Congress Extends Highway Bill Through July 27
ongress late Thursday extended the federal highway bill through Wednesday, July 27, giving House and Senate negotiators less than a week to settle a dispute over how to distribute highway construction dollars to states, Bloomberg reported.
The extension — which followed a two-day stopgap spending measure earlier this week — was the 10th since Sept. 30, 2003, when the six-year law would have otherwise expired. Lawmakers remain in disagreement on a formula for distributing about $286 billion to states through 2009.
President Bush has threatened to veto a $295 billion highway plan approved by the Senate because it exceeds his spending target by $11 billion.
Bloomberg reported that a deal has been stalled because lawmakers from so-called donor states, such as Texas, get fewer tax dollars back for construction than they send to Washington and want a better rate of return.
Lawmakers from so-called donee states want to keep the rate of return they already get. Bush opposes a larger spending increase that could give both sides what they want, Bloomberg reported.
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