The federal construction lobby's hopes for an early Thanksgiving in the form of highway bill reauthorization were dashed by mid-November when it became clear the House and Senate still could not agree upon funding details. Abandoning efforts on long-range Transportation Equity Act for the 21st Century reauthorization, the lame duck 108th Congress instead focused on a more immediate fiscal year 2005 appropriations package for programs outside defense and homeland security. A $388 billion spending bill was passed with transportation program funding of $34.4 billion for highways, $7.6 billion for transit and $3.471 billion for the FAA Airport Improvement Program.

Leading up to the Nov. 2 elections, three TEA-21 reauthorization plans had emerged with differing dollar amounts over six years: White House, $256 billion; House, $299 billion; and Senate, $318 billion. Prior to the election, House Ways & Means Committee Chairman Bill Thomas (R-CA) indicated that the $299 billion package, with $284 billion guaranteed, stood to receive White House blessing. President Bush had threatened to veto any highway bill from Congress whose funding outlays exceeded revenues from existing user fees.

As TEA-21 reauthorization rolls over into the 109th Congress, the House and Senate transportation committees will likely be required to introduce new legislation in 2005, leaving Congressional observers questioning prospects for highway bill reauthorization at peak funding. The president, making clear his desire to hold all non-defense or homeland security programs to modest funding growth, is expected to have additional backing from newly elected GOP senators claiming to be fiscal and social conservatives. Proposed levels for highway bill reauthorization equate to a 30% to 52% increase above the original TEA-21, but do not factor inflationary trends from higher diesel fuel, portland cement and steel pricing.