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House Panel Approves Record Transportation Funding Measure

Despite a potential veto threat, the House Transportation, Housing, and Urban Development Appropriations Subcommittee June 15 unanimously approved legislation that would significantly boost federal surface transportation investment in FY 2008. The measure would provide $40.2 billion for the core highway program (a $1.1 billion increase above the FY 2007 level) and $9.7 billion for the public transportation program (a $700 million increase). These proposed investments strictly adhere to the guaranteed funding levels required in the 2005 highway and transit reauthorization law, SAFETEA-LU. The measure also provides a relatively modest $85 million increase for the Airport Improvement Program (AIP) to $3.6 billion. The FY 2008 AIP guaranteed investment level is expected to be set during this year's reauthorization of the federal aviation programs.

While the annual transportation appropriations measure is typically uncontroversial, the Bush Administration has threatened to veto any individual appropriations bill that exceeds the total amount recommended in the Administration's FY 2008 budget proposal. The transportation funding bill approved by the House subcommittee exceeds the Administration's request by $2.8 billion. The debate between the Administration and the new Democratically-controlled Congress over domestic spending will likely affect a number of appropriations measures and may lead to delay in enacting some or all of these annual spending bills. The full House Appropriations Committee is scheduled to take up the transportation measure June 18 and committee leaders are planning to bring the bill before the full House the following week.

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