On March 18, President Obama signed the HIRE Act which, among other things, extends the existing SAFETEA-LU authorization through December 31, 2010.

While there is certainly cause for celebration that the existing surface transportation programs have been extended for approximately 10 months, it does not resolve the critical need for a long-term solution. Despite all the discussions on policy issues, until a politically acceptable revenue source is identified, it is impossible to pass a reasonably funded multi-year reauthorization bill. There have been some recent promising signs, such as a commitment by Senate Majority Leader Harry Reid (D-NV) to bring a multi-year bill to the Senate floor this year, US DOT Secretary Ray LaHood's recent statement that the Department will release a list of authorization "principles" within 90 days, and Senate Environment & Public Works Committee Chairman Barbara Boxer's (D-CA) announcement that she will hold hearings on a bill this spring.

Senator Boxer also surprisingly said that she plans to use the House T&I Committee's STAA bill as the starting point for development of a Senate reauthorization bill. This is unusual since the Senate typically drafts its own version reflecting its own priorities and member interests. Boxer has asked industry groups and others to submit analysis and critiques of the Oberstar bill to her committee and her staff is starting to draft legislative language.

Recently Chairman Oberstar floated an informal proposal to increase the federal gas tax after the economy rebounds, but permit use of the projected revenues right away. His plan would have the Treasury deposit $130B in bonds into the Highway Trust Fund. The loans would not have to be repaid for at least four years using revenue from a 10 to 15-cent gas tax increase imposed sometime in 2014 or 2015, after the economy is hopefully in better shape.

However, without a robust revenue source, it is hard to see how a long-term $500+B bill could pass this year. One possibility being mentioned by some is consideration of a bill during the "Lame Duck" session following the November 2 elections. It may be the one window of opportunity before the presidential election cycle begins in earnest in 2011. However, if Republicans pick up a significant number of seats in the House and/or Senate, it is likely the Republican leadership will want to wait until the new Congress, when they will have more influence over the contents of the bills, to begin the reauthorization debate.