5. TRANSPORTATION:

LaHood to defend new budget amid reauthorization debates

Published:

While a pair of transportation reauthorization bills moves through the House and Senate this week, the Senate Budget Committee will get a chance to review the Obama administration's transportation spending proposal at a hearing.

Transportation Secretary Ray LaHood will defend the fiscal 2013 proposal at a 10 a.m. hearing Wednesday. Although the budget will not be released until later this morning, early reports say it will include a six-year, $476 billion surface transportation proposal.

The plan follows a similar six-year, $556 billion proposal distributed by the administration in last year's budget -- effectively the White House suggestion for a long-term surface transportation reauthorization. Legislators, however, blasted LaHood in a series of budget hearings last year for not including a pay-for in the budget to account for the additional $270 billion above gas tax revenues, instead leaving it up to Congress to raise the money.

Although legislators commended the "bold vision" for infrastructure investment, the proposal was a nonstarter because of the lack of a revenue stream. It is unclear if the administration will include a pay-for this year, although it would be difficult to find an offset that could cover the $476 billion proposal.

The Senate is currently considering a two-year, $109 billion reauthorization bill, paid for through the gas tax and a series of other tax loopholes and transfers. The House, meanwhile, is working on its own five-year, $260 billion bill that would be paid for with revenue from new offshore and domestic drilling and an overhaul of the federal retirement system (see related story).

In his State of the Union address, President Obama indicated that he would like to see more infrastructure spending, saying "so much of America needs to be rebuilt."

In his speech, he told Congress to divert half of the money the country was no longer spending on wars in Afghanistan and Iraq and instead spend it on roads and bridges and other infrastructure.

Schedule: The hearing is Wednesday, Feb. 15, at 10 a.m. in 608 Dirksen.

Witness: Transportation Secretary Ray LaHood.