House And Senate End 107TH Congress With
Continuing Resolution
Legislative Update
December 6, 2002
Download in printable PDF format.
The House and Senate brought a speedy close to the
lame-duck session when both chambers adjourned the
107th Congress on November 22. In a series of votes
before adjourning, the Congress approved legislation to
establish a Department of Homeland Security, create a
terrorism insurance backstop, and continue funding the federal
government - including the federal transit program - at
FY 2002 funding levels under a continuing resolution (CR)
that extends through January 11, 2003. FTA is not expected to
make apportionments under this CR.
In both the House and Senate, the FY 2003 Transportation
and Related Agencies Appropriations bills that provide funding
for the federal transit program have been approved by the
respective Appropriations Committees at the guaranteed TEA 21
level of $7.2 billion ($7.3 billion in the Senate). However,
neither bill has yet been considered by the full House or
Senate.
DISCRETIONARY SPENDING LIMITS COULD AFFECT
FINAL FY 2003 FUNDING LEVELS
The CR provides funding for most programs, including
transit, at the previous years level. However, in a deal
struck earlier between the House Transportation and
Infrastructure Committee leadership and House appropriators to
address the highway "RABA shortfall" issue, while highway
obligations are capped at $27.7 billion, the funds are to be
distributed at the higher FY 2002 rate of $31.8 billion.
Amtrak was seeking $1.2 billion from appropriators for FY
2003, but that funding remains tangled in the unresolved
congressional budget and appropriations process. Lawmakers in
the House have proposed funding of $760 million in their
version of the FY 2003 transportation appropriations bill,
which Amtrak President David Gunn said was inadequate to
maintain service throughout the year. The Senate version of
the FY 2003 transportation appropriations bill would provide
$1.2 billion for Amtrak. Currently, Amtrak is being funded
under the CR at $1.039 billion, which generally reflects all
federal funding the rail system received in FY 2002.
After the November elections, appropriation leaders have
agreed to White House demands to cap discretionary spending
limits for FY 2003. House and Senate appropriators have agreed
to hold the line at President Bushs FY 2003 $759 billion
domestic budget plan that is about $9 billion less than what
the Senate appropriators originally were working with. The
Presidents budget caps could require Senate appropriators to
abandon funding increases for transportation programs that the
Senate bill provided compared to the House bill. Thus, it is
likely that another CR will be passed early in January as
these issues are being worked out.
HOMELAND SECURITY BILL PASSED
Legislation creating a Department of Homeland Security
(P.L.107-296) received final congressional approval on
November 22. Some 22 agencies and roughly 170,000 employees
will be in the new department, which represents the largest
federal reorganization since the Department of Defense was
created in 1947. Two agencies now part of DOT, the
Transportation Security Administration and the Coast Guard,
will be included in the new department. Among other things,
the new department has the authority to make an order or
regulation on railroad security matters affecting railroad
safety.
TERRORISM INSURANCE MEASURE PASSES
Congress approved legislation that would provide a
multi-billion-dollar reinsurance "backstop," capping the
liability of the casualty and property insurance industry in
the event of future terrorist attacks. The measure
(P.L.107-297) would establish a three-year federal program
administered by the Treasury Secretary to back up commercial
property and casualty insurance covering up to
$100 billion each year. The federal government would pay
90 percent of insured losses over an insurers deductible, with
the insurer paying 10 percent. Insurance marketplace
retentions are set at $10 billion the first year, $12.5
billion the second year, and $15 billion the third year. The
Treasury Secretary may authorize governmental agencies that
self-insure to participate in the program.
ELECTION BRINGS CHANGES IN CONGRESS
Republicans recaptured control of the U.S. Senate on
November 5, ending 17 months of Democratic rule in the Senate
and giving President Bush majorities in both houses of
Congress and greater influence over their legislative agendas.
The election results will have far-reaching effects on the
108th Congress which begins in January when
lawmakers return to Capitol Hill.
Chairmanships of Senate committees, including those with
jurisdiction over public transportation, will change as a
result of the Republicans recapturing control. It is expected
that Senator Richard Shelby (R-AL) will become chairman of the
Senate Banking Committee and Senator Paul Sarbanes (D-MD) will
become its ranking minority member. The Senate Banking
Committee has jurisdiction over the federal transit program
and TEA 21 reauthorization as it relates to transit. Senator
Wayne Allard (R-CO) is expected to become chairman of the
Banking Committees Subcommittee on Housing and Transportation,
and Senator Jack Reed (D-RI) will become its ranking minority
member. Likewise in the Senate Appropriations Subcommittee on
Transportation, Senator Shelby is expected to become chairman
of the subcommittee, and Senator Patty Murray (D-WA) will
become its ranking member.
Since the House remains in Republican control, Rep. Don
Young (R-AK) will likely remain chairman of the House
Committee on Transportation and Infrastructure, and Rep. Jim
Oberstar (D-MN) will continue as its ranking minority member.
This committee has jurisdiction over the reauthorization of
TEA 21, including transit and highways.
For further information, contact Tom Yedinak at
(202) 496-4865 or tyedinak@apta.com.
