce accidents
and boost fuel efficiency by alleviating traffic.
"As the father of a daughter who just turned 16, any new technology
that makes driving safer is important to me," Obama said, referring
to his oldest daughter, Malia.
U.S. regulators are already crafting a proposed rule that would
require all new vehicles to use the new technology, which could be
put in place by early 2017, before Obama leaves office.
The event was meant to showcase efforts to ensure vehicle-to-vehicle
communication is safe, pointing to a joint effort between leading
carmakers and the University of Michigan Transportation Research
Institute.
Ford Motor Co, General Motors Co, Honda Motor Co, Hyundai Motor Co,
Daimler AG's Mercedes-Benz Research and Development North America,
Inc., Nissan Motor Co, Toyota Motor Corp, and Volkswagen AG are all
part of the research effort, according to the White House.
(Additional reporting by Susan Heavey and Steve Holland; Editing by
Dan Grebler)
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