On Wednesday President Obama called on Congress to pass a transportation funding bill that includes an extension of the federal gas tax, claiming the move would protect about 1 million jobs. On September 30 the transportation spending bill expires. Obama said a failure to pass the bill by that date would result in the government losing needed money and construction workers losing needed jobs.
The president describes the proposal as a transportation bill, and its key component is the federal gas tax, which has been 18.4 cents per gallon for nearly two decades. The money is used to fund road construction and repair, as well as other projects — the tax costs Americans an average of $100 a year. The call for the renewal comes as gas prices remain high, the national average for a gallon of regular is about $3.62, a dollar more than a year ago. Some conservatives want to allow states, not the federal government, to raise and spend the gas tax money.
But Obama says the infrastructure needs the money now. He said 1 million people could lose their jobs over the course of next year without the renewal. Obama called on Congress to pass the “clean” extension “as soon as they come back” from break next week.
Meanwhile Obama has joined several transportation workers as well as labor union and business leaders, two groups that often are at odds. But the House is considering legislation for 6 years, which amounts to $230 billion bill which would cut spending from current levels and be paid entirely with current fuel taxes. The Senate proposal would last only two years and cost $109 billion.
Boehner spokesman Brendan Buck said the Republican plan in the House would achieve the goal of providing “responsible funding for critical infrastructure needs without adding to the deficit.” He said the GOP plan would limit what is spent to what is taken in from the gas tax, and questioned why the president was raising alarm about the bill.
“Aside from the president today, no one has suggested the highway bill will be allowed to expire. These types of scare tactics are irresponsible, transparently political, and needlessly add uncertainty to our economy,” he said in a statement. “Republicans support an extension of the highway bill and appreciate the need for a long-term solution for infrastructure projects. … Despite his remarks today, so far we’ve not seen a comparable proposal from the president.”
