As lawmakers return from their August recess next Tuesday, a trio of urgent transportation issues await action: repeal of an $8.7 billion rescission of federal highway contract authority; sustaining the solvency of the Highway Trust Fund through 2010; and continuation of the federal highway and transit programs, which expire on September 30.

"Continuity is the immediate need," said AASHTO Executive Director John Horsley. "There is only about three-weeks time for Congress to ensure that the federal highway and transit programs continue to operate without drastic cutbacks in funding. The wolf is getting very close to the door for state transportation agencies."

Rescission Looms

An $8.7 billion rescission of contract authority included in the last authorizing bill for bookkeeping purposes is now threatening to curtail transportation projects in states across the country. The Federal Highway Administration last week notified states that they must identify by today the programs they will reduce in order to return their share of the $8.7 billion in contract authority to the federal government.

Senate transportation leaders Barbara Boxer, James Inhofe, and Christopher Bond have pledged that the rescission will be repealed before September 30.

Highway Trust Fund Future in Doubt

Shortly before the recess, Congress approved legislation to deposit $7 billion into the Highway Trust Fund from the federal government's General Fund to ensure state transportation departments will continue receiving full reimbursements for federal-aid highway projects through September, the end of the current federal fiscal year.

But analysts say that unless additional revenue is provided to the Highway Trust Fund, federal highway programs will have to be cut 85 percent in FY 2010. "A cut of that magnitude would undo all the benefits that have been created through the transportation economic recovery program," said Horsley.

End of Authorization in Sight

With the current federal highway and transit programs expiring on September 30, Congress must also wrestle with the issue of a new authorization bill or an extension of current law.

Three Senate committees -- Environment and Public Works; Banking, Housing, and Urban Affairs; and Commerce, Science, and Transportation -- have reported bills that would provide for an 18-month extension of the current program, as requested earlier this year by the Obama Administration. The Senate Finance committee has reported a bill authored by Chairman Max Baucus that would provide $27 billion in revenue to pay for that extension. News reports indicate that the Senate leadership may bring those bills to the floor early in September for action.

Meanwhile, House Transportation and Infrastructure Committee Chairman James Oberstar has said he hopes to quickly hold a full committee mark-up of the $500 billion six-year authorization bill he introduced earlier this year. A key element to House consideration, however, is the ability of the House Ways and Means Committee to produce a financing title for the bill. Discussions of possible funding options have been underway during the Congressional recess.

Action on the transportation issues must compete for time with other high priority on the Congressional calendar, including health care reform and climate change.