An agreement was announced this Tuesday afternoon after a majority of conferees signed off on the package with days to spare before the short-term reauthorization expires on Friday, December 4th. The mammoth deal, which authorizes for highway and transit programs, as well as Amtrak, through fiscal year 2020, is set to move through the House and Senate this week.
The agreement provides roughly $305 billion for federal transportation programs and outlines the policy that will govern highway, transit and rail spending for the next five years.
The measure requires offsets for a general fund transfer to the Highway Trust Fund of around $70 billion, of which about $51.9 billion would go to highways and $18.1 billion to mass transit.
Negotiators said they reluctantly included many the pay-fors, including a plan to use a billion of Federal Reserve funds (cutting the dividend the Federal Reserve pays to certain member banks, tapping the Federal Reserve surplus account meant to help the central bank absorb losses), selling a portion of the Strategic Petroleum Reserve, and a separate idea to funnel revenue from a customs fee levied on airline and cruise passengers to the highway fund.
The bill also includes a provision to revive the Export-Import Bank, an export-promoting agency that expired last summer amid attacks from conservatives, but does not contain renew the 9/11first responders heathcare program.
The bipartisan deal is expected to pass both chambers. However, it is unclear how fast House and Senate leadership can shepherd it through, potentially necessitating one more short-term extension before Friday.
A five year deal is a huge win for Speaker Paul Ryan (R-WI) who can show a return to regular order for the House after the tumultuous last few years of Speaker Boehner’s tenure. Delivering a long-term, fully funded highway and transit bill to the White House would be a major coup — the first time Congress has accomplished the feat since George W. Bush was in the White House.