The U.S. House and Senate have extended the federal surface transportation law to carry programs through May 31, 2005. The House passed the measure after first rejecting a motion to include the higher levels contained in the Senate-passed TEA-21 reauthorization bill. The motion failed by a vote of 199-218. The extension includes over $2 billion in unobligated transportation funding originally authorized in the TEA-21 legislation and distributes a portion of those dollars to so-called donor states that pay out more in motor fuel taxes than they get back in federal highway funding.

Senate Environment and Public Works Committee Chairman James Inhofe (R-OK) remained hopeful that a bill could be completed before Congress recesses for the fall elections. To that end, federal construction observers note that the Sept. 30 passage of an eight-month extension does not preclude a TEA-21 reauthorization either before mid-October or during a post-election lame duck session.